[kictanet] GoK-Telkom-France Telecom agreement

[Eric M.K Osiakwan]

Dr. Ndemo,

I would STILL give you the benefit of the doubt....hopefully, we can pick up this conversation again in early 2011.

Good day.

Eric here



On 28 Jun 2010, at 13:43, bitange at jambo.co.ke wrote:

> Eric,
> Wait and see if the SLAs will be messed up in favour of the managing party in six months.  They must work within the terms provided by the GOK otherwise they lose the whole thing.  We did not give the network as part of the deal.  We had already requeted them to manage the project.  The cost of broadband here will drop significantly within six to one year's time.  Economically most operators will have attained a critical base to lower the cost without signficantly affecting their revenue.
> 
> My friend we have multiple competititors at all levels and the good thing is that the market is beggining to dictate terms.  Depending on your size, I have seen sub 200 dollar per MB.  As we continue to set up POPs here, it will not surprise to see offers of over 10 MBs for less 50 dollars.  The challenge always is how to get this to ordinary mwananchi on the street.
> 
> Regards.
> 
> Ndemo.
> 
> Regards.
> 
> Ndemo.
> Sent from my BlackBerry®
> 
> -----Original Message-----
> From: "Eric M.K Osiakwan" <emko at internetresearch.com.gh>
> Sender: kictanet-bounces+bitange=jambo.co.ke at lists.kictanet.or.ke
> Date: Mon, 28 Jun 2010 11:51:41 
> To: <bitange at jambo.co.ke>
> Cc: KICTAnet ICT Policy Discussions<kictanet at lists.kictanet.or.ke>
> Subject: Re: [kictanet] GoK-Telkom-France Telecom agreement
> 
> Dr. Ndemo,
> 
> Hope your morning is well.
> 
> I would take it that the media report is subtantive in which case, what we have is not different from what happened in Ghana re: the Vodafone transaction in which the Ghana government threw in the national fiber backbone (under NCBC - an independent national backbone provider) to sweeten the deal except in this case, it is after the facts. That decision soo compromised the idea of an open access national fiber backbone that MTN, tiGO and now Glo are building their own competiting national fiber backbones. While this means that there is competition in that layer of the network, it begs the question of market uptake against multiple investments of the same dollar which is transfered to the enduser as high cost?
> 
> Giving the management and maintenance contract to an active competitor in the market just gives room for abuse of incumbency and compromises the ability of the regulator to be active in a market as ours, even in more matured markets Rory Macmillan in the attached piece underlines the multiple challenges the regulator faces so am afraid to conclude that in your bid to salvage the Telkom Kenya deal, you have skewed the market in their direction which raises the question of the real intent at play. I hope you forgive my blantness.....
> 
> Good day.
> 
> Eric here
> 
> 
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> 

Eric M.K Osiakwan
Director 
Internet Research
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emko at internetresearch.com.gh
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