[kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya

[Vitalis Olunga]

Shem,

This is definitely a horror strory, if it happens to be true. This reminds to recal  the many unanswered questions and complexities surounding numerous past privatization deals in many countries in Africa.


Reagrds

Vitalis



 



________________________________
From: Shem Ochuodho <shemochuodho at yahoo.com>
To: volunga at yahoo.com
Cc: Nation Newsdesk <newsdesk at nation.co.ke>; EThinkTank Tanzania <ethinktanktz at yahoogroups.com>; KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>; EA Standard Editorial <editorial at eastandard.net>
Sent: Sat, May 1, 2010 5:52:08 PM
Subject: [kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya


Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.

I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!

What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%20as%20Telkom%20misses%20targets%20/-/1226/906392/-/3urxv8/-/index.html.

Warm rgrds,
Shem
 Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon)
Senior Advisor
Ministry of Telecom & Postal Services
Government of Southern Sudan (GoSS), Juba
Kenya Community Abroad (KCA) 2007 Excellence Award Winner
AfricaOnline 2005 Industry Pioneer Award Recipient
Father of Internet in Kenya (CSK 2000)
Cell: +249-955-021-040/+256-477-232025/+254-734-137371
Skype: shem.ochuodho 



      
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