[kictanet] Is Telkom Kenya insolvent and should the Government bail it out? Again?

Tue Jun 4 20:34:00 EAT 2013

I raised an alarm last year that Orange was neglecting the infrastructure
and letting go of clients/revenue. I saw this coming. They should not be
bailed out at all.

On Tue, Jun 4, 2013 at 6:47 PM, Phares Kariuki <pkariuki at gmail.com> wrote:

> Not so simple…
>
> Telkom Kenya (at some point between 2006/2007), was East Africa's largest
> company by assets…
>
> Even if Orange was shortchanged by 300M USD, there are still significant
> real estate holdings (all the telephone exchanges - the land they have  etc
> etc).
>
> These are assets which were bought with public cash. It's a tricky
> situation where the government either throws good money after what is
> potentially a bad investment or the government lets Telkom die (with a
> significant investment of our tax money)… Simply letting the organization
> go, might cost the country more in terms of asset loss…
>
>
> On Tuesday, June 4, 2013 at 9:54 AM, Adam Nelson wrote:
>
> IMHO, the easy solution is for the government to divest its share and let
> the market take care of the rest.  Landlines and fixed data connections no
> longer require government support and if the company fails, it's not a big
> problem since Telkom is not a critical resource (unlike KPLC).
>
> ---
> OpenStack for Africa: http://signup.kili.io
> Musings: https://twitter.com/varud
> About Adam: https://www.linkedin.com/in/adamcnelson
>
>
> On Tue, Jun 4, 2013 at 8:57 AM, Barrack Otieno <otieno.barrack at gmail.com>wrote:
>
> Ali,
>
> I think Telkoms problems are deliberate, there is no way such an
> institution can be crippled without a deliberate move and sheer ignorance
> this is where we call for accountability, there must be someone smiling
> somewhere over its misfortunes. Sometimes Business is common sense, you
> reap what you sow, we need to know who was the sower in this case?, what
> was sowed and who reaped where because public money was pumped into this
> organization. We also need to have a public audit of its asset base and
> what really transpired when the organization was downsizing.
>
> Best Regards
>
>
> On Tue, Jun 4, 2013 at 8:29 AM, Ali Hussein <ali at hussein.me.ke> wrote:
>
> Listers
>
> The trials and tribulations of Telkom Kenya are a sad chapter in the
> country's road towards actualization of Vision 2030.
>
> What actually ails Telkom Kenya?
>
> What is the real reason behind its inability to leverage on its legacy
> systems to re-invent its business model?
>
> Is one of the problems the fact that the Government shackled it with a
> nondescript, pedestrian workforce steeped in Moi era  non-performance
> ethos?
>
> Are there forces beyond the powers of the Management of Telkom Kenya (like
> Mpesa maybe?) that has made it so irrelevant in the scheme of things?
>
> In my humble opinion this has been a failed exercise in privatization.
>
> What did we do right in the Government divestiture of Safaricom in
> comparison to Telkom Kenya?
>
>
> http://www.nation.co.ke/News/Taxpayers-face-Sh6bn-bill-in-foul-share-deal/-/1056/1870526/-/item/0/-/ign3ff/-/index.htmlu
>
> Ali Hussein
> CEO | 3mice interactive media Ltd
> Principal | Telemedia Africa Ltd
>
> +254 713 601113
>
> "The future belongs to him who knows how to wait." - Russian Proverb
>
> Sent from my iPad
>
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> --
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> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
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> --
> Regards,
>
> Phares Kariuki
>
> | T: +254 720 406 093 | E: pkariuki at gmail.com | Twitter: kaboro | Skype:
> kariukiphares | B: http://www.kaboro.com/ |
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-- 
Muthoni

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