[kictanet] kictanet Digest, Vol 73, Issue 16

Edwin Onchari eonchari at lynxbits.com
Tue Jun 4 20:59:03 EAT 2013


Telkom Kenya and France should relinquish their shareholding to less than
30%, and allow private equity (through NSE listing) to own the remaining 70%
and get a competent team to run the corporation. Makes no sense why the
organization is making losses with the sort of infrastructure and asset base
it enjoys. Staff within the organization are both demoralized and lack
requisite skills to turn this elephant to profitability.

Edwin


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To: Edwin
Subject: kictanet Digest, Vol 73, Issue 16

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Today's Topics:

   1. Re: Is Telkom Kenya insolvent and should the Government bail
      it out? Again? (Barrack Otieno)
   2. Re: Is Telkom Kenya insolvent and should the Government	bail
      it out? Again? (Ali Hussein)


----------------------------------------------------------------------

Message: 1
Date: Tue, 4 Jun 2013 19:04:23 +0300
From: Barrack Otieno <otieno.barrack at gmail.com>
To: Phares Kariuki <pkariuki at gmail.com>
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Subject: Re: [kictanet] Is Telkom Kenya insolvent and should the
	Government bail it out? Again?
Message-ID:
	<CAKX6dsFEhQFyV+LP3WgMv_5i_VT0R6PeXawnZ0O8U556aKZ=aA at mail.gmail.com>
Content-Type: text/plain; charset="windows-1252"

You nailed it Phares, exactly!


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-d
> eal/-/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
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/otieno.barrack%4
> 0gmail.com
>
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder 
> platform 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.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors 
> online that you follow in real life: respect people's times and 
> bandwidth, share knowledge, don't flame or abuse or personalize, 
> respect privacy, do not spam, do not market your wares or qualifications.
>
>
>
>
> --
> Barrack O. Otieno
> +254721325277
> +254-20-2498789
> Skype: barrack.otieno
> http://www.otienobarrack.me.ke/
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/adam%40varud.com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder 
> platform 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.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors 
> online that you follow in real life: respect people's times and 
> bandwidth, share knowledge, don't flame or abuse or personalize, 
> respect privacy, do not spam, do not market your wares or qualifications.
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/pkariuki%40gmail
> .com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder 
> platform 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.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors 
> online that you follow in real life: respect people's times and 
> bandwidth, share knowledge, don't flame or abuse or personalize, 
> respect privacy, do not spam, do not market your wares or qualifications.
>
>
> --
> Regards,
>
> Phares Kariuki
>
> | T: +254 720 406 093 | E: pkariuki at gmail.com | Twitter: kaboro | Skype:
> kariukiphares | B: http://www.kaboro.com/ |
>
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> Unsubscribe or change your options at
> https://lists.kictanet.or.ke/mailman/options/kictanet/otieno.barrack%4
> 0gmail.com
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder 
> platform 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.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors 
> online that you follow in real life: respect people's times and 
> bandwidth, share knowledge, don't flame or abuse or personalize, 
> respect privacy, do not spam, do not market your wares or qualifications.
>



--
Barrack O. Otieno
+254721325277
+254-20-2498789
Skype: barrack.otieno
http://www.otienobarrack.me.ke/
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Message: 2
Date: Tue, 4 Jun 2013 20:09:39 +0300
From: Ali Hussein <ali at hussein.me.ke>
To: Barrack Otieno <otieno.barrack at gmail.com>
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Subject: Re: [kictanet] Is Telkom Kenya insolvent and should the
	Government	bail it out? Again?
Message-ID: <2A3E4FD8-3C8D-4BBB-97EA-F7520327C6F7 at hussein.me.ke>
Content-Type: text/plain; charset="utf-8"

I disagree..there are definitely assets within Telkom Kenya. The question is
whether those assets are pertinent to the success of a Telco. Definitely not
all of them are.

May be the Government should cut its losses and divest fully from Telkom
Kenya. Certainly it doesn't make sense anymore for Governments to own a
piece of a Telco. If it wants to continue to maintain its Big Brother role
in the name of National Security it doesn't need to own a Telco. Just ask
Google and AT&T and other Telcos in the US.    

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

On Jun 4, 2013, at 7:04 PM, Barrack Otieno <otieno.barrack at gmail.com> wrote:

> You nailed it Phares, exactly!
> 
> 
> 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-sha
>>>>> re-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
>>>>> 
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at lists.kictanet.or.ke
>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>> 
>>>>> Unsubscribe or change your options at 
>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/otieno.barra
>>>>> ck%40gmail.com
>>>>> 
>>>>> 
>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
platform 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.
>>>>> 
>>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
online that you follow in real life: respect people's times and bandwidth,
share knowledge, don't flame or abuse or personalize, respect privacy, do
not spam, do not market your wares or qualifications.
>>>> 
>>>> 
>>>> 
>>>> --
>>>> Barrack O. Otieno
>>>> +254721325277
>>>> +254-20-2498789
>>>> Skype: barrack.otieno
>>>> http://www.otienobarrack.me.ke/
>>>> 
>>>> _______________________________________________
>>>> kictanet mailing list
>>>> kictanet at lists.kictanet.or.ke
>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>> 
>>>> Unsubscribe or change your options at 
>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/adam%40varud.
>>>> com
>>>> 
>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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.
>>>> 
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
online that you follow in real life: respect people's times and bandwidth,
share knowledge, don't flame or abuse or personalize, respect privacy, do
not spam, do not market your wares or qualifications.
>>> 
>>> _______________________________________________
>>> kictanet mailing list
>>> kictanet at lists.kictanet.or.ke
>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>> 
>>> Unsubscribe or change your options at 
>>> https://lists.kictanet.or.ke/mailman/options/kictanet/pkariuki%40gma
>>> il.com
>>> 
>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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.
>>> 
>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
online that you follow in real life: respect people's times and bandwidth,
share knowledge, don't flame or abuse or personalize, respect privacy, do
not spam, do not market your wares or qualifications.
>> 
>> --
>> Regards,
>> 
>> Phares Kariuki
>> 
>> | T: +254 720 406 093 | E: pkariuki at gmail.com | Twitter: kaboro | 
>> | Skype: kariukiphares | B: http://www.kaboro.com/ |
>> 
>> 
>> 
>> _______________________________________________
>> kictanet mailing list
>> kictanet at lists.kictanet.or.ke
>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> 
>> Unsubscribe or change your options at 
>> https://lists.kictanet.or.ke/mailman/options/kictanet/otieno.barrack%
>> 40gmail.com
>> 
>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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.
>> 
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
online that you follow in real life: respect people's times and bandwidth,
share knowledge, don't flame or abuse or personalize, respect privacy, do
not spam, do not market your wares or qualifications.
> 
> 
> 
> --
> Barrack O. Otieno
> +254721325277
> +254-20-2498789
> Skype: barrack.otieno
> http://www.otienobarrack.me.ke/
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
> 
> Unsubscribe or change your options at 
> https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussei
> n.com
> 
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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.
> 
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
online that you follow in real life: respect people's times and bandwidth,
share knowledge, don't flame or abuse or personalize, respect privacy, do
not spam, do not market your wares or qualifications.
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