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<DIV>Hi all,</DIV>
<DIV>Seems to me, like Eric says, that KICTANet should waste no time to call a series of emergency meetings or convenings to take proactive action on the ICT Board; delibrate and elaborate on who ought to be represented on that board before the decision is taken and it will be too late to influence it. Or is the board already constituted? If so what part did KICTANet play in this? Or what does it envisage for its ( the ICT Board) future actions and directions?</DIV>
<DIV> </DIV>
<DIV>Secondly, it is time to call a cross sectoral meeting to discuss the serious consequences of the absence of an SNO and devise a practical way forward which should then be forwarded to the appropriate government or other responsible for their attenion e.g. CCK, Infocom Ministry. The problem affects all of us and we all should show good will by being involved in a constructive way.<BR> </DIV>
<P>Cheers,</P>
<P>FE</P>
<P> </P>
<P><EM><FONT size=1>Florence Etta <BR>P.O. Box 14285,00800<BR>Westlands-Nairobi, Kenya<BR>Tel: Mobile + 254-733-621851 <BR>Terrestrial: + 254-20-7121506 <BR>Fax: + 254-20-7125732 <BR>Alternative Email:florence.etta@gmail.com </FONT></EM></P>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: garamond, new york, times, serif"><BR><BR>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman, new york, times, serif">----- Original Message ----<BR>From: Eric Osiakwan <eric@afrispa.org><BR>To: feanywhere@yahoo.co.uk<BR>Sent: Monday, 19 March, 2007 12:45:24 PM<BR>Subject: Re: [kictanet] RELIANCE MISSES OUT ON SNO LICENCE IN KENYA<BR><BR>
<DIV>Muriuki,</DIV>
<DIV><BR class=khtml-block-placeholder></DIV>
<DIV>Issues well raised and am sure the government would like to listen.</DIV>
<DIV><BR class=khtml-block-placeholder></DIV>
<DIV>I would suggest that a KICTANET meeting at which the larger framework of vertical as opposed to horizontal layering or unified licensing as opposed to Open Access of the communication system is discussed in detailed with the pros and cons. This meeting should end with some majority consensus and should have all the stakeholders so that as sector we are clear at least on the framework of our engagement going forward. </DIV>
<DIV><BR class=khtml-block-placeholder></DIV>
<DIV>I would also submit that a seperate meeting at which the local ownership of foreign stake and the mechanism for SME uptake as well as growth path is clearly outlined so that whiles you need some big fishes now you can also create your own big fishes in the future and more so as the sector progress with time. </DIV>
<DIV><BR class=khtml-block-placeholder></DIV>
<DIV>Eric here</DIV>
<DIV><BR class=khtml-block-placeholder></DIV>
<DIV><BR class=khtml-block-placeholder></DIV><BR>
<DIV>
<DIV>On 19 Mar 2007, at 11:58, Muriuki Mureithi wrote:</DIV><BR class=Apple-interchange-newline>
<BLOCKQUOTE type="cite">
<DIV style="MARGIN: 0px">It is time we reviewed the bidding system this country has adopted <SPAN class=Apple-converted-space> </SPAN>to</DIV>
<DIV style="MARGIN: 0px">remove conflict of policy interest and move this country forward. We must</DIV>
<DIV style="MARGIN: 0px">address ourselves to the purpose of the licence - is it to<SPAN class=Apple-converted-space> </SPAN>make money for</DIV>
<DIV style="MARGIN: 0px">the government to fill treasury gaps or to expand the telecommunications</DIV>
<DIV style="MARGIN: 0px">infrastructure. By demanding to have the cake and eat it, we are nowhere <SPAN class=Apple-converted-space> </SPAN>5</DIV>
<DIV style="MARGIN: 0px">years after starting the process of SNO and Third Cellular Operator. It is a</DIV>
<DIV style="MARGIN: 0px">lesson well documented in countries that Kenya copied ref Senegal and Malawi</DIV>
<DIV style="MARGIN: 0px">among others. At the heart of the conflict is a government stating that ICT</DIV>
<DIV style="MARGIN: 0px">is the driver of growth <SPAN class=Apple-converted-space> </SPAN>yet put barriers <SPAN class=Apple-converted-space> </SPAN>which cripple the operators</DIV>
<DIV style="MARGIN: 0px">even before they start.<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">The requirements of local partnership while sweet for political reasons is</DIV>
<DIV style="MARGIN: 0px">difficult to realise because the international partners have inadequate time</DIV>
<DIV style="MARGIN: 0px">to assess the right partner and hence the problems for SNO and third</DIV>
<DIV style="MARGIN: 0px">cellular<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">We need immediate action<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MARGIN: 0px">- first, scrap the requirement of 30% local owner by the time of application</DIV>
<DIV style="MARGIN: 0px">of licence<SPAN class=Apple-converted-space> </SPAN>but require that within 3 years the winner has brought on board</DIV>
<DIV style="MARGIN: 0px">local shareholders through the stock exchange and raise ownership to at</DIV>
<DIV style="MARGIN: 0px">least 49% by year 5 of operation . This has worked well for Tz</DIV>
<DIV style="MARGIN: 0px">- Second, the licence is not a cash cow - we need infrastructure badly now</DIV>
<DIV style="MARGIN: 0px">therefore that licence money should be invested to enable the<SPAN class=Apple-converted-space> </SPAN>new entrant</DIV>
<DIV style="MARGIN: 0px">to compete with the incumbents<SPAN class=Apple-converted-space> </SPAN>and roll out rapidly .<SPAN class=Apple-converted-space> </SPAN>Licence should not</DIV>
<DIV style="MARGIN: 0px">cost more that USD1. What the entrants should compete with is the cash they</DIV>
<DIV style="MARGIN: 0px">will invest in Kenya and the timeline.<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MARGIN: 0px">-finally, CCK should address the anomaly of conflicting policies it issues.</DIV>
<DIV style="MARGIN: 0px">In 2004, CCK issued a policy which translates to adoption of<SPAN class=Apple-converted-space> </SPAN>horizontal</DIV>
<DIV style="MARGIN: 0px">licensing regime to move away from vertical licensing regime. The SNO</DIV>
<DIV style="MARGIN: 0px">licence is in direct contradiction of the 2004 policy. Was the policy</DIV>
<DIV style="MARGIN: 0px">rescinded? The danger of the unified licence is that it denies Kenyan ICT</DIV>
<DIV style="MARGIN: 0px">entrepreneurs a natural growth path and condemns Kenya to permanently have</DIV>
<DIV style="MARGIN: 0px">few mega operators and many small operators <SPAN class=Apple-converted-space> </SPAN>without a path to migrate from</DIV>
<DIV style="MARGIN: 0px">small to big. Should the envisaged fast growing economy to vision 2030 be</DIV>
<DIV style="MARGIN: 0px">hinged on few mega operators whose power can sometimes rival the regulator?</DIV>
<DIV style="MARGIN: 0px">We need a paradigm shift towards horizontal licensing<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">Cheers<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MARGIN: 0px">Muriuki Mureithi</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">---------------------------------------</DIV>
<DIV style="MARGIN: 0px">Summit Strategies Ltd<SPAN class=Apple-converted-space> </SPAN>-<SPAN class=Apple-converted-space> </SPAN></DIV>
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<DIV style="MARGIN: 0px">Contacts : Tel<SPAN class=Apple-converted-space> </SPAN>+254 (20) 3875824 , Cell + 254 (722) 520090,<SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MARGIN: 0px">email: <A href="mailto:mureithi@summitstrategies.co.ke" target=_blank rel=nofollow>mureithi@summitstrategies.co.ke</A><SPAN class=Apple-converted-space> </SPAN></DIV>
<DIV style="MARGIN: 0px"><SPAN class=Apple-converted-space> </SPAN>alternate email : <A href="mailto:muriuki.mureithi@gmail.com" target=_blank rel=nofollow>muriuki.mureithi@gmail.com</A></DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
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<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">-----Original Message-----</DIV>
<DIV style="MARGIN: 0px">From: kictanet-bounces+mureithi=<A href="mailto:summitstrategies.co.ke@kictanet.or.ke" target=_blank rel=nofollow>summitstrategies.co.ke@kictanet.or.ke</A></DIV>
<DIV style="MARGIN: 0px">[<A href="mailto:kictanet-bounces" target=_blank rel=nofollow>mailto:kictanet-bounces</A>+mureithi=<A href="mailto:summitstrategies.co.ke@kictanet.or.ke" target=_blank rel=nofollow>summitstrategies.co.ke@kictanet.or.ke</A>] On</DIV>
<DIV style="MARGIN: 0px">Behalf Of alice</DIV>
<DIV style="MARGIN: 0px">Sent: 19 March 2007 09:01</DIV>
<DIV style="MARGIN: 0px">To: <A href="mailto:mureithi@summitstrategies.co.ke" target=_blank rel=nofollow>mureithi@summitstrategies.co.ke</A></DIV>
<DIV style="MARGIN: 0px">Subject: [kictanet] RELIANCE MISSES OUT ON SNO LICENCE IN KENYA</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px"><SPAN class=Apple-converted-space> </SPAN>From BALANCING ACT:</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">RELIANCE MISSES OUT ON SNO LICENCE IN KENYA</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">The Communications Commission of Kenya has cancelled a tender for the second</DIV>
<DIV style="MARGIN: 0px">national operator (SNO) licence that it had awarded Reliance Communications,</DIV>
<DIV style="MARGIN: 0px">after the consortium failed to pay for the fees.</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">This is the second cancellation, after CCK annulled the licence it had given</DIV>
<DIV style="MARGIN: 0px">a consortium led by Dubai-based Vtel Holdings in January, for failing to pay</DIV>
<DIV style="MARGIN: 0px">the US$169 million (Sh12 billion) licence fee it had bid.</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">Reliance, which was the second highest bidder at US$111 million (Sh7.8</DIV>
<DIV style="MARGIN: 0px">billion), was allowed to apply for the licence, but on condition that it pay</DIV>
<DIV style="MARGIN: 0px">Sh12 billion to match Vtel's bid. Reliance confirmed that it would take up</DIV>
<DIV style="MARGIN: 0px">the offer and requested for more time to prepare for the licence.</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
<DIV style="MARGIN: 0px">CCK said last week Reliance had a deadline of March 15. "By the expiry of</DIV>
<DIV style="MARGIN: 0px">the said deadline at 4.00 p.m. yesterday (Thursday) Reliance Communications</DIV>
<DIV style="MARGIN: 0px">had not made a formal application for the licence as required," CCK said.</DIV>
<DIV style="MARGIN: 0px">The Commission's director-general John Waweru said they had resolved to</DIV>
<DIV style="MARGIN: 0px">immediately restart the tendering process for the licence.</DIV>
<DIV style="MARGIN: 0px">(SOURCE: The Nation)</DIV>
<DIV style="MIN-HEIGHT: 14px; MARGIN: 0px"><BR></DIV>
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<DIV style="MARGIN: 0px 0px 0px 20px">Eric M.K Osiakwan</DIV>
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