<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman, new york, times, serif;font-size:12pt">Hi,<br><br>Welcome to the beginning of the end, the cable is going private and it will remain private exactly as happened in West Africa.<br><br>Can those of you who where changing your business plans to reflect lower internet access instead increase the cost of that component.<br><br>As I keep saying the solution is to concentrate on creating local content and keeping local traffic local, let the rest of the world beat a path to us and not the reverse. <br><br>The article in the Nation last week about outsourcing confirmed my fears our outsourcing model is a reverse pyramid as opposed to the rest of the world. Our outsourcing companies have 30% local provision and 70% off shore yet the countries we are competing against have the reverse.<br><br>Time reveals
all.<br><div> </div>Robert Yawe<br>KAY System Technologies Ltd<br>Phoenix House, 6th Floor<br>P O Box 55806 Nairobi, 00200<br>Kenya<br><br><div>Tel: +254722511225, +254202010696<div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><br><br><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;">----- Original Message ----<br>From: "bitange@jambo.co.ke" <bitange@jambo.co.ke><br>To: robertyawe@yahoo.co.uk<br>Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke><br>Sent: Monday, 17 March, 2008 11:00:02 AM<br>Subject: [kictanet] TEAMs to switch into Private Hands<br><br>Dear
Walubengo,<br><br><br>Q:
Will
the
eventual
majority
shareholders
-
essentially
the
private<br>sector
-
operate
the
cable
on
Open
Access
principles?
Specifically,
the<br>following
questions
arise.<br><br>A:
Competition
alone
will
drive
the
cost
low
and
if
that
fails,
Government<br>can
intervene
using
the
capacity
it
holds
and
if
that
fails,
the
regulator<br>will
have
to
intervene.<br><br>Q:
1.
Will
the
cable
be
open
for
direct
connectivity
(at
thesource
in
MSA)<br>to
other
future
telco
players?<br><br>A:
Yes
indeed.
See
Q3
responses
below.<br><br>Q:
2.
Will
the
price
of
connecting
to
the
international
fiber
be
driven
by<br>profit-motives
or
will
it
be
based
on
the
'cost-of-operating-the-fiber'<br>basis.<br><br>A:
Price
of
connecting
to
the
International
fibre
remaims
cost
of<br>operating
the
fibre
but
retail
price
will
have
an
element
of
profit.
What<br>we
shall
guard
agaist
is
exploitative
prices.<br><br>Q:
3.
What
modalities
exist
for
future
investors
who
may
wish
to
own
part<br>of
the
fiber
maybe
2
or
5years
after
the
cable
is
operational-
or
will<br>this
thing
be
a
closed-club
to
the
original
financiers
once
the
cable<br>becomes
operational?(remember
the
consortium
approach
of
EASSy?)<br><br>A:
The
Government
of
Kenya
would
continue
to
dilute
its
shares
in
order
to<br>ensure
healthy
competion
exist.
The
model
therefore
is
not
a
closed
shop.<br><br>Q:
4.
What
are
the
steps
involved
in
transparently
transferring
this<br>public
resource
into
private
sector?<br><br>A:
You
cannot
force
anyone
to
buy
into
Teams.
There
are
clear
deadlines<br>by
the
financial
arranger
for
making
commitments.
The
Standard
Chatered<br>Bank
were
procured
to
make
financial
arrangements
for
the
cable.
Although<br>sometimes
Media
misses
the
point
here
and
there,
it
has
done
a
wonderful<br>job
keeping
us
on
our
toes.<br><br>Ndemo.<br><br><br>---------------------------------------------- <br>This
message
has
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viruses
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Jambo
MailScanner,
and
is<br>believed
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be
clean.<br>---------------------------------------------<br>"easy
access
to
the
world" <br><br><br>_______________________________________________<br>kictanet
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