Shem, <br><br>If anything, the fact that Telkom Kenya had accumulated a ridiculously bloated workforce of 19,000 was an indication that government wasn't exactly bending over backwards to manage this company properly. Generally, I think the telecom sector is one that has done very well with private-sector management - water, for example, or roads were a lot more difficult. <br>
<br>Privatisations can only be as good as the people privatising: If government nudges the to-be-privatised company to someone well connected, but also incapable with no finances, then it's not going to work out well. Even when this isn't as clearcut, much depends on the terms set, the due diligence, etc. It's a complex technical undertaking, and you can't divorce such transactions from the overall governance environment. <br>
<br>I doubt that France Telecom will get the whole amount back - here's why: <br><a href="http://www.ratio-magazine.com/201004132691/News-Analysis/News-Analysis-Cash-Back-for-France-Telecom-or-Checking-Out.html" target="_blank">News Analysis: Cash Back for France Telecom or
Checking Out?</a><br><br>Andrea <br><br><br><br><div class="gmail_quote">On 1 May 2010 17:52, Shem Ochuodho <span dir="ltr"><<a href="mailto:shemochuodho@yahoo.com" target="_blank">shemochuodho@yahoo.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
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<div>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.</div>
<div>�</div>
<div>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)!</div>
<div>�</div>
<div>What is going on here?�Read further:- <a href="http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%20as%20Telkom%20misses%20targets%20/-/1226/906392/-/3urxv8/-/index.html" target="_blank">http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%20as%20Telkom%20misses%20targets%20/-/1226/906392/-/3urxv8/-/index.html</a>.</div>
<div>�</div>
<div>Warm rgrds,</div>
<div>Shem<br>�</div>Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon)<br>Senior Advisor<br>Ministry of Telecom & Postal Services<br>Government of Southern Sudan (GoSS), Juba<br>Kenya Community Abroad (KCA) 2007 Excellence Award Winner<br>
AfricaOnline 2005 Industry Pioneer Award Recipient<br>Father of Internet in Kenya (CSK 2000)<br>Cell: +249-955-021-040/+256-477-232025/+254-734-137371<br>Skype: shem.ochuodho
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