<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"><DIV>Shem,</DIV>
<DIV> </DIV>
<DIV>This is definitely a horror strory, if it happens to be true. This reminds to recal the many unanswered questions and complexities surounding numerous past privatization deals in many countries in Africa.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>Reagrds</DIV>
<DIV> </DIV>
<DIV>Vitalis</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><BR> </DIV>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman, new york, times, serif"><BR>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman, new york, times, serif"><FONT face=Tahoma size=2>
<HR SIZE=1>
<B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> Shem Ochuodho <shemochuodho@yahoo.com><BR><B><SPAN style="FONT-WEIGHT: bold">To:</SPAN></B> volunga@yahoo.com<BR><B><SPAN style="FONT-WEIGHT: bold">Cc:</SPAN></B> Nation Newsdesk <newsdesk@nation.co.ke>; EThinkTank Tanzania <ethinktanktz@yahoogroups.com>; KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke>; EA Standard Editorial <editorial@eastandard.net><BR><B><SPAN style="FONT-WEIGHT: bold">Sent:</SPAN></B> Sat, May 1, 2010 5:52:08 PM<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> [kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya<BR></FONT><BR>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman, new york, times, serif">
<DIV></DIV>
<DIV>Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.</DIV>
<DIV> </DIV>
<DIV>I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 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:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%20as%20Telkom%20misses%20targets%20/-/1226/906392/-/3urxv8/-/index.html.</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
<DIV></DIV></DIV><BR></DIV></DIV></div><br>
</body></html>