November 2006 - KICTANet

Re: [Kictanet] [Fibre-for-africa] Whats i have being talking of as a public private partnership in ownership of the critical infrastructur
by Eric Osiakwan 04 Dec '06

04 Dec '06

Dear All, In my rush to attend to some emergency yesterday i did not read over so ended up with french (not good enough french for Bill to read.....:-) instead of english so please allow me to come again. Also this is being monitored on the KICTANET list so i have made an extension to them as well as to the AfrISPA list on which this is taking space. Anriette, The principle is the same however since EASSy was spanning multiple jurisdictions, it waranted multiple platforms for the stock market activity but the Kenyan one (TEAMS) is a single domain so in my mind the question should be "would it make sense for it to trade on one exchange or the multiple approach would generate much scale in terms of the financial lifting that is expected and the activities thereoff?" In someway Brian seems to suggest a multiple approach but i have a knowledge deficit of the East African Stock markets co- operatin and how this may work. Am aware that SWOPNET in Tanzania is similar to KICTANET and iNETWORK in Uganda also has the same semblance so if KICTANET liases with those camps we could get some country info on the dynamics at play or someone from the lists could feed us with some knowledge (at least am interested in knowing.....:-) YES, it looks like a race (NOT A RAT RACE...:-) but the precedent of very low cost bandwidth and non-discriminatory practise must be a guiding light. Eric here NB: Bill, thanks for the heads up. For those who are seeing this for the first time, below is MY french version of the english rendition above so if you dont understand the french dont worry, just stick to the english and you would not have missed anything at all.....:-) On 27 Nov 2006, at 20:06, Eric M.K Osiakwan wrote: > Anriette, > > The principle is the same however since EASSy was spanning multiple > jurisdictions then it warantted multiple platforms for the stock > market activity but the Kenyan one is a single domain so in my mind > should be that would is make sense for it to trade on one exchange > or the multiple approach would generate much scale in terms of the > financial lifting the expected activities? > > YES, it looks like arade but the precedent of very low cost and non- > discriminatory practise must be a guiding light. > > Eric here > > > On 27 Nov 2006, at 22:19, Anriette Esterhuysen wrote: > >> Dear Eric >> >> A group of us APC people actually discussed your idea quite >> intensively a >> while ago. >> >> The one difference between what is happening here, and what you >> propose, >> is that the Kenyan initiative will involve only one stock >> exchange.... so, if the >> IPO continues, it will be listed in Kenya... as far as I know. >> >> Your proposal would have involved the 'entity' listing on multiple >> stock >> exchanges.... that would have been much more complicated. >> >> Seeing these new financial models emerge is very interesting. And >> it does >> feel a bit like a race... whose cable will light up first? Who >> will sell the >> cheapest bandwidth? Any bets? >> >> Anriette >> >> >>> Folks, >>> >>> Below is exactly what i have being chanting as a way forward in the >>> ownership of the infrastructure; The Kenya Government will have a 40 >>> per cent holding in the project, Etisalat 20% and the remaining 40% >>> will go to investors in the East African region. The Government has >>> said it will organise an IPO on the Kenyan Stock Exchange. Several >>> Kenyan companies have expressed interest and one said that the >>> Government had told them it would "guarantee their loan". The >>> details of the finance package have not yet been settled but it is >>> unclear where the Kenyan Government will raise its 40% from. Will >>> the >>> World Bank simply shift a portion of its EASSy funding to the new >>> project as many think likely? >>> >>> NB; From this week's Balancing Act, full story below for your >>> pleasure. >>> >>> Thank God the Kenya are experimenting with this approach where >>> government owns part, private sector owns part, educational >>> institutions should also own part, CSO owns part through IPO on the >>> stock market. >>> >>> The Kenya government can actually raise the 40% from government >>> bonds >>> and am not an expert on the stock market discipline of shares or >>> bonds but this is where the financial experts need to come out with >>> innovative solutions that can help raise much of this money locally >>> and it is possible. >>> >>> In the attached paper which is an output of the great work Rahul >>> Tongia did with some colleagues and little input from me, it is >>> clear >>> that we could actually wire Africa up with fiber to the most >>> population densed centres for a billion dollars whcih means if every >>> African put a dollar on the table we could wire Africa up with fiber >>> and 50 percent of that dark fiber already exist - what does that >>> mean >>> to you as an African? >>> >>> >>> You Kenyans are showing the way and even it it does not work you >>> would be know for showing us how this model is not workable and then >>> we can try another. We Africans must try new ways of doing these >>> things and make our own mistakes and find our own solutions to our >>> problems but learn to avoid the mistakes of the Americans, Europeans >>> and Asians. Thank God for this BOLD move, it is commendable. >>> >>> >>> TOP STORY: KENYA BEGINS THE COUNTDOWN TO CHEAP INTERNATIONAL FIBRE >>> ____________________________________________________________________ >>> _ >>> >>> It´s like waiting for a matatu. You wait for ages and none come >>> along. But just when you´re about to give up hope, three come along >>> at the same time, all trying to come to a screaming halt in front of >>> you. Kenya now has three (or more) potential international fibre >>> projects that could be complete within 12 months. Each one is loudly >>> proclaiming that it will deliver cheap international bandwidth. >>> Russell Southwood took the temperature in the market last week about >>> what the impact of this bandwidth will be upon the market. >>> >>> The Kenya Government has signed an MOU to build a fibre link to >>> Fujairah >>> in the UAE currently costed at Ksh5.7 billion. The construction and >>> supply contract will be awarded early next year and the project, >>> dubbed The East African Marine System (Teams), will be ready by >>> November, according to a joint statement issued by both parties from >>> Dubai. Many in the sector believe that it will be more like 19 >>> months >>> or more before completion. >>> >>> The Kenya Government will have a 40 per cent holding in the project, >>> Etisalat 20% and the remaining 40% will go to investors in the East >>> African region. The Government has said it will organise an IPO >>> on the >>> Kenyan Stock Exchange. Several Kenyan companies have expressed >>> interest and one said that the Government had told them it would >>> "guarantee their loan". The details of the finance package have >>> not yet been settled but it is unclear where the Kenyan Government >>> will raise its 40% from. Will the World Bank simply shift a >>> portion of >>> its EASSy funding to the new project as many think likely? >>> >>> The Government´s commitment to a 12 month schedule is a bold move >>> but one that must lay them open to a certain amount of >>> scepticism. The >>> tender for expressions of interest was only issued 2 weeks ago and >>> Government timetabling is notoriously slow compared to the private >>> sector. Apparently the Private Secretary has been telling interested >>> parties that the Government wants prices comparable to those to be >>> found in India in 12 months time. This benchmark has been set in >>> order >>> that Kenya will be able to compete in the international outsourcing >>> market. >>> >>> Apparently a number of interested parties said that they would >>> put up >>> all the money to build it if they could have a monopoly and he sent >>> them away disappointed. But more worryingly one interested party >>> told >>> us that it could only get involved if it also allowed Telkom >>> Kenya to >>> be a shareholder. >>> >>> The next international fibre project is KDN´s and it has now signed >>> its contract with Flag Telecom. Its link from Mombasa will terminate >>> in an undersea junction in international waters off of the Yemen. It >>> says the link will be fully operational in the first quarter of >>> 2008, >>> just 15 months away. The company believes that it will come to >>> market >>> with capacity at $500 per mbps pm but that the price of bandwidth >>> will >>> go up to those wanting to invest as time passes. In other words, for >>> those who commit early prices will be lowest and for those who >>> come in >>> late, prices will go higher. It also stresses that its landing >>> station >>> at Mombasa will allow other carriers to co-locate there charging >>> only >>> electricity and services at cost. >>> >>> So this leaves the third project EASSy looking as if it will be the >>> third runner. NEPAD appears to have made little more progress on >>> persuading more African Governments to sign its political protocol. >>> And whilst the members of the EASSy consortium (that still includes >>> KDN and Telkom Kenya) are still moving things forward, there >>> remains a >>> disconnect between the political and commercial ends of the project. >>> If both of the above projects go ahead, there is clearly much less >>> need to build the Mombasa-Djibouti section of the route and it >>> has to >>> be said that both of the above projects have better international >>> connection points. >>> >>> As if three were not enough, Ethiopia´s ETC has now had its >>> international fibre connection working effectively for two months >>> via >>> Port Sudan and Saudi Arabia. But because it is landlocked and it had >>> endless fruitless arguments with Djibouti Telecom over control of a >>> possible fibre link, it wants to find a second international fibre >>> connection. Therefore it is in serious conversations with both of >>> Kenya´s fibre network operators about connecting to the Mombasa >>> links when they are ready. If this goes ahead, both it and Kenya >>> will >>> then have two international fibre links. >>> >>> Because the process of getting the international fibre to Kenya has >>> been both confusing and "on-off", everyone in the market >>> (including customers) have understandably not really grasped the >>> impact of its arrival on their businesses. Until now ISPs and >>> satellite resellers have largely been in the businesses of living on >>> the margin they make between buying and selling bandwidth. >>> >>> These margins have been kept high as they have concentrated on >>> selling >>> to comparatively few customers. Ironically it has been a high-price, >>> low volume business where their primary commodity - bandwidth - >>> has always been in short supply, not least because some of them >>> increased their margin by contending it as much as possible. This >>> has >>> meant that bandwidth quality is often variable at best for those not >>> paying "top dollar" for a premium service. >>> >>> If you argue that international fibre prices should be low price, >>> high >>> volume, then the national business model changes: what´s sauce for >>> the goose is sauce for the gander. Bandwidth becomes cheap and >>> plentiful at a sub $1000 threshold. The margins that can then be >>> charged make it difficult for those who are not operating at >>> volume to >>> stay in business. >>> >>> However it does now open up opportunities for new services, content >>> and applications that can be sold to customers who should now be >>> paying European prices for real broadband connections (1-2 meg >>> upwards) rather than the paltry 64 kbps they are currently >>> receiving. >>> There are at least 500,000 households in Kenya that are at an income >>> level that make them potential targets for broadband. It would take >>> only half of those households to sign up for there to be the >>> beginnings of a very different market. >>> >>> The real sign that the market has not "got it" is that some key >>> ISPs are not passing on the information about these soon-to-be cheap >>> prices but are seeking to protect their high margins by telling >>> customers higher prices. A heads-up, guys. The sector is a >>> village and >>> news will get round quickly and we´ll encourage the circulation of >>> this price information. The market´s about to change, get ready to >>> change with it. >>> >>> At the national level, there is now a third source of fibre >>> capacity. >>> Jamii Telecommunications has signed an agreement with the Kenya >>> Light >>> and Power Company (KPLC) to sell an STM1´s worth of its fibre >>> capacity in Nairobi and Mombasa, with KPLC saying that it will >>> triple >>> its capacity shortly. Two other companies - CTN and Cable Vision - >>> have been granted a licence to sell KPLC´s capacity and it is >>> telling (in terms of the argument above) that both are in the video >>> download and pay-TV business. Not so far afield, Tanzanian power >>> utility TANESCO is currently building out fibre capacity and has >>> invited bids to sell this capacity. Again KDN is poised to make a >>> fibre connection to Tanzania. >>> >>> However a recent ping on the Kampala-Nairobi route shows that >>> neither >>> KDN nor Telkom Kenya has got its fibre route operational. KDN is >>> promising it will be operational by the end of first quarter 2007 >>> and >>> that prices will be 20% cheaper. >>> >>> Elsewhere in the market, the new VoIP operators are finding it >>> difficult >>> to get interconnection agreements and to get proper service from >>> interconnect service providers. Telkom Kenya is charging absurdly >>> high >>> prices but has at least reached interconnect agreements. >>> Nevertheless >>> the new fixed wireless operators - Flashcom and Popote - are >>> having difficulties: customers are unable to receive or make >>> calls to >>> certain countries. Apparently anyone who calls a customer number of >>> these fixed wireless operators from Germany gets a number >>> unobtainable. >>> >>> Access Kenya´s Yello VoIP service has been aimed at corporates and >>> has attracted 250 customers who generate 120,000 minutes a month. >>> But >>> it has had difficulty getting interconnection agreements with the >>> mobile operators. It made a complaint to regulator CCK in April and >>> became so frustrated that it said it would run an advertisement >>> publicising the position. Safaricom came back to the table but >>> Celtel >>> refuses to enter discussions, saying that it will do so in its own >>> time. >>> >>> Kenyan ISPs are under heavy pressure from all the new operators. >>> Flashcom and Popote are taking more money from data than voice at >>> the >>> moment as customers are primarily signing up for cheaper Internet >>> access. Also the introduction of EDGE services by Safaricom is >>> eating >>> into their high-end customers: one ISP´s CEO admitted privately that >>> he was losing hundreds of customers a month to these new >>> competitors. >>> The challenge for everyone in the market will be whether they can >>> take >>> the soon-to-arrive cheaper international bandwidth and use it to >>> transform the market. >>> >>> >>> Eric M.K Osiakwan >>> Executive Secretary >>> AfrISPA (www.afrispa.org) >>> Tel: + 233.21.258800 >>> Fax: + 233.21.258811 >>> Cell: + 233.244.386792 >>> Handle: eosiakwan >>> Snail Mail: Pmb 208, Accra-North >>> Office: BusyInternet - 42 Ring Road Central, Accra-North >>> Blog: http://blogs.law.harvard.edu/eric/ >>> Slang: "Tomorrow Now" >>> >>> >>> >>> >>> >> >> >> >> ------------------------------------------------------ >> Anriette Esterhuysen, Executive Director >> Association for Progressive Communications >> anriette(a)apc.org >> http://www.apc.org >> PO Box 29755, Melville, South Africa. 2109 >> Tel. 27 11 726 1692 >> Fax 27 11 726 1692 >> >> _______________________________________________ >> Fibre-for-africa mailing list >> Fibre-for-africa(a)lists.apc.org >> http://lists.apc.org/cgi-bin/mailman/listinfo/fibre-for-africa >> > > Eric M.K Osiakwan > ICT Consultant and Journalist > Tel: + 233.21.258800 > Fax: + 233.21.258811 > Cell: + 233.244.386792 > Handle: eosiakwan > Snail Mail: Pmb 208, Accra-North > Office: BusyInternet - 42 Ring Road Central, Accra-North > Blog: http://blogs.law.harvard.edu/eric/ > Slang: "Tomorrow Now" > > > _______________________________________________ > Fibre-for-africa mailing list > Fibre-for-africa(a)lists.apc.org > http://lists.apc.org/cgi-bin/mailman/listinfo/fibre-for-africa Eric M.K Osiakwan Executive Secretary AfrISPA (www.afrispa.org) Tel: + 233.21.258800 Fax: + 233.21.258811 Cell: + 233.244.386792 Handle: eosiakwan Snail Mail: Pmb 208, Accra-North Office: BusyInternet - 42 Ring Road Central, Accra-North Blog: http://blogs.law.harvard.edu/eric/ Slang: "Tomorrow Now"

2 1

Infrastructure Financing for TEAMS through the Capital Markets
by Bill Kagai 30 Nov '06

30 Nov '06

[Summary of TEAMS financing discussion on www.stock-detective.co.ke] At a recent seminar hosted by the Nairobi Stock Exchange, options for infrastructure financing through the capital markets were comprehensively discussed by various financial experts. It is worthwhile to consider various financing options for the East African Marine System or Teams project, a fiber optic line linking Mombasa to Fujaira, in the context of various options for infrastructure financing through the capital markets discussed at the seminar. A strong case was put forward for funding for infrastructure projects in Kenya through the NSE. Among the experts who made a pitch for the idea were NSE chairman Jimnah Mbaru, NSE CEO Chris Mwebesa, Suntra Investment Bank chairman James Murigu, and IFC Operations Officer for Financial Markets, Ndiritu Muriithi. Infrastructure financing through the capital markets is still in its infancy stages in Kenya. Yet there is a huge opportunity for companies and government agencies to raise money cheaply to build roads and power dams through bonds and shares at the Nairobi Stock Exchange given that the current government development budget stands at around Ksh. 70 billion. The cost of completing the Machakos-Limuru dual carriage section of the Mombasa-Busia highway alone is estimated to cost Ksh. 108 billion. This means that the government has to find alternative sources of funding (other than donor funding) to meet the massive shortfall in funding for infrastructure projects. The government has indicated that it will consider raising money through an IPO to finance the Teams project. It recently signed an MOU with Etisalat of Dubai to implement the Ksh. 5.7 billion project. The government will hold a 40 per cent stake in the project, Etisalat 20 per cent and the remaining 40 per cent will be offered to investors in the East African region. The government has set an ambitious date for the completion of the project by November next year. If the government proceeds with the IPO as indicated, the project is certain to generate considerable interest among investors given the potentially high returns and profits from the link once activated. But the question still begs an answer: why has infrastructure financing through the capital markets been slow to develop in Kenya even with the recent expansion of the stock market? In other words, why haven't institutions like Kenya Airports Authority, Kenya Pipeline, National Housing Corporation, to mention just a few, been issuing to the public? Experts cite bureaucracy and lack of concise policy as the main bottlenecks to infrastructure financing through the domestic capital market. Mr. Muriithi is of the view that although the demand for infrastructure financing is huge, policy questions on issues like the role of the capital market in the process are not fully settled. He added that discussions are still on-going and that technical issues such as the financing structure, type of instruments and so on, were yet to be refined. He further noted that state owned enterprise have to obtain approval from Treasury to borrow money from the capital. Where such approval is not forthcoming especially considering red-tape and other internal bottlenecks, the opportunity to source funds cheaply from the investing public is squandered. Mr. Mbaru gave the example of East African Portland Cement which wanted to raise Ksh 2 billion through the capital markets to extend its line to Western Kenya and Uganda but shelved the plan after it failed to get Treasury approval. Mr. Murigu on his part argued that many SOEs went shopping abroad for financing while they could raise funds for infrastructure projects locally and at a cheaper cost. If the government is to successfully push through an IPO by mid-2007, Treasury approval will then have to come fast. Otherwise, the project could end up in the bog of red-tape as Treasury mandarins dillydally over approval. In seeking to raise financing for the project through the capital market, the government has a variety of options to consider. And critical here will be the manner in which the government structures the deal for investors. Mr. Mwebesa said of the market's ability to absorb infrastructure-backed instruments, that "if properly conceptualized and structured with detailed information on the specific infrastructure project, the capital markets will absorb the same". If the government chooses the IPO way, then it will have to create a special purpose vehicle whose shares it will then offer to the public. According to Mr. Mwebesa once such government-driven SPVs are listed in the NSE, bonds for specific infrastructure projects can then be issued by the SPV. Kenyans can then invest in such bonds through various vehicles such as pension funds, co-operative societies, insurance companies and collective investment schemes (companies or trusts created to mobilize investment funds from individuals). Pension funds are a good way of mobilizing investment in infrastructure bonds since the long-term financing needs of infrastructure projects match the long-term liability profiles of pension/retirement benefit schemes. Infrastructure or asset-backed bonds can provide income for retirees a few years down the line and are thus a viable investment option for pension fund managers. However, the law needs to be changed to facilitate such initiatives. In addition certain policy and tax incentives are needed to boost private sector participation. Mr. Mbaru proposes that income derived by investors from infrastructure-backed instruments be exempted from withholding tax to make them more attractive. He also proposes a 2-3 year grace period before interest payments to investors or alternatively the issue of zero-coupon bonds (bonds issued at a discount to the price and principal and interest paid lump-sum upon maturity) to finance such deals. There is no doubt that the Teams project can be financed through the NSE. It is up to the government to speed up the creation of an SPV as well as Treasury approval and also give investors an attractive value proposition. This is not to mention that public awareness of the viability of the Teams project and its importance to Kenya's ICT sector and the economy as a whole is very vital and a condition precedent to the success of the project. The government may also want to consider a cross-listing of the SPV once put in motion now that integration of the three stock exchanges is well under way. -- With Kind Regards, Bildad Kagai MD - Circuits & Packets Communications Ltd Content & Training Partner - JKUAT E-Government Academy Suite B2, Tetu Apartments, State House Avenue P. O. Box 20311 - 00200 Nairobi, Kenya Tel. 254 20 2728332 Fax. 254 20 2726965 Cell. 254 724 226600 URL. www.circuitspackets.co.ke URL. www.JKUATEgovAcademy.ac.ke

1 0

Fwd: [Stock-Detective News] Investing in the Teams Project
by Bill Kagai 29 Nov '06

29 Nov '06

---------- Forwarded message ---------- From: info(a)circuitspackets.co.ke <info(a)circuitspackets.co.ke> Date: Nov 29, 2006 12:01 PM Subject: [Stock-Detective News] Investing in the Teams Project To: news(a)stock-detective.co.ke Posted by Admin on www.stock-detective.co.ke Investing in the Teams Project On 6th November, 2006, the Government of Kenya through the Communications Commission of Kenya (CCK) advertised an 'Expression of Interest' (EOI) for a 'Lead Financial Arranger' for the 'East Africa Marine System' (TEAMS) project. The EOI further read that ICT sector growth is limited by inadequate international connectivity and over-reliance on expensive satellite connectivity. After exploring other international connectivity alternatives with no tangible results realized to date, the situation compelled the Government to consider facilitating the construction of a submarine cable system with a landing port in Mombasa to be established through a special purpose vehicle (SPV). The 'Lead Financial Arranger' is thus required to facilitate an elaborate financing mechanism for this project. On 18th November 2006, the Government announced that Telkom Kenya had signed a Sh5.7 billion pact with Etisalat of Dubai paving the way for the construction of an undersea cable linking Mombasa to Fujairah in the United Arab Emirates. The construction and supply contract will be awarded early next year and the project, dubbed The East African Marine System (Teams), will be ready by November, according to a joint statement issued by both parties from Dubai. Kenya will have a 40 per cent holding in the project, Etisalat 20 and the remaining will go to investors in the East African region. There is no doubt that this will be a good investment with good returns for those who invest in the Teams project. The project will also open up opportunities such as business process outsourcing and electronic commerce for other sectors such as tourism. A significant chunk of the financing is expected to be realized through the stock market making it a first where capital to finance a project is generated from the investing public. As part of our 'Intelligent Investor Series' we invite you to submit your comments by clicking on the comment button on the home page of www.stock-detective.co.ke . We would like to know your opinion on the project and the fundamentals that might compel you to put in funds in this kind of a venture. The Stock-Detective will then develop a comprehensive report that will be shared on this website. www.stock-detective.co.ke _______________________________________________ News mailing list News(a)stock-detective.co.ke http://www.stock-detective.co.ke:8080/cgi-bin/mailman/listinfo/news -- -- With Kind Regards, Bildad Kagai MD - Circuits & Packets Communications Ltd Content & Training Partner - JKUAT E-Government Academy Suite B2, Tetu Apartments, State House Avenue P. O. Box 20311 - 00200 Nairobi, Kenya Tel. 254 20 2728332 Fax. 254 20 2726965 Cell. 254 724 226600 URL. www.circuitspackets.co.ke URL. www.JKUATEgovAcademy.ac.ke

1 0

Re: [Kictanet] [Fibre-for-africa] Whats i have being talking of as a public private partnership in ownership of the critical infrastructur
by Eric Osiakwan 29 Nov '06

29 Nov '06

Thanks for the feed-in, Bill. You raise a very genuine and important concern, which is how would the populace react to an IT stock which they are not familiar with given the track record of similar stocks? Was African Lakes on NSE as well or only on LSE? Eric here On 28 Nov 2006, at 15:38, Bill Kagai wrote: > > Trading in one stock exchange does not complicate matters because > institutional/foreign investors can still buy shares through the > NSE. One good thing is that the NSE is the dominat exchange in EA > with 51 listed companies and 3 or so cross listed in Dar and Kampala. > > Kampala has only 8 quoted companies and about a similar number in > Dar which will soon be trading under one exchange in a couple opf > years. > > The other interesting challenge will be how the stock is embraced > considering that the only IT stock ever listed (African Lakes) > collapsed after a while, whilst the anticipated Wananchi IPO has > not taken off yet. Basically, we are yet to see how the market will > react to IT related stocks. See the following links on the pilot > stock-detective.co.ke website we have been developing. > > http://www.stock-detective.co.ke > > and also on a discussion posted regarding Telkom upcoming listing.. > > http://www.stock-detective.co.ke/public-discussion-forum/public- > discussion-forum/post200609202612783179 > > > -- > -- > With Kind Regards, > Bildad Kagai > MD - Circuits & Packets Communications Ltd > Content & Training Partner - JKUAT E-Government Academy > Suite B2, Tetu Apartments, State House Avenue > P. O. Box 20311 - 00200 > Nairobi, Kenya > Tel. 254 20 2728332 > Fax. 254 20 2726965 > Cell. 254 724 226600 > URL. www.circuitspackets.co.ke > URL. www.JKUATEgovAcademy.ac.ke > _______________________________________________ > Fibre-for-africa mailing list > Fibre-for-africa(a)lists.apc.org > http://lists.apc.org/cgi-bin/mailman/listinfo/fibre-for-africa Eric M.K Osiakwan Executive Secretary AfrISPA (www.afrispa.org) Tel: + 233.21.258800 Fax: + 233.21.258811 Cell: + 233.244.386792 Handle: eosiakwan Snail Mail: Pmb 208, Accra-North Office: BusyInternet - 42 Ring Road Central, Accra-North Blog: http://blogs.law.harvard.edu/eric/ Slang: "Tomorrow Now"

3 5

DOT Capacity Building Training in Nairobi
by Joseph Maruti 28 Nov '06

28 Nov '06

DOT is running a youth and ICT capacity building program. See attached flyer. Those that have young friends/relatives that fit this profile and are available for the January intake should have them apply. Regards Maruti -- Joseph Maruti Country Director Digital Opportunity Trust (DOT) Kenya <http://www.kenya.globalnetcorps.org> www.kenya.globalnetcorps.org <http://www.dotrust.org> www.dotrust.org p: +254 20 6751385 m: +254 725 153971 e: <mailto:jmaruti@globalnetcorps.org> jmaruti(a)globalnetcorps.org Cause, Measure, Share

1 0

CALL FOR PROPOSALS FOR ICT PROJECTS FOR FUNDING BY THE DIGITAL SOLIDARITY FUND
by alice＠apc.org 28 Nov '06

28 Nov '06

Dear All, This was advertised on the papers, but for those who did not see it, here goes! best regards alice -------------------------------------- CALL FOR PROPOSALS FOR ICT PROJECTS FOR FUNDING BY THE DIGITAL SOLIDARITY FUND The Global Digital Solidarity Fund (DSF) is a financing foundation based in Geneva, Switzerland. The objective of the fund is to transform the digital divide into digital opportunities to promote peace, sustainable development, democracy, transparency and good governance. The Government of Kenya, through the Communications Commission of Kenya (CCK), is one of DSF’s founding members. .DSF PROJECTS: As a financing foundation, DSF does not establish large infrastructure, but subsidizes community-based projects, within the framework of a given national policy with a view to creating new activities, new jobs and, in the long term, new markets. The DSF works in partnership with institutions and programmes, thus capitalizing on their networks and know how in responding to local development needs pertaining to the ICT sector. Based on clearly defined criteria, the DSF supports three main areas of activity: i. Education, professional training and health ii. ICT support services to local administration iii. Creation of new activities, new employment, new revenue and new markets The DSF, through the CCK, is inviting interested organizations to submit ICT related project proposals, for funding consideration. To be eligible for DSF funding, the projects must: i. aim at developing good use of ICTs within local communities excluded from information and communication networks; ii. be a community development project making use of information technology, amounting to less than 500,000 euros, over one or several years, in the framework of Kenya’s national policy and addressing the insolvent demand; iii. be adapted to the real needs of the population and conditions in the field, respectful to local know-how and readily replicable in other communities. iv. be based on public sector/private sector/civil society partnerships, ensure traceability of its financial backing and benefit from at least one other source of financing. v. Target in priority women’s associations or groups with groups with specific needs (youth, people with disabilities, etc) ; vi. involve south-south cooperation; vii. Not entail the acquisition or creation of large and expensive infrastructures; viii. Operate and be supervised by recognized organizations in the field of development management; ix. Already have been subject to a feasibility study evaluating the project’s risks and opportunities; x. Develop local content to meet the needs of local populations; xi. Make use, when possible, of micro-credit strategies in order to promote local entrepreneurial spirit; Interested organizations with projects that meet the specified requirements are invited to download the DSF application forms from the CCK website www.cck.go.ke or collect the forms from the Competition, Tariffs and Market Analysis (CTMA) Division of the Commission on weekdays during official working hours. . Duly completed forms should be submitted together with the relevant documents in a plain sealed envelope, clearly marked – ‘ICT Project Proposal for DSF Funding’ – through the address below or placed in the Tender Box situated on the ground floor of the CCK Headquarter building so as to reach on or before 30th November 2006. The Commission will subsequently forward the proposals to the Digital Solidarity Fund for consideration. DSF will contact the selected firms directly. The Director-General Communications Commission of Kenya P.O. Box 14448 Nairobi 00800 Tel: +254 20 4242000 Fax: +254 20 4451866 Email: info(a)cck.go.ke For more details about DSF please visit their website: www.digital-solidarity.org A. Wanjira Munyua National Coordinator, Catalysing Access to ICTs in Africa (CATIA) Association for Progressive Communications (APC) alice(a)apc.org http://www.apc.org http://www.catia.ws

1 0

Re: [Kictanet] [Fibre-for-africa] Whats i have being talking of as a public private partnership in ownership of the critical infrastructur
by Bill Kagai 28 Nov '06

28 Nov '06

Trading in one stock exchange does not complicate matters because institutional/foreign investors can still buy shares through the NSE. One good thing is that the NSE is the dominant exchange in EA with 51 listed companies and 3 or so cross listed in Dar and Kampala. Kampala has only 8 quoted companies and about a similar number in Dar which will soon be trading under one exchange in a couple of years. The other interesting challenge will be how the stock is embraced considering that the only IT stock ever listed (African Lakes) collapsed after a while, whilst the anticipated Wananchi IPO has not taken off yet. Basically, we are yet to see how the market will react to IT related stocks. See the following links on the pilot stock-detective.co.ke website we have been developing. http://www.stock-detective.co.ke and also on a discussion posted regarding Telkom upcoming listing.. http://www.stock-detective.co.ke/public-discussion-forum/public-discussion-… -- -- With Kind Regards, Bildad Kagai MD - Circuits & Packets Communications Ltd Content & Training Partner - JKUAT E-Government Academy Suite B2, Tetu Apartments, State House Avenue P. O. Box 20311 - 00200 Nairobi, Kenya Tel. 254 20 2728332 Fax. 254 20 2726965 Cell. 254 724 226600 URL. www.circuitspackets.co.ke URL. www.JKUATEgovAcademy.ac.ke <http://www.jkuategovacademy.ac.ke/>

1 0

Fw: [Fibre-for-africa] Whats i have being talking of as a publicprivate partnership in ownership of the critical infrastructur
by alice＠apc.org 27 Nov '06

27 Nov '06

Hi all, Interesting discussions on the APC EASSY list see below. For those not subscribed to this list and would like to participate in the ongoing discussions please let me know best regards alice ----- Original Message ----- From: "Anriette Esterhuysen" <anriette(a)apc.org> To: "APC - Private list for use by EASSY Workshop Participants" <fibre-for-africa(a)lists.apc.org> Sent: Monday, November 27, 2006 10:19 PM Subject: Re: [Fibre-for-africa] Whats i have being talking of as a publicprivate partnership in ownership of the critical infrastructur Dear Eric A group of us APC people actually discussed your idea quite intensively a while ago. The one difference between what is happening here, and what you propose, is that the Kenyan initiative will involve only one stock exchange.... so, if the IPO continues, it will be listed in Kenya... as far as I know. Your proposal would have involved the 'entity' listing on multiple stock exchanges.... that would have been much more complicated. Seeing these new financial models emerge is very interesting. And it does feel a bit like a race... whose cable will light up first? Who will sell the cheapest bandwidth? Any bets? Anriette > Folks, > > Below is exactly what i have being chanting as a way forward in the > ownership of the infrastructure; The Kenya Government will have a 40 > per cent holding in the project, Etisalat 20% and the remaining 40% > will go to investors in the East African region. The Government has > said it will organise an IPO on the Kenyan Stock Exchange. Several > Kenyan companies have expressed interest and one said that the > Government had told them it would "guarantee their loan". The > details of the finance package have not yet been settled but it is > unclear where the Kenyan Government will raise its 40% from. Will the > World Bank simply shift a portion of its EASSy funding to the new > project as many think likely? > > NB; From this week's Balancing Act, full story below for your > pleasure. > > Thank God the Kenya are experimenting with this approach where > government owns part, private sector owns part, educational > institutions should also own part, CSO owns part through IPO on the > stock market. > > The Kenya government can actually raise the 40% from government bonds > and am not an expert on the stock market discipline of shares or > bonds but this is where the financial experts need to come out with > innovative solutions that can help raise much of this money locally > and it is possible. > > In the attached paper which is an output of the great work Rahul > Tongia did with some colleagues and little input from me, it is clear > that we could actually wire Africa up with fiber to the most > population densed centres for a billion dollars whcih means if every > African put a dollar on the table we could wire Africa up with fiber > and 50 percent of that dark fiber already exist - what does that mean > to you as an African? > > > You Kenyans are showing the way and even it it does not work you > would be know for showing us how this model is not workable and then > we can try another. We Africans must try new ways of doing these > things and make our own mistakes and find our own solutions to our > problems but learn to avoid the mistakes of the Americans, Europeans > and Asians. Thank God for this BOLD move, it is commendable. > > > TOP STORY: KENYA BEGINS THE COUNTDOWN TO CHEAP INTERNATIONAL FIBRE > _____________________________________________________________________ > > It´s like waiting for a matatu. You wait for ages and none come > along. But just when you´re about to give up hope, three come along > at the same time, all trying to come to a screaming halt in front of > you. Kenya now has three (or more) potential international fibre > projects that could be complete within 12 months. Each one is loudly > proclaiming that it will deliver cheap international bandwidth. > Russell Southwood took the temperature in the market last week about > what the impact of this bandwidth will be upon the market. > > The Kenya Government has signed an MOU to build a fibre link to > Fujairah > in the UAE currently costed at Ksh5.7 billion. The construction and > supply contract will be awarded early next year and the project, > dubbed The East African Marine System (Teams), will be ready by > November, according to a joint statement issued by both parties from > Dubai. Many in the sector believe that it will be more like 19 months > or more before completion. > > The Kenya Government will have a 40 per cent holding in the project, > Etisalat 20% and the remaining 40% will go to investors in the East > African region. The Government has said it will organise an IPO on the > Kenyan Stock Exchange. Several Kenyan companies have expressed > interest and one said that the Government had told them it would > "guarantee their loan". The details of the finance package have > not yet been settled but it is unclear where the Kenyan Government > will raise its 40% from. Will the World Bank simply shift a portion of > its EASSy funding to the new project as many think likely? > > The Government´s commitment to a 12 month schedule is a bold move > but one that must lay them open to a certain amount of scepticism. The > tender for expressions of interest was only issued 2 weeks ago and > Government timetabling is notoriously slow compared to the private > sector. Apparently the Private Secretary has been telling interested > parties that the Government wants prices comparable to those to be > found in India in 12 months time. This benchmark has been set in order > that Kenya will be able to compete in the international outsourcing > market. > > Apparently a number of interested parties said that they would put up > all the money to build it if they could have a monopoly and he sent > them away disappointed. But more worryingly one interested party told > us that it could only get involved if it also allowed Telkom Kenya to > be a shareholder. > > The next international fibre project is KDN´s and it has now signed > its contract with Flag Telecom. Its link from Mombasa will terminate > in an undersea junction in international waters off of the Yemen. It > says the link will be fully operational in the first quarter of 2008, > just 15 months away. The company believes that it will come to market > with capacity at $500 per mbps pm but that the price of bandwidth will > go up to those wanting to invest as time passes. In other words, for > those who commit early prices will be lowest and for those who come in > late, prices will go higher. It also stresses that its landing station > at Mombasa will allow other carriers to co-locate there charging only > electricity and services at cost. > > So this leaves the third project EASSy looking as if it will be the > third runner. NEPAD appears to have made little more progress on > persuading more African Governments to sign its political protocol. > And whilst the members of the EASSy consortium (that still includes > KDN and Telkom Kenya) are still moving things forward, there remains a > disconnect between the political and commercial ends of the project. > If both of the above projects go ahead, there is clearly much less > need to build the Mombasa-Djibouti section of the route and it has to > be said that both of the above projects have better international > connection points. > > As if three were not enough, Ethiopia´s ETC has now had its > international fibre connection working effectively for two months via > Port Sudan and Saudi Arabia. But because it is landlocked and it had > endless fruitless arguments with Djibouti Telecom over control of a > possible fibre link, it wants to find a second international fibre > connection. Therefore it is in serious conversations with both of > Kenya´s fibre network operators about connecting to the Mombasa > links when they are ready. If this goes ahead, both it and Kenya will > then have two international fibre links. > > Because the process of getting the international fibre to Kenya has > been both confusing and "on-off", everyone in the market > (including customers) have understandably not really grasped the > impact of its arrival on their businesses. Until now ISPs and > satellite resellers have largely been in the businesses of living on > the margin they make between buying and selling bandwidth. > > These margins have been kept high as they have concentrated on selling > to comparatively few customers. Ironically it has been a high-price, > low volume business where their primary commodity - bandwidth - > has always been in short supply, not least because some of them > increased their margin by contending it as much as possible. This has > meant that bandwidth quality is often variable at best for those not > paying "top dollar" for a premium service. > > If you argue that international fibre prices should be low price, high > volume, then the national business model changes: what´s sauce for > the goose is sauce for the gander. Bandwidth becomes cheap and > plentiful at a sub $1000 threshold. The margins that can then be > charged make it difficult for those who are not operating at volume to > stay in business. > > However it does now open up opportunities for new services, content > and applications that can be sold to customers who should now be > paying European prices for real broadband connections (1-2 meg > upwards) rather than the paltry 64 kbps they are currently receiving. > There are at least 500,000 households in Kenya that are at an income > level that make them potential targets for broadband. It would take > only half of those households to sign up for there to be the > beginnings of a very different market. > > The real sign that the market has not "got it" is that some key > ISPs are not passing on the information about these soon-to-be cheap > prices but are seeking to protect their high margins by telling > customers higher prices. A heads-up, guys. The sector is a village and > news will get round quickly and we´ll encourage the circulation of > this price information. The market´s about to change, get ready to > change with it. > > At the national level, there is now a third source of fibre capacity. > Jamii Telecommunications has signed an agreement with the Kenya Light > and Power Company (KPLC) to sell an STM1´s worth of its fibre > capacity in Nairobi and Mombasa, with KPLC saying that it will triple > its capacity shortly. Two other companies - CTN and Cable Vision - > have been granted a licence to sell KPLC´s capacity and it is > telling (in terms of the argument above) that both are in the video > download and pay-TV business. Not so far afield, Tanzanian power > utility TANESCO is currently building out fibre capacity and has > invited bids to sell this capacity. Again KDN is poised to make a > fibre connection to Tanzania. > > However a recent ping on the Kampala-Nairobi route shows that neither > KDN nor Telkom Kenya has got its fibre route operational. KDN is > promising it will be operational by the end of first quarter 2007 and > that prices will be 20% cheaper. > > Elsewhere in the market, the new VoIP operators are finding it > difficult > to get interconnection agreements and to get proper service from > interconnect service providers. Telkom Kenya is charging absurdly high > prices but has at least reached interconnect agreements. Nevertheless > the new fixed wireless operators - Flashcom and Popote - are > having difficulties: customers are unable to receive or make calls to > certain countries. Apparently anyone who calls a customer number of > these fixed wireless operators from Germany gets a number > unobtainable. > > Access Kenya´s Yello VoIP service has been aimed at corporates and > has attracted 250 customers who generate 120,000 minutes a month. But > it has had difficulty getting interconnection agreements with the > mobile operators. It made a complaint to regulator CCK in April and > became so frustrated that it said it would run an advertisement > publicising the position. Safaricom came back to the table but Celtel > refuses to enter discussions, saying that it will do so in its own > time. > > Kenyan ISPs are under heavy pressure from all the new operators. > Flashcom and Popote are taking more money from data than voice at the > moment as customers are primarily signing up for cheaper Internet > access. Also the introduction of EDGE services by Safaricom is eating > into their high-end customers: one ISP´s CEO admitted privately that > he was losing hundreds of customers a month to these new competitors. > The challenge for everyone in the market will be whether they can take > the soon-to-arrive cheaper international bandwidth and use it to > transform the market. > > > Eric M.K Osiakwan > Executive Secretary > AfrISPA (www.afrispa.org) > Tel: + 233.21.258800 > Fax: + 233.21.258811 > Cell: + 233.244.386792 > Handle: eosiakwan > Snail Mail: Pmb 208, Accra-North > Office: BusyInternet - 42 Ring Road Central, Accra-North > Blog: http://blogs.law.harvard.edu/eric/ > Slang: "Tomorrow Now" > > > > > ------------------------------------------------------ Anriette Esterhuysen, Executive Director Association for Progressive Communications anriette(a)apc.org http://www.apc.org PO Box 29755, Melville, South Africa. 2109 Tel. 27 11 726 1692 Fax 27 11 726 1692 _______________________________________________ Fibre-for-africa mailing list Fibre-for-africa(a)lists.apc.org http://lists.apc.org/cgi-bin/mailman/listinfo/fibre-for-africa

1 0

Call for Participation: AITEC's Wireless Broadband Africa conference 29Nov-1Dec 2006 Hilton Hotel
by alice＠apc.org 27 Nov '06

27 Nov '06

Dear KICTAnet members KICTAnet member, AITEC Kenya has made available some spaces for KICTAnet's participation at the wireless broadband conference taking place at the Hilton Hotel in Nairobi from 29th November to 1st December 2006. The theme of the conference is "Technologies and strategies to evolve optimised networks" and brings together world leading experts on wireless technologies to share their knowledge and expertise with ICT professionals. . The conference aims at updating knowledge on wireless systems, planning and deployment. Please visit AITEC's website for more information and the programme. www.aitecafrica.com KICTAnet is therefore inviting participation from broad civil society, media, and private sector particularly SME's Please send an offlist message to Evelyne Majale by tomorrow, Tuesday 28th 2006. evelyneofwona(a)yahoo.com Tel: +254 020 4453671/2 best regards alice

2 1

ITU IG Resolution
by alice＠apc.org 24 Nov '06

24 Nov '06

For those who follow the ITU processes. Find attached the Plenipotentiary Conference (PP-06) Antalya, 6-24 November 2006 resolution Analysis of the text needed! best alice

1 0