more intriques Re; EASSy. ------- Original Message from Wakabi, Fibre for Africa List...... Telkom SA, champion of an EASSy run on the terms of telecos who will invest in it, but owned by a government that is dead-set to see the regional fibre undertaking built under the aegis of NEPAD, on stringent Open Access standards. Talk of a being caught between a rock and hard place. Wakabi Govt to strong-arm Telkom BY PAUL VECCHIATTO , ITWEB JOURNALIST ITWeb, 28 March 2007 - Government will use its board voting power to make Telkom toe the line in participating in the East African Submarine Cable System (Eassy), says Lyndall Shope-Mafole. The Department of Communications director-general made this statement after delivering her department's 2007-2010 strategy to the Parliamentary Portfolio Committee on Communications yesterday afternoon. She also attacked the Eassy supplier contract signed on 9 March between Telkom, the network operators and equipment supplier Alcatel Lucent. She said it was outside the policy framework. Government would use its six seats on the Telkom 10-member board to ensure the telecommunications utility follows policy, Shope-Mafole noted. This is the most overt statement, by a senior government official, that the state will use the power its 38% stake gives it in Telkom. The entity listed on the Johannesburg and New York stock exchanges in 2002. The Public Investment Corporation, another state-owned entity, owns a further 7.1% of Telkom's shares. At odds The Eassy project has been marked by conflicting points of view between government and companies. The former wants open and non-discriminatory access, meaning one charge irrespective of whether the user is an investor. Companies, on the other hand, want it to be run along commercial lines. Telkom CEO Papi Molotsane previously said his company's participation in Eassy would be along commercial lines – a stand that has placed Telkom at odds with government's policy. On 9 March, Telkom, along with the cellular network operators, signed an Eassy supply contract with international equipment vendor Alcatel Lucent. This was a final legal step before the construction of the $300 million submarine cable. However, the South African government, under the auspices of the African Union, is still trying to get more of the original 23 countries that agreed to the Eassy project to sign the protocol. Only 12 countries have signed so far, and only one, Rwanda, has had the protocol ratified by its Parliament. The Eassy supplier contract is outside the project's policy framework, says communications department DG Lyndall Shope-Mafole.Responding to concerns that there seemed to be two Eassy processes, Shope-Mafole said the supply contract was not within the policy framework as developed for the project. “I have indicated this to Telkom and have had discussions with their CEO, but have not discussed it with the other companies that signed it. That is why Sentech did not sign, because Sentech understands it can't sign outside a policy framework, and I suppose the others will learn. “Eassy is not two processes. What we at the Department of Communications have to make businesses understand is that ICT is not just a business, it is far more important than that. Our policy is that it must be an open, non-discriminatory access model.” Shope-Mafole said all the governments that had signed the Eassy protocol were determined the cable would not be dominated by one consortium, as had happened with the SAT-3 west coast submarine cable. Limit investment Shope-Mafole said the framework was based on that of non-discriminatory access, whereby investors would benefit from the number of users and not through owning the infrastructure. At the next Eassy Intergovernmental Assembly in Zimbabwe, on 30 March, government would propose investor participation in the Eassy project would be limited to $2 million (R14.5 million), so that large companies do not dominate the cable, she noted. Shope-Mafole pointed out there was no adversarial relationship between government and Telkom, as the telecoms utility had been involved in the Eassy project since the beginning. “But they are just like any other company and will try their luck.” Telkom declined to comment. In mid-morning trade, Telkom's share price was down 100c, at R163. Eassy is also known as the Nepad Broadband Infrastructure Network, because it comprises the submarine cable and a terrestrial component running through land-locked African countries. _______________________________________________ Fibre-for-africa mailing list [email protected] http://lists.apc.org/cgi-bin/mailman/listinfo/fibre-for-africa