----- Original Message ----
From: "bitange@jambo.co.ke" <bitange@jambo.co.ke>
To: robertyawe@yahoo.co.uk
Cc: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke>
Sent: Monday, 17 March, 2008 11:00:02 AM
Subject: [kictanet] TEAMs to switch into Private Hands
Dear
Walubengo,
Q:
Will
the
eventual
majority
shareholders
-
essentially
the
private
sector
-
operate
the
cable
on
Open
Access
principles?
Specifically,
the
following
questions
arise.
A:
Competition
alone
will
drive
the
cost
low
and
if
that
fails,
Government
can
intervene
using
the
capacity
it
holds
and
if
that
fails,
the
regulator
will
have
to
intervene.
Q:
1.
Will
the
cable
be
open
for
direct
connectivity
(at
thesource
in
MSA)
to
other
future
telco
players?
A:
Yes
indeed.
See
Q3
responses
below.
Q:
2.
Will
the
price
of
connecting
to
the
international
fiber
be
driven
by
profit-motives
or
will
it
be
based
on
the
'cost-of-operating-the-fiber'
basis.
A:
Price
of
connecting
to
the
International
fibre
remaims
cost
of
operating
the
fibre
but
retail
price
will
have
an
element
of
profit.
What
we
shall
guard
agaist
is
exploitative
prices.
Q:
3.
What
modalities
exist
for
future
investors
who
may
wish
to
own
part
of
the
fiber
maybe
2
or
5years
after
the
cable
is
operational-
or
will
this
thing
be
a
closed-club
to
the
original
financiers
once
the
cable
becomes
operational?(remember
the
consortium
approach
of
EASSy?)
A:
The
Government
of
Kenya
would
continue
to
dilute
its
shares
in
order
to
ensure
healthy
competion
exist.
The
model
therefore
is
not
a
closed
shop.
Q:
4.
What
are
the
steps
involved
in
transparently
transferring
this
public
resource
into
private
sector?
A:
You
cannot
force
anyone
to
buy
into
Teams.
There
are
clear
deadlines
by
the
financial
arranger
for
making
commitments.
The
Standard
Chatered
Bank
were
procured
to
make
financial
arrangements
for
the
cable.
Although
sometimes
Media
misses
the
point
here
and
there,
it
has
done
a
wonderful
job
keeping
us
on
our
toes.
Ndemo.
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