SPICING UP THE DEBATE When Kai Wulff, CEO , KDN and PS Ndemo are in one room discussing issues of internet connectivity, you can be assured of fireworks, but the common denominator is that they are concerned about reducing internet connectivity charges. They hold varied opinions on ownership and financing, and discussions are frank and honest, no holding back. It is hard to get bored when discussions start, it can only leave participant more informed of the varied opinions. For instance at the OFC workshop, PS Ndemo says that anybody can lay the cable so long as they are not a monopoly, that is, they must talk to other players in the sector. The PS notes “if Kai wants to do it alone, then that’s selfish.” And Kai answers, “I have talked to all of you but for two years no one wants to listen!” So one may wonder, what is this heated debate all about? Its about OFC financing, ownership and operations, who allowed and who is not. For Kai, it’s about the service, let the guys laying the cable do their work, and all we do is promise them capacity that when the service is in Mombasa, they will get the business. In this model, one buys the services at competitive prices just like anywhere else in the world. It is a question of who offers the cheapest reliable service. Kai draws an analogy from supermarket business. If we can have OFC supermarkets in Mombasa, they can advertise their prices and services and if another one opens shop and has a better deal, then we can move there. Kai is simply opposed to Kenya laying the infrastructure, he wants others to come looking for business here. They lay the cable at their own cost, ours is just to give them the capacity. “Loyalty is a good party if it serves both parties and will be bad if one is locked in a marriage one can’t get out of,” Kai said. His contention is that governments should be consumers not competitors to private sector in this field. But the PS has an alternative view, he argues that the government has taken the lead because the private sector is taking long. He told the meeting that one company had promised to lay the cable by 2009 and the government insisted that that would be too long, it should be done in a year. Out of 20 companies, the PS said, only Kai was complaining about the government. Thought the companies were not divulged, Kai just shook his head when the comment was made. The PS agreed that the government should be a consumer mainly but added that there is need for rural connectivity. He said that in many cases, private sector would be driven by profits and most of these rural areas do not have the profits. On the question of Telkom representing the government in TEAMS, Dr. Ndemo said that only happened because proper mechanisms had not been put in place. At the end of it, the PS invited Kai to his office so that they can discuss more issues affecting the sector. Dr. Ndemo argues that Kenya is willing to turn down international banks willing to invest in TEAMS because it is convinced that the Kenyan private sector has the financial might to back the cable investment. “Don’t let us down!” the PS concluded. ____________________________________________________________________________________ Never miss an email again! Yahoo! Toolbar alerts you the instant new Mail arrives. http://tools.search.yahoo.com/toolbar/features/mail/