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. ---------------------------------------------- This message has been scanned for viruses and dangerous content by Jambo MailScanner, and is believed to be clean. --------------------------------------------- "easy access to the world"
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bitange@jambo.co.ke