Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya
Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place. I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)! What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2.... Warm rgrds, Shem Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
Shem: Is Orange going to return all the shares of Telekom that currently own to the GoK? If so, I would urge the GoK to accept the company back and then proceed to sell it other interestedparties. Joe C: 847-873-5707 F: 315-320-2920 On Sat, May 1, 2010 at 9:52 AM, Shem Ochuodho <[email protected]>wrote:
Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.
I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!
What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2... .
Warm rgrds, Shem
Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
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Shem, If anything, the fact that Telkom Kenya had accumulated a ridiculously bloated workforce of 19,000 was an indication that government wasn't exactly bending over backwards to manage this company properly. Generally, I think the telecom sector is one that has done very well with private-sector management - water, for example, or roads were a lot more difficult. Privatisations can only be as good as the people privatising: If government nudges the to-be-privatised company to someone well connected, but also incapable with no finances, then it's not going to work out well. Even when this isn't as clearcut, much depends on the terms set, the due diligence, etc. It's a complex technical undertaking, and you can't divorce such transactions from the overall governance environment. I doubt that France Telecom will get the whole amount back - here's why: News Analysis: Cash Back for France Telecom or Checking Out?<http://www.ratio-magazine.com/201004132691/News-Analysis/News-Analysis-Cash-Back-for-France-Telecom-or-Checking-Out.html> Andrea On 1 May 2010 17:52, Shem Ochuodho <[email protected]> wrote:
Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.
I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!
What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2... .
Warm rgrds, Shem
Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
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-- Andrea Bohnstedt Publisher +254 720 960 322 www.ratio-magazine.com
Shem, This is definitely a horror strory, if it happens to be true. This reminds to recal the many unanswered questions and complexities surounding numerous past privatization deals in many countries in Africa. Reagrds Vitalis ________________________________ From: Shem Ochuodho <[email protected]> To: [email protected] Cc: Nation Newsdesk <[email protected]>; EThinkTank Tanzania <[email protected]>; KICTAnet ICT Policy Discussions <[email protected]>; EA Standard Editorial <[email protected]> Sent: Sat, May 1, 2010 5:52:08 PM Subject: [kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place. I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)! What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2.... Warm rgrds, Shem Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
Hi Vitalis, Could shed light on the matter below? =============== I have tried since wednesday in vain to send sms from Telkom to any Safaricom 072X XXX XXX and vice versa. All other networks are working fine. The pain is that my 5bob is taken and msg is not delivered!! Anyone experienced this??
Shem,
This is definitely a horror strory, if it happens to be true. This reminds to recal the many unanswered questions and complexities surounding numerous past privatization deals in many countries in Africa.
Reagrds
Vitalis
________________________________ From: Shem Ochuodho <[email protected]> To: [email protected] Cc: Nation Newsdesk <[email protected]>; EThinkTank Tanzania <[email protected]>; KICTAnet ICT Policy Discussions <[email protected]>; EA Standard Editorial <[email protected]> Sent: Sat, May 1, 2010 5:52:08 PM Subject: [kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya
Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.
I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!
What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2....
Warm rgrds, Shem Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
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Hi Mugambi Anthony Sorry to see this one a bit too late. I am sorry I am not the right person to respond to your query about the SMS between Safaricom-TKL(Orange). May be the respective CEOs et al. of the respective organizations can shed some light on what happened with service, just in case they have not. My new firm is Vital Networks Ltd, which deals with Telecoms Engineering & Management Solutions, though still Chairman GSM Africa. Regards Vitalis CEO Vital Networks Ltd ________________________________ From: "[email protected]" <[email protected]> To: Vitalis Olunga <[email protected]> Cc: Nation Newsdesk <[email protected]>; KICTAnet ICT Policy Discussions <[email protected]>; EA Standard Editorial <[email protected]> Sent: Fri, May 7, 2010 10:46:20 AM Subject: SAFARICOM-TELKOM WARS now on SMS?? Hi Vitalis, Could shed light on the matter below? =============== I have tried since wednesday in vain to send sms from Telkom to any Safaricom 072X XXX XXX and vice versa. All other networks are working fine. The pain is that my 5bob is taken and msg is not delivered!! Anyone experienced this??
Shem,
This is definitely a horror strory, if it happens to be true. This reminds to recal the many unanswered questions and complexities surounding numerous past privatization deals in many countries in Africa.
Reagrds
Vitalis
________________________________ From: Shem Ochuodho <[email protected]> To: [email protected] Cc: Nation Newsdesk <[email protected]>; EThinkTank Tanzania <[email protected]>; KICTAnet ICT Policy Discussions <[email protected]>; EA Standard Editorial <[email protected]> Sent: Sat, May 1, 2010 5:52:08 PM Subject: [kictanet] Orange Now Wants GoK to Pay It US$385m, the Price it Paid for Telkom Kenya
Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.
I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!
What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%2....
Warm rgrds, Shem Shem J. Ochuodho, MSc (Eng), PhD, LLD (Hon) Senior Advisor Ministry of Telecom & Postal Services Government of Southern Sudan (GoSS), Juba Kenya Community Abroad (KCA) 2007 Excellence Award Winner AfricaOnline 2005 Industry Pioneer Award Recipient Father of Internet in Kenya (CSK 2000) Cell: +249-955-021-040/+256-477-232025/+254-734-137371 Skype: shem.ochuodho
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participants (5)
-
amugambi＠jambo.co.ke -
Andrea Bohnstedt -
Joseph Manthi -
Shem Ochuodho -
Vitalis Olunga