LISTSERV mailing list manager LISTSERV 16.5

Help for AFRIK-IT Archives


AFRIK-IT Archives

AFRIK-IT Archives


AFRIK-IT@LISTSERV.HEANET.IE


View:

Message:

[

First

|

Previous

|

Next

|

Last

]

By Topic:

[

First

|

Previous

|

Next

|

Last

]

By Author:

[

First

|

Previous

|

Next

|

Last

]

Font:

Proportional Font

LISTSERV Archives

LISTSERV Archives

AFRIK-IT Home

AFRIK-IT Home

AFRIK-IT  October 1999

AFRIK-IT October 1999

Subject:

Re: State of the Continent: ICT

From:

Henry Watermeyer <[log in to unmask]>

Reply-To:

African Network of IT Experts and Professionals (ANITEP) List

Date:

Wed, 13 Oct 1999 10:14:18 +0200

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (105 lines)

+-----Original Message-----
+From: African Network of IT Experts and Professionals (ANITEP) List
+[mailto:[log in to unmask]]On Behalf Of Jeffrey Cochrane
+Sent: Tuesday, October 12, 1999 5:40 AM
+To: [log in to unmask]
+Subject: Re: State of the Continent: ICT
+
+
+Greetings Afrik-ITes!


Hi Jeff and all

+
+Looking for words of wisdom for ICT donors from Africa, we received
+this response:
+
+On 6 Oct 99, at 9:19, Henry Watermeyer wrote:
+
+> Maybe organisations like USAID and the World Bank should consider
+> refusing to find telcom dependent projects until those projects
+> cease to be milked by the local telcos.
+
+Henry, can you or others be a bit more specific with regard to what
+it means for a project to be "milked" by a local telco?  It might also
+be helpful to take the telco's perspective -- might they have national
+interests in mind in taking the actions that some perceive as
+"milking"?

We, in SA, pay approx 18 times as much for data communications as is charged
in the USA.

With the privataisation of the telco into TELKOM SA, with shareholdings by
the South West Bell Corporation of the USA and Malaysia Telecom, we now see
the financial statements of TELKOM. These reflect significant profits over
and above the investement being made in expanding and upgrading the network
prior to deregulation in about three years.

What the US donors, including the largest individual shareholder in SBC, are
saying is that it must be possible for the reseasrch & education sector, in
our specific case, to be charged at a more affordable, by which they mean
sustainable, level so that the projects they fund do not end up struggling
while we see large profits for the telco. (They also object to paying Value
Added Tax on the spending associated with their funding but thats another
story)

+
+As national telco's increasingly change the way business is done
+in Africa, at what point can a donor's assistance be helpful, and
+how should such assistance be channeled?
+

It seems to me that donors, especially acting in concert, have both an
opportunity and a responsibility to ensure that the projects they fund are
sustainable.

The danger comes from outside shareholders in privatised telcos looking for
good, if not great, returns from their foreign investments. SBC is not an
investor in Telkom SA out of the goodness of its heart. It is looking for
returns on its investment which are higher than it can achieve in the highly
regulated market back home. If a local telco can ensure a monopoly for an
extended period and therefore higher prices for its products & services it
makes a very attractive investment opportunity.

Donors, because of their typically high profile parents, are very often the
only people who have the opportunity and the ability to influence the
conditions that are written into the shareholders agreements. The likes of
the Ford Foundation, AW Mellon Foundation, Open Society Foundation, to name
but a few, pour millions of dollars into aid projects every year and have
huge clout back in the States and in the countries they operate in, which
they need to use early in the privatisation processes.

Doing this will greatly improve the benefits that they are able to bring
through their generousity.

In our case one of the larger donors has spent more that thirty million US
dollars on virtual library projects over the last three years. Thats big
bucks where I come from, but for these projects to work properly, we have to
reduce that 18xUS cost to something more reasonable. The donors are making
that possible through their intervention. I am fortunate enough to be part
of the SA negotiating team which is trying to retofit a solution with the
help of the US Donors but it would have been much better done before the
government sold part of Telkom SA to SBC and Malayasian Telecom.

Hope this gives you some food for thought.

Ciao

Henry


+Cheers!
+Jeff @ Nairobi
+
+
+----
+Information and Communication Technology Programs
+USAID/REDSO/ESA
+Tel +254 (2) 862400
+Email [log in to unmask]
+Email [log in to unmask]
+PO Box 30261
+Nairobi
+KENYA

Top of Message | Previous Page | Permalink

Advanced Options


Options

Log In

Log In

Get Password

Get Password


Search Archives

Search Archives


Subscribe or Unsubscribe

Subscribe or Unsubscribe


Archives

January 2012
December 2011
November 2011
March 2011
February 2011
January 2011
September 2010
June 2010
May 2010
April 2010
March 2010
February 2010
October 2009
September 2009
July 2009
June 2009
March 2009
February 2009
January 2009
November 2008
October 2008
August 2008
July 2008
April 2008
March 2008
November 2007
August 2007
July 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
November 2005
October 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004
June 2004
May 2004
April 2004
March 2004
February 2004
January 2004
December 2003
November 2003
September 2003
August 2003
July 2003
June 2003
May 2003
April 2003
March 2003
February 2003
January 2003
December 2002
November 2002
October 2002
September 2002
August 2002
July 2002
June 2002
May 2002
April 2002
March 2002
February 2002
January 2002
December 2001
November 2001
October 2001
September 2001
August 2001
July 2001
June 2001
May 2001
April 2001
March 2001
February 2001
January 2001
December 2000
November 2000
October 2000
September 2000
August 2000
July 2000
June 2000
May 2000
April 2000
March 2000
February 2000
January 2000
December 1999
November 1999
October 1999
September 1999
August 1999
July 1999
June 1999
May 1999
April 1999
March 1999
February 1999
January 1999
December 1998
November 1998
October 1998
September 1998
August 1998
July 1998
June 1998
May 1998
April 1998
March 1998
February 1998
January 1998
December 1997
November 1997
October 1997
September 1997
August 1997
July 1997
June 1997
May 1997
April 1997
March 1997
February 1997
January 1997
December 1996
November 1996
October 1996
September 1996
August 1996
July 1996
June 1996
May 1996
April 1996
March 1996
February 1996
January 1996
December 1995
November 1995
October 1995
September 1995
August 1995
July 1995
June 1995
May 1995

ATOM RSS1 RSS2



LISTSERV.HEANET.IE

Secured by F-Secure Anti-Virus CataList Email List Search Powered by the LISTSERV Email List Manager