|
 |
Interview with:
Mr. A. Cheserem,
Managing Director
Nairobi, August 11th 1999
Contact
Mrs. Alice Koech,International & Public Relations Manager
Postal Address: P.O. Box 30301, Nairobi, Kenya.
Visiting Address: General Post Office, 7th floor Kenyatta Avenue, Nairobi
Tel: 254 (2) 227401 or 254 (2) 247833
Fax: 254 (2) 251071 or 254 (2) 330435
E-mail: akoech@eafix.net
|
KPTC (Kenya Post & Telecom Corporation) split July 1st 1999 opening to new investors, second operators of mobile phones, etc. How is Telkom preparing to compete in this liberalized market?
KPTC, as you very well say, split the 1st of July into 3 separate entities: Telkom Kenya, Postal Corporation of Kenya and CCK (Communications Commission of Kenya). Telkom is thus a newly formed company, the one in charge of delivering telecommunications services. Telkom has inherited the same weaknesses KPTC had. That is why the challenge to meet the consumer expectations is enormous. Consumers expect new services from us, affordable ones and deliverance of new services that will meet their demand. We have a list of 120.000 consumers waiting to get a regular telephone line. The waiting list for mobile phones is of 40.000 people. In fact these are only those consumers who have declared their wish to be served by us, but the real number of potential consumers could be 3 times this amount. The potential for growth is huge.
In the past KPTC did not invest in infrastructures as it should have. Hence, one of our priorities is to develop modern infrastructures. But for that we need to bring about investment. Privatization of Telkom will bring about the necessary capital to invest in infrastructures. We need to inject good funds from investors, local and international ones.
What are your plans for expansion?
We have just finalized a "Master Plan" containing all that is required for the development of the network of telecommunications until the year 2015 and all the services that we need to provide. For instance, there are 400.000 lines currently operating in Kenya, even though with the present demand the number of lines should be as high as 700.000, but with the lack of present funding we have not been able to expand the net. Actually penetration is only 1%. In the Master Plan we have projected that by the year 2020 there should be 2.4 million lines operating in Kenya. We are already working to attain such figure.
How are you planning on improving your services now that competitors are about to disembark in the Kenyan market?
First we have to look at the demand and what services are required from us. From there we will be ready to serve our customers. In 8 months we will be able to see the first results of the Master Plan. It will be through privatization that we will get a strategic investor to improve the services we presently offer.
You are looking for strategic investors to help you improve your performance and boost your finances. How are you planning on attracting new international partners and what do you ask from them?
We have just started to operate as a separate telecommunications company. Through the planned privatization process we will sell 26% of our shares to a strategic investor. This strategic investor will not only inject the necessary funds to help us grow, but it will help us to improve our network, bring in the experience and expertise, help us train our workforce and improve our managerial skills, among other things. We are already open to receive proposal from potential partners. We are soon sending out RFP's (Request for Interest) in order to see who will be the right partner. We have set up a transitional committee, and in September-October 1999 we will advertise internationally for international telecommunications companies to bid to become our strategic partner. |
Jambo Net and Safaricom are under Telkom. Can you tell us what is your relationship with them and how do they operate?
Jambo Net is the Internet company under Telkom. It is actually the backbone supporting ISP's in Kenya. Before ISP's had to operate through regular phone lines and that was very costly for them. We created Jambo Net which has allowed ISP's to reduce their costs between 50% and 60%, so we are quite satisfied with the results.
Safaricom is the mobile phone company that operates under Telkom. We needed a mobile service and that is why Safaricom was created. We are getting prepared against the second mobile operator which will soon enter the market. We are presently under discussions with Vodaphone (UK) in order to enter an agreement for a joint venture. They have the experience in this field and a very strong expertise in roaming. This is probably one their strongest competitive advantage and one of the reasons for our cooperation. We will sell 30% of Safaricom to Vodaphone, while Telkom will retain the remaining 70%. That way we will be able to compete with the new companies establishing themselves in the market.
Can you give us some figures regarding your institution: number of employees, capacity, number of lines, turnover, etc?
We cannot really give you our real figures yet since we have just been created. However, last year KPTC had a turnover of Ksh 21 billion (US$ 600 mill), out of which the largest part was produced by what is today Telkom (the telecommunications operator). Telkom has between 18,000-19,000 employees, counting its subsidiaries. Presently we have a capacity of 400,000 lines, even though there are only 300,000 lines actually operating.
Can you give us a final message for our readers?
Telkom is less than one month old, and therefore we need as much support as we can get from foreign investors in terms of availability of services worldwide. Telkom is a forerunner of the economy, i.e., with the development and improvement of telecommunications we will help the country's economy grow. Without proper communications it is very difficult to do business and establish proper links abroad. We are certain we will play a major role in the development of Kenya. Kenya is an emerging market, that is why we need all the support that we can get, in order to move forward and be an active part of the global village we are living in. | |
© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Kenya published in Forbes Global Magazine.
November 29th 1999 Issue.
Developed by AgenciaE.Tv |
|
| | | | |
| |
|
