SCOM owns 20% TEAMS Kenya Ltd.

TEAMS Kenya Ltd owns 85% of the cable system. Therefore SCOM owns 17% of the cable

Here is the break down:

Ownership of the cable is as follows:


15% - Etisalat (UAE)
85% - TEAMs (Kenya) Ltd

TEAMS (Kenya) Ltd consists of:


20% - Government of Kenya (through Min. of Finance)
20% - Safaricom Ltd
20% - Telkom Kenya Ltd
10% - Kenya Data Networks Ltd
10% - Econet/Essar Telecom Ltd
5% - Wananchi Group
3.75% - Jamii Telecom Ltd
1.25% - Broadband Access/AccessKenya Ltd
1.25% - Africa Fibrenet (Uganda) Ltd
1.25% - InHand Ltd
1.25% - iQuip Ltd
1.25% - Flashcom Ltd

Now what is the potential revenue expected if it is operated at full capacity? Therefore,what additional revenue can SCOM expect?

Cable will launch with about 40Gbps...how much will it charge per Gbps per year?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

The cable will launch with 40Gbps = 40,000Mbps

Expected charges are US$500 per Mbps = Sh40,000 per Mbps

If they sell the full capacity,they can expect about 40,000 x 40,000 = sh1.6b per year

SCOM owns 17% (20% of TEAMS Kenya,which owns 85% of the cable)

Thus their share of the revenue (NOT PROFIT!!!) is 'only' sh272million!!!

So,what's all the excitement about??????

The real beneficiaries will not be the owners of the cable,but the people who provide content through the cable!


Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

@Renegade - the 'capacity' is 1.28 TB - but not all of it will be lit up on launch - they can continue to light up more GBs as demand grows since there are cost factors related to it - the capacity is just there to allow for growth (rather than lay down another cable). So the remaining will be what they call 'dark fibre'. Even the SAT3 cable from West Africa to RSA is not fully utilised though with 2010 they will need THAT capacity,plus SEACOM,PLUS Eassy which its hoped will be complete by mid next year. 2010 will require an estimated 3.6TB (SEACOM + SAT3 + Eassy + ONE MORE) for broadcast (you should have an idea how many TV stations will be broadcasting to how many countries,how many reporters sending digital images,news items,how many radio stations,bloggers,web news services,etc,streaming media,email,internet,blogs.




For East Africa the demand will mainly be the mobile operators (abt 15 for Ke,Ug,Tz,Rwanda,Burundi),Corporate ISPs (KDN,AK,Wananchi/Zuku),Fixed operators (Telkom,Uganda Telecom,Tanzania telecom,Zanzibar telecom,MTN Fixed,etc). Aside from telcos big chunks of demand from Education sector,Government.

The problem with equality is that we desire that it be with those that have more than us rather that those that have less

Mukiha

Your calculations on the capacity and revenues expected from this is alarming. Do you have info on the capacity of seacom cable and revenues they can gather in one year.

Someone had asked about SEACOM's capacity and I have seen the following on their website.

'Additionally,a second express fibre pair is provided from South Africa to Kenya. These two fibre pairs have a combined capacity of 1280 Gbs.

An additional express fibre pair is provided from Kenya to France into a PoP in Marseilles with 640Gbs capacity.

Another express fibre pair is provided from Tanzania to India into the PoP in Mumbai with 640Gbs capacity.

SEACOM has procured fibre capacity from Marseilles to London as part of the SEACOM network.'

If you take out the additional express fibre pairs from Nairobi-Marseille and Tanzania-India,the SEACOM's capacity is eerily similar to that of the TEAMS cable. Coincidence?





Opportunity calls but few respond.