On Tue, Feb 2, 2010 at 5:38 PM, David Kiania | Asentric Consulting Ltd
<kianiadee@gmail.com> wrote:
Interesting story
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KPLC hires out third cable
Written By:KNA , Posted: Tue, Feb 02, 2010
The Kenya Power and Lighting Company (KPLC) has leased out three of
its 18 extra fibre optic network capacity on the Nairobi- Mombasa
power transmission line to some telecommunication companies.
The multimillion shillings deal entered between Safaricom, Wananchi
Group and Jamii Limited is aimed at enhancing KPLC's revenue earnings.
In this partnership Safaricom ended up with a 20 year lease of one
pair of fibre amounting to Shs 288 million while Jamii
Telecommunications Limited and Wananchi Group each got a five year
renewable lease of one pair of the fibre at a cost of Shs 27 million
per year.
Speaking during the signing of the deal at a Nairobi hotel, KPLC's
Managing Director Joseph Njoroge said after the leasing of the three
pairs of fiber to the three companies, there still exists 15 more for
the same.
He disclosed that the company had invested in a Shs 1.9 billion system
Control and Data Acquisition (SCADA) system which entailed
installation of fibre optic cables on its major transmission lines.
"This system is used for effective and efficient management of
operations of KPLC's power transmission and distribution grid," he
said.
He explained that the company had decided to lease the 18 pairs
considering that it only required six pairs of fibre in the network
for its day to day operations in terms of data and speech
communication.
KPLC was granted a network facility provider- Tier 2 license by the
Communications Commission of Kenya (CCK) last year.
The license gave the company authority to construct, install and
operate electronic communication systems, which may be leased to
licensed telecommunications operators.
The lease offers contained in the tender floated last year were in two
categories; one for 15 years described as indefeasible Right of use
(IRU) for which safaricom made a counter offer of 20 years, and which
required a bidder to pay upfront; and the second one was a five year
lease payable bi-annually and renewable after the five year period.
In respect of the IRU, the rent of the fibre on the Nairobi-Mombasa
route was Shs 2432 (32 dollars) per pair per kilometer per month which
translates to Shs 288 million (3,840,000 dollars) for a period of 20
years.
For the five year lease, the rent per pair per kilometer was set at
Shs 4560 or Shs 27 million per year.
--
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