Actually I've just worked it out on paper and figured it out so bear with me that I may not have all the boardroom facts. I think Alex's remarks about price reductions are correct and that also Hon Ndemo may also have been mis-guided by the share holders of Teams regarding pricing. From the view that kenya needed its own cable and that the Govt only needed 20% of the capacity for its own needs, the rest would be invested for by SPs and share holders. I think this is why Hon Ndemo would have said that pricing would be coming down. The half circuit between Mombasa and Fujairah is owned and not leased on a per circuit basis. Therefore, eg cost of an STM1 on the half circuit would be negligible over time. The only charges incurred would be the rest of the half circuit in termination to other cable companies. I'll go into the figures soon but I think what has changed is the initial investments done by the share holders and how soon they can recover the costs on the half circuit cable. Did they take loans to repay over 20 years or not? They maybe buying an IRU at 5-10USD at fujairah and trying to cost the recovery of initial investments, thus landed at Mombasa would be 25USD . Seacom IRU drop drastically after 3 years, so will the half circuit cost drop in 1 or 2 years?
Something changed in the grand Teams plan. Share holding changes or more expensive IRUs at Fujairah or local borrowing ?