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Govt studying Exxon-Kosmos deal

Comment: Stranger, Telcoms

2009-10-09 09:47:44
Comment to:
what do you think MKO


This is another disaster waiting to happen! As I write, their is a UK based company negotiating/ enticing the main network carriers to sell their infrastructure to them and then lease it back (to run their operations, ie the operators) Generally referred to as "Lease back agreements"

This would be very very bad for the country and would stifle the economy in the long run.

- Some of the effects would be that retail price of telecom would go up

- The value of our telcoms infrastructure would be inflated to the extent that when these companies "mess-up" we might still not be able to take over (buy back) bcos the cost would be too high.

-Workers would be exploited, bcos, (just for an example); vodafone would not own it's networks (as it would have been sold for cash), but lease from this new company so if there any disputes, the cost to vodafone of exiting the market would be minimal (in fact it would be so easy for them to exit and another entity take their place - and repeat the cycle).....Meanwhile the owner of the infrastructure would not be engaged in the retail side of the business so generally shielded from any backlash that may arise as a result of they "Shafting the country"

Look this is a complex area. Just send your email address and I'll be happy to provide more insight.

This article is closed for comments.

10-08 04:51
Stranger, Telcoms
10-09 09:47
JAH-jerry >>>>>>>>>>>>>>>>>>>>
10-08 09:05