Four firms lose 5% stake in TEAMs project

Four firms have lost their shareholding in the Kenyan undersea fibre optic cable TEAMs project after failing to pay for their 5% stake.
According to Business Daily report Flashcom, Africa Fibrenet Uganda, Iquip Limited and Inhand, who held 1.25 per cent each with a total value of $5 million were kicked out after they failed to beat the extended deadline of July 14.
But Flashcom chief executive Julius Kinyua said last night they had not received any communication about the development, insisting they were still part of the shareholding.
The last day had been initially set for June 30.
Shareholders in the East African Marine Systems (TEAMs) had agreed that the shares that the government has been holding in trust for them would only be transferred to them upon full payment of the equity contribution. Shareholders in TEAMs have been promised Indefeasible Right of Use (IRU) for 20 years.
The deal gives shareholders access to international bandwidth at discounted rates and allows them to sell the same to consumers at a premium.
With the Seacom fibre optic cable set to land in Kenya at nearly the same time as TEAMs, those who miss out on the government-backed platform are expected to buy capacity in rival undersea cables.
Seacom is set to officially launch its services in Kenya tomorrow while EASSy is expected to be operational before the end of next year.
Iquip and Inhand are both associated with Brian Longwe, a regional IT consultant who had hoped to use the capacity to connect Tanzania. Africa Fibernet Uganda on the other hand had aimed at hooking Kampala to high speed internet using the platform.
Mr Longwe said his company had failed to meet the share deadline because its Tanzanian counterparts had been rendered incapable of meeting their part of the survey.
“We are still in discussion with the TEAMs board on the matter, which is highly confidential at this stage,” said Mr Longwe.
Mr Michael Joseph, the TEAMs chairman and Safaricom chief executive, said last Thursday’s board meeting had agreed that no further extension would be granted to those who had not paid.