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To: axial who wrote (46224)	2/5/2018 12:31:45 AM
From: elmatador	Read Replies (1) \| Respond to of 46821

Hi Axial. I appreciate your views. (I will PM you why I should be thankful to you) I need to go back to the start of the discussion, we need to keep it civil and productive) it is looking like you read much more than I wrote. Let's do a recap. I wrote an article that there is a risk that the Chinese take over African connectivity. You replied that this was not news. My take on the whole Chinese taking over Africa connectivity is based on the fact that firts and foremost I am active in Africa since 1983 and have build and operate many major projects. That removes the Guilderesque perspective. None of the projects were pro bone or financed by USAID, JICA or any quasi state-owned European banks. they were all for profit. In short I am not part pf the development aid bureaucracy, What the article states is that the Chinese created an ecosystem whereby they invest in infrastructure to advance their trade, is better understood by Black Swam because they follow a long discussion in thread where I tell TJ the moderator that China is going to have a tough time getting RoI on their infrastructure.the http://www.siliconinvestor.com/subject.aspx?subjectid=51736 I acknowledge where the Chinese are doing right (they bought Brazil electricity utilities on the cheap and now Brazil returns to growth and they are seating pretty0 there but I think building high speed trains railways in Laos is never going to be profitable. Bear with me. We will address the financials of the fiber. The Chinese are creating a market for their own goods. I tell to my wife: The Americans have been rich for too long, They no longer know what is to produce cheaply. Sell to poor people nor get markets that were left by the side of the road You can read it right here. China Prepares for Trade War linkedin.com

To: axial who wrote (46224)	2/5/2018 3:39:33 AM
From: elmatador	Respond to of 46821

How we recover costs? That is the easy part. It comes from 2 sources: Let's start with the juiciest one. Have a look at how the OTT crowd got the ad revenues from the printed press, That blue are. The money was there for the taking. Now look to the orange area. portion. Imagine how much money is there to take from TV ads.

To: axial who wrote (46224)	2/5/2018 3:47:44 AM
From: elmatador	Respond to of 46821

Now we address the 2nd source of revenues. Connectivity is part of the ecosystem. It is NOT the ecosystem. Thus they have to build networks to get a cut of the revenue streams. e-commerce runs on communications. If cost effective communications are there, e-commerce thrives. As Facebook and Alphabet have been building communications' infrastructures. The African market is a greenfield for e-commerce. they are not going to sell the latest gizmo but they are going to sell. Cooking pots and plastic containers for water rice cookers and all kinds of low cost stuff. Guess which country produces those low costs utensils? Yes the Chinese. Remember, we are talking about Burkina Faso and Uganda. Not Bethesda. MA. There is one billion+ people down here, byt the way. Which brings us a back to something very fundamental. Electrical power. *How about electricity?* Here is not a matter of costs. It is a matter of availability. The over investments in R&D in the Tech Bubble enabled the deployment of mobile infrastructures in Africa and other emerging markets. The over investments in alternative energy in advanced countries will enable deployment of cheaper energy in Africa too. Just wait when these Tesla investments are applied here. Note that gigantic power projects o going. Next year Ethiopia will deliver 400MW which will grow to 2.000MW in Kenya to interconnect the grids of Uganda Kenya and Tanzania Did this for a friend of mine couple of years ago and give you the dimension of the power issues: slideshare.net Quite a few financiers investing in alternative energy in Africa. Not because it is green. Because it is cheaper. (those subsidies the Chinese and the Europeans threw left and right for wind and solar lowered the costs of wind power and solar power went down. M2M? IoT? That is how electricity is sold in Africa linkedin.com