South Africa: Private sector to participate in govt's undersea cable
Thématique :
sud afrique
By Christy van der Merwe, Engineering News, 27/03/2008
State-owned broadband infrastructure company Broadband Infraco has secured private sector participation from companies for its submarine cable project from South Africa along the West Coast of Africa to the UK.
The companies expected to sign a shareholders' agreement on April 15 were Telkom, Neotel, Tenet, Tata Communications, Multichoice, Vox Telecom, Internet Solutions, Gateway Communications, Equator Telecom Nigeria, and British Telecom.
Broadband Infraco, through the Department of Public Enterprises, would hold a 26% stake in the cable and its capacity, and 74% of the total capacity was earmarked for the private sector.
A memorandum of understanding outlining the principles of operation of the system was signed at the end of February between Broadband Infraco and the private sector participants. The shareholders' agreement would be signed on April 15, with financial close on the same day.
Described as an atypical private equity project, the percentage of the total capital input invested by a company would translate into the percentage of the broadband capacity that the company would get once the cable was operational.
It was understood that the principles agreed allow each participant to determine their own market pricing of bandwidth on the system.
Bids from suppliers to construct the system were already under evaluation by the consortium members, and supply contracts were scheduled to be signed before end April.
The 3,8-Terabit cable, which was expected to enter service during the first half of 2010, would either run from the existing SAT-3 landing station in Melkbosstrand, or from a new landing site adjacent to Koeberg power station in the Western Cape, up along the West Coast of Africa to the UK.
The system made provision for about 12 landing stations along the African West coast, which could be built at a later stage.
Lowering the cost of broadband was viewed as important in stimulating investment in the country, and an undersea cable would rapidly broaden the international bandwidth supply base in South Africa, which could lead to more competitive pricing.
State-owned broadband infrastructure company Broadband Infraco has secured private sector participation from companies for its submarine cable project from South Africa along the West Coast of Africa to the UK.
The companies expected to sign a shareholders' agreement on April 15 were Telkom, Neotel, Tenet, Tata Communications, Multichoice, Vox Telecom, Internet Solutions, Gateway Communications, Equator Telecom Nigeria, and British Telecom.
Broadband Infraco, through the Department of Public Enterprises, would hold a 26% stake in the cable and its capacity, and 74% of the total capacity was earmarked for the private sector.
A memorandum of understanding outlining the principles of operation of the system was signed at the end of February between Broadband Infraco and the private sector participants. The shareholders' agreement would be signed on April 15, with financial close on the same day.
Described as an atypical private equity project, the percentage of the total capital input invested by a company would translate into the percentage of the broadband capacity that the company would get once the cable was operational.
It was understood that the principles agreed allow each participant to determine their own market pricing of bandwidth on the system.
Bids from suppliers to construct the system were already under evaluation by the consortium members, and supply contracts were scheduled to be signed before end April.
The 3,8-Terabit cable, which was expected to enter service during the first half of 2010, would either run from the existing SAT-3 landing station in Melkbosstrand, or from a new landing site adjacent to Koeberg power station in the Western Cape, up along the West Coast of Africa to the UK.
The system made provision for about 12 landing stations along the African West coast, which could be built at a later stage.
Lowering the cost of broadband was viewed as important in stimulating investment in the country, and an undersea cable would rapidly broaden the international bandwidth supply base in South Africa, which could lead to more competitive pricing.
