The Department of Public Enterprises' Broadband Infraco West Coast cable has trumped the Department of Communications' Uhurunet as government's lead undersea initiative, aimed at reducing telecommunications prices.
A statement issued late yesterday says the Presidency and ministers of public enterprises (Alec Erwin) and communications (Ivy Matsepe-Casaburri) met over the weekend and Broadband Infraco had been selected.
The statement is contrary to an announcement issued by communications department director-general Lyndall Shope-Mafole, at the end of March. At that time, she implied that Uhurunet, a proposed project to ring the entire continent with an undersea cable system, was government's preference.
However, yesterday's statement says government reiterates its commitment to continue working with other governments on the continent and interested partners in the Africa-wide Uhurunet Nepad-led initiative.
It also believes this initiative will play a major role in reducing the cost of communications and increase connectivity in Africa.
Affordable broadband?
Uhurunet is an outgrowth of the Nepad Broadband ICT Network Protocol, which SA and 11 other countries have signed to build an undersea and terrestrial telecommunications system throughout the continent.
The protocol has been heavily criticised for allowing government representatives to hold a "golden share" and limiting individual company investments to $2 million.
Government says its decision is in line with president Thabo Mbeki's statement in this year's state of the nation address to complete the licensing and establishment of Infraco, as well as the process to launch undersea cables in partnership with other governments on the continent and private sector.
However, in terms of the Electronic Communications Amendment Act, Broadband Infraco has to present its business plan to Matsepe-Casaburri in order for her to issue the regulator, ICASA, with a policy directive to license it. Neither the Department of Communications nor the Department of Public Enterprises responded to questions as to whether this had been done.
Broadband Infraco was created four years ago to provide a domestic and international telecommunications system, using parts of the old Eskom and Transtel communications systems. Its major objective is to execute interventions that deliver affordable broadband to South Africans on an open access basis.
Ownership issues
Government says the African West Coast Cable (AWCC) model is such that Infraco will own 26% of the cable, while a broad base of private sector participants, including incumbent communications operators, will own the remainder.
Government's statement says the AWCC project is already well advanced, and a memorandum of understanding has been agreed with prospective private sector participants. Infraco will shortly announce a selected supplier and enter formal contract negotiations.
The AWCC is a 3 840Gb cable that will stretch from the Western Cape to the UK with capacity terminating in London. It will have branching units to at least 10 countries along the West Coast of Africa, at a design length of 13 000km.
The cable will also support SA's science super-projects such as the Square Kilometre Array telescope, for which the country is currently competing against Australia.
The AWCC will proceed with immediate effect.
Government says in its statement that it anticipates the system will enter service by mid-2010, in time to meet the bandwidth requirements for the 2010 Soccer World Cup that commences in June of that year.
The ministers of public enterprises and communications will elaborate on these matters during the course of this week. Both ministers are scheduled to present Parliament with their budget speeches next week. Matsepe-Casaburri will present on 13 May and Erwin a day after.
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