Seacom 'willing to collaborate'

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 23 Aug 2007

East Coast undersea cable operator Seacom is willing to collaborate on the Nepad Broadband Infrastructure Network (NBIN). It says "successful" discussions have been held with the Department of Communications.

Seacom plans to construct a 1.2Tb cable along the East African coast, stretching from KwaZulu-Natal, north up the African continent to terminate in Europe. It plans to start construction next month, once its marine survey is complete.

However, communications department director-general Lyndall Shope-Mafole has indicated Seacom would not be allowed to land in SA unless it meets ownership and other criteria. She noted her department believes commercially operated cables will not lead to a reduction in broadband prices.

The department is championing the NBIN project, under the auspices of the African Union, to run cable up through central Africa and along the East Coast. Some 23 countries initially signed the memorandum of understanding, but only 11 have signed the governing protocol. Only two, SA and Rwanda, have ratified it. To date, no resources, in terms of money or people, have permanently been assigned to it.

Meeting requirements

Seacom signed an agreement with second national operator Neotel last month. It contends that since Neotel is a fully-licensed public switched telephone network operator, meaning it has the same privileges as Telkom, and that Neotel will own the 200km of cable that stretches out into the country's territorial waters, then all local legislative requirements are met.

"The sea cable asset is 100%-owned by Neotel in the South African territory. Neotel is owned 30% by government and 30% by ordinary South Africans. Among other criteria, Neotel's BBBEE compliance has allowed it to secure a PSTS licence to be the second national operator," says a Seacom spokesman.

Seacom is registered in Mauritius and refuses to state exactly who its shareholders are, but says it is 52%-owned by "African companies".

According to the spokesman, Seacom is 25%-owned by South Africans, 27% by East Africans, 25% by Europeans, and 23% by the US development group Herakles Telecoms.

Seacom, therefore, states its direct ownership structure falls outside South African legislative jurisdiction.

"But we are willing to collaborate on the Nepad project and we have held discussions with them that have been highly successful, although they have not moved into the technicalities yet," says the Seacom spokesperson.