Monday, April 26, 2010

Pan-African undersea fibre ring is being proposed by Main One, SEACOM and eFive Telecoms to extend their existing cable

[sub tel forum] Main One, SEACOM and eFive Telecoms today announced that they have signed a Memorandum of Understanding (MoU) to launch a project to develop a pan-African fibre ring solution. The solution will entail extending the Main One and SEACOM networks to create a system that offers redundancy and additional capacity on both the east and west routes around Africa.

The solution would require a new cable section to link Nigeria to South Africa via landing points in Gabon, the DRC, Angola and Namibia. The new addition would follow the completion of the first phase of the Main One cable project which will connects Nigeria to London, by June 2010. The SEACOM cable, which became operational in July 2009, currently runs from South Africa along the east coast of Africa and onwards to the rest of the world via India and Europe.

Funke Opeke, Main One CEO, explained: “Main One’s plan in 2008 included building in two phases with phase one connecting London and Nigeria through a 7,000Km cable. Phase two will connect Nigeria to South Africa once the right partnership with the right level of funding could be secured.

“With the first phase scheduled to be completed on time and on budget in June 2010, we believe that the proposed partnership with SEACOM and eFive telecoms is the best way forward.”

eFive Telecoms, a South African telecommunications company, will be responsible for the project funding arrangements and plans to join forces with Nova Capital Africa to raise the US$400 million necessary to manufacture and install the new cable. Nova Capital Africa is part of Nova Capital Partners LLC, a New York based emerging markets investment banking group that serves large and middle market companies throughout Africa as well as central and eastern Europe.

Lawrence Mulaudzi, eFive Telecoms Managing Director, commented: “Having looked extensively at the African market and other cables being planned, building the link from Nigeria to South Africa makes the best economical and operational sense in the current landscape. Final For Release 2

“Despite the depressed state of global economic markets, we are confident that there is sufficient appetite to fund quality projects in high growth sectors such as African telecommunications.”

As with the Main One and SEACOM cables, the solution will be privately funded and installed on an open access basis by 2012, giving it an early timing advantage when compared to other planned systems. Actual ownership structure, construction plans and contractual details are yet to be finalised.

“We hold the view that a system circumventing the entire continent is the best way to attain adequate redundancy whilst offering customers with a comprehensive connectivity solution. The MoU announced today shows our determination to find a viable way to extend our system with partners who share our vision for the development of ICT on the continent,” said Brian Herlihy, SEACOM CEO.


No comments: