Broadband Infraco a big budget winner

Broadband Infraco has been allocated a hefty R 1.4 Billion in the 2008 Budget from the national treasury.

February 21, 2008
Broadband Infraco a big budget winner

Broadband InfraCo was established in 2006/07 by the Department of Public Enterprises as an intervention to ‘rapidly normalise telecommunications market efficiency and address the cost of broadband to other industry players and end users, by having infrastructure in the national backbone and international connectivity at reduced prices.’

According to a National Treasury Report work previously performed under the South African national superhighway project by the Department of Public Enterprises demonstrated two key findings in relation to broadband connectivity and the telecommunications environment in South Africa;

  • South Africa significantly lags behind its international counterparts in terms of ICT penetration as well as the rate of new technology adoption.
  • Broadband penetration relative to international benchmarks is virtually non-existent and significantly more expensive.

Government in control

The report further states that “The Department of Public Enterprises has determined that in order to achieve the goals of the Accelerated Shared Growth Initiative for South Africa (ASGISA) and ensure higher ICT penetration levels and affordable broadband connectivity, government should continue to own and invest in communications infrastructure.”

The department subsequently established an infrastructure company, Broadband InfraCo, that acquired the full services network (FSN) from Eskom and Transnet.

“Broadband InfraCo will make available communications infrastructure and a network that will provide access for undeveloped areas and bandwidth requirements for specific projects of national importance, which could include scientific initiatives such as the Square Kilometre Array Telescope project and the South African Research Network.”

Broadband InfraCo is further planning to deploy a multi-terabit/s west coast submarine cable system linking South Africa with the United Kingdom. This cable system will supplement the current SAT3 cable, which according to many reports will soon reach saturation point.

The project is a joint venture between the South African government and the private sector.

With the establishment of Broadband Infraco in 2006/07, government contributed R627 million, including the purchase of the FSN.

An additional amount of R727 mllion (R377 million in 2008/09, R210 million in 2009/10 and R140 million in 2010/11) has been allocated over the MTEF period, as transfers from government for Broadband InfraCo.

This brings the total government equity contribution in Broadband InfraCo to R1.4 billion.

Comments

 

Anonymous News Tip
Free Email Newsletter:
Subscribe
X

Anonymous News Tip






Captcha image
Not readable? Change text.

sending

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Are you using public WiFi hotspots to connect to the Internet in places like airports, restaurants or shopping malls?

View Results

Loading ... Loading ...

More News

Top 50 broadband suburbs in South Africa

South Africa Internet

Ookla’s Net Index statistics reveal the top 50 broadband areas in South Africa, which include most cities (except PE and East London)

DA’s SABC ad case postponed

SABC Please Stand By Test Pattern

A hearing by the Complaints and Compliance Committee (CCC) on the DA’s advertisement complaint case against the SABC was postponed

Cell C hikes OOB data prices by 560%

Cell C

Cell C has told subscribers that it will soon be increasing its out of bundle data rates, with its website suggesting that users should expect a 560% increase

Cape Town Internet speed increase

Cape Town

The internal network connectivity in the City of Cape Town has received a significant speed boost

bool(true)