EASSy prices 'to be regulated'

[bwana]

Johannesburg - African countries hope to launch a submarine cable to slash the cost of phone calls and internet access by early 2008 and will defy private sector investors looking for big profits by regulating tariffs.
Communication ministers from 15 countries in southern and eastern Africa said on Tuesday they had agreed to speed up long-delayed plans for the Eastern Africa Submarine Cable System (EASSy), which will link the east of the continent to the rest of the world.

Glad to see they're still planning to regulate prices otherwise we'll be in the same boat we're in now.

"Shareholders will recover their costs and get a return on their investment but tariffs will be regulated to keep costs low," said Henry Chasia, executive deputy chairperson of the Nepad e-Africa commission.

Unfortunately the delays keep adding up

The cable was expected to be operational in the first quarter of 2008, and terrestrial links to landlocked countries would be finished by the end of 2008, Chasia said

 

[kilo39]

According to these guys laying the cable is a trivial issue. Done in a moment. So they are setting two years aside to talk about it; endless meetings, plush conferences, playing the filing shumble. Why don't we just build three cables in the time it takes them to talk about it and "agree." Wonder if anyones told telkom - SAT3 will become mysteriously unclogged and telkom will turn into a caring company. Joke. Why can't anybody just pick up the phone - multinationals run on teleconferencing and emails - why must they have 2 years to talk about it. ACTION would have the cable in place by the end of the year. But - african time - who cares - scones are good.

 

[JStrike]

What I want to know is why companies cant lay their own cables? Apparently it doesn't cost that much, so surely IS, et al could afford it

How much extra would it cost to lay it in international waters, thus avoiding dealing with the red tape from all governments whose waters it lies in. It will then only have to deal with the two countries at the ends

 

[kilo39]

Well we know who controls the country on this end - so maybe that wouldn't work

A lesson in how to do nothing. Such is life on the gravy train.

 

[Sneeky]

Everything moves way to slowly on this continent, really, and time is not on our side.

 

[rooijan]

Another angle

Here is a nice cartoon on the topic:

http://www2.businessday.co.za/cartoons/big/20060606.jpg

 

[Dastrix]

Why don't they do something NOW and regulate SAT3?

 

[DirtyPope]

What is the cost to lay cable up the coast of Africa?

Does anyone have this info, please?

 

[Sneeky]

The initial costs that were thrown around for SAT-3 I think were in the region of $600m USD.
Subsequently the figures as shown in this article indicate that the cost these days is significantly less, or that is the way it appears on face value.

Chasia said the cable would cost around $280m, but that would rise to $300m including an extension to the Indian Ocean island of Mauritius.

http://www.fin24.co.za/articles/default/display_article.asp?Nav=ns&ArticleID=1518-25_1946533

Kenya have already said that they are frustrated with the delays caused by the 'South African Club' and that they will just do the darn thing themselves if an agreement cannot be reached soon.

Our problem here is government protecting Telkom. No way in hell anyone is going to land a cable on our shores without the fat cats benefiting extensively from it.

 

[DirtyPope]

Thanks for the update...

1.7 bn rands...piece of cake to any private company...Why don't TK do that...hehehe..jks !

Now surely a private company doesn't have a mandate to lay down there "own" cable, literally plugging South Africa into another continent, could they? Surely such a process would be a nightmare having immense requirements to pass through government/legislation/whatever, or is this do-able?

 

[kilo39]

What is the cost to lay cable up the coast of Africa?

Does anyone have this info, please?

I seem to remember seeing a price for eassy of $500 million.

Telkom ownz all - even if 'some other company' could lay a cable it has to be connected in - telkom own the network (backed up by a non-existant regulator) - so telkom ownz all and makes progress impossible - unless it includes telkom (and their friendly brothers, the lawyers and the courts.)

Here is a quote:
Telkom, with a 13% stake, is the largest of 36 shareholders in Sat-3/Wasc/Safe. It invested US$85m of the $650m project cost.
http://www.mybroadband.co.za/nephp//?m=show&opt=printable&id=514