State keeps underwater cable to itself
It said part of its $700m west coast submarine cable forming part of the link between Africa , America and Europe would be completed by 2009.
At a media briefing , the public enterprises and of communications departments said Infraco would be transferred from Eskom to the public enterprises department.
It would have no private equity involvement. “The intention is not to change this,” said director-general Portia Molefe.
There has been speculation that VSNL, part of India’s Tata Group, would have a 26% stake in Infraco .
It would look to private companies as well as its own coffers for funding the $700m underwater cable.
Molefe said that Telkom and other large telecoms companies were thinking about buying in .
The announcement comes ahead of public hearings into the formation of Infraco, due to start tomorrow. Communications director-general Lyndall Shope Mafole said submarine cables were needed to ensure broadband connectivity to the rest of the world.
Infraco would operate at cost to ensure a lower price for broadband.
A separate phase, also under Infraco’s mandate, would involve Neotel to ensure SA was nationally linked to broadband.
Infraco would lease its network between the country’s main cities to Neotel, which would have to pay only 35% of Telkom’s 2006 leasing fees to use the network.
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