New undersea cable connecting Cape Town to Mtunzini planned

Telecoms infrastructure provider Techteledata said that it received a funding commitment from the IDC to build an undersea cable from Mtunzini to Cape Town, connecting East London and Port Elizabeth in the process.

Musa Phungula, Techteledata managing director and founder, told MyBroadband that the planned cable system will provide redundancy between the cable systems which land on South Africa’s East Coast (SEACOM, EASSy and SAFE) and the West Coast (WACS and SAT-3).

Other advantages of this cable system, explained Phungula, includes lower latency and lower maintenance costs when compared to terrestrial cable systems.

According to Techteledata they also have a technology partner lined up, but would not divulge the name at this stage.

The project is not limited to a submarine cable. Phungula explained that they are planning to build two 6,000 square meter data centres at Mtunzini and Yzerfontein.

The Techteledata MD said that these two data centres should make it more attractive for international companies to establish a point of presence in South Africa to serve their content to an African and international market.

TDD cable
TTD cable

Phungula said that many large telecoms players have already shown an interest in the new project, and are keen to purchase capacity on the cable system and in the data centres.

Musa said that Techteledata and the Development Bank of Southern Africa (DBSA) are also in talks for funding for this project.

Techteledata is planning to launch this project in July 2013, after which companies will be able to purchase capacity on the planned cable and in the data centres.

The company said that the total project budget is $100 million (R893 million), adding that they welcome potential investors to join the project.

Update

The DBSA’s Milko Skoro contacted MyBroadband with the following message: “The information contained in this article is incorrect and I want you to remove all references DBSA with a notice stating that all references to DBSA were published incorrectly.”

Musa also contacted MyBroadband and asked for the references to the DBSA to be removed. Musa said that “you may add that the two companies [DBSA and Techteledata] are still in talks”.

The IDC said in a statement: “We are in discussions with Techteledata and have provided them with a letter of interest indicating a conditional funding commitment or an indication of appetite to fund based on off takes on the company meeting several conditions such as securing of an operating partner, securing of equity, IDC due diligence, credit committee approval etc.”

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New undersea cable connecting Cape Town to Mtunzini planned