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.<\/p>\n
At a media briefing , the public enterprises and of communications departments said Infraco would be transferred from Eskom to the public enterprises department.<\/p>\n
It would have no private equity involvement. \u201cThe intention is not to change this,\u201d said director-general Portia Molefe.<\/p>\n
There has been speculation that VSNL, part of India\u2019s Tata Group, would have a 26% stake in Infraco .<\/p>\n
It would look to private companies as well as its own coffers for funding the $700m underwater cable.<\/p>\n
Molefe said that Telkom and other large telecoms companies were thinking about buying in .<\/p>\n
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.<\/p>\n
Infraco would operate at cost to ensure a lower price for broadband.<\/p>\n
A separate phase, also under Infraco\u2019s mandate, would involve Neotel to ensure SA was nationally linked to broadband.<\/p>\n
Infraco would lease its network between the country\u2019s main cities to Neotel, which would have to pay only 35% of Telkom\u2019s 2006 leasing fees to use the network.<\/p>\n