[ Cape Town | ITWeb, 19 September 2006 ] - The next three months will be make or break for the East African Submarine Cable System (Eassy), as governments and existing backers seek to convince external investors that it is worth funding, says telecommunications newsletter The Balancing Act.

According to the newsletter's editor, Russell Southwood, despite the agreement signed in Kigali, in August, there are still simmering disagreements from three major sources.

These are the refusal of the Kenyan government to sign the protocol and look to find backing for its alternative plan; the news that SA's Telkom keeps threatening to pull out; and lastly, that countries will be putting up funds themselves rather than getting donor money to do so.
This new connection is also considered vital to SA's plans to host the 2010 Soccer World Cup, which will require far more bandwidth, especially for broadcasting, than is available.
Southwood writes that Telkom SA keeps threatening to pull out its contribution and in doing so has created a fairly public linkage between the South African government's treatment of SAT3 and its willingness to invest in Eassy.