Programme Director;
Deputy Minister of Communications Ms Stella Ndabeni (South Africa)
Honourable Nonofo Molefi
Minister of Transportation and Communication (Botswana)
Esteemed Guests;
Members of the Infraco Board;
Valued Partners of the West African Cable System:
Ladies and Gentlemen;
Good evening
Prior to 2005, South Africa as well as West Coast African countries, relied on one international marine network infrastructure (the Trans-Atlantic submarine cable called SAT-2/3), with bandwidth capacity of 560 megabits per second (Mb/s).
In 2005 the Department of Public Enterprises (“DPE”) commissioned a study to determine the root cause of high broadband costs in South Africa. The study had two key findings:
- That South Africa significantly lagged behind other comparable international markets in terms of Information and Communications Technology (“ICT”) penetration as well as rate of new technology adoption and;
- That Broadband penetration relative to international benchmarks was lower than expected and significantly more expensive.
In order to address these challenges, the Department of Public Enterprises took an interventionist approach aimed at those areas and sectors of the market where evidence of market failure existed as a result of monopolies. The Department of Public Enterprises established Broadband Infraco (Pty) Ltd.
The legislative framework for Broadband Infraco was established through an Act of Parliament in December 2007. Infraco’s mandate was to specifically focus on the development of a high capacity national long distance fibre optic infrastructure, as well as new high capacity marine cable infrastructure and to make these available on a broad basis. Also at sustainable cost plus levels, to provide necessary support for the delivery of dynamic services to the diverse socio-economic population of South Africa and beyond our borders.
The last couple of years have seen a massive surge in efforts to improve the undersea cabling that connects Africa to the rest of the world. The culmination of this process is the West African Cable System.
The West African Cable System (WACS) was initiated by the South African government in collaboration with African governments and leading Telecommunications operators in and outside South Africa.
Broadband Infraco has invested substantially in the West African Cable System (WACS), which is a Tier 1 investment. Broadband Infraco is entitled to a 11.4% of the total capacity on the WACS system.In the year since the landing of the cable was first announced, Broadband Infraco has ensured that processes and systems are geared towards the commercialisation of its share of the total capacity and this will culminate in the apportioning of such capacity in accordance with the national delivery imperatives. This was done to address economic, geographic, social and political constraints.
Infraco’s participation in the West African Cable System gives expression and substance to critical goals of NEPAD that of a truly connected Africa realised through the growth of the continent’s telecommunications sector. Broadband Infraco will provide connectivity to other licensed telecommunications operators, in their respective countries.
The 14 000 km cable will link South Africa to London. Its 15 terminal stations along the West Coast of Africa will provide additional bandwidth to a number of countries, and will become the first direct connection to the undersea cable network for Namibia, the Democratic Republic of Congo and Togo. The West African Cable System will have a total capacity of 5.2Tb (Terabits per Second) and will increase South Africa’s bandwidth by an estimated 23%.
Several studies internationally have examined the relationship between broadband and economic development. They concluded that High-speed communications networks via broadband infrastructure have a coordination function and reduce transaction costs for existing businesses.
In line with its mandate “to expand access and availability of broadband access”, Broadband Infraco has developed a strategy and framework to engage provincial governments to assess their requirements for broadband.
National Connectivity:
Broadband Infraco has established a backhaul network leveraged off Power and Rail infrastructure that extends across all nine provinces and is being expanded to address gaps within their respective provinces.The network currently has over 14 000 km of fibre. And Broadband Infraco has exclusive lease rights to the Transnet Freight Rail & Eskom servitudes.
International Connectivity
International Connectivity is the key function of the West African Cable System (WACS) marine cable implementation, which is being launched today.
The capacity of the West African Cable System is in South Africa's national interest. It is similar in impact as the Square Kilometer Array (SKA) telescope, The Karoo Array Telescope (KAT); the South African Large Telescope (SALT) and others.
Regional Connectivity
Regional connectivity has been established to the following countries: Namibia, Swaziland, Lesotho, Mozambique and Zimbabwe. There are plans to extend connectivity to Botswana and the entire SADC region.
Rural Connectivity
Furthermore, Broadband Infraco’s licensing obligations with ICASA calls for it to provide Broadband access to underserviced areas. As part of this requirement ICASA has provided a list of 37 sites where Infraco is required to provide broadband services. The provision of services to the sites is on-going and on track.
Affordability
Infraco is also obligated through its license to provide services at prices that are affordable. It has thus contributed to the sharp decline in National Long Distance pricing since its licencing.
The Department of Public Enterprises as shareholder, we supports Infraco’s vision to be the wholesale provider of choice for backhaul connectivity.
The Government recently adopted an Infrastructure Plan that is intended to transform the economic landscape of South Africa and to create a significant number of jobs, to strengthen the delivery of basic services and to support the integration of African economies. Consequently, the Presidential Infrastructure Coordinating Commission (PICC) was established and in turn, established 17 Strategic Integrated Projects (SIPs). Two of these projects constitute the ‘KNOWLEDGE Strategic Integrated Projects’ category and are relevant to West African Cable System, namely:
Strategic Integrated Project 15: expanding access to communication technology, it aims to facilitate the provision of 100% broadband coverage to all households by 2020.
Strategic Integrated Project 16: focuses on the Square Kilometre Array, the Meerkat and other scientific projects.
The Department of Public Enterprises will through Broadband Infraco support projects of national interest led by the Department of Science & Technology.
In Conclusion
I wish to re-iterate the rationale for the West African Cable System. The Government sanctioned this project with the following objectives:
- To lower cost of international bandwidth to a level comparable with international benchmarks;
- To create a sustainable and efficient international bandwidth market in South Africa;
- To provide cost effective access to international bandwidth for key projects such as the Square Kilometer Array;
- To retain the ability to influence through Broadband Infraco and other SOCs that form part of the West African Cable System consortium market power;
- To position SA for future growth by connecting SA to key Global Knowledge Economies in: Europe, North America, South America and India;
- To unlock South Africa and Africa’s economic growth.
Thank you.
