The City of Cape Town has signed eight third-party service provider agreements for its broadband network, in a move it says represents a major step in the city's universal broadband network strategy.
The city says the agreements will greatly benefit areas that are currently poorly served, by enabling broadband connectivity from the service providers. "It will also bring sustainable WiFi access to previously under-serviced communities."
According to the city, its broadband network has to date saved Cape Town R117 million in costs, increased the city's internal Internet speed 3 000 times and connected 43 Western Cape government buildings and 141 city buildings (set to increase to 171 by the end of the year).
"The City of Cape Town understands that broadband connectivity is fundamental to creating an enabling environment for economic growth, business development and digital inclusion."
The city has set aside R222 million over three years towards the roll-out of broadband infrastructure throughout the metro, which is part of its R1.3 billion programme, required to complete this task over the next seven years.
To date, lease agreements have been concluded with eight third-party licensed network operators, and negotiations are progressing with 20 more, including some of the countries larger telecoms companies, says the city.
"Last mile connections to commercial buildings are now being made, which will allow businesses in these buildings to utilise high-speed telecoms networks for access to converged services and faster, cheaper and more reliable Internet connectivity."
Smaller operators are also able to use the same infrastructure to enter the market. This will generate competition in the Internet service provider sector and stimulate economic growth in the Western Cape private sector as a whole.
The conclusion of these agreements, says the city, is part of its commitment to bridging the digital divide between underserviced communities and those with high levels of digital access.
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