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Eassy route to cheaper Internet

Dave Glazier wraps up the week`s top news: The Eassy cable ready to be installed, and a billion-rand GijimaAst-Absa deal.
By Dave Glazier, ITWeb journalist
Johannesburg, 14 Jul 2006

Topping the news this week was confirmation that the Eastern Africa Submarine Cable System (Eassy), promising to substantially bring down Internet costs for a host of African countries (including SA), is well on track.

Construction is to begin next month, with Alcatel winning the contract to build the cable, which should be ready by 2008.

GijimaAst gets nod from Absa

On Monday, ITWeb broke the news that GijimaAst had secured a five-year outsourcing deal with Absa for a fully managed desktop service for the bank and its parent company Barclays` local operations, starting at the end of this year. The deal is worth close to a billion rand, notes GijimaAst CEO John Miller.

Nigerian telecoms consolidation

On the African front, the biggest news of the week was the Nigerian-based conglomerate Transnational acquiring Nigerian Telecommunications and its subsidiary mobile telecom operator, Mtel, for $750 million.

Executive changes at Microsoft

The world`s best-known software company, Microsoft, announced on Monday that a new MD would run its South African operations. Pfungwa Serima replaces Gordon Frazer, who will move over to the UK to become MD of Microsoft`s British division.

In an interview with Serima at Microsoft`s Government Leaders` Forum this week, he said the changes to the heads of Microsoft`s local and overseas offices are purely coincidental with news that Bill Gates is stepping down from his day-to-day involvement in the software giant.

MS, MTN to partner

The companies will work together to provide affordable finance options for consumers purchasing Internet connectivity and an Intel PC running Microsoft Windows Starter Edition.

Dave Glazier, journalist, ITWeb

At the same event, Gates unveiled a new partnership with local cellular operator MTN to bring affordable wireless broadband connectivity and PC access to consumers in SA.

He said the companies would work together to provide affordable finance options for consumers purchasing Internet connectivity and an Intel PC running Microsoft Windows Starter Edition. Although the details were not really hashed out at the forum, it seems like an exciting concept.

Datatec completes BEE merger

On Tuesday, we brought news that JSE-listed Datatec Group`s South African operations will merge with African Legend Technologies (ALT) to form an R800 million-a-year company. In a stock exchange statement, Datatec said it would have a 55% shareholding in the new company, while ALT will hold the balance.

EC Act 'around the corner`

ICASA said yesterday it expects the Electronic Communications (EC) Act to be brought into law within the next couple of weeks. While chairman Paris Mashile has indicated the authority will need about R57 million to integrate the Act into the regulatory environment, ICASA has already outlined its roadmap for licence conversion.

As a side note, it has been confirmed that the EC Act`s promulgation is closely linked to ICASA`s new ADSL regulations - which is why there has been a delay in this hotly-anticipated announcement.

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