Access to the Eastern Africa Submarine Cable System (Eassy) is "set to be the lowest in the world as compared to similar systems", says John Sihra, the project coordinator.
He was speaking to ITWeb following the seven-day working group and management committee meetings that brought together representatives from 20 telecoms companies in 17 countries. The conference, hosted by Sentech, concludes today.
Sihra says the objectives of the conference were to evaluate financial commitments made to fund the project and draft an agreement with financial advisors. He would not name the advisory institution and says an announcement will be made after the agreement is signed today.
Another objective was to finalise the construction and maintenance agreement, which will serve as a "Bible" for the project for the next 30 years. An important issue in this agreement was how much Eassy would charge for access to the cable.
"There will be open access that allows a licensed entity unfettered access at cost-effective prices," Sihra says.
He notes that those involved in the project are not in the business of making money by laying out submarine cables. Their core business is to provide telecoms services, he says.
The network will run from Mtunzini in SA to Port Sudan, with landings in Mozambique, Madagascar, Tanzania, Kenya, Somalia and Djibouti. It is designed to complement other cable systems, joining with networks such as the SAT3 to form a network across Africa. However, there are those who see Eassy as possible competition to SAT3, calling the price to SAT3 exorbitant.
[VIDEO]A Telkom spokesperson says the fixed-line operator invested $80 million in the establishment of the SAT3 cable.
"This investment comprised the single largest investment by any company on the cable system," says the spokesperson.
He says the company also has ongoing liabilities for the operations, maintenance and management of the cable system, such as a dedicated cable ship based in Cape Town. All this is costly, he notes.
Sihra says the environment when SAT3 was built was different, and regulations have changed. "People`s expectations are now different. That is why Eassy will provide the lowest pricing level in the world. The project is, however, not philanthropic and return on investment is expected."
MyADSL founder Rudolph Muller cautions that telecoms users should not raise their hopes and expect to have improved broadband services at reasonable prices soon, as it will be at least two years before Eassy becomes operational.
Related story:
African submarine cable network set for 2007
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