Government's broadband infrastructure provider, Broadband Infraco, will benefit from funding over the next few years.
The entity, which was created in the 2006/7 financial year, at a cost of R627 million, has been flying under the radar since then.
However, the 2010 Estimates of National Expenditure document indicates that the Public Enterprises' sub-programme, ICT Sector Broadband, will receive R142.3 million in the coming financial year.
The bulk of this funding is to be spent on Broadband Infraco, as the ICT Sector Broadband's function is managerial in nature. Its function is to provide shareholder oversight of Broadband Infraco, which includes overseeing agreements between parties, assessing the business plan, as well as monitoring commissions of the full service network.
Treasury has earmarked R4 million in the 2011/12 financial year, and R4.2 million in the following year for the unit.
Cheaper communications
Broadband Infraco has an electronic communications network licence, which was granted by the Independent Communications Authority of SA last November. The licence allows the government entity to build, operate and maintain its long-distance fibre network and transmit data.
Between 2006/7 and 2010/11, government has funded the expansion of Broadband Infraco's national long-distance network and its participation in the west coast submarine cable system.
The cable system is expected to be ready for service next year, while the Department of Public Enterprises is meant to drop the cost of broadband in SA by “monitoring Broadband Infraco's price reports annually” and “interacting with the industry and monitoring Broadband Infraco's corporate plans”.
When the unit is expected to start making a difference to the cost of communication in SA was not indicated in the estimates document.
It was formed when Public Enterprises purchased full service networks from Eskom and Transnet in the 2006/7 financial year. Since the purchase of the networks, R585.5 million has been spent on the national fibre project.
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