The telecommunications division of Eskom Enterprises is pursuing a number of strategic business opportunities in the fledgling African telecommunications industry, says Vusi Ngubeni, head of Eskom Enterprises telecommunications and commercial divisions.
"As Africa is characterised by a highly unsatisfied demand for basic services, conditions are ripe for the application of new telecommunications technologies that will fuel economic growth and development," says Ngubeni.
"These opportunities will occur through privatisation, investment and turnkey project opportunities.
"For example, in partnership with Econet Wireless International and Mauritius Telecomms, Eskom Enterprises recently acquired a privatisation stake in Tele-coms Lesotho (TCL).
"Hem-Kom, established in 1999 as a joint venture between Eskom Enterprises and black economic empowerment partner Electhem South Africa, was only a year later, awarded a contract to install 1 300km of fibre optic cables on the power lines of Nigeria`s National Electricity Power Authority, NEPA.
"The project, which entailed working in a harsh environment and adverse weather conditions, was an ideal opportunity for Hem-Kom to hone its skills for other projects in the rest of the continent.
"The technology offered by Hem-Kom combines the skills of live line work teams, assisted by the unique rotary wing flying skills of the Eskom Enterprises subsidiary Sapphire Air.
"The result is fast, cost-effective and secure, with stringing rates of up to 20km per helicopter crew per day being achieved," he said.
"Finally, EE has successfully tendered for the turnkey telecommunications development and operation of the Coega Industrial Development Zone in the Eastern Cape."
In preparation for the second network, Eskom Enterprises has commenced the construction and commissioning of its own fibre optic network for the transmission of public telecommunications traffic, post Telkom exclusivity.
"This approval is based on a strategically-phased approach, enabling the roll-out to be stopped at any point and the cost of the asset to be fully recovered if necessary," says Ngubeni. "However, we expect to call for at least 35% of the second fixed-line phone operator in line with a study we have conducted showing that this is the minimum stake for us if shareholder value is not to be destroyed," said Ngubeni.
"Whatever decision government makes regarding the merging of Transtel and Eskom Enterprises subsidiary Esi-tel, care should be taken not to destroy the asset values of both infrastructures in the process.
"With reference to a recent Deutsche Bank report analysing the ability of utilities to establish telecoms businesses with strong potential values for shareholders, we have long been aware of the pitfalls in establishing a commercial telecommunications business. We have been addressing the issues raised in the report for the past two-and-a-half years.
"We will be ready to compete meaningfully with Telkom as soon as its monopoly ends in May next year.
"It would be incorrect to underestimate the seriousness of our intent. Eskom has an impeccable track record in implementing mega projects on time and within budget. It is able to stand on its own internationally with respect to finance, trading and reputation," said Ngubeni.
He added that during 1995 and 1996, Eskom had built one of the most modern private telecommunications networks, with technology and skills that were the best in the country.
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