Dimension Data subsidiary Plessey Group will invest millions in network infrastructure in Africa, to take advantage of growing demand for connectivity.
Africa has recently benefited from several undersea cables landing, including the East African submarine cable system, Seacom, The East Africa Marine System, West Africa Cable System, Main 1 and Glo 1, bolstering capacity.
Database 360 MD Louise Robinson recently commented: “It's amazing to see how the level of Internet usage shoots up wherever the new undersea cables have landed and fibre-optic networks have linked the cables to urban centres.”
Plessey will invest through its international subsidiary, which already has operations in 10 African countries, where it has been active for more than a decade. It has built mobile network base transceiver stations, wireless local loop systems at more than 8 000 sites, as well as having laid down more than 7 500km of fibre-optic cables in 26 countries in sub-Saharan Africa.
Big opportunities
Group COO Howard Earley says the company will invest in East and West Africa where there is growing demand for broadband. He explains some parts of the continent are “no-go areas”, because of low per-capita incomes.
Plessey has a “significant cash war chest”, notes Earley. He says the company is still selecting countries into which it will roll out, but it could spend between $10 million and $20 million (between R69 million and R138 million) in each region.
There are opportunities in Zambia, Uganda, Nigeria and possibly Tanzania, says Earley. In Nigeria, the company already has infrastructure, so it won't have to spend as much, he adds. Plessey will invest in long-haul and metropolitan fibre-optic cables.
Earley explains East and West Africa are profitable and offer “very exciting growth potential”. The continent has recently benefited from several undersea cables, bolstering international capacity.
The growth in the number of undersea cables has sparked “unbelievable” demand for broadband services, which is expected to keep growing, Earley points out. However, more cables also mean more competition, he adds. “At the moment, there are opportunities for everyone, but it's a lot busier than it was even two years ago.”
Altron subsidiary Altech is also increasing its investment in Africa. The company will spend a total of R420 million over the next three years in East Africa on expanding its fibre network beyond its current 6 000km in six countries, says CEO Craig Venter.
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