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Eskom in R1bn telecoms upgrade

By Dave Glazier, ITWeb journalist
Johannesburg, 19 Oct 2006

Amid news of Eskom`s power-increasing capital expenditure projects for the next five years, the electricity utility says it is also planning a large-scale private telecoms network overhaul.

There are three primary reasons for the proposed Eskom telecommunications refurbishment, explains Fani Zulu, Eskom spokesperson.

"We need to address the challenges of an aging network with reduced supplier support, increased operational support costs (for spare parts, for example), and new operational power system telecommunications requirements," he says.

A source within the power utility, speaking anonymously, indicates the value will be in the region of R1 billion - a projected figure that he says is open market knowledge. However, he also cautions it could vary significantly depending on project approval and possible design changes.

It will be a four-year project, notes Zulu, who adds: "The proposal, subject to approval, is that the implementation of the plan commences in the 2007/8 financial year."

No decisions have yet been made regarding project partners, although a source reveals discussions between Eskom and some of SA`s major telecoms infrastructure companies have taken place.

Procurement decisions, Zulu states, would follow the Eskom process, and would only commence once the necessary approval has been granted.

The major benefits of the refurbishment, he adds, will be a sustainable and resilient technical network with enhanced capabilities, supporting mission-critical Eskom power system applications.

"The network will also be in support of the Eskom power system growth programme," says Zulu.

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