Nigerian firm to build $300m undersea optic fibre cable
A Nigerian firm, Mainstreet Technologies, plans to build an undersea optic fibre cable to compete with SAT-3.
SAT-3 is a transatlantic transmission system sponsored by telecoms incumbents, led by Telkom of South Africa.
Our correspondent gathered on Monday that the project would cost $300m.
The firm plans to complete it ahead of others currently under construction. This will make it the first alternative source of underwater transmission to SAT-3.
Mainstreet has Ms. Funke Opeke as its Chief Executive Officer. She was until recently the Chief Operating Officer of the Nigerian Telecommunications Limited.
Known as MaIN OnE, the cable seeks to connect 12 countries, including Morocco, Mauritania, Senegal, Guinea, Cote d’Ivoire, Ghana, Nigeria (Lagos and Port Harcourt), Gabon, the DRC and Angola.
The firm said there was an option to extend the cable to South Africa if there was a change of attitude to external operators by the government of the country.
“We’ve been a little disappointed with the South African Government’s attitude,” Opeke was quoted to have said in the website of a technology research firm, Balancing Act.
Opeke noted that her two-year stint in NITEL had given her insight into how painful the infrastructure limitations were, adding that she set out to build a new competitor cable to SAT-3 in May 2007
She said the project already had some strong financial backers and that its ownership would be local.
She said, “The good news is that there is a lot of interest. There is a new capacity in Africa in general and Nigeria in particular to fund projects of this magnitude.
“There’s currently more interest than needed for our requirements. The project will be African-led.”
The business model is that Mainstreet Technologies will pay for the landing stations and the cable, and shareholding will be open to all comers.
According to the firm, early equity investors will have some price advantage but it will not be significant over the life of the cable.
The cable will have a capacity of 2.56 terrabits and Opeke anticipates that prices will be 10 per cent of current prices and it will still be profitable.
Opeke said, “We’re already talking to some of the larger operators.” The company to run the project will be set up in a couple of months' time and it says it will have the cable in place by 2009.”
SAT-3 is a transatlantic transmission system sponsored by telecoms incumbents, led by Telkom of South Africa.
Our correspondent gathered on Monday that the project would cost $300m.
The firm plans to complete it ahead of others currently under construction. This will make it the first alternative source of underwater transmission to SAT-3.
Mainstreet has Ms. Funke Opeke as its Chief Executive Officer. She was until recently the Chief Operating Officer of the Nigerian Telecommunications Limited.
Known as MaIN OnE, the cable seeks to connect 12 countries, including Morocco, Mauritania, Senegal, Guinea, Cote d’Ivoire, Ghana, Nigeria (Lagos and Port Harcourt), Gabon, the DRC and Angola.
The firm said there was an option to extend the cable to South Africa if there was a change of attitude to external operators by the government of the country.
“We’ve been a little disappointed with the South African Government’s attitude,” Opeke was quoted to have said in the website of a technology research firm, Balancing Act.
Opeke noted that her two-year stint in NITEL had given her insight into how painful the infrastructure limitations were, adding that she set out to build a new competitor cable to SAT-3 in May 2007
She said the project already had some strong financial backers and that its ownership would be local.
She said, “The good news is that there is a lot of interest. There is a new capacity in Africa in general and Nigeria in particular to fund projects of this magnitude.
“There’s currently more interest than needed for our requirements. The project will be African-led.”
The business model is that Mainstreet Technologies will pay for the landing stations and the cable, and shareholding will be open to all comers.
According to the firm, early equity investors will have some price advantage but it will not be significant over the life of the cable.
The cable will have a capacity of 2.56 terrabits and Opeke anticipates that prices will be 10 per cent of current prices and it will still be profitable.
Opeke said, “We’re already talking to some of the larger operators.” The company to run the project will be set up in a couple of months' time and it says it will have the cable in place by 2009.”
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