Competition by submarine cable operators down
[2008-7-25]
Tag : supply cables
IF all goes well, telecommunications subscribers in West Africa in general and Nigeria in particular may pay less for international calls. This is courtesy of a new investment drive promoted by four sub-marine cable operators in the west coast region of Africa. The new direction is fuelled by competition to justify their investment and the need to remain in business. Four international fibre projects are racing to complete ahead of each other on the west coast of Africa to give some much needed additional capacity and price competition to SAT3. The drop in bandwidth prices could be spectacular.
Russell Southwood looked at the runners in the race and asked whether West Africa was ready for the potentially market-changing impact of cheap international bandwidth. At last week's U.S. Trade and Development Agency organised event (West Africa ICT Road Map to Opportunities Conference), Funke Opeke of Mainstreet Technologies, the project to build the main one cable down the west side of the continent promised that an E1 would cost $400.
"It might have been my imagination, but I'm sure I heard something like an audible intake of breath." There are four international cable projects racing to complete new routes that will connect that side of the continent to Europe and the USA. They are Globacom's Glo One: The Glo One cable has been built from the UK to Dakar but has not yet been landed in Dakar. Despite an announcement that it would connect most West African countries between Dakar and Lagos, it has not yet been completed. Various cynics said that it had run out of money but this is a company that had just rolled out in Benin and planned to do the same again in Ghana. More credible rumours reaching us are that the countries where it was to have landed are asking too higher licence price, hence the delay.
IF all goes well, telecommunications subscribers in West Africa in general and Nigeria in particular may pay less for international calls. This is courtesy of a new investment drive promoted by four sub-marine cable operators in the west coast region of Africa. The new direction is fuelled by competition to justify their investment and the need to remain in business. Four international fibre projects are racing to complete ahead of each other on the west coast of Africa to give some much needed additional capacity and price competition to SAT3. The drop in bandwidth prices could be spectacular.
Russell Southwood looked at the runners in the race and asked whether West Africa was ready for the potentially market-changing impact of cheap international bandwidth. At last week's U.S. Trade and Development Agency organised event (West Africa ICT Road Map to Opportunities Conference), Funke Opeke of Mainstreet Technologies, the project to build the main one cable down the west side of the continent promised that an E1 would cost $400.
"It might have been my imagination, but I'm sure I heard something like an audible intake of breath." There are four international cable projects racing to complete new routes that will connect that side of the continent to Europe and the USA. They are Globacom's Glo One: The Glo One cable has been built from the UK to Dakar but has not yet been landed in Dakar. Despite an announcement that it would connect most West African countries between Dakar and Lagos, it has not yet been completed. Various cynics said that it had run out of money but this is a company that had just rolled out in Benin and planned to do the same again in Ghana. More credible rumours reaching us are that the countries where it was to have landed are asking too higher licence price, hence the delay.
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