[kictanet] TYCO WINS CONTRACT TO BUILD KENYAN GOVT’S FIBRE CABLE

[Rebecca Wanjiku]

more background info for the friday meeting.......


TYCO WINS CONTRACT TO BUILD KENYAN GOVT’S FIBRE CABLE

Communication in Kenya is to set for a major revolution, following the
start of an undersea fibre optic link to the rest of the world through
Fujairah in the Gulf of Oman. American company Tyco last week won a
contract to undertake a marine survey that should be ready in two
months, at a cost of Sh187 million.

The Government will invite bids any time from now for a financial
arranger who will design a plan to raise money for the project,
tentatively expected to be complete by early next year. The contract
will be awarded competitively by April this year.

The Government, through Telkom Kenya, is working with Dubai-based
Etisalat, a telecoms company, to build the cable. The private sector
will be invited to either buy shares, or to prove its capacity to raise
funds through plans worked out by the financial arranger.

Information and Communication minister Mutahi Kagwe says fast-tracking
the East African Marine System (Teams) will ensure that Kenya does not
lag behind in information and communication technology (ICT). "The East
African coast is the only one without a fibre optic cable. We are racing
against time," he said.

The cost of data transmission would come down, leading to lower cost of
communication. The price of a megabyte is expected to plunge from a high
of Sh490,000 (US$7,000) to Sh14,000 (US$200).


All East Africa countries are part of the project, while Ethiopia wants
to join them. The project was conceived by the Kenya Government after it
became evident that a similar one from South Africa to Port Sudan,
popularly called East Africa Sub-Marine Cable System (EASSY) would not
take off.

Kenya declined to sign the EASSY project protocol, citing inclusion of
the New Partnership for Africa Development (Nepad) into the programme
without specifying its mandate. Also, Kenya opposed Nepad's attempts to
own the project, saying the group should not be involved as that would
negate its noble concepts.

The country also took issue with non-involvement of the private sector
as it would be difficult to implement the protocol without it, once it
was signed. But Kenya will not pull out of EASSY. It will remain a key
participant and use it as back-up should there be any breakdown of Teams
project.

"We decided to work on a parallel project after it became difficult to
make decisions on the EASSY one. The latter had too many players, some
of whom were coming in every other day. But we will be involved in the
project...The more the cables, the better. That will induce competition,
which will bring down the prices".
(SOURCE: The Nation)




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