R/€ = 14.01
R/$ = 10.67
Au 1287.51 $/oz
Pt 1424.50 $/oz
Sep 07, 2007
MTN may spend R1,3bn on 5 000-km optical-fibre networkBack
Africa|Copper|JSE|MTN|PROJECT|Rosebank|SABMiller|Vodacom|Africa|South Africa|Backbone Network|Cellular Operator|Equipment|Fixed-line Network|Mobile Operator|Optical Fibre Network|Product|Products|Tim Lowry|Cables|Ethernet|Fibre Optic|MPLs|Optical Fibre
© Reuse this Mobile operator MTN has started the process to rollout some 5 000 km of optical fibre network nationwide over the next two years, the company said at a presentation in Sandton on Friday.
MD Tim Lowry called the initiative "a massive self-provision investment" that would involve an estimated R1,2-billion to R1,3-billion, depending on possible joint ventures or partnerships that are likely to be entered into during the course of the project.
Possible partners included new entrant Neotel and the country's biggest cellular operator Vodacom, which has also said that it plans to build a fixed-line network.
Lowry said that MTN would want to reduce the level of capital expenditure through partnerships.
MTN announced in June that it was considering entering the fixed-line business in South Africa, to keep up with the growth in data traffic and cut one of the company's biggest operational costs.
MTN said that it had designed and mapped out its own national backbone network, and was in the process of going out to tender to identify relevant suppliers and obtain final costings for the laying of the 5 000-km network.
The tender process is expected to be finalised by the end of the year.
MTN has already undertaken a pilot project with fibre optic cables being laid between Sandton, Illovo and Rosebank. Lowry noted that the project "was largely deployed" at present. Companies such as SABMiller and the JSE have been involved in the project.
The first phase has involved a capital expenditure of about R8-million for the fibre and about R2-million for the equipment, Lowry noted.
He explained that the area in which the pilot project has been carried out was home to a number of financial services companies and large blue-chip organisations, and that MTN's product offerings were well-suited to these firms.
MTN will initially launch three products; an Ethernet MPLS, an Ethernet private line service and a multitenant connect service. Future developments by the end of the year may include an Ethernet e-local area network, a dual connect, a full redundant connect, and a multitenant connect service that would use a building's existing copper cabling for reticulation.
Lowry said that MTN was trying to build an environment where a company could have a centralised server and centralised applications and could run the entire business nationwide from the one location.
MTN Business head of network solutions Mike Brierley explained that the usual lead times attached to fibre optics networks was about 12 months,but that MTN could roll out the service in between six and 12 weeks.
He added that bandwidth was flexible and could also be easily and quickly upgraded, where required.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Other ICT News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...