R/€ = 13.64
R/$ = 10.99
Au 1195.95 $/oz
Pt 1219.00 $/oz
Sep 07, 2007
MTN may spend R1,3bn on 5 000-km optical-fibre networkBack
Africa|Copper|Environment|JSE|MTN|PROJECT|Rosebank|SABMiller|Vodacom|Africa|South Africa|Backbone Network|Building|Cellular Operator|Equipment|Fixed-line Network|Mobile Operator|Optical Fibre Network|Product|Products|Service|Services|Solutions|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
Updated 1 hour 24 minutes ago Electrical, instrumentation and control engineering firm Proconics has concluded a deal that will see private equity newcomer Dlondlobala Capital taking up a 26% stake in the 19-year-old company. “Proconics is committed to meeting the compliance and legislative...
Updated 1 hour 27 minutes ago Independent power producer Ipsa has missed a November 21 deadline to pay Ethos Energy Italia – formerly Turbocare – an initial €3-million payment as part of a dispute settlement reached last month in relation to the sale and purchase agreements and refurbishment...
Updated 2 hours 7 minutes ago South Africa’s rail network fell victim to a total of 4 703 separate “security-related incidents”, which largely comprised acts of vandalism and theft, in the 2013/14 financial period – denoting a 14% jump in the number of similar occurrences in the prior year, the...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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 road...
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.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.