Vodacom has signed a 15-year deal with the Passenger Rail Agency of South Africa (PRASA), through its subsidiary Intersite Asset Investments, valued at more than R1-billion.
Intersite is responsible for property and asset development within PRASA. It aims to raise additional revenue for the Metrorail operator by exploiting its assets.
The Vodacom agreement comprises two major components.
The first will enable Intersite to offer information and communication technology (ICT) services to PRASA, and eventually also to external entities across South Africa, leveraging PRASA’s fibre-optic telecommunication assets and Vodacom’s industry expertise, for the purpose of revenue generation.
The scope of ICT services covered under the agreement includes, for example, multiprotocol label switching; virtual private network connectivity; unified communications and collaboration; microwave access; dedicated internet access and hosted exchange.
The second component of the agreement sees Vodacom leasing PRASA’s dark-fibre-optic network for the duration of the contract and making these assets commercially available to government and enterprises, including other carriers and mobile network operators.
Globally, rail agencies invest in strategic telecommunications assets, such as fibre-optic, to manage locomotive traffic. PRASA is no different, as the State-owned entity has more than 900 km of fibre along its railway lines and at its stations.
The agreement with Vodacom forms part of PRASA’s telecommunication assets commercialisation process, which began in 2013.
“We are humbled by PRASA’s decision to choose us as its strategic partner to help monetise its existing information and communication technology (ICT) assets,” says Vodacom business chief officer Vuyani Jarana.
“The agreement is one of our most innovative partnership initiatives to date. The South African economy is quickly digitising, the demand for high speed broadband is increasing daily and fibre-optic network deployments are crucial in the delivery of high-speed broadband services.
“It therefore makes perfect sense for Vodacom to work with strategic partners like PRASA to weave together existing fibre assets to create wider networks that shorten time to market.”
“Our mandate as Intersite is to exploit PRASA’s assets through the use of strategic partnerships to create sustainable value that benefits the people of South Africa,” adds Intersite CEO Cromet Molepo.
“This partnership with Vodacom is the first significant milestone in our journey towards effective and sustainable commercialisation of PRASA’s telecommunications assets, with more innovative possibilities down the road.”
PRASA will, in future, provide free Wi-Fi to schools without internet access within a 5-km radius from its stations.
Around 2.5-million commuters a day may also gain free Wi-Fi access while they are within PRASA facilities.
The PRASA deal follows confirmation by National Treasury earlier this month that Vodacom has secured government’s mobile communications contract, in a four-year deal worth R5-billion.