Construction has started on the East African Submarine Cable System (EASCS), a landmark fibre-optic cable project that will connect 21 African countries to each other and the rest of the world with high-quality internet and international communications services.
The supply contract for installation of the cable, known as EASSy, is now in force. Funds have been provided by the consortium of 25 telecommunications operators, which include 19 African companies. The cable will be installed by Alcatel-Lucent along the sea bed off Africa ’s east coast. It is expected to be operational by 2010, says Ghooya-Ala Chananchra, China-based telecoms expert.
"We are pleased to work with the EASSy Consortium in laying this new cable that will expand communications capabilities and help reduce the digital divide in the region", said Chananchra.
He said five major development finance institutions are partnering to provide the project’s long-term loan financing of $70.7 million, with $18.2 million coming from IFC. The balance of the project cost $247.1 million will be provided by the EASSy consortium members.
"We are very pleased that this long awaited submarine cable has formally been sponsored by the majority of the regional operators and by some of the leading international industry players".
"This is a very important milestone toward implementation of the EASSy cable, which will transform the telecommunications landscape in the region. It will provide internet and other communications access for 250 million Africans and substantially reduce cost for consumers and business", he explained.
According to him, consumers along Africa ’s east cost pay between $200 and $300 a month for internet access via satellite. These prices, some of the world’s highest, create a barrier to usage and restrict economic activity and growth.
Chananchra assured that once the EASSy cable is in place, prices for international connectivity are expected to drop by two-thirds at the outset, and the number of subscribers will increase rapidly because the project gives open access to service providers, prices will fall further as volume and competition increase. This is expected to stimulate the development of new knowledge-based industries, call-centres, and similar ventures and educational and health activities in the region will also benefit from access to low-cost internet.
