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THE COMTEL PROJECT. COMESA SECRETARIAT. Angola Burundi Comoros Congo, DR Djibouti Egypt Eritrea Ethiopia Kenya Madagascar. Malawi Mauritius Namibia Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe. COMESA Membership Member States of COMESA are :. Map of COMESA.

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The comtel project

THE COMTEL PROJECT

COMESA SECRETARIAT


Comesa membership member states of comesa are

Angola

Burundi

Comoros

Congo, DR

Djibouti

Egypt

Eritrea

Ethiopia

Kenya

Madagascar

Malawi

Mauritius

Namibia

Rwanda

Seychelles

Sudan

Swaziland

Uganda

Zambia

Zimbabwe

COMESA MembershipMember States of COMESA are:



The project
THE PROJECT

COMESA Member States have undertaken to:

  • Improve telecommunication networks to meet the standards required for inter-state communication.

  • Establish a privately-owned terrestrial network linking National Telecommunication Operators in COMESA.

  • Network will facilitate the transmission of voice, data & video and enhance trade relations within the region.


Why the comtel project
WHY THE COMTEL PROJECT?

COMTEL project objectives include:

  • Ensure inter-State telecommunication connectivity

  • Improve telecommunication grade & quality of service

  • Improve regional integration

  • Increase inter-regional trade

  • Enhance co-operation


Why the comtel project1
WHY THE COMTEL PROJECT?

  • Tariff harmonisation & reduction

  • Reduction of foreign currency out payments due to external routing of intra-COMESA traffic (currently US$90million/annum)

  • Introduction of new technologies & services

  • Development of rural telecommunications


Governments commitment
GOVERNMENTS’ COMMITMENT

  • Transport and Communications Ministers Meeting - June 1998

  • COMESA Council of Ministers Meeting - June 1998

  • COMESA AUTHORITY, HEADS OF STATES SUMMIT - June 1998


Regional co operation
REGIONAL CO-OPERATION

  • The COMTEL project is prioritised under New Partnerships for Africa’s Development (NEPAD’s) short term plan on infrastructure deployment & roll-out projects.

  • Co-operation with other regional blocks under the Africa Union umbrella e.g. The Economic Community for West African States (ECOWAS) – expressed interest in adopting the COMTEL interconnectivity model for 16 countries.


Comtel companies

COMTEL COMMUNICATIONS COMPANY:

Registered in Mauritius as an offshore company in May 2000 for the purposes of implementing, operating and managing the regional network.

COMTEL INVESTMENT COMPANY:

Registered in Mauritius as an offshore company in May 2000. A vehicle for National Telecommunication Operators (NTOs’) to invest in COMTEL Communications Company.

SHAREHOLDING STRUCTURE:

25% - National Telecommunications Operators (NTO’s), 30% - Strategic Equity Partner (SEP), 45% - Private Sector Investors (PSI’s)

COMTEL COMPANIES


Comtel interim board
COMTEL INTERIM BOARD

The Interim Board of Directors consists of:

  • D R of Congo

  • Egypt

  • Kenya

  • Malawi

  • Mauritius

  • Sudan

  • Zambia


.


Comtel network elements

Project costs are estimated at US$240 million and comprise of:

ATM Routers

Optical Fiber

Microwave links

Telecom Management Network

Billing System

Relevant test equipment

COMTEL NETWORK ELEMENTS


Comtel project costs

Project costs are estimated at US$240 million and comprise of:

Fibre & civil works - US$174 million.

Transmission/installation & other equipment – US$30 million.

Service costs (training, documentation etc) – US$12 million.

Administration costs (to be financed by NTO’s) – US$24 million.

COMTEL PROJECT COSTS


Project viability

Technically feasible of:

Institutionally sound

IRR = 44.34 %

NPV = 739,363

Pay Back period = 3.1 Years

ERR = 48.6 %

PROJECT VIABILITY




Shareholding structure

Administration budget = US$24 million (NTO’s) of:

Project costs = US$216 million

NTO subscription = US$1.8 million/NTO

Equity + debt = US$144+US$96 = US$240 million

SHAREHOLDING STRUCTURE


Ntos benefits
NTOs BENEFITS of:

  • Save transit charges.

  • Construction of neighboring links.

  • Estimulation of traffic to the region (social and economic benefits).

  • Use of advance technology ATM

  • Compatibility with existing infrastructure.

  • Unification of TAR within the region.


Ntos benefits1
NTOs BENEFITS of:

  • More traffic from land-lock countries to justify a landing point for a future submarine cables networks.

  • Many alternatives to connect with submarine cables networks.

  • Competitive tariff.

  • More income

  • Wide connectivity within the region.



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