Broadband Development in South Africa

1. Broadband Development in South Africa South African approch to the development of broadband infrastructure Note: Presented material has been developed based on the desktop research for the purposes of the NLP-BBI Project only. See References.

2. Broadband Policy in South Africa Main goals pointed out by the SA Government: According to a statement issued by government communications, the broadband policy aims to “facilitate the provision of affordable, accessible, universal access to broadband infrastructure to citizens, business and the three spheres of government”. The policy also emphasises the role that government must play in investing in vital infrastructure.

3. Coverage map current fibre optic network topology Source: Broadband Infraco

4. The Broadband Infraco Act, No 33 of 2007- was published on the 8 January 2008 and came into force on the 1 February 2008, main responsibilities covered in the act: the transfer of shares, loan accounts, liabilities and guarantees in Broadband Infraco from Eskom Holdings Limited to the State. Electronic Communications Amendment Act, No 37 of 2007, was published on the 8 January 2008 and came into effect on the 2 February 2008 which provides: the legal background for infrastructure investments and encouragement for developing the innovative telecommunication sector. Legislation concerning the broadband infrastructure

5. What is Infraco? Broadband Infraco (Proprietary) Limited (’’BroadbandInfraco”) is a new state owned enterprise(SOE) in the telecommunications sector, intended to improve market efficiency in the longdistance connectivity segment by increasing available long distance network infrastructureand capacity to stimulate private sector development and innovation in telecommunicationsservices and content offerings, as well as to provide long distance national and internationalconnectivity to previously underserviced areas.

6. Main objectives and powers of INFACO • To provide affordable access to long-distance telecommunications network infrastructure connectivity services in South Africa and in particular: • Expend the availability and affordability of access to electronic communications including but not limited to underdeveloped and underserviced areas and commensurate with international best practice and pricing, through the provision of the following. • Electronic communications network services and • Electronic communications services.

7. Structure of the Infraco Broadband Infraco is owned by the Government of the Republic of South Africa as representedby the Department of Public Enterprises (74%) and by the Industrial Development Corporationof South Africa (26%).

8. Reason for establishment of the Infraco Broadband Infraco is operating within a specific strategic focus area of the telecommunications sector in South Africa. The focus is characterised at present by limited competition and relative barriers to entry because of rights of way, and highcapital expenditure considerations.Broadband Infraco will not participate in those areas of the Southern African telecommunications market or value chain that are efficient and experience high levels of competition in termsof available services and pricing options. The Broadband Infraco business comprises two keyelements, namely: A National Long Distance fibre optic network -providing high capacity telecommunication servicesbetween all major metropolitan centers and beingexpanded to extend connectivity to identified smaller cities and rural areas, and; An International Marine Cable network- comprisinga marine cable that is being manufactured and that will be deployed between South Africa and the United Kingdom.

9. National Connectivity The Broadband Infraco fibre optic network: comprises of approximately 12 100 km of optical transmission routes. The backbone network utilises the latest generation Dense Wavelength Division Multiplexin (DWDM) equipment, providing a number of 2.5 Gbit/s and 10 Gbit/s capicity connections along the majority of fibre routes. Network extensions have also been implemented to provide fibre connectivity to the neighbouring countries of Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zimbabwe. Broadband Infraco is also well positioned to link west coast and east coastinternational cable systems.

10. National ConnectivityMap

11. International Connectivity Broadband Infraco is a significant investor in the 5.1Tbits/s West Africa Cable System (WACS) Project. The cable will connect South Africa (SA) to the United Kingdom (UK), with landing stations in Portugal and along the west coast of Africa. WACS will provide: Lower cost, sustainable and efficient international bandwidth; and Position SA for future economic growth as it will connect SA to key global knowledge economies of the world. The landing station in South Africa will be at Yzerfontein and the system is expected to go live during the third quarter of 2011.

12. International Connectivity Map

13. Conclusions • Broadband Infraco legislation stipulates Broadband Infraco’s mandate as being the expansion of the availability and affordability of electronic communications including but not limited to under serviced areas. • Based on the above mandate and within the best practices Broadband Infraco will focus on leveraging its current assets by enabling more market participants to gain access to long distance managed connectivity services.

14. References • http://www.infraco.co.za • Broadband Infraco Act • Broadband Infraco Annual Report 2010 • www.info.gov.za • South African Broadband Policy