(Apologies for cross posting) -----Original Message----- From: Raymond Smith (R) Sent: Wednesday, February 21, 2007 2:19 PM To: Johan Meyer (JP); Prince Radebe (PJ); Peet Janse Van Rensburg (HP); Kobus Stoeder (JF) Subject: Eassy renamed The Nepad Broadband Infrastructure Network Cape Town | ITWeb, 20 February 2007 ] - Eassy (The East African Submarine Cable System) has been renamed The Nepad Broadband Infrastructure Network (NBIN), because Kenya has opted out of the South African-led continental fiber optic backbone system, says communications minister Ivy Matsepe-Casaburri. Speaking before the Parliamentary Portfolio Committee on Communications today, Matsepe-Casaburri gave a rundown on the structure of the network, such as the special purpose vehicles (SPVs) that are being created to manage, maintain, operate and fund the terrestrial and undersea components of the system. According to the minister, the network will be controlled through a "golden share" scheme, whereby African countries would be able retain control of the various entities that are to be created to run the entire network and keep it from falling into foreign hands. Matsepe-Casaburri says the ratification of the inter-governmental treaty should appear before Parliament around June and that 12 out of 23 countries that had initially agreed to it had signed the treaty. The NBIN aims to provide a number of landlocked African countries, mainly on the eastern side of the continent, access to two broadband networks. One will run as backbone from South Africa through Botswana, Zimbabwe, Zambia, Malawi and Uganda to terminate in the Rawandan capital of Kigali. The second is an undersea cable that will run up the African east coast and was supposed to land in Kenya. The new landing point has not been announced as yet. Other countries that have signed up are Lesotho, the Democratic Republic of the Congo, Mauritius, Namibia and Madagascar. Special vehicles According to Matsepe-Casaburri, three types of special purpose vehicles (SPVs) will be created to maintain, operate and finance the network. The use of SPVs was recommended because they would be able to go and raise the capital needed without having to resort to individual government loan applications to international financial institutions. African governments to operate and maintain the terrestrial networks will own the first type of SPV. The second type of SPV will be a hybrid model that would include African governments and private companies that are licensed to operate telecommunications networks. The third type of SPV will operate and maintain the undersea system and this will allow the participation of foreign-owned telecommunications operators, although they would not be allowed to have controlling stakes. No foreigners Matsepe-Casaburri says the participation of foreign-owned firms in NBIN will be limited to ensure that it remains an African-led project, and to ensure the security of the network. She noted that the model developed is not what international financial institutions such as the World Bank would have liked. However, she says, it is based on an open access model with non-discriminatory pricing meaning that anyone, whether a shareholder or not, would pay the same fees. "We wanted to avoid the club-type situation we have had with the (Telkom) SAT-3 undersea cable, but this did not sit well with a number of other countries and institutions," Matsepe-Casaburri says. She wanted to elaborate on her comment, but then realised that the media were present. South African companies that have already been identified as potential partners in the project are Telkom, Sentech, MTN, Vodacom and Cell C. However, Matsepe-Casaburri says the door is not closed on other potential investors. ________________ Raymond Smith Senior Specialist International Market Development Telkom Market Strategy and Development Phone: +27 12 311 6478 Mobile +27 82 7750558 FAX: +27 12 311 7910