Maravi

Zesco, Zamtel sign deal over optic fibre network

Zesco, Zamtel sign deal over optic fibre network
By Kabanda Chulu
Thu 24 Dec. 2009, 04:00 CAT

ZESCO and Zamtel have signed an agreement that will see the two companies working together to deliver optic fibre connectivity across the country.

According to the agreement signed last Friday, Zesco would lead the deployment of new fibre optic cables and other backbone equipment, including international transit links in order to complement its own existing fibre network.

It is expected that by running fibre over its network of power lines, Zesco would be able to deliver high speed backbone connectivity to all provinces within two years.

On the other hand, Zamtel would lead the commercialiSation of fibre access and high bandwidth services, taking advantage of its large distribution footprint and customer relationships.

“Zamtel will be investing in retail access networks to the consumer while Zesco will be providing the fibre optic backbone and both parties will share the revenues generated by the partnership, which are expected to be greater than either party would have been able to generate alone,” it stated.

Commenting on the fibre network agreement in a statement, Zesco acting managing director Cyprian Chitundu noted that the development was the start of a cooperation that Zesco and Zamtel had been working towards for a long time.

“Zesco’s fibre network was built to support our power generation and distribution business but it has a substantial amount of excess capacity and Zamtel is in a position to help us generate value from that capacity not only by using it to better serve their own customers but also by making capacity available to other telecommunication service providers such that the whole country can benefit,” stated Chitundu.

Zamtel managing director Mukela Muyunda stated that his company was delighted that the partnership with Zesco was now in place.

“Zesco has built and continues to build an impressive fibre network and together we can focus on using our combined fibre assets to deliver innovative products and services for consumers and sophisticated ICT solutions for corporations,” stated Muyunda.

The signing of the fibre network agreement has been timed to coincide with the sale of 75 per cent Zamtel shares whose prospective bidders were expected to be announced yesterday by the ZDA.

But last month government sources disclosed to The Post that State House was exerting pressure on Zesco management to have the power utility company's optical fibre network, which was installed at the cost of over US $13 million sold as part of Zamtel assets.

The sources further disclosed that President Rupiah Banda, through his legal advisor Joseph Jalasi and Zambia Development Agency (ZDA) director general Andrew Chipwende had engaged Zesco over its optical fibre network since the Zamtel fibre project was a flop.

The sources revealed that after realising that Zamtel fibre project was flop, RP Capital Partners, as financial advisor to the sale of Zamtel want to increase the value of Zamtel by getting the Zesco network, which will automatically translate in an increase in their fees or commission when Zamtel is sold at a higher value.

Labels: OPTIC FIBRE, ZAMTEL, ZESCO

posted by MrK @ 5:49 PM