Neotel shareholder signs MOU

ADSL South Africa (Broadband South Africa), 10 May 2007

Neotel shareholder, VSNL International, and IWTGC (Infinity Worldwide Telecommunications Group of Companies) have signed a Memorandum of Understanding (MOU) in regards to IWTGC’s West Africa fiber optic submarine cable project.
 
How is VSNL International intending to assist IWTGC?
 
VSNL International, the international arm of Videsh Sanchar Nigam Limited, is going to assist IWTGC by making its expertise and cable assets available to IWTGC.
 
“Infinity’s stated goal of constructing and operating a cable system along the west coast of Africa is important to the region and I, personally, would like to see them succeed in this endeavor. VSNL International is pleased to assist Infinity by leveraging its expertise in designing and operating large submarine cable systems as well as providing seamless global connectivity using its extensive cable assets” (Neotel Shareholder signs MOU with West African Cable Project, Southwood, 7 May 2007). This is according to Managing Director and President of VSNL International, Vinod Kumar.
 
In other words, VSNL International will among other things assist IWTGC with the design and operation of undersea cable systems.
 
Can you tell us more about IWTGC’s broadband plans?
 
Sure.
 
‘IWTGC plans to deploy telecommunications services in West Africa using an international and regional integrated fiber optic system and wireless broadband network with an initial estimated cost of over $750 M USD to be privately financed. The system will be operated under the principles of Open Access and will offer its services to all licensed service providers as well as enterprises and consumers on a non-discriminatory basis’ (Neotel Shareholder signs MOU with West African Cable Project, Southwood, 7 May 2007).
 
In other words, IWTGC intends to make broadband accessible to more players in West Africa by for one ensuring a non-discriminatory basis of operation (a non-Telkom way of doing business).
 
Can you give us a take down of possible benefits resulting from the Infinity system?
 
Sure. It looks something like this:

• Broadband penetration  – ‘The Infinity system will significantly increase broadband penetration among users and offer service providers and enterprises total regional connectivity and an international gateway to the World-Wide-Web and major cities around the world’ (Neotel Shareholder signs MOU with West African Cable Project, Southwood, 7 May 2007).
   
  In other words, broadband penetration for one should get a welcome boost in West Africa. 

• Digital divide – ‘The Infinity system will also greatly contribute to reducing the digital divide currently prevailing in West Africa by bringing desperately needed, increased and diversified capacity to supplement and provide more security to the West African traffic carried on the existing cable system and satellites’ (Neotel Shareholder signs MOU with West African Cable Project, Southwood, 7 May 2007).
   
  In other words, the system will surely help to narrow the digital divide between West Africa and other regions, giving developing countries a better chance to compete with developed countries. 

What’s IWTGC’s take on the relationship with VSNL International?
 
According to Chief Operating Officer of Infinity, Bob Woog: “The relationship between Infinity and VSNL International will allow us to offer our customers in West and Central Africa access to the world using, where possible, the VSNL International global network. The world’s telecommunications markets are now within our reach from day one.” Also, “Our developing relationship with VSNL International is likely to be fundamental in the rapid implementation of this critical project for the African continent” (Neotel Shareholder signs MOU with West African Cable Project, Southwood, 7 May 2007).
 
In other words, IWTGC is confident that VSNL International will be a valuable partner in IWTGC’s drive to implement the project at a rapid pace, in order to bring critical access to the people of West Africa in a timely cost-effective manner.
 
ADSL South Africa (Broadband South Africa) welcomes the relationship between VSNL International and IWTGC since it will indirectly benefit the whole of Africa on the end of the day.