R500m for Broadband Infraco network

June 1, 2011 1:48 pm 0 comments

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State-owned enterprise, Broadband Infraco, is set to spend over half a billion rand in new broadband infrastructure over the next financial year.

The parastatal currently has a 13 600km network of long distance fibre and 5 open access points of presence in key metropolitan areas – with an additional 7 open access points of presence expected over the next few years.

Speaking during his budget speech in Parliament, Public Enterprises minister, Malusi Gigaba highlighted the importance of infrastructure projects - revealing that the department would spend over R105 billion on infrastructure projects and contribute towards the creation of over 40 000 jobs.

Broadband Infraco recently invested in its national backbone fibre optic network which enabled the company to provide strategic international connectivity to operators in the Southern African Development Community (SADC) region and in the west coast of Africa.

“We will continue to monitor the roll-out of the Infraco broadband network whilst working on a strategy to secure the long term viability of the business. Work if further continuing to facilitate the roll-out of broadband access in remote rural areas and to facilities such as hospitals, clinics and schools,” Gigaba revealed.

He added that the department was exploring strategic synergies between Infraco and Sentech in an effort to optimise its capacity.

“A deputy Director-General from the department was seconded as CEO of Infraco on a caretaking basis. Chairperson, the delivery of this vision implicitly involves an expansion of the scope of the shareholder management process and the development of new capabilities in the department,” Gigaba noted.

The department’s SOE shareholder management teams will also be tasked with developing compacts, engaging with the policy formulation process and monitoring the sustainability and impact of the SOEs based on their corporate plans and quarterly reports.

“In addition, we will also be focusing on strengthening our capabilities in a range of specialised cross-cutting areas such as economic impact modelling, procurement leverage, skills development, youth development, climate change and broad-based black economic empowerment, Broad Based Black Economic Empowerment (B-BBEE),” he revealed.


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