BTCL hands wholesale business to BoFiNet
Boitshepo Majube | Wednesday December 4, 2013 15:44
The business includes the newly deployed dense wave division multiplex system including hardware, software, licenses, supporting contracts, network equipment (countrywide and in London), spares and vehicles used to deploy the network.
“We will also be handing BoFiNet the East Africa Sea System (EASSY) and the West Africa System (WACS) rights and obligations plus backhaul links connecting these systems through Telkom Namibia and Telkom SA,” BTCL Managing Director Paul Taylor said.
BTCL is set to hand over all assets to BoFiNet by year-end 2013.
For BoFiNet to be fully operational, certain assets and capabilities needed to be transferred from BTCL to BoFiNet. In August 2010, government approved a strategy that involved, among other things the establishment of a separate entity (BoFiNet) to manage and operate long distance transmission networks, which was part of the mandate of the Botswana Telecommunications Corporation (BTC). Taylor said BTC is also transferring all supporting supplier agreements that enable end-to-end connectivity of the international links such as the global switch co-location agreement, BT Master Services Agreement and the Djibouti Telecom Master Services Agreement.
“We will, as the year progresses, also be handing over all fibre, ducts and manholes, chamber and footway boxes, land rights to 40 equipment sites, and poles carrying fibre,” Taylor said.
He added that they will also transfer street cabinets that support fibre networks.
He stated that during the handover of assets, BTCL staff was seconded to BoFiNet to help in the establishment of the company.
“BTCL also funded BoFiNet’s initial capital requirements,” Taylor said, further stating that apart from being BoFiNet’s largest customer, they have committed to funding further the capital requirements of BoFiNet and hope to have transferred all assets by year end 2013.
The transfer of assets to BoFiNet opens the way for privatisation, with BTC transitioned to a company last year, BTCL to prime it for the exercise.
BTCL will list 49% of its shares on the Botswana Stock Exchange in 2014.
BoFiNet Board Chairperson Ratsela Mooketsi stated about the handing over of assets: “This is the beginning there is a lot of work to be done”.
The Minister of Transport and Communications Nonofo Molefhi has said that it is time for BoFiNet to start walking. “To BoFiNet, there is no more time for excuses, it is time to deliver,” he said.
Molefhi explained that when a decision was made to transfer some assets from BTC to BoFiNet, “we made sure that we don’t prune BTC all of its services, but leave it a viable business as it prepares to be listed on the BSE”.