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EASSy

EASTERN AFRICA SUBMARINE CABLE SYSYTEM


PROJECT UPDATE
Presented by John Sihra EASSy Project Coordinator

ITU PPPf Nairobi


4th 5th June 2007
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EASSy
CONTENTS Objectives of Promoters EASSy - The Project System Configuration System Technology Terrestrial Backhaul & Onward Connectivity, Restoration, Quality Assurance. O&M PPP EASSy, A Real Achievement Project Cost, Supplier & Implementation Project Milestones, Completion & RfCS EASSy Ownership Structure a Private Public Partnership Developmental Objectives & Regional Government Policy Alignment Concluding Remarks

EASSy
Objectives of the Promoters Meet Growing Demand for Broadband Connectivity in the region
Significant growth in voice, Data, Internet services Address limitations imposed by sole reliance on Satellite No existing submarine cable system along the East African seaboard EASSy will be the first optic fibre connectivity between Eastern Africa and the global optical fibre network Completion of an optic fibre ring around Africa in conjunction with other optic fibre submarine cable systems (e.g., SAFE, SEA-ME-WE 3 and 4)

Seeking quality and cost advantages of optic fibre connectivity


High capacity, Superior quality, Cost-effective alternative transmission medium

Interconnect with other similar cables will supplement existing & planned terrestrial, satellite facilities Joint investment by the Promoters & DFIs for the development and Implementation of such a system
Circa, US$ 5million contributed to develop the project to date
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EASSy
The EASSy Project
A sub-Optic Fibre Cable system along the Eastern Africa Coast Project fully developed, financing pledged, supply contract in place
Escrow account to receive remittances Construction to start mid - 2007 with planned commercial use of system, 4Q 2008

Promoters are operators in the region, together with some global telecom carriers
Support from Developmental Financial Institutions (DFIs) - World Bank IFC, AfDB, EIB (EU), DBSA, ProParco France and KfW Germany

EASSy to run from South Africa, Madagascar to Sudan with landings at least six other countries
Landing stations envisaged in the Indian Ocean Island nations of Comoros and Mayotte

Coordination of provisioning Terrestrial optical fibre links to provide access to EASSy from hinterlands and landlocked countries - at least 10 Numerous opportunities and benefits to key stakeholders expected

EASSy System Configuration

Countries Landing Points


Sudan Landlocked & Other Countries Ethiopia Botswana Uganda Rwanda Burundi Malawi Zambia Zimbabwe Swaziland Lesotho Mauritius Comoros Djibouti Somalia Kenya Tanzania Madagascar Mozambique South Africa - Port Sudan - Djibouti - Mogadishu - Mombasa - Dar es Salaam - Toliary - Maputo - Mtunzini

EASSy
System & Technology
Deploying: Latest state of the art technology Guaranteeing scalability and abundant capacity Transmission: SDH

System length: 9,900km System design life: 25 years Amplification: Direct Optical Wavelength: Dense Wavelength Division Multiplexing (DWDM) Fibre pairs: 2 Lit-up Capacity: Initialy, 3 x 10 Gb/s per fibre pair Upgradeable: To 32 x 10 Gb/s Wavelengths per fibre pair

Southern & Eastern backhaul

EASSy

EASSy

East African Backhaul System (EABs) Route


Bugiri Kampala Malaba

Masaka Mbarara

N MT

Kabale

UT L

Ntungamo Nairobi Katuna

R M wa TN nd a

te

Kigali

Te

l&

lk om

Butare

Ke n

Akanyaru

ya /

ur

un di

Te

lc

Bujumbura

KD N
Mombassa

Manyovu

os

Tabora Kigoma

TTC L

(Oth er

Tanz ania n

Telc os)
Dodoma Dar Es Salaam Morogoro

EASSy

Submarine Cable Systems for Africa

Port Sudan

SEA ME WE 3
Djibouti

Mogadishu Mombasa

Dar Es Salaam

SAT-3 / WASC

SAFE

Maputo Mtunzini

Toliary

EASSy

Onward Connectivity, Restoration & Quality Assurance


FALCON SEA-ME-WE 4

TYCO TAT 14 TAT 12/13

SAUDI ARABIA SAS FLAG SEA-ME-WE 3

APCN 2

SUDAN FLAG DJIBOUTI

INDIA MALAYSIA
FLAG

COLUMBUS 3 EUROPA

SENEGAL
ATLANTIS 2

CHINA-US

SAT-2

SAFE

SAT- 3/WASC

SOUTH AFRICA
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EASSy

Operation & Maintenance Quality Assurance

E-Marine
(Fujeirah)

Cochin
SEAIOCMA

Sembawang
SAFE

Cape Town

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EASSy

Project Cost, Supply & Implementation Period


Project Cost: Turnkey Basis, USD 235 million Supplier, Contractor: Alcatel-Lucent Submarine Networks, France Implementation period: 18 months

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EASSy

Milestones & Completion - RfCS


Date December 2003 March 2004 June 2005 September 2005 July 2006 From October 2006 to Feb 2007 9 March 2007 4th Quarter 2008

Milestone MoU signature Detailed Feasibility Study Data Gathering Meeting Tender Issued Supplier Selected Construction & Maintenance Agreement Signature Supply Contract Signed EASSy Cable Construction Completion System Ready for Commercial Service (RfCS)

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EASSy
Development Financial Institutions (DFIs)

Ownership A Special Purpose Vehicle SPV - Hybrid Structure


(Equity) Loan (Long Term) DFIs participation integrates and DFIs participation integrates and promotes Regional promotes Regional Developmental Goals Developmental Goals

Special Purpose Vehicle (SPV) - Western Indian Ocean Cable Co. (WIOCC) Capacity Purchase EASSy Parties Operators EASSy Parties Operators

Capacity Purchase (via SPV)

Equity

EASSy EASSy
Capacity Purchase (Direct)

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EASSy Parties
Country Botswana Burundi EASSy Party Botswana Telecom Onatel Burundi Telecel Burundi Comoros Is. Djibouti Ethiopia Kenya Comoro Telecoms Djibouti Telecom Ethiopia Telecom Corporation Telkom Kenya Limited (TKL) KDN Lesotho Madagascar Mayotte Mauritius Mozambique Lesotho Telecom Authority Telecom Malagasy France Telecom Mauritius Telecom Telecom de Mozambique Vodacom

A Private Public Partnership (PPP)


Country Rwanda Somalia South Africa Sudan Tanzania MTN Dalkom MTN; Neotel; Telkom SA & Vodacom Canartel; Sudatel Satcom Tanzania; Vodacom; ZANTEL TTCL Uganda Zambia Zimbabwe Special Purpose Vehicle - SPV Non-Regional Participation MTN; Uganda Telecom Zamtel Tel.One West Indian Ocean Cable Company Limited (WIOCC) BT (UK), Saudi Telecom, VSNL /Teleglobe (India), AT&T (US), Verizon/ex MCI (US), France Telecom ETISALAT (UAE) , EASSy Party

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100% Government Owned Entities

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Semi - Government & Private Sector Ownership

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EASSy

Developmental Objectives
Operator choice: To participate directly or via SPV (as a shareholder) Direct Capacity purchase: Minimum is $2.5m Via SPV: Minimum equity is at US$ 0.550m with added incentive of a reduced price on advance capacity purchase SPV role: Mainly developmental, supported by leading DFIs SPV Capacity Sales: In all markets SPV Incentive: As the largest single investor, qualifies for maximum investment incentive lowest unit capacity price SPV Capacity sale pricing: Identical for Equity holders and any other purchaser of capacity at any time

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EASSy and
Developmental Policy Alignment
Project Development - a fine balance between commercial and developmental objectives
International Developmental Financial Institutions: guiding investment principals to attain maximum developmental impact Embody: Regional Government ICT policies and views of other key stakeholders, e.g., - Access - Open, Unfettered - Low Capacity pricing Competitive, Cost Based - Non Discriminatory Capacity Pricing for service providers - Infrastructure Development PPP participation

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EASSy

Concluding Remarks
EASSy will deliver substantial, commercial and developmental benefits All stakeholders to the ICT Sector stand to benefit from Closing the Last Missing Link to fully encircle Africa with sub-Optic fibre cable systems EASSy has made substantial, irreversible progress towards having the cable Ready For Commercial Service by the 4th Quarter of 2008 Timely Availability of Backhaul Terrestrial links to the Hinterlands & Locked Countries ICT requirement for Eastern and Southern Africa fully realised Regional Macro Socio-Economic Development EASSy developed and owned by multiple operators in the region under existing National Regulatory Frameworks EASSy a Private Public Partnership

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EASSy Project is a shining example demonstrating the ability of African and Global telecommunications entities to work together in harmony towards realizing an important step and a building block in pursuit of the development and improvement of the African ICT infrastructure

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EASSy

Thank You

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