Cape Town`s R300m broadband network takes shape CAPE TOWN is known for many things - its mountain, its proteas and its winelands, among others, but pretty soon it will be adding one more item to its long list of attractions: it will boast the first open access fibre network in Africa.

Over the next five years, the city will be pouring some R300 million into the first phase of a project that involves the construction of a 171km-long core fibre-optic network and access cables, connecting the city`s main administrative buildings in central Cape Town, Bellville and the South Peninsula area, and the city`s two main data centres. These facilities account for 80% of internal telephone traffic and at least half the over 10 000 desktop computers the city manages, explains Leon van Wyk, the city`s telecommunications manager.

In addition, a number of traffic systems, CCTV cameras, depots, cash offices, libraries, clinics and other facilities that are close to the access fibres will be connected directly. "Buildings further from the core may be connected at a later stage using wireless links, or when later phases of construction take place," says Van Wyk.

Moreover, the CSIR has committed about R30 million to have at least six buildings from three universities linked to the core network under its South African Research Network (SANReN) programme. And the CSIR has the option to connect more buildings or buy additional network capacity at any time, at a cost, of course.

TENDER MOMENT

The first tenders for the project should be issued within a few weeks, given that the implementation plan for the project has been completed (including the fibre planning) and should be approved by the city council at the end of May.

Fibre planning entails determining the exact configuration of cables and fibre pairs needed to connect the required buildings and switching centres, while ensuring that the network is robust and can be run efficiently. This planning has been completed as far as possible - to the extent that contractors can be hired for trenching, duct laying and building the switching centres.

"Once the implementation plan has been approved, we will start to issue the necessary tenders, beginning with contracting specialist project management service providers to oversee the project, manage the construction contractors and operationalise the infrastructure so it can start to be used to deliver telecommunications services to the council as soon as possible," explains Van Wyk.

And since the project is aligned with the telecoms requirements of the 2010 soccer World Cup, construction is expected to take no more than two years. The capital expenditure is R121 million, excluding the CSIR`s contribution, and the balance of the R296 million project pricetag is a combination of operating and capital financing costs.

NO BRAINER

As for the returns on the project, he adds, the project has been justified to council "in terms of the expected internal cost savings. The current expectation is that the decline in internal telecoms costs will exceed the network operating costs, including capital repayments, after six years. This is not the same as `the project paying for itself` though, he warns, as the capital financing for the project is being done over 20 years, the same as a fixed asset."

However, these projections don`t take into account any revenue from third-party users, or the wider and developmental benefits to Cape Town - "though these are expected to be significant", says Van Wyk.

Revenue could prove considerable. While the city will be the primary user of the network infrastructure, followed by SANReN, there will be plenty of fibre pairs still available for others to use, he adds. "More than 70% of the fibre pairs on the core network will be available for licensed telecommunications network service providers to use. We will also install more cable ducts than we need - the cost of doing so is small - so that more cable can easily be installed when needed," says Van Wyk.

Depending on the impact of the project, the network infrastructure could be expanded. And, as they have been planned "at a high level, these further construction phases could start immediately after the first phase if they are viable. They don`t have to wait for five years", he indicates.

Van Wyk believes the project is a "major step" for both the City of Cape Town and the country. "But, given the insatiable demand for bandwidth by the city and the economy, the time is ripe for such a project. We expect many other cities to follow our lead and build open access municipal fibre networks over the next decade," he concludes.