MTN Group targets 135,000km of fibre cable in 3 years
Africa has seen a major rise in subsea cable connectivity in recent years, however, the connectivity gap is still wide. Project East2West aims to improve broadband access for landlocked African countries. CNBC Africa spoke to the CEO of Bayobab, which is wholly owned by MTN Group on the ambitious target for the group to reach the Group’s target of having 135 000km of proprietary fibre over the coming three years.
Tue, 16 May 2023 12:15:55 GMT
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AI Generated Summary
- Expansion of 135,000 kilometers of proprietary fiber optic cable in three years to improve broadband access in Africa
- Collaboration with partners like Africa 50 to establish fiber highways connecting East coast to West coast
- Structural separation of fiber infrastructure to operate as an open access neutral model for greater accessibility and efficiency
Africa has seen a major rise in subsea cable connectivity in recent years, but the connectivity gap remains significant. The MTN Group, through their wholly-owned subsidiary Baobab, is embarking on an ambitious project to address this gap by expanding their proprietary fiber optic network. The Group has set a target of deploying 135,000 kilometers of fiber optic cable over the next three years, aiming to improve broadband access in landlocked African countries. This initiative, known as Project East2West, is a collaboration between Baobab, Africa 50, and other partners to build fiber highways that connect the East coast to the West coast of the continent.
One of the key motivations driving this massive infrastructure project is the need to bridge the digital divide in Africa. By establishing a robust fiber optic network across the continent, Baobab aims to enhance connectivity, reduce latency, and keep more data within Africa. The CEO of Baobab emphasized the importance of having quality infrastructure in Africa to support the growing demand for digital services.
This ambitious endeavor involves connecting 10 African countries through the Inland Fiber Optic Cable, which requires close collaboration with policymakers in each nation. By establishing entities and securing licenses in these countries, Baobab is laying the groundwork for sustainable growth and economic development. The project not only aims to boost local economies but also to retain more internet traffic within Africa, serving the needs of the African population.
The transformational shift in the operating model of Baobab, as part of MTN's strategic vision for 2025, involves the separation of fiber infrastructure from mobile operations. This structural change allows Baobab to operate as an open access neutral model, offering the network to multiple parties. By adopting this approach, the Group aims to create a cost-efficient ecosystem that benefits all stakeholders and promotes wider access to high-quality broadband services.
As Africa's digital landscape evolves and more people come online, the demand for bandwidth is expected to soar. Baobab acknowledges the profitability challenges posed by the exponential growth in data consumption but remains committed to supporting communities and countries in their digital transformation journey. With self-sustained operations and strategic partnerships like Africa 50's support for the east-west fiber highways, Baobab is well-positioned to capitalize on the increasing demand for reliable broadband services across the continent.
In a rapidly digitizing world, the success of ambitious projects like Project East2West will not only drive economic growth but also enhance the overall digital infrastructure in Africa. By leveraging their expertise, partnerships, and commitment to bridging the digital divide, MTN Group's Baobab is poised to play a pivotal role in shaping the future of connectivity on the continent.