Statement by Executive Mayor, Alderman Patricia
de Lille at a media conference on City’s continued
broadband infrastructure investment
City invests in broadband infrastructure
As part of our commitment to build an Opportunity City, we have set
aside an initial R213 million towards the R1.3 billion required for the
proposed roll out of broadband infrastructure throughout the Metro.
This project, jointly funded by the City of Cape Town and the Provincial
Government of the Western Cape will not only deliver major benefits to
the City and Province, but also have economic benefits to the community
at large. The initial focus of the City has been both to reduce
telecommunication costs and improve high speed data communications to
municipal facilities. When fully implemented, the project will effectively
improve the City’s ability to provide fast and efficient services to the
residents of Cape Town.
This investment in broadband infrastructure will build-up extra data
capacity in the city which will, in turn, boost our competitive advantage
and help drive economic growth, development and inclusion – especially
in previously marginalised areas.
Evidence of our commitment to the success of this project is that the
broadband infrastructure programme is the single biggest capital
expenditure item in the Corporate Services budget for the 2012/2013
financial year. R61 million has been allocated to the project for the
current financial year and an additional R152 million for the two following
years.
The project is expected to take between 7 and 10 years to complete,
depending on the level and timing of funding which it receives.
Beyond the key internal government objectives, spare capacity within the
network will be made available to the private sector, enabling businesses
to utilise high speed Internet connectivity which is so essential in today’s
environment. Cost effective and high speed access to telecommunication
services, computer services, internet-working and cloud computing have
become pivotal cornerstones of economic development.
Due to our proactivity, the City of Cape Town secured the DWDM (Dense
Wavelength Division Multiplex) equipment used during the FIFA World
Cup from the Department of Communication. This equipment is worth
over R100 million; following just R900 000 of commissioning costs, the
City's corporate network is consequently one of the fastest municipal
networks in Africa.
Not only does connectivity give life to entrepreneurship but it also enables
and fast tracks business growth. Affordable bandwidth is frequently cited
as one of the main factors supporting investment and economic growth in
developing countries. According to a study conducted by the World Bank,
1.4% growth is recorded for every 10% increase in broadband
penetration.
The City is making the spare capacity on the City’s Broadband
Infrastructure available by installing optic fibre cross connections to the
data centres of Internet Service Providers and Telecommunications
companies. This will stimulate competition in the telecommunications
market, and thereby help reduce costs to end users.
More importantly, it will also allow these companies to offer services that
were previously unavailable in less advantaged, outlying and
commercially unattractive areas. By enabling quality Internet access to
residents and entrepreneurs in these areas, the City is helping create an
open, opportunity society in which economic reconciliation is possible,
making Cape Town a truly Inclusive City.
The advanced architecture of the broadband deployment guarantees that
the City will have a valuable asset for many years to come. It also
ensures that sufficient bandwidth will be available to support the growing
operational needs of the municipality, the provincial government and
external telecommunications operators.
The City and the Provincial Government have concluded a co-operation
agreement whereby the City’s Telecoms branch provides broadband
connectivity to key WCG buildings, in collaboration with the State
Information Technology Agency (SITA).
The City’s long term broadband infrastructure plan has been designed to
build on this collaboration and can accommodate broadband connectivity
to the Western Cape Education Department’s schools within the metro
area, should this be requested by the WCG.
During the current financial year (2012/2013) the project will extend the
City’s broadband infrastructure and corporate network to Khayelitsha,
Mitchells Plain, Ndabeni and the City’s southern suburbs.
Within the proximity of Ndabeni, there are more than 30 City and WCG
buildings, while the City’s Plumstead administration building alone houses
the third largest concentration of City employees.
With these extensions, High-speed Internet connectivity will then be
available to a total of 130 City buildings (including 25 clinics) and 45
Western Cape Government buildings.
A second area of collaboration is the WCG Department of Economic
Development and Tourism’s Provincial Telecommunications Strategy.
Since Cape Town represents some 80% of the Western Cape’s GDP, the
City has an important advisory role to play.
The Khayelitsha and Mitchells Plain areas are a high priority for the City
because the existing telecommunications infrastructure in these areas is
unreliable and cannot meet the requirements of the City or the WCG in a
cost effective way.
The availability of high speed telecommunications services in these areas,
where it was not previously available, and at much reduced rates, will
also directly and meaningfully stimulate economic growth by supporting
entrepreneurial activity.
To this end, the City is currently undertaking a feasibility study in
partnership with the United States Development and Trade Agency
(USDTA), which will examine the various options and benefits of making
wireless Internet available in these areas.
By supporting the growth of quality telecommunications services to
residents and entrepreneurs, the City is helping to create a “digitally
inclusive” society in which economic growth is possible, making Cape
Town a true Opportunity City.