TELECOMMUNICATIONS. Undersea wrangling.

(From Financial Mail)

Byline: Duncan McLeod

TELECOMMUNICATIONS Undersea wrangling WHAT IT MEANS Numerous investors looking at undersea cables to Africa Telkom's profitability could be undermined Political interference could undermine new cable projects The investors behind the proposed development of new submarine telecommunications cables linking Africa with the world are facing a range of obstacles regulatory, political and economic before the projects can even get off the ground. The planned cable systems, if laid, will put significant downward pressure on the cost of international telephony and bandwidth. But the projects' backers money for three of the four planned projects will come mostly or entirely from private-sector investors will first need to convince governments to grant them the necessary licences. This could prove difficult, given that many African governments, including SA's, have pledged their support to the East Africa Submarine System (Eassy), a project …