Joburg zaps fibreoptic agreement

2014-08-03 15:01

The City of Johannesburg has ended its 15-year build, operate and transfer network agreement with fibreoptic company CitiConnect Communications after it failed to meet its service obligations.

The contract was split into a three-year agreement to build the network and a 12-year agreement to operate it.

While the network has been built, the head of broadband at the City of Johannesburg, Zolani Matebese, said CitiConnect had not been able to deliver on further services.

Some of the services that CitiConnect was supposed to provide included internet, email, server and web hosting, and all other information and communication technology services of the city.

The network will now be operated by BWired. Like Pikitup, it is a “private” company with the City of Johannesburg as its only shareholder.

About 900km of fibreoptic network has been laid – from Ivory Park in Midrand all the way to Orange Farm in the south.

CitiConnect was founded by Leslie Kekana, a former senior diplomat with the department of international relations and cooperation. CitiConnect would not comment.

Matebese said the company “had obligations in the contract and they didn’t meet them. We gave them every opportunity to meet the obligations, so at some point you have to make a decision.”

Through the network, Johannesburg hopes to provide cheaper broadband to people who live in the city.

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