Message Sam 15 Oct 2011 08:38

CEC and Liquid Telecom launch wholesale operator in Zambia

25 September 2011 – The Copperbelt Energy Corporation Plc (CEC) and Liquid Telecommunications Holding Limited (Liquid Telecom) have announced the creation of CEC Liquid Telecommunications Limited which will increase broadband capacity into and within Zambia, increase competition and ultimately reduce end-user prices.

CEC Liquid Telecom will build and operate a country-wide fibre network over which it will provide wholesale capacity and terrestrial internet bandwidth to public and private operators licensed by the Zambia Information and Communications Technology Authority (ZICTA). CEC Liquid Telecom will also provide alternative international terrestrial gateways.

CEC Liquid Telecom will not participate in the retail market segment although end-users could ultimately benefit from cheaper and faster internet and other data services as significantly more capacity will be available in Zambia.

The existing telecom assets of CEC and Liquid Telecom in Zambia will be transferred to CEC Liquid Telecom, in which both companies will have 50% participating interest. CEC will transfer to CEC Liquid Telecom all existing telecoms customer contracts, its Public Network License and current fibre assets, including the last-mile fiber installed in the Copperbelt region and Lusaka, as well as those currently being built in Solwezi, Kabwe and Livingstone.

Liquid Telecom will provide working capital, network build-out, and associated equipment. Liquid Telecom is also building a carrier grade fibre optic transmission network for CEC Liquid Telecom which runs along the Chirundu-Lusaka-Ndola route, via Chisamba, Kabwe and Kapiri Mposhi, from Lusaka to Livingstone, through Mazabuka and Choma, and from Chililabombwe to Lubumbashi. This will be integrated into the existing CEC fibre assets in Zambia, with access to Liquid Telecom’s regional fibre network and submarine cables for onward connections to Europe, the Far East and the rest of the world.

CEC’s existing infrastructure will be further developed by CEC Liquid Telecom to provide local access super fast fibre optic broadband services and leased line capabilities. An operator neutral Data Center will also be constructed and CEC Liquid Telecom will introduce a number of advanced technologies and services including the implementation of Multiple Protocol Label Switching (MPLS) technology.

Michael Tarney, CEC’s Managing Director for Corporate Development, said: “This transaction brings together two of the leading infrastructure service providers in Zambia. CEC Liquid Telecom will provide the best possible telecommunications platform and resources for licensed operators to provide new, innovative and high quality services to end users, as well as exciting new opportunities for growth and development”.

“This new business will bring together two industry leaders and give customers the ability to access the best of both organizations’ local expertise and unrivalled global connectivity. At the same time, it will allow customers access to the latest in high speed fibre optic connectivity whilst receiving a superior level of customer service,” said Nic Rudnick, Liquid Telecom’s Chief Executive Officer.

The deal has been approved by the boards of both companies subject to regulatory approval from ZICTA, the Zambian Competition and Consumer Protection Commission and other relevant stakeholders.