Strive Masiyiwa’s international telecommunications group, Liquid Telecom has joined hands with the Botswana Power Company (BPC) to establish a new telecom service provider which will operate in the country as Liquid Telecom Botswana.
Liquid Telecom Group has operations in selected African countries including here in Zimbabwe, with their local division Liquid Telecom Zim growing to become a leading force in the provision of a robust wholesale carrier network with 40Gbps up to date.
By Cisco Eng. Shingie Lev Muringi
Liquid Telecom Botswana is expected to compete with players such as Botswana Fibre Network (BOFINET) in the highly competitive telecoms network industry. The historic deal was penned by outgoing BPC Chief Executive, Jacob Raleru and his Liquid Telecom counterpart, Nic Rudnick in Gaborone earlier today.
According to a press statement exclusively sent TechnoMag the joint venture will enable the state-owned power company to make more effective use of existing assets, while allowing its Liquid Telecom to better service the needs of wholesale enterprises.
The power utility owns and operates optical fibre cable network that is embedded in some of its voltage transmission lines. In The new BPC partner was selected after a competitive bidding exercise, said the company. The Mauritius-based company will be the majority shareholder. It will run the day to day activities of the company, Liquid Telecom Botswana.
“The use of BPC’s optic fibre cable network will be granted to Liquid Telecom Botswana under the Indefeasible Right of Use Agreement (IRUA). Rather than taking any rental payments, the capital value of the IRUA will be used to purchase BPC’s equity stake, which is 42, 5 percent,” said BPC.
The power utility is excited about the deal, indicating that it will diversify its revenue base away from electricity sales to both retail and institutional customers. The state-owned power utility has been making perennial losses due to rising operational costs and the non-completion of Morupule B power station.