Main One secures USD66 million loan for submarine cable project

4 Jun 2009

Nigerian telecoms infrastructure company Main One Cable has secured a USD66 million loan from the Board of Directors of the African Development Bank Group (AfDB) to finance a submarine fibre-optic cable connection along the West African coast, reports. The project cost is estimated at USD240 million and involves the laying of 7,000km of submarine fibre-optic cable between the Portuguese municipality of Seixal, Accra in Ghana and Lagos in Nigeria. The 1.92Tbps of available bandwidth will be leased to telecoms operators and internet service providers (ISPs) on an open access basis to encourage competitive pricing and a large customer base. The increase in available bandwidth will provide operators with additional capacity to expand their networks and will enable a broader range of services. It is thought that the system will contribute to a 50% drop in the price of bandwidth in both Nigeria and Ghana, and continued price reduction is anticipated over time.