Johannesburg terminates broadband contract with CitiConnect

4 Aug 2014

The local government of Johannesburg has terminated a build, operate and transfer agreement with CitiConnect Communications, which had been tasked with running and commercialising Johannesburg’s broadband project via start-up operator BWired, due to ‘multiple breaches of the contract’, TechCentral reports. Johannesburg’s broadband infrastructure project is part of the local government’s plan to connect all of its main offices and branch sites and to roll out a thousand Wi-Fi hotspots by the end of 2016. The network was scheduled to go live on 1 July 2013, but CitiConnect failed to honour its obligations.

Zolani Matebese, the head of the broadband project, said: ‘It is unfortunate that we have had to take such action, but it is as a result of noncompliance to the contract and we did not really have any other option …Over the past year, we tried to assist [CitiConnect] as far as possible to resolve the issues and it just eventuated that they were not able to deliver.’ Matebese said the city will not leave the project in limbo, with the local government planning to ramp up capacity internally, though it is also in talks with external companies to ensure that its broadband targets are achieved.

South Africa