Alcatel-Lucent Gets US$500 Million Submarine Cable Contract

Wednesday, Jun 09, 2010

Alcatel-Lucent (ALU) said Tuesday it has signed a contract with a consortium of 20 telecom operators worth over $500 million for the construction of a submarine cable network linking South Africa to France.

In a statement, Alcatel-Lucent said it signed the contract with Africa Coast to Europe, or ACE, a newly-formed consortium of 20 telecom operators, headed by France Telecom (FTE).

The new submarine network system will span over 17,000 kilometers and will link 23 countries from South Africa to France, Alcatel said. It is expected to begin commercial service in the first half of 2012, the group added.

In a separate statement, France Telecom said the group and its subsidiaries will invest around $250 million in the cable's construction, bringing the consortium's total investment to about $700 million.

"The ACE cable will reduce the cost of access to international telecommunications networks, thereby removing a major barrier to the Internet's development in Africa," France Telecom said. "By signing this agreement, France Telecom-Orange has reinforced its presence in Africa and furthered its ambition to democratize Internet access in the region."

It will be the first international submarine cable to land in Mauritania, Gambia, Guinea, Sierra Leone, Liberia, Sao Tome and Principe, and Equatorial Guinea, France Telecom added.

Source: C114