West Africa Cable has telecom sector worried

As the African continent just begins to work its way out of massive price wars that have adversely affected operations in a number of countries, the landing of the West Africa Cable System (WACS) has analysts and industry experts worried that it could spark a new round of intense battles.

According to analysts, WACS undersea cable is also expected to bolster the continent’s capacity to deliver on services and infrastructure.

In Nigeria, companies are gearing up for the cable and worries are developing that many of the country’s telecom operators are planning a new round of price wars and telecom wars.

“It is likely to spur something and while we are waiting to see what the cable will truly bring to Africa, here in Nigeria people are concerned that companies are going to do something drastic, even if we don’t quite know yet,” said Steven Umbali, a government official working on logistics.

“Lack of bandwidth on the continent has arrested the development of Africa and has constrained Africa from achieving its full potential,” said Karel Pienaar, MTN South Africa managing director, in comments published by Computer World.

By Staff