Companies

Liquid Telecom to sign Sh618m Ketraco fibre cables deal

barasa

Ketraco managing director Fernandes Barasa. PHOTO | SALATON NJAU | NMG

Internet service provider Liquid Telecom Kenya is Wednesday set to sign a Sh618 million contract with the Kenya Electricity Transmission Company (Ketraco) that will see it operate the latter’s fibre-optic infrastructure.

Ketraco in March advertised for a private sector company to design, supply, install, operate, manage and commercialise its fibre network on a revenue-sharing agreement.

The State-owned electricity transmission firm, which has about 1,800 kilometres of electricity cables fitted with fibre optic cables, has now settled on South African firm Liquid Telecom.

“Ketraco and Liquid Telecom are inviting you to a contract signing that will see Liquid Telecom operate Ketraco’s fibre and extend fibre connections to remote areas of Kenya and the region,” Ketraco said in a statement.

Ketraco has been implementing a broadband strategy that involves leasing extra fibre optic capacity, in a move meant to generate additional revenue for the State corporation.

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Its new strategy, however, is to partner with third parties with vast experience in the telecoms sector to manage the system as it focus on its core mandate or laying power cables.

Ketraco says it expects to construct about 7,000 kilometres of high voltage lines across the country and for regional interconnection in the next five years.

All electricity transmission lines are fitted with fibre optic to aid communication between generators and control centres. However, it does not utilise the entire capacity.

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The firm has currently leased out some capacity to Safaricom #ticker:SCOM and Jamii Telecoms Ltd.

In 2014 the Communications Authority of Kenya granted Ketraco a network facility provider tier 2 (NFPT2) licence, allowing the firm to lease out fibre to third parties.