IFC is coordinating its efforts with the World Bank, which is financing a complementary system of terrestrial backbone networks through the Regional Communications Infrastructure Programme.
Other financing will come from private operators and development institutions. The EASSy project is a partnership among 26 telecommunications operators, the majority of which are African firms.
The project addresses a major gap in the global communications infrastructure and is expected to have a profound impact on the region's economical integration and cooperation.
The project expected to cost $235 million (Shs389 billion) will be completed in the first quarter of 2009 and will ease communication for about 250 million Africans by reducing internet and telecommunication costs. Once completed, landlocked countries will no longer have to rely on expensive satellite systems to carry voice and data services.
Consumers in East Africa, on average pay between $200 (Shs331,100) and $300 (Shs496,650) a month for internet access, which are considered some of the highest in the world.
"The EASSy project will reduce the cost to a third of the current costs," said Mr Nyakairu. It is estimated that reducing the price of international communications by 10 per cent would benefit consumers in Africa by more than $2.5 billion.
The fiber-optic cable is also expected to improve the quality of telecommunication service and is also increase the number of subscribers. Industry analysts predict that prices will fall further as volume and competition increase because the cable provides for open access.
Source: Africa Guide
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