Safaricom has signed a 5-year deal to use Ethiopian Electric Power’s (EEP) dark fibre to provide telecommunications services.
Valued at over KSh1.6 billion, the deal enables Safaricom to use a network of optical ground wire (OPGW) cables along the high voltage transmission lines owned by state-controlled Ethiopian Electric Power (EEP).
“Such infrastructure sharing agreements will enable us to fulfil our commitment to transform Ethiopian lives for a digital future and contributes to efforts being made to the phased operation launch,” Safaricom Ethiopia CEO Anwar Soussa said.
.@AnwarSoussa “Such infrastructure sharing agreements will enable us to fulfil our commitment to transform Ethiopian lives for a digital future and contributes to efforts being made to the phased operation launch.’’ pic.twitter.com/cFIqJxlJWX
— Safaricom Ethiopia (@SafaricomET) March 11, 2022
The first phase of the deal includes Safaricom Ethiopia leasing more than 4,000km of OPGW, with the option to agree on further phases.
EEP expects to earn up to 140 million birr (KSh311.52 million) a year in the first phase of the deal.
“This first-of-its-kind collaboration will see not only power but telecommunications reach Ethiopians in all corners of the country.”
“The agreement we sign today to share our OPGW infrastructure will enable Ethiopian Electric Power to utilize its resources and increase its revenue, while enabling Safaricom Ethiopia to provide quality and competitive telecommunication services,” Asheber Balcha, CEO of EEP said during the signing of the agreement.
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