Liquid Telecom, Botswana Power Corporation announce joint venture
Published on 20th October 2016
Pan-African telecoms group Liquid Telecom has entered into a joint venture with Botswana Power Corporation (BPC) resulting in the formation of a new telecoms network provider Liquid Telecom Botswana.
According to an agreement signed between Jacob Raleru, CEO at BPC, and Nic Rudnick, CEO at Liquid Telecom in Gaborone, BPC will lease excess optical fibres from its network to Liquid Telecom.
"The joint venture, which will operate under the name Liquid Telecom Botswana, will enable BPC to make more effective use of its existing assets, while allowing Liquid Telecom to better serve the network needs of its wholesale and enterprise customers in the region," reads a joint statement from the companies.
BPC owns and operates an optical fibre cable network that is embedded on some of its high voltage transmission lines. This fibre network will be commercialised for the first time in order to provide networks services across the country.
BPC Board of Directors approved the commercialisation of its network in March 2016, and, following a period of competitive bidding, Liquid Telecom was selected as the preferred partner.
The use of BPC's infrastructure will be granted to Liquid Telecom Botswana under an Indefeasible Right of Use Agreement (IRUA).
"Rather than taking any rental payments, the capital value of the IRUA will be used to purchase BPC's equity stake, which is 42.5%. Liquid Telecom will be the majority stakeholder in Liquid Telecom Botswana," the companies state.
Liquid Telecom Botswana said it would make further announcements in due course.