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Google injects billions in Nairobi-based fibre optic internet firm

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Google, Convergence Partners, International Finance Corporation (IFC) and Mitsui & Co. Ltd. have signed an agreement to invest in CSquared, a broadband infrastructure company focused on building wholesale metro fibre optic networks for internet access in Africa.

CSquared will operate as an independent company headquartered in Nairobi, with cumulative capital commitments of up to $100 million (Ksh10 billion). CSquared has operational networks in Uganda and Ghana and plans to deploy networks in more countries. The transaction is subject to customary closing conditions.

Growing internet access

This partnership will combine Google’s technical knowledge and expertise in deploying and operating wholesale metro infrastructure in Uganda and Ghana through Project Link with the additional capital, skills, and reach from all four investors.

Convergence Partners deep experience of active, value adding investing in the ICT sector in sub-Saharan Africa, IFC’s experience spanning over 40 years supporting the development of the telecommunications sector in Africa, as well as Mitsui’s cross-industry capabilities, vast investment portfolio and global business presence, and its experience as a strategic investor in the ICT sector, will significantly bolster the scale and resources of CSquared in its continued quest to grow access to the Internet across the entire sub-Saharan region.

Africa lags behind most regions in broadband internet access — only six percent of Africans have access, making it difficult for the region to achieve its human and economic potential. In a predominantly wireless environment like Africa, mobile networks depend upon high speed and reliable optical fibre to connect to cellular towers to enable them to provide high quality, wireless broadband services to customers.

See Also: Kenya has fastest internet in Africa, new report shows

Furthermore, fibre is becoming an increasingly important way for end users to directly access the Internet, especially large businesses, small and medium enterprises (SME), and educational institutions, research organizations, and residential estates.

Still, fibre optic cable is expensive. Deploying and operating infrastructure on a shared basis can help lower installation and consumer costs. The open access philosophy is integral to the CSquared model and its shareholders. CSquared offers superior quality, affordable wholesale services to all licensed operators to unlock a thriving digital ecosystem.

“We believe that together under CSquared, we can get more done to roll-out and operate affordable, high-speed, and reliable infrastructure to expand internet access in Africa,” said Marian Croak, Vice-President at Google.

“Project Link has demonstrated the impact of shared wholesale infrastructure, and we’re excited to see CSquared bring more infrastructure to more service providers and their customers.”

In 2011, Google identified a major barrier to more affordable, reliable broadband in Africa as fibre optic networks in major cities. This led to Project Link, an initiative to build world-class, high-speed urban fibre networks in Africa’s metropolises.

READ: Government on high alert over cyber attacks

In 2013, Google folded these efforts under a new company brand called CSquared with the aim of expanding access and lowering costs. CSquared built more than 800 km of fibre in Kampala and Entebbe, in Uganda and more than 840 km of fibre in the Ghanaian cities of Accra, Tema, and Kumasi.

Collectively over 25 ISPs and MNOs now use these metro fibre networks to offer broadband services and 4G data to end users, with over 1,200 tower and commercial building sites connected directly to CSquared’s fibre infrastructure.



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BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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