The agreement, worth over €24 million, is between the Seychelles Cable System (SCS) company and Alcatel-Lucent, an international Paris-based firm.

SCS is a partnership between the government (41%) and the two biggest telecommunication operators in Seychelles – Cable & Wireless (34%) and Airtel Seychelles (25%).

The signing ceremony at the Seychelles Tourism Academy on Wednesday evening was hosted by the Department of Information Communication Technology.

The project is called the Seychelles East Africa System and SCS is the funding company, helped by development finance institutions. It is expected to be finished by the third quarter of 2012.

The contract was signed by principal secretary for finance Ahmed Afif, who is also chairman of SCS, and Bernd Stangl, chief financial officer of Alcatel-Lucent.
 
Among others present were Vice-President Danny Faure, chief justice Fredrick Egonda-Ntende, ministers, members of the diplomatic corps and representatives of telecom companies involved.

The new system will give Seychelles direct high-speed access to the world’s fibre-optic network. It will ensure better and more affordable internet access for the public, as well as new broadband infrastructure for government services and private sector service providers.

In his address at the signing ceremony, Mr Faure said the project is a classic example of how the public and private sector can join forces to improve our society.

“What we are witnessing today is the pace-setting for tomorrow’s development,” he said.
“It is a legacy to our children and youth. We dream of the best for them, and it is our wish that they embrace and appreciate what the government is doing to ensure that their future is bright.”

Mr Faure acknowledged the presence of primary, secondary and post-secondary students attending the ceremony and said the signing of the contract is an important milestone in the development of information communication technology (ICT) in Seychelles.

“Access to advanced ICT, such as broadband connectivity, is a key factor in the economic and social development of a country,” he added.

“Broadband internet has become an essential technology that facilitates pivotal socio-economic elements such as education, health, trade and innovation across various industries. The positive impact that ICT has is widely recognised, which is why the government has always focused on providing affordable ICT services to as many people as possible.”

Mr Faure referred to the project as Seychelles taking another step through the door of the digital world. Investment by the telecom service providers over the last few years, and the number of major ICT projects conceived and developed, are a clear indication that the government is continuing to make considerable progress in this sector.

The new system will also contribute to business growth and productivity by providing faster, more reliable and effective telecommunication services, he added. The positive link between international connectivity and faster economic development is globally well established.

Mr Faure said Seychelles’ performance in providing access to voice communication is now almost on a par with developed countries.
 
“On the other hand, despite the progress made, access to affordable broadband internet remains a big challenge,” he said.

“Only a limited number of households are connected to the internet, and businesses complain that high-quality internet broadband services are prohibitive. 

“The lack of high-capacity connectivity that provides a link to the rest of the world was identified as the primary cause for the slow progress of availability, adoption and use of broadband internet.”

A feasibility study on the cable was completed in March this year, funded by the African Development Bank. Three technical solutions were extensively reviewed and negotiated with potential suppliers by SCS.

The “direct build” option, for a point-to-point submarine cable between Seychelles and Dar es Salaam, Tanzania, was chosen as being the cheapest and least risky to build.

It will also have the strongest onward connectivity possibilities and is the only option not dependent on other parties.