China Bester Group Telecom Co., Ltd. ( China Bester) and Leo Telecom established a South Africa⁃based joint venture Bester Technology South Africa ( Pty) Ltd. and invested 30 million USD in building 20,000 FTTH lines. The project covers survey and design, right⁃of⁃way acquisition, material supply, installation, and testing, etc. Upon completion, these lines were sold to SADV to improve the communication network infrastructure in South Africa.
Ⅰ． Ｂａｃｋｇｒｏｕｎｄ
South Africa’s mobile communications market is one of the fastest-growing markets in the world in recent years. The country is home to 28.58 million internet users, presenting an Internet penetration rate of about 52% . With various marketing strategies of operators and the development of the economy, the number of mobile users in South Africa is on the rise. The government has realized that the telecom industry is an economic accelerator, so it is opening the telecom market wider. In addition, home to the headquarters of many international operators ( e.g., Vodacom, Mtn) , South Africa boasts great potential in the fields of Hypertext Transfer Protocol ( HTTP) and cell tower upgrading and leasing.
Under the Belt and Road Initiative ( BRI) , as a professional telecom service provider in China, China Bester has seized the opportunity of developing the telecom industry in South Africa by virtue of its rich experience, advanced techniques, resident services, and complete professional qualifications.
Ⅱ． Ｏｖｅｒｖｉｅｗ
1. On October 1, 2019, a local operator signed a letter of intent ( LOI) with Bester Technology South Africa to purchase its fiber to the x ( FTTX) in a certain area. The LOI laid out terms such as technical specifications, price, payment method, and acceptance requirements.
2. According to the LOI, Bester Technology South Africa surveyed the area to design the fiber access network, which was completed on October 30, 2019.
3. The survey and design were submitted to the local operator for approval.
4. Based on the design, Bester Technology South Africa applied to the local authority for a construction permit.
5. On November 30, 2019, after obtaining the permit, the company star⁃ ted the construction and was responsible for material supply, quality control, safety management, schedule control, coordination with the local community, etc.
6. On March 1, 2021, the construction was completed. After check and confirmation, the local operator accepted the construction and made payment according to the LOI, and Bester Technology South Africa transferred the network ownership to the operator.
With everything in place, residents in the community can connect their Optical Network Terminal ( ONT) devices to backbone cables or other cables, and to the Optical Line Terminal ( OLT) . By transmitting data from/to the IP ( Internet Protocol) metropolitan area network and Intranet Management System ( IMS) , voice and data access can be enabled.
Ⅲ． Ｍｅｔｈｏｄｏｌｏｇｙ
1. An investment model of “self⁃build for sale”.
Unlike traditional construction contracting, the constructor owns the project under the “self⁃build for sale” model. With a guaranteed⁃sale contract between the company and purchaser, the company can enjoy certain bargaining power according to the actual total cost of the construction, thus maximizing the income to some ex⁃ tent.
2. Localized operation.
Establishing a local company can combine the advantages of Chinese management and local knowledge to create a diversified business team and talent system. It is conducive to breaking barriers to market access and business operations in the long run.
3. Industrial upgrading.
By serving operators, we aim to be a leading general engineering contractor. In the process of exploring industrial upgrading, we expand investment and financing projects as well as operation and maintenance projects and develop ICT business such as CCTV, smart meters, and intelligent transportation to provide products and service solutions. By doing so, we will move up the supply chain and improve our profits and re⁃ turn on investment.
Ⅳ． Ｐｒｏｓｐｅｃｔｓ
This project is conducive to the economic growth of South Africa and the economic and cultural exchanges between China and South Africa. It will deepen the traditional friendship between the two countries, and achieve mutual benefits and win⁃win results. The project can be replicated and applied in African countries and regions where many telecom operators rely on less developed telecom infrastructure.
Ｓｕｂｍｉｔｔｅｄ ｂｙ Ｃｈｉｎａ Ｂｅｓｔｅｒ Ｇｒｏｕｐ Ｔｅｌｅｃｏｍ Ｃｏ．
