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    TechCentralTechCentral
    Home»In-depth»Reuben September to stage telecoms comeback

    Reuben September to stage telecoms comeback

    In-depth By Editor22 June 2011
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    Reuben September

    Two top ex-Telkom executives, former group CEO Reuben September and former chief financial officer Peter Nelson, are set to stage a dramatic comeback to the telecommunications industry.

    TechCentral has learnt from well-placed industry sources that the two men are involved in a new project, still in its infancy, that aims to build a multibillion-rand terrestrial fibre-optic network spanning tens of thousands of kilometres across sub-Saharan Africa, linking Africa’s major cities and towns, and connecting to new undersea cables encircling the continent.

    September and Nelson have confirmed separately to TechCentral that they are working together on a new telecoms venture, but decline to provide details, saying they are involved in sensitive discussions about the project. They say they’ll be in a position to provide more information soon.

    Peter Nelson

    However, industry sources with knowledge of their plans say the two men are establishing a new business and are in talks with telecoms operators from across the region to build a fibre-optic network spanning the subcontinent and interconnecting a large number of countries.

    Sub-Saharan Africa is poorly served by terrestrial fibre infrastructure, and analysts believe it’s only a matter of time before big projects like these begin to criss-cross the region, especially as demand for broadband grows thanks to the landing of a range of new undersea cable systems.

    TechCentral has established that the venture will probably establish its head office in Dubai in the Middle East, rather than SA, because this will allow operational and executive staff to access markets across Africa more easily.

    A venture of this sort could make sense, especially given that a large percentage of telecoms traffic originating on the continent is still routed through international gateways at great expense. A cross-border fibre network would help keep traffic in Africa and reduce costs.

    The involvement of both September and Nelson in the new venture is likely to stir keen interest in the telecoms industry.

    September resigned from Telkom last year after the board, under controversial former chairman Jeff Molobela, declined to renew his contract. Nelson left shortly thereafter, reportedly because he felt uncomfortable with decisions taken by the group’s board.

    TechCentral’s sources say active discussions are already taking place with operators to raise funding and determine how the project will be financed.  — Duncan McLeod, TechCentral

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    Jeff Molobela Peter Nelson Reuben September Telkom
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