DRIVING DIGITAL TRANSFORMATION IN SALDANHA BAY MUNICIPALITY – ADVANCING SMART CITY GOALS THROUGH THE ROLLOUT OF OPEN-ACCESS FIBRE INFRASTRUCTURE
DRIVING DIGITAL TRANSFORMATION IN SALDANHA BAY MUNICIPALITY – ADVANCING SMART CITY GOALS THROUGH THE ROLLOUT OF OPEN-ACCESS FIBRE INFRASTRUCTURE
Several recent articles and social media posts about the Baobab Smart City project contain inaccuracies and misinformation. Saldanha Bay Municipality aims to provide clarity and offer a factual perspective for better understanding.
Baobab Smart City Project
Since 2017, Saldanha Bay Municipality (SBM) has pursued a strategic vision of becoming an innovative and forward-thinking local authority. Central to this vision was the adoption of a Smart City model, which led to the establishment of the Baobab Smart City Open Access Fibre project.
A business model was crafted, which is based on a municipal-centric approach that, amongst others, would generate a shared open-access fibre infrastructure for the future – one which provide universal access, is transparent, equitable, open, and enabling all local citizens and businesses included in the municipality. This aligns firmly with SBM’s vision, within the confines of legislation and the local government mandate, to develop local infrastructure to enhance service delivery that is relevant and beneficial to áll its citizens.
As part of this commitment, the municipality has actively embarked on and successfully completed the development of an open-access fibre network aimed at providing reliable Internet connectivity to residents and businesses alike, closing the digital divide by all accounts.
Competitive Public Tender
Following extensive planning and comprehensive market research, SBM issued a competitive public tender in accordance with supply chain management regulations and policies. The tender called for qualified service providers to submit proposals for implementing a Smart City model within the municipal area. The first building block, being the installation of a singular master open access network, which would be a digital highway unlocking a wide variety of approved Internet Service Providers (ISPs).
Secondly enabling all Saldanha Bay Municipal residents and businesses the freedom of choice to contract with and make use of the value-added services on offer (data, content, bundle services, and municipal utility management). In summary, ultimately the key component of this initiative was the rollout of a robust fibre network across all communities in the Saldanha Bay Municipal area.
The contract was awarded to Amoeba TCS. Under the terms of the agreement, Amoeba TCS was responsible for appointing both a funding partner and a build and -operate partner. After market consultation for competitive bids Zoom Fibre was the only Fibre Network Operator (FNO) that fitted the successful criteria and could adhere to the stringent network standards to provide universal fibre access to all citizens and to fund the SBM Baobab OAN Fibre project. Zoom were selected for this role based on the required conditions, Zoom was the only bid that complied to delivering fibre connectivity to every household and neighbourhood in the municipality across all Living Standard Measures (LSM), households and not just the affluent towns like Saldanha and Langebaan. This bold approach directly advanced SBM’s broader objective of bridging the digital divide and ensuring equitable access to digital services.
Price Comparisons
The municipality recognises existing market dynamics and pricing structures of fibre network operators and internet service providers (ISPs), as well as the potential impact these may have on consumers. While the municipality remains sympathetic to the needs of local residents and businesses, it is important to acknowledge that broader national and local fibre market trends fall outside its direct control or influence. Consumers still hold the control to choose from any internet service providers and if they wish any alternative broadband internet ISP provider and value-added digital services.
Typical price comparison according to industry data is analysed as follows
(note table below):
At the start of the SBM Baobab Project the broadband penetration in the SBM was estimated to be 12% versus the current estimated 80% broadband penetration today, well above the national South African average.
The cost to local ISP Internet services available to users, compares well and are marginally lower as in the rest of South Africa cities and towns. This is well illustrated as reflected in the price comparison above which reflects an 11% and 14 % lower cost over the 50 Mbps and 100 Mbps average pricing when compared to other FNO’s offering the same or similar market products and pricing set of ISPs.
Nationally, FNO’s have begun to limit the types of speeds and packages offered in the market, with the first implementations occurring in the first quarter of this calendar year, as indicated by online news publications.
Baobab Smart City Project Strategy and Objectives were Met
With the rollout of the fibre network, within record time, the first building block of deploying a robust, reliable and cost-effective fibre network available to all citizens, as envisioned and stated in the project objectives and Tender document have been met, and is the project well underway to achieve the objectives of establishing a world class Smart City on the Weskus.
Saldanha Bay Municipality remains committed to being an innovative leader in municipal service delivery, leveraging technology to enhance the quality of life for its residents. Project Baobab is a testament to SBM’s dedication to bridging the digital divide and fostering sustainable development for current and future generations.
