A new cable system will be introduced in Seychelles through a partnership between local telecommunications provider Intelvision and Vodafone, with funding from International Finance Corporation (IFC).
Seychelles’ main telecommunications operator Intelvision is about to revolutionize intent services in the islands by leasing a new cable system manufactured by multinational telecom company Vodafone Carrier Services. The project will facilitate connectivity between Seychelles and the upcoming 2Africa subsea fibre-optic cable network – which is set to span over 37,000 kilometres and connect 26 countries around the world when it will be ready for deployment in the second half of 2023.
The 15-year lease agreement with Vodafone will be supported by International Finance Corporation in the form of a $20 million loan to Intelvision – a $10 million loan from the IFC account, with an added $10 million loan from its partners.
At the moment, Intelvision is the largest telecom operator in Seychelles, providing TV, internet, and business services to the local market. Intelvision’s founder and chairman Mukesh Valabhji expects the lease of the new cable to revolutionize the internet experience in Seychelles and boost the local telecommunication infrastructure on the islands. Mukesh Valabhji also stated that the company will continue to focus on expanding the digital offering in the local market and meeting the ever-growing demand for internet connectivity through innovative products and services, as they’ve done so far.
The goal of the partnership between Intelvision, Vodafone, and IFC is to reduce connectivity costs for domestic telecom operators and boost competition for fixed broadband and mobile data services. With a capacity of delivering over 600Gbps of international bandwidth to Intelvision, the new cable system that will also serve as a welcome addition to the existing Seychelles East Africa System which marks a significant improvement in internet connectivity speed for both residential and commercial clients.
Marcelle Ayo, IFC country manager for Seychelles, also believes that the project will help increase internet connectivity in the islands and support the country’s digital economic development. His vision is shared by Nick Gliddon, Director of Vodafone Carrier Services, who has highlighted the strong link between digital connectivity and economic and societal growth. This bold project that will connect Seychelles to a worldwide fibre cable network fits perfectly with Vodafone’s vision of enhancing access, resilience, and internet speed across the globe.
The lease will also mark the launch of a telephone service in Seychelles that will allow Intelvision to provide 4G and 5G mobile networks across Mahé, the largest island in the archipelago, and all other inner islands. It’s important to mention that most people in the country use their mobile phones to access the intent, so introducing 4G and 5G mobile networks will be a welcome addition to the digital offering available on the islands.
Being a popular tourist attraction, most of Seychelle’s income comes from the hospitality sector which accounts for approximately 30 percent of GDP. According to statistics, in 2019, there were around 428 thousand international tourist arrivals recorded in Seychelles, a slight increase from previous years when an average of 405 thousand tourist arrivals was registered. The country’s economy has been severely affected by the coronavirus outbreak which led to major travel disruptions all over the world.
The government is currently making efforts to curb the negative impact of the pandemic on the local economy and accelerate recovery by focusing on the digital economy. This lines up with Intelvision’s and Vodafone’s plans to strengthen internet connectivity in Seychelles and facilitate the expansion of digital services.
About the companies involved in the project
The success of the project is based on a team effort, so let’s find out more about the companies involved in it and the services they provide.
Intelvision
Founded by third-generation Seychellois entrepreneur and developer Mukesh Valabhji in the early 2000s, Intelvision Limited started out by providing cable TV services on the island of Mahe. In 2006, the company expanded its offering by including Broadband internet and VOIP services in their service range. They continued to improve their services over the years and ultimately launched their own fibre optic network (GPON).
Currently, Intelvision dominates the local telecom market by offering broadband internet connection services and cable television to almost 65% of the residents and 5% of the businesses in Seychelles.
Vodafone
Vodafone Group Plc is a British multinational telecommunications company and a leader in the industry, providing their services in Europe, Asia, Africa, Europe, and Oceania. The company was established in 1981 when Racal Strategic Radio Ltd partnered up with Millicom and formed a venture that evolved into the present Vodafone. The company got its current name in 1991 and following a long string of acquisitions and mergers they’ve managed to become one of the biggest players in the industry.
Today, Vodafone is the largest mobile and fixed network operator in Europe, with a brand value of 19.51 billion U.S. dollars in 2022, boasting a diversified portfolio of telecommunication services spanning 40 markets. Vodafone’s goal is to build an inclusive and sustainable digital society through connectivity, currently connecting more than 300 million people around the world.
International Finance Corporation
Established in 1956, the IFC is one of the largest development institutions in the world focusing on providing investment, advisory, and asset management services to support the development of the private sector in developing countries. With headquarters in Washington, D.C., IFC is also a member of the World Bank Group and is involved in projects promoting economic growth in more than 100 countries.
Through its actions, IFC aims to help people overcome poverty and raise the standard of living. Some of IFC’s primary goals are to improve healthcare and education, encourage sustainable agriculture, facilitate access to financing for businesses, create a more efficient infrastructure and support environmental protection.
