South Africa: Govt gives R1.5 billion for FIFA 2010 telecoms with Telkom the biggest beneficiary


Telkom is the biggest beneficiary of the Department of Communications’ R1.5 billion 2010 telecoms spend. Finance Minister Pravin Gordhan today delivered his first budget speech, and it emerged that the country has spend a total of R33 billion preparing for the 2010 FIFA World Cup. Communications accounted for a small portion of this investment.

According to the Estimates of National Expenditure released by the National Treasury today the Department of Communications will transfer R1.5 billion to its public entities to develop the necessary ICT infrastructure for the 2010 FIFA World Cup project.

R1.2 billion of this transfer has been allocated to Telkom for access network infrastructure, R300 million to Sentech for the satellite backup (including second teleport) and R80 million to the City of Johannesburg as a contribution for the upgrade of the international broadcasting centre at Nasrec.

A total amount of R950 million was transferred to Telkom in 2008/09 and 2009/10. As at the end of September 2009, Telkom had spent R276 million (excluding VAT) to develop the ICT infrastructure at the four 2009 FIFA Confederations Cup stadiums and to prepare for the 2010 FIFA World Cup.

Telkom has undertaken to complete the installation and development of the necessary ICT infrastructure for the remaining six FIFA World Cup stadiums and the international broadcasting centre, which will include the video adaptation solution.

The ICT infrastructure, including the second teleport of Sentech will be completed and ready for testing at all the venues for the 2010 FIFA World Cup by April 2010.