Cape Town — A R400 million City of Cape Town project to develop its own broadband network by 2009 must become the key legacy project of the DA-led administration, says mayor Helen Zille.

A business plan on getting the project off the ground as soon as possible is expected to be submitted to the mayoral committee within three weeks.

Zille said yesterday: "It will have spin-offs we haven't even thought of yet. We must make it a priority."

Mayco said that the city, as one of Telkom's biggest clients in the Western Cape, did not feel it was getting the service it deserved.

It had a responsibility to make telecommunications more affordable and accessible so as to build a knowledge-based economy and attract more investment.

In a recent Wesgro study commissioned by the city, businesses cited the rising cost of telecommunications as an obstacle to starting businesses.

The city's broadband project leader Nirvesh Sooful told Mayco that the network would allow for much improved service delivery, lower the city's administration costs and could mean cheaper access to internet and telephone services for businesses and residents.

The city would also be able to earn money off its own network by offering these services to the private sector.

It is estimated that it could save as much as R40m in the first year in telecommunications costs to Telkom and cell providers, while earning more than R12m in its first two years of operation by selling access to its network.

The city spends more than R100m a year on telecommunications services.

The core network would span 300km, covering Sea Point to Strand and Stellenbosch and Bellville to Mitchell's Plain, Khayelitsha, Simon's Town and Hout Bay, going through or passing all the city's key buildings and facilities.

It would cost another R400m to extend the network city-wide. But for now, the city would focus on raising a loan or a municipal bond to fund the core project costs of R400m.

The city estimates that the operations would have cash benefits from the fourth year, repaying its capital after eight years, and generating R1.2 billion in the first 10 years for possible reinvestment.

In December, the city council gave its unanimous approval for the project.

The city would be able to read water meters remotely, determine when a street light was about to fail, patient information would be accessible at any clinic, and service centres would be able to process service delivery requests on behalf of other departments.

The city would be able to connect more than 220 public facilities, including libraries, clinics and administrative buildings through its own broadband network.

Other major metros are well on their way to establishing their own broadband and wireless municipal network.

Tshwane has promised to provide each of its residents with an e-mail address and broadband service by 2010, while connecting more than 300 of its municipal buildings with internet services.

Buffalo City, eThekwini and Johannesburg all already have their own wireless networks.