The MTN Group is investing $700 million in a new submarine cable system, the European Indian Gateway (EIG).

The 15,000 kilometre high bandwidth optical-fibre to be built by Alcatel-Lucent beginning next month will link other planned cable systems in Africa to global telecommunications infrastructure via Asia and Europe.

MTN’s cable is expected to increase interest in East Africa’s Internet broadband sector, which is already gearing up for three major fibre-optic cables soon. 

The EIG will provide a central linking point for cable systems including the East African Submarine Cable System (Eassy) and the West African Cable System (WACS), which MTN also has a stake in.

The EIG cable, equipped with upgradeable transmission facilities, is expected to reduce operating costs for broadband services, as well as increase efficiency, reports The East African.