Herlihy said Seacom has created an artificial ceiling that will work well to prevent wholesalers from charging the end-user high bandwidth fees.

Today, supply of bandwidth is constricted -- a factor that explains the slow Internet speeds and high prices, but Seacom expects ISPs to buy more bandwidth given prices will be reduced by about 80 percent from what a megabit costs today.

Today, Uganda uses between 400M bps to 600M bps of bandwidth but according to Herlihy, when Seacom launches, the Ugandan market will use between 2G bps to 3G bps of bandwidth. Seacom will provide some 80GB (10 percent of the cable's capacity) initially, which is expected to be sufficient.

Africa, like the rest of the world, is experiencing enormous growth in capacity demand due to the Internet's ability as a medium for communication, providing information and entertainment.

"In the rest of the world, bandwidth demand is undergoing exponential growth due to transmission of video and end user derived content and this will soon be the case in Africa," Herlihy said.