Ericsson South Africa has agreed to transfer 900km of fibre broadband network to the City of Joburg.
The deal was signed at the end of May 2015 following multiple delays, and will see Joburg take control of the network.
All contracts will also be transferred to the City of Joburg, as part of the agreement.
The city will pay Ericsson R1.2 billion for costs incurred in the roll-out of the network and associated contracts, according to a report by IOL.
Joburg plans to use the fibre infrastructure to lower the costs of telecommunications in the city, which may benefit local businesses.
“We can now accelerate the roll-out of 1,000 Wi-Fi hotspots, and extend the range of our smart citizen initiative to encompass almost all points of citizen engagement in the city,” said the City of Joburg.
The completion of the agreement is subject to the approval of the Competition Commission.