Municipal telecoms networks making waves

Refreshing Comments

“Paradoxically, cities in a number of developed countries, where there is already strong competition in telecoms services, are deploying networks to provide more ubiquitous Internet access at little or no cost to consumers. Such networks can potentially fill the sub-economic gaps left by commercial players,” Neotel said.

It is refreshing to read a statement like this that can be taken as constructive to the eventual rollout of Telecommunication Services to the entire country, instead of reading about Telkoms recent attempts to block Cape Town from Dropping its municipal costs in the Telecoms arena, and by implication improving "Service Delivery"

It is interesting that "Service Delivery" is in the political spotlight lately. I wonder what the unions, and Various NGO's including Government, comments are, regarding the Telkom\CapeTown Issue
 
I think neotel might have the right idea not to get involved where possible and just provide services feeding off it. Look at it from the other side, if municipalities want to provide infrastructure, perhaps(i hope) also get in on the LLU then we'd have possibly the least cost network(unless they too take a big profit margin) with maximal coverage of its citizens. Of cause they can't service outside of the municipality so there Neotel can come in by hooking them up to the main network and sell services as a wholesale rather than per consumer each with their own problems and associated costs esp since they don't have the problem Telkom has of deployed equipment already out there.
 
It's good that they're worried. Competition, whether it comes from government or the private sector, is a good thing.

However, the municipal networks, where offered to end users, should be either be self-sustaining to avoid pricing others out of the market through government subsidies, or very limited in scope. (local only or low speed/allowance or only available to low-income households, etc.)
 
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