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“The SEACOM cable will change the lives of every man, woman and child in the countries connected by making previously unavailable technology accessible to everyone. We truly look forward to the positive utilisation of the cable and the realisation of infinite social and economic possibilities unleashed by our arrival,” said SEACOM’s Chairman, Mr Nizar Juma.
Price reductions in the ADSL ISP market have already started, and this is likely to continue as service providers get their hands on more affordable international bandwidth.
However, the arrival of Seacom will not suddenly herald cheap or affordable internet access, according to Wayne de Nobrega, CEO of Altech's recently acquired ISP business Technology Concept.
De Nobrega uses ADSL access as an example: "Your DSL connects into a Telkom exchange, and that goes through a Telkom backbone."
"Now, as a service provider, let's say I've got a Seacom connection coming into my data centre and I need to take you and bring you into my data centre... I've got to have an IP Connect between Telkom and myself," he says.
"That IP Connect will cost me R390 000 for a 140Mbps line."
"That cost is probably more than what I'm paying for that capacity on the Seacom cable," he says matter-of-factly.
De Nobrega stresses the importance of these other components when considering bandwidth pricing.
"If I'm on a contract on the SAT-3 cable and let's say the price (for argument's sake) is R100, and the price on Seacom is R10. I might have 70% of my bandwidth going through on the SAT-3 because I'm contractually bound to it still and I've got 30% going through at R10," he describes.
"Well, the average price is going to be closer to, say, about R70."
But (and this is a big "but"), over time, we are "going to see that pricing [on SAT-3] coming down as the contracts change," says De Nobrega.
"Telkom will address this pricing issue, they have to. Otherwise, when the contracts come up for renewal, they're going to end up with a cable doing nothing," he laughs.
So in reality the 1.28 Terabits is a theoretical limit, achievable after upgrading this system or does this mean they have not 'lit' the entire cable as yet?
When will Vodacom/Mtn/Virgin/Cell C push down their mobile broadband prices?
When will Vodacom/Mtn/Virgin/Cell C push down their mobile broadband prices?
despite the negativity of these articles there have already been several positive developments in the form of price moves, and I believe there will be many more to come. Telkom has also upgraded the SAT-3 cable and that in itself is a positive development. I remain optimistic that we are going to see lots more exciting things before the year end.![]()
despite the negativity of these articles there have already been several positive developments in the form of price moves, and I believe there will be many more to come. Telkom has also upgraded the SAT-3 cable and that in itself is a positive development. I remain optimistic that we are going to see lots more exciting things before the year end.![]()