Broadband Cable Television & Internet

NaushadE

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Aug 18, 2008
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187
Maybe one of you bright sparks here can explain to me why South Africa cannot provide Broadband cable internet and television....
 

quik

Expert Member
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Mar 30, 2004
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1,543
Maybe because a certain telecomms company has been artificially inflating the cost of bandwidth for years so that they can charge rediculous premiums to compensate for their incompetency and milk the SA public for as much as they can? ;)

Nah.. that couldn't be it :eek:
 

NaushadE

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Aug 18, 2008
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But surely you can run it through ur normal tv cable? Wouldn't that work? How does the digital tv migration affect all this?
 

LazyLion

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Cable Television does not run over air waves. It requires a fixed line cable network. Usually BNC type cable. Nobody in South Africa has the money or the guts to lay out such a network. They would be competing against Multichoice in the satellite arena and Telkom in the Internet Arena. It would cost too much to lay out the new network and there is a low return on investment. You can do it in Europe and the USA because of the high population density, but here there are not enough subscribers to make it viable.

having said that though... you might soon see some of the IECNS license holders running fixed networks into the highest density areas in South Africa, Gauteng and Cape Town. But it will be a gamble of cost, demand and competitiveness.
 

NaushadE

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what if someone is bold and has cash to burn and willing to speculate and outbid MC for soccer and rugby rights? will it work? in terms of infrastructure spending how much would it cost? besides we looking at a triple play scenario.

internet telephony and television. so the benefit will be one bill for all three services as opposed to getting tv from MC, telephony from telkom/neoscum and internet from isp..

obviously it'll be concentrated in high density areas as you said. and target the LSM 7-10 range.
 

LazyLion

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what if someone is bold and has cash to burn and willing to speculate and outbid MC for soccer and rugby rights? will it work? in terms of infrastructure spending how much would it cost? besides we looking at a triple play scenario.

internet telephony and television. so the benefit will be one bill for all three services as opposed to getting tv from MC, telephony from telkom/neoscum and internet from isp..

obviously it'll be concentrated in high density areas as you said. and target the LSM 7-10 range.

I am sure someone is going to try it in the next year... especially with all this fibre that is being laid all over the place. They say the cost of laying cable is in the region of R1000 per meter.... there was an article about it recently...

http://www.engineeringnews.co.za/ar...-the-self-provisioning-fibre-dream-2009-02-27

there is nobody who has that much cash to burn. It has to be a guaranteed investment! And they are unlikely to lay copper cable or any metal. So it has to be fibre.
 

NaushadE

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Aug 18, 2008
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187
lets look at it logically. that fibre can carry 3 signal streams - television, internet and telephone communication.

DSTV subscription - R650
Telkom Closer 5 - R684
uncapped internet - R999
Total R 2333-00

I am sure that in into first year a provider of these three services will reach 500,000 subscribers.

500,000 @ R 1500 ( to make it worth changing ) = R 750,000,000 Per month

that equates to R9 Billion in the first year. and 500,000 people is a conservative estimate.

how much would it cost to lay fibre in Johannesburg ( high income areas ) , Durban ( high income areas ) and Cape Town ( high income areas )

the balance of people who are subscribers of say a TV network will receive their signal via satellite dishes. so you add another 100,000 subscribers to it at Approximately 450-00 pm . R45 million per month and R540 million a year.

if you have a company who is bold enough and is prepared to spend atleast $2-3 Billion in our forsaken country its possible. maybe a start up and having a rights issue at R50 per share and then telling shareholders no dividends for 5 years.

also this is persuant of you obtaining broadcast rights of atleast ONE sport. the icing on the cake will be HD channels.

i wonder if anyone has actually looked into this and come up with a proper business model.
 

NaushadE

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Aug 18, 2008
Messages
187
hmmm... I wonder who will take up an IPO for a company who is going to offer triple play.

@ R50 a share with 400 000 000 shares available how long you think it'll take before its fully subscribed.

btw thats R20 billion :) lol
 
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