Bug in plan to take broadband into poor areas

Infraco’s original mandate was to help break Telkom’s monopoly over national bandwidth ...

bull.

I can really see the strategists in Government saying to each other: "Come on guys, let's set up a para-statal to destroy the monopoly of our own para-statal."

What's even more unbelievable is the guys with their fingers in the monopoly pie (and actually having the power to authorise such) then all agreeing to cut their cash cows' legs.
 
iBurst the company that set-up in PE and still give East London a miss, even though it has more than twice the population
 
Other than schools (catered for by Government), does anyone in those poor areas even want broadband? Do they have the devices (computers, etc) to utilize broadband and do they have the means to pay for the bandwidth? Or will that be "redistributed" from the "haves" to the "have-nots" - whether through "affirrmative shopping" (actually condoned by SAPS via an unspoken "turn-a-blind-eye" policy) or another form of "social grant" funded by the taxpayer?
 
bull.

I can really see the strategists in Government saying to each other: "Come on guys, let's set up a para-statal to destroy the monopoly of our own para-statal."
From my recollection Infraco was borne out of a little inter-departmental tussle between the DTI (Alec) vs. DoC (Ivy), with the DTI eventually getting the upper hand.

If you think about it a bit, maybe the DTI did have their heads in the right place. While most have been focusing on international (submarine) & local/regional capacity, I forsee the place where we will experience the biggest capacity crunch in the future, will be on national transit infrastructure.

To my knowledge there are only 3 significant national inter-region fibre networks operational currently in SA (excl VC/MTN/Neo proposed one);

1. Telkom
2. Eskom
3. Transtel

I believe the DoC would have allowed Neotel to buy networks 2. & 3. probably due to the handsome sum the SNO paid them for their license. This would have lend to a duopoly in national transit, not very conducive to competitive pricing.

The DTI's plan was to bundle networks 2. & 3. into an entity called Infraco, and provide Neotel a period of exclusivity (only reseller) to compensate them for the license fee. However once the exclusivety period expires, the Infraco network's capacity will hopefully be made avaliable to the rest of the industry (at competitive pricing).

Not sure if it will come to pass this way, or make a difference to national transit pricing, but it does seem the DTI's motives were in the best interests of the communication industry?
 
Even Government's best intentions have left South Africans still paying too much for phone calls and internet access

Why would they intervene? They own telkom Oo
 
... but it does seem the DTI's motives were in the best interests of the communication industry!

Fixed ( & agreed.)


I can believe the setup of Infraco being for the good of SA-mankind & comms in general, and Neotel-friendly etc. but I cannot believe that it was set-up to inflict specific harm on Telkom in any way, other than this way:

Oh, my finger is not in the Telkom-pie, and they won't let me in, so let me create this Infraco pie and I won't let them have any of it in spite.
 
Other than schools (catered for by Government), does anyone in those poor areas even want broadband? Do they have the devices (computers, etc) to utilize broadband and do they have the means to pay for the bandwidth?

Pay? What's that? :rolleyes:
 
To my knowledge there are only 3 significant national inter-region fibre networks operational currently in SA (excl VC/MTN/Neo proposed one);
...
...
3. Transtel


Uhm, Transtel = Neotel. Transtel got absorbed into Neotel.
 
Uhm, Transtel = Neotel. Transtel got absorbed into Neotel.
OK should have rather said Transnet.

From my understanding Neotel only got a bunch of metro fibre rings with their aquisition of Transtel. The long range inter-city/province routes (running along the railway tracks) still belonged to Transnet (proper) and were bundled into Infraco.

Not 100% sure of course, but I find it telling that Neotel would go into a deal with MTN, then later Vodacom to build a national network. Wouldn't really make too much sense if they already owned this type of infrastructure?
 
Other than schools (catered for by Government), does anyone in those poor areas even want broadband? Do they have the devices (computers, etc) to utilize broadband and do they have the means to pay for the bandwidth?
As I know by experience, learners from "disadvantaged" areas have cellphones (some have computers) with internet for chat, surfing and lite downloading etc... But they don't need it for high-end gaming or heavy downloading. Almost everyone uses cellphone. Those who lucky to have computer at home, they use dial-up. However, they can use other cheaper solutions, but do not know about them or do not need them.

That is what situation currently is.
 
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