Hi Guys
Thanks for all the feedback and discussion- it's great to see a majority of postive feedback towards our product and our vision for telecoms in South Africa.
Firstly let's start off with legalities. Our model is that we install a network which becomes the property of the home owner's association/ body corporate. We only install the network where the roads is private and we then connect such network onto a leased line from Telkom (first prize) or whatever telecoms is available. We then sign SLA's with the home owners to deliver certain services: Quite simply if we're no good, we get kicked off and the network can be managed by anyone of our competitors. Looking at both acts this model, is in our opinion at least, 100% legal, in the same way that any office network is legal:
a) The network doesn't cross any public roads.
b) The network is for the use of a closed, defined group of users
c) The owner of the network does not make a direct profit from owning the network.
Between these three facts I think that the requirements of both acts are covered. We've had some meetings with the head of licensing from ICASA and he agrees to this view, however we're still waiting to see how we should formally comply with their current unpublished regulations. Captainwifi, I'd like your views on this?
Secondly, guaranteed bandwith, it is quite possible to guarantee bandwith within our model as we try to make use of leased lines wherever we can. Further we have an existing agreement with Imperial Online whereby which we buy cheaper additional bandwith after hours (as the office aren't using it), so we try to be a bit inventive with how we can deliver the best product at a good price to our clients.
Thirdly, Video on Demand, as you all know the technology is not the issue, but the carrier from the server is and in addition to that, the content rights is also a major pain in the behind. We've been looking at ways of solving this problem and the one concept we're playing with is by having an on site virtual DVD store- ie if the carrier can't move the server information, move the server- and we have been in talks with some current content providers who has shown interest. Obviously there's just a business case to be considered in terms of getting enough numbers to support such an operation. I understand however that this is not true video on demand (in the European sense of the word) as it usually has an earlier release date, but it still beats driving to the shop and getting penalties for late returns -in my books at least.
Lastly I'd like to add that there are quite a number of alternatives to Atec, such as GTS and Smartvillage and that we are in no way trying to create just a new monopoly, so we welcome competition such as flashnet and if anyone from them would like to contact us, our doors are open. We believe that the only way for our telecoms infrastructure to become better and more internationally competitive is by allowing capitalism to be played the way it should be played and trust that we will secure our market share through service, affordability and innovation.
Regards
Gerhard Loots (MD ATEC)