Infraco to lay submarine cable

[Peter7]

http://www.itweb.co.za/sections/telecoms/2006/0610251032.asp?S=Broadband&A=BRO&O=FPLEAD

[ Cape Town | ITWeb, 25 October 2006 ] - Government-owned Infraco will lay a submarine cable from SA to Europe that will compete with Telkom's SAT-3 cable, high-level government sources have revealed.

A Department of Communications official says: “Such a project, as proposed for Infraco, is beyond the framework of our current law. The company would have to get a proper licence to operate. They [DPE and Tata] could not just start it up. It has been a long and painstaking process to create the right environment for managed liberalisation of this sector.”

A senior Telkom manager says the question to be asked is: “Where will the funds for another submarine cable come from?”

The manager also says he is glad Erwin believes there is enough competition in the second and third tier telecommunications arena. “Maybe now they will stop all this nonsense about unbundling the local loop,” he says.

Anybody having difficulty identifying the people milking the telecoms cashcows in this country?!

 

[jontyB]

this is just f'n stupid. why don't they take SAT3 away from Telkom and declare it a national asset? The SA taxpayer paid for it after all.

 

[telkomsuig]

If ot works or not alteast there will be another cable with more bandwith. If it flops guvament can sel it to the highest bidder and there still will be more capacity.

We missed out on the IT boom in 2000 I don't think this is such a bad idea...

 

[reech]

It's a great idea - anyone should be able to land an effing international cable tho. I'm soooo sick of this 'managed liberalisation' crap.

 

[Syndyre]

There's already more than enough bandwidth available in SAT3, no need to build a new cable just utilise what's already there effectively. If it was a private company building it that would be a different story, but the government competing against itself doesn't mean much,

 

[Syndyre]

What I do find interesting though is that according to the article Tata representatives were present but Telkom ones weren't. Although I suppose Ivy already represents them anyway.

 

[[)roi(]]

What I do find interesting though is that according to the article Tata representatives were present but Telkom ones weren't. Although I suppose Ivy already represents them anyway.

I somehow think Ivy is excluded from this . I really really really hope so....

 

[kifoth]

I somehow think Ivy is excluded from this . I really really really hope so....

"Another issue is that of departmental boundaries, as the Department of Communications feels the DPE is treading on its turf, the sources say."

Step aside, lady. Time to let another department try its hand at stuffing up ITC in this country

 

[Skip]

Since when is SAT-3 "Telkom's cable"??? Last time I checked VSNL owned a chunk of it as well and Telkom's exclusive landing rights expires next year.

 

[telkomsuig]

they (together with PBMR) were allocated R1,1 bn in the medium term policy framework.

 

[Sneeky]

We need a new cable, hell we could do with more than one extra one.
Like a lot of other people I fail to see how government can effectively and efficiently compete with itself. Its not possible. The conflict of interest is huge.

If Erwin builds this thing with taxpayers money again they better lay it all on the table from the get go. Wasn't SAT-3 supposed to be the answer for SA? Fat lot of good that did.

If its public money being used, under the auspices of bringing down bandwidth costs, then this cable has to be totally non profit.

That would fit in with all the licenses being granted to municipalities and the like. All these new licenses are useless if everyone is still forced to endure Telkom's ridiculous pricing structure on SAT-3.

The only way the people should agree to this government initiative is if it is totally non profit and it will supply bandwidth at cost to whoever wants it.

The magic number is 2010. When will this be ready? Eassy is being delayed, everything is centered around 2010 and it wouldn't surprise me if Papi and his cronies have been given a timetable for all of this.
All the Elephant Corp shares can only be sold in 2010 (unless you are Smutsy then you just do what you like it seems from the press reports).

The world cup cant come soon enough as there will be no fundamental changes till after that event.

As for local loop nonesense, the governemtn should in real terms drive that through anyway, if for nothing else but to show Telkom who the boss is.

To hell with Telkom and everything they stand for.

 

[CodeMaster]

Well said Sneeky.

 

[captainwifi]

Anybody having difficulty identif...t's resellers the ISPs - as Europe found out.

 

[Wisemansa]

and when wil these major plans be put into action?

 

[kilo39]

Broadband is a commodity that must be throttled at all costs. If you have to much bandwidth available to consumers it essentially becomes worthless to the telecoms firms and it's resellers the ISPs - as Europe found out.

Is that a quote or a statement? I really hope it is not a statement, but not a quote I remember.

Reference?

 

[darkone]

well, guys its important to realize that Africa needs a lot more cables, there is no question about that one. anyone who think otherwise, must look simply look at the cables linking Europe, Asia and US.
see (http://www.cybergeography.org/atlas/alcatel_large.gif) If only Telkom and its European partners (who are silently milking cash from SAT3) can see above their nose. So i don't see anything wrong with DPE putting another cable, this clearly indicates that they are fed-up with the SAT3 consortium. We must recognize that the issues around SAT3 are probably more complex than the most of us can admit and the SA Govt recognizes this. Telkom is not the only owner of the cable and there could be legal complications around forcing Telkom to surrender the gateway into SA as a National Asset. So their decision to build a competing cable on the contrary ought to be commended. Govt is no longer the sole owner of Telkom and any suggestions to nationalize the gateway can be badly interpreted in the New York Stock Exchange where TKG is listed and can be seen as a Zimbabwe style tactic.

 

[darkone]

my point is we have to recognize a few things have since changed. Telkom is a NYSE listed entity, which technically means govt is just another shareholder. There are a lot of asset managers presumably from all over the world who wield control on Telkom now, than when it was still an SA company. The 13 % stake in SAT3 consortium is an asset of Telkom and not Govt so Telkom's exco has a lot of power in this regard and i can tell you the shareholders behind Telkom are not going to give this away just like that. So its probably not as easy as we would like to hear

 

[Paul Hjul]

Darkone - All good and well Telkom is now a bussiness so making a profit is its function. But Gov choose to privatize it and Gov has a duty to GOVERN everywhere else in the world Consumer abusive, super-profitable monopolies are given a nice big F sign from the State.

If you are suggesting that the Gov needs to invest more into the system to build competition et al, then I agree I think the Gov should be building additional ICT companies with the money that it makes from selling its shares in Telkom and more importantly with a clear message of: this is a start up loan, no special favours welkom to the reel world send off. But then then again the Gov should rather be putting the money into the Development Bank of Southern Africa or such and letting them issue loans for ICT development. Fact of the matter DoC should be fixing the regulation system and developing the various class licences envisioned by the ECA rather than looking at how to lay another fibre at public expense.

 

[Syndyre]

There's nothing wrong with Telkom making a profit, but they should be doing so in an environment where they're forced to compete against other people, not where they're a monopoly and can charge whatever they want.

 

[ic]

When and only if Alec Erwin lays the golden egg of affordable telecoms in SA, will I believe anything he has to say, but I do encourage him to trample with muddy feet all over her Poisonous Ivyness as well as her [mis]managed liberalisation...who knows she might decide to retire - not.