Let's Do It Ourselves

[IdeasGuy]

Hi Guys,

This is my first post, so please be patient with me.

I've been thinking long and hard as to how we can solve this ADSL/Telkom problem in South Africa. It seems that no matter what we try, we always seem to be hindered by the power of entrenched interests. After a long long time of thinking, I believe I may have a solution to this problem. The solution isn't perfect, and it will require a lot of work, but with the correct approach I think positive results can be achieved. Here goes... all 'constructive' comments welcomed.

If there are enough people on MYADSL, maybe we should organise capital and all become common shareholders of our own broadband company. Similar to the community Banks Overseas.

The idea would be to organise a privately traded company, and to allow everyone to buy shares in the new company. Profits will be redistributed to the shareholders, namely us. Capitalisation would be arranged via local investment bankers, whom I'm sure would be keen to get a piece of this action.

Here's the high level company strategy:

1. Lay our own undersea cable (That's why we need the capital)
2. Partner with local ISP's to provide much cheaper broadband to them, and cut Telkom completely out the broadband business.
3. Create our own last mile connections (This will take some time, and will have inherent obstacles and opposition)

The plan is rough and no doubt the established powers will try to protect their interests. Also I'm not too sure on the legality of these matters, but I'm sure some smart lawyers on the forum can come up with some clever workarounds.

This approach has worked well overseas, where there were oppressive banking monopolies. If we take control of the process ourselves, we can no longer be held to ransom by monopolies.

I think it is time we put our wariness and frustration behind, us and make a positive difference to our own situation -- as the powers that be don't seem to be keen to make things happen on our behalf.

What do you guys think of this idea?

 

[ldmelsa]

Undersea cable? Err...undersea cable costs about $50,000 per km to install.

 

[feo]

Im all for it. I believe that taking it into our own hands is our only way to fix this dump we're in. South Africans however are probably the LEAST proactive group in the world, we can talk a lot on forums but when it comes to physically doing something very few pitch in. Granted its not our responsibility to intervene but when we bunch of monkeys offering 40MB a month then you know things are unbelievably wrong in the high ranks.

 

[The_Omlette]

Seeing as though this is your first post Ideasguy I thought to post here as my first post...

The idea forming our own telco its great in principle but the practical barriers to entry are very, very high. The capital costs of laying undersea cable and providing last mile connections are scary. Let alone license implications for operation in South Africa and dealing with the regulatory enviroment (read ICASA).

I know from the months I have spent haunting these forums that there are people on here who are cleverer than me when it comes to these things but imho just the two points above may be enough to scupper the idea. Perhaps there are workarounds but I dont see them right now..

One can certainly not accuse you of thinking small though..

 

[Telkomhater]

Welcome to the forum.

What you are proposing will require billions and billions of Rands. Anyone who invests in such a project will require a handsome return on their investment. They are certainly not going to give away their money to a "charity Telcom company" and neither are they going to accept less profit than they can get elsewhere.

Ergo we back where we started. The arguement that investers are willing to accept less profit than what Telkom makes doesn't hold water either - it's just against human nature.

 

[Nameite]

But i like the idea, if u want something, go get it urself.
Its a right approach, and if there's no legal way around, there's always illegal ways
Wanna all be professional and get what we want no matter the cost?

Look everything has cost right? Undersea cable about $50000 a km...but who supplies the cables? If we can find that out, maybe we can organize sponsors from manufacturing companys. And bringing telecom prices down isnt just for us residential ppl, it will ultimately save millions of rands of saving for our business sectors too.

This idea is an approach in the right direction, though highly difficult, but not impossible. Question is, are there enough ppl that wants it bad enough?

 

[Jonny Two Shoes]

I believe with the technology today we can get something organised. Look, is International connectivity a priority right now??

As long as I can get on an International site at reasonable speeds Im happy, we can't game or do latency intensive things internationally as it is anyway.

So then focus on a local program first, i.e A wimax solution (there are some good wimax equipment suppliers online). Then link it up with a Satellite for international connectivity for the time being (not sure of the feasability). Then when the capital is raised you can spend on the undersea cable or some other more feasable alternative in future. When you have the organisation in place Im sure more investors will be confident to help out with the cable.

Just my 2c

 

[The_Omlette]

Would there not be a requirement to be licensed by ICASA though.. Is this correct??

If it is then even if the financial issues in a project of this nature were overcome no investor would look at ploughing money into an "illegal" project..

 

[Shake&Bake]

The thought is great and it shows alot of effort put into it! Think BIG! And nothing could hold you or us back! Greatness comes from pondering and splashing ideas in a pool!

This forum is one of the better ways to get your feet wet! Enjoy!

Might actually gain on something with this - you never know.

As for licensing - ICASA and the government are going to wait and see that NeoTel is off the ground, before they allow anyone else a chunk of the pie.
The twist would be that the proposed entity only supply bandwidth for ADSL,etc. and not concern itself with the rest of the Telecomms market.

 

[Jonny Two Shoes]

I think WiMax can also operate on the "unlicensed" space. From what I gather though is that this may cause interference with home and business wireless networks as those setups use the same channels or such.

Whats the take on that?? could an ICASA license be avoided like this in any way and not interfere as said above??

I also read somewhere that a VANS license is only step one from ICASA, there are other licenses one needs as well for an undertaking such as that.

 

[The_Omlette]

I have gotta say that if there is a legal work around for the licensing issues then this idea has got a whole lot more merit than i originally thought....