LifelongGamer
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The problem isn't that content providers and ISPs don't see the financial benefits in hosting services locally - the problem is that Doc / iCASA / Telkom don't see the financial benefit in allowing such to happen. An open market with effective competition from wholesale provision of bandwidth to various access methods ranging from fixed to fixed-wireless to pure mobile wireless with competing cost vs performance will spread the captive revenue streams among various operators instead of keeping it funnelled into state-owned shares.Unless there are clear financial incentives for content providers and ISPs to host services locally and for large international content players to move their servers to South Africa the situation is unlikely to change in the near future.
We already know that 'trials' for locally hosted services are being conducted (e.g. Telkom and Microsoft looking into XBox video streaming as is being done around the globe). We also know that Neotel is planning to 'bring the Internet' to South Africans by means of their Tier-1 partnership and infrastructure (Neotel to ‘Bring the Internet to South Africa’) which can be summarised as follows:
“Neotel will leverage the strengths of VSNL-International for IP transit and peering to provide faster access to international content, regardless of the location of such content,” Telkom’s new competitor said.
In simpler terms, a large amount of Internet content will now sit directly on the Neotel-VSNL network, effectively bringing the Internet cloud to South Africa and eliminating the need for a two tier process for ISPs to reach ‘the Internet’.
Neotel’s CEO, Ajay Pandey, is confident that this change will make a big difference to the local Internet environment. In a recent radio interview Pandey said that South Africa can now expect global Internet players like Google and Yahoo to position their content platforms locally.
So the question remains: WHEN?
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