They are already selling bandwidth to isps as national and international leased lines. We need cheaper line rental and access to SAT-3 however. The local market is already saturated with competition, there isn't room for any more. Once the entry costs and international come down and the backlog is reduced there will be room for more.
What really ****es me off is that we have been sitting on all of this bandwidth even pre-Telkom days and instead of using it we had to sit through all Telkom's tantrums, fits, and abuse while they whine about how scarce bandwidth is and charge ten times what it is worth. This must really be one of the most ****ed up countries in the world sitting on the digital equivalent of gold while the "people" are starving.
Sorry for all the stars but this just gets my blood boiling. And to top it all off the "regulatory regime" does absolutely nothing to better the situation, but instead chooses to stifle any progress by shutting down all WiFi based isps and only allocating WiMax spectrum to wired operators who have absolutely no intention of using it effectively. If we ever needed more proof that the government is corrupt to the core we have it now. At some point the evidence becomes so overwhelming that guilt can be assumed and the burden falls on proving innocence. Government is clearly in bed with big business and Telkom is the baby to prove it.