The_MAC

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I say that the cost-to-serve is the biggest obstacle. This is SA, not say London where there is a high concentration of people living in high rise apartment blocks. Sure they can deliver fiber to every home in SA, but at what monthly cost? R2000 pm or more?

I think its an affordability challenge rather than regulatory issues (that's a smaller problem).
 

elvis_presley

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I say that the cost-to-serve is the biggest obstacle. This is SA, not say London where there is a high concentration of people living in high rise apartment blocks. Sure they can deliver fiber to every home in SA, but at what monthly cost? R2000 pm or more?

We have tons of high-density, high-income developments. Until FTTH has been delivered to these guys, that excuse can't be used. Most places around the world don't need high rise apartment blocks to deliver cost-effective FTTH.
 
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The_MAC

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We have tons of high-density, high-income developments. Until FTTH has been delivered to these guys, that excuse can't be used. Most places around the world don't need high rise apartment blocks to deliver cost-effective FTTH.

I can assure you that Europe, Asia and the US are better equipped/designed to be serviced by a fibre broadband connection, SA has so many issues with ducting, trenching and general access issues not to mention the vast open spaces. This drastically impacts the cost-to-serve.

Estates in SA (e.g. Midstream, Waterfall etc.) are far from highly concentrated high income areas, which is where you want to launch such services. Even the rich will not subsidise the lower income areas.
 

elvis_presley

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I can assure you that Europe, Asia and the US are better equipped/designed to be serviced by a fibre broadband connection, SA has so many issues with ducting, trenching and general access issues not to mention the vast open spaces. This drastically impacts the cost-to-serve.

Not in newer developments they don't .. that's all put in when they build the infrastructure. How are they better equipped overseas? DFA actually makes sure they route their backbones in the vicinity of these large developments.

Estates in SA (e.g. Midstream, Waterfall etc.) are far from highly concentrated high income areas, which is where you want to launch such services. Even the rich will not subsidise the lower income areas.

They're at least as densely populated as upmarket suburbs in other countries, and there are tons of extremely densely populated upmarket ones (just off the top of my head in KZN I can think of at least 5 high density prime candidates with DFA going past them).


The article is correct. It's the uncertainty which is holding this up - the money and business cases are there, but missing that one final piece.

Edit: You don't actually have to speculate about these things - look up the Vumatel tender for Parkhurst if you want real-world numbers that show this country is absolutely not special when it comes to rolling out this stuff.
 
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