- Nov 11, 2009
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“The only model that could feasibly exist [after the launch of WACS] is ‘infrastructure +’ and would depend on the appetite of the established, vertically-integrated operators for additional diversity,” argued Ramdhani.
“Rapid developments in DWDM technology mean that most cable systems are only operating at a small fraction of their latest technical capability. Combine this with the fact that future growth is constrained by the lack of national infrastructure and we can conclude that supply is already ahead of demand,” concluded Ramdhani.
Why another cable when the biggest problem is in national backhaul? No use opening the taps when the pipes down the line cannot handle more.
I have no idea what the business case was for this cable. We already have more than enough capacity on international. Also, the existing cable guys have enough headroom to upgrade because only the end point equipment is upgraded sometimes to get more capacity.
eFive Telecoms is just the BEE partner because otherwise the Brazilian Telecoms company cannot land their cable in South Africa.More is better, besides more capacity it also gives us more diverse routes. The more players in the market theoretically it should drive prices lower due to competition.
That said most of these cables are under utilised and not delivering on a cost perspective.
eFive Telecoms is just the BEE partner because otherwise the Brazilian Telecoms company cannot land their cable in South Africa.
I wouldn't trust that company. It landing in PE, EL and Durban in addition to Cape Town does not make sense. I'll wait and see what happens.