SEACOM reveals bandwidth usage on cable

Apart from SEACOM and WACS, there is the established undersea cable system SAT-3/SAFE and EASSy – set to arrive in 2010 – which will serve the international bandwidth needs of local companies.

I have heard that before...
 
so if Seacom had the money to build a freaking long undersea cable, why didn't they have the money to build an overland cable from Mtinzini to Johannesburg? Why didn't they terminate in a Major city rather? Would have made much more sense and assured them of a bigger customer take up than landing the cable in the bushes somewhere in the Northern KZN coast!

They have, in partnership with Neotel. All of SEACOM's services (in all the countries they land) are sold POP to POP - typically the major business hubs, including London, Nairobi etc, and all capacity is priced between POPs (i.e. no separate, additional backhaul cost). In South Africa, the SEACOM cable terminates in Midrand (Neotel Data Centre).

It's surprising that SEACOM isn't happy that they've provisioned "only" 10% of the cable capacity - this is good by submarine cable standards, for a cable that has a lifespan of 15-20 years. They are already delivering nearly a third of the capacity of the entire SAT-3, which has been in operation for 7 years.
 
SEACOM need to think about the situation a little differently. The tier 1 providers do not pass their savings from SEACOM onto smaller providers who deal with them. SEACOM is in a great position to force change by giving smaller players channels to bypass the incumbents, too bad they're not looking in that direction.

How can they, they cant build back haul systems, so the small providers still need to use other means, which may negate the saving.

Tier 1 suppliers should pass it on!

They already have given the small players free access
 
(Ramdhani attributes this to the bottleneck issues surrounding national backhaul systems. “The limiting factor is backhaul. There are those on the consumer side that want bandwidth, and there is us on the undersea side that want to give it – we just can’t seem to connect.”)

And that, ladies and gentlemen, is the crux of the matter. The ony "backhaul" in this country is owned and controlled by a government owned monopoly and until those *****-heads understand what a free economy is all about (and allow true competition into the market), things will never change in SA.

I am so sick and tired of all these talks and meetings and promises, but NOTHING ever happens. It's all a load of BS, just to keep a small flame of hope alive, so that (the consumers) think that there actually is something happening. In reality, it's all b*ll**** - as long as they (Telkom and the government) can line thier pockets by restricting the market (which restricts the services and speeds available to us), things will NEVER change.
 
Hi Gary

As 'ads' mentioned they partnered with providers in certain countries for their terrestrial network needs. All the countries have different licensing regimes and the like to build fixed line networks, so for a project like SEACOM it is just not feasible to get the right licensing, contractors, the rights to trench and the like in every territory. If memory serves it was difficult enough for them to just get the rights to land in some countries ;)
 
'Ramdhani attributes this to the bottleneck issues surrounding national backhaul systems. “The limiting factor is backhaul. There are those on the consumer side that want bandwidth, and there is us on the undersea side that want to give it – we just can’t seem to connect.”'

So it is Telkom's fault afterall, who would have thought it that they have been lying to us for all these years.

'“The other major point is the access network,” he continued. “Even if you do solve national backhaul bottlenecks, how do you actually get to the consumer in his house or office? Local loop unbundling is still many years away.”'

and government is not innocent either.

It is all very well saying that there are so many international pipes coming to our shores, problem is that the local infrastructure cannot take advantage of it, and Telkom wants to upgrade ADSL 4mb/s to 8mb/s please, upgrade the 512k lines to 1mb or higher first before widening the digital divide even further.
 
so if Seacom had the money to build a freaking long undersea cable, why didn't they have the money to build an overland cable from Mtinzini to Johannesburg? Why didn't they terminate in a Major city rather? Would have made much more sense and assured them of a bigger customer take up than landing the cable in the bushes somewhere in the Northern KZN coast!


Simple answer to this one - because the government in this country would never allow it, as that would mean true competition to it's own telecommunications operator (Telkom) and less money for them. :mad:
 
"600-million dollars back in 5 years"

120 million dollars a year,
Or 328K dollars a day
Or about 2.5 million Rand a day

Thats a big ask.

But lets take it one step more:

R2.5mil a day for a 1.28TBps
R2.5mil a day for 1310Gbps
R2.5mil a day for 1341440Mbps


Or R1.8 for 1Mbps per day

So anyone want to pay R54 a month for a 1Mbps line?
Oh wait, "fair profit", lets x2 for backhaul, and x2 for ISP
so even then about R219 for a 1Mbps uncapped line anyone?
 
"600-million dollars back in 5 years"

120 million dollars a year,
Or 328K dollars a day
Or about 2.5 million Rand a day

Thats a big ask.

But lets take it one step more:

R2.5mil a day for a 1.28TBps
R2.5mil a day for 1310Gbps
R2.5mil a day for 1341440Mbps


Or R1.8 for 1Mbps per day

So anyone want to pay R54 a month for a 1Mbps line?
Oh wait, "fair profit", lets x2 for backhaul, and x2 for ISP
so even then about R219 for a 1Mbps uncapped line anyone?

Yes please!
 
"600-million dollars back in 5 years"

120 million dollars a year,
Or 328K dollars a day
Or about 2.5 million Rand a day

Thats a big ask.

But lets take it one step more:

R2.5mil a day for a 1.28TBps
R2.5mil a day for 1310Gbps
R2.5mil a day for 1341440Mbps


Or R1.8 for 1Mbps per day

So anyone want to pay R54 a month for a 1Mbps line?
Oh wait, "fair profit", lets x2 for backhaul, and x2 for ISP
so even then about R219 for a 1Mbps uncapped line anyone?

Sure, if you can sell the full capacity of the cable at once.
 
SEACOM obviously made one fundamental error in their business plan; they didn't cut enough governmunt employees in on the deal. Had they, most issues would have been easily resolved.
 
Sure, if you can sell the full capacity of the cable at once.

If the end products were at those prices, why not?

The problem is that there is not enough demand because prices are too high. Drop prices and demand will increase. But many providers are not in a position to drop prices because they are held to ransom by incumbent monopolies/cartels. Until regulation evens the playing field and true competition can take over, we are going to remain in this quagmire.
 
Simple answer to this one - because the government in this country would never allow it, as that would mean true competition to it's own telecommunications operator (Telkom) and less money for them. :mad:

Any proceeds from Telkom goes to the National Treasury, the same place our taxes go. This kind of silly tin-hat drivel is wearing very thin and does not further the telecoms and broadband debate in SA.
 
We should plug that Seacom cable in the WUG in Durban and get it up here in Jhb, then you will see the fat cats get up off their chairs.

I cannot agree with you more. Then we use darkfibre to get it from JHB to CT and get the CTWUG to connect to that and then you will see poor Telkom scramble. Maybe the government will then introduce a tax to save Telkom.
 
If the end products were at those prices, why not?

You can even double that cost again. R400 for 1Mbps uncapped and no-one would complain. lets look at that number:

What seacome wants per Mbps (full capacity) : R54

What we are willing to accept is 8x that amount and it's still a bargain!

And today it's more expensive that than... "fair profit" yeah right.
 
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