Lots of hype and speculation but no details have been made available as to how this will work. When Miscrosoft SA released the XBox 360 last year they made a point of not touting XBox Live in South Africa until they are able to provide a service / experience on par with that of overseas consumers.
The move to partner with Telkom makes sense as Telkom already has a large infrastructure in place, albeit it not the expertise to pull something like this off on their own just yet. Perhaps XBox Live SA will come later. Regardless though, in order to provide IPTV to existing ADSL consumers (which makes a lot more sense than trying to lure new users who cannot currently justify the cost) would mean that Telkom has to seriously step up their NGN upgrade plan and cater for ALL ADSL users to get the benefit of faster speeds, not just those lucky enough to be close to the Telkom exchange.
Once the infrastructure supports faster speeds, economies of scale can be used to market the new media / IPTV / XBox service and the costs can be kept down as more consumers sign-up. Going this route will work becuase the network will cater for the demand before grows. I'm hoping Miscrosoft SA is preaching this to Telkom, because otherwise Telkom on it's own will most likely deploy IPTV to 4mbps ADSL users only and as more people sign-up slowly upgrade their network and eventually allow other users to experience the same. Slower, but cheaper initially. Which based upon past experience is what Telkom prefers.
Time will tell.
and Snitch 
what I always wanted 
