My worries are (apart from the bandwidth cost worries) the control that Telkom will have over true broadband content in the country. It will not make sense for Telkom to be a partner in this and pay itself for providing its own bandwidth if you know what I am getting at. Telkom will be providing true broadband services at basically cost price whilst any possible alternative entries will have to pay for both upload and download bandwidth at a premium. Hardly a level playing field. If MultiChoice comes in on the deal and Telkom is a major stakeholder, they will simply use Telkom’s already existing connections (we all know they exist) with government to ban any new entries into the provisioning of TV over broadband. No logical reason why this should happen, but then again what is logical about Telkom.
Thus,
1. Expect TV over broadband in SA soon.
2. Expect MultiChoice and Telkom to collectively ask for the market to be protected from entry by excessive legislation