Telkom urges use of local content
He says a lack of local content is one of the main reasons the price of broadband in SA is high; most of the content users access is located on foreign servers.
Language-specific countries like Korea are able to provide cheaper broadband because the bulk of the content that users access is from local sources, he says.
The lack of local content might also explain why the bulk of Telkom’s users do very little with broadband when they get it. Samuels wants to address this.
"Fast Internet is just one of the services you can get on a broadband line," he says.
Other services might include television and other media-rich content.
Telkom is already testing the delivery of television via the Internet (known as IPTV) in a trial with Microsoft and Alcatel.
It is also running a pilot with MultiChoice to test the feasibility of offering a video-on-demand service.
Many users will scoff at Telkom’s aim of driving users to local content sources.
They point out that the company imposes strict bandwidth caps which severely limit their monthly downloads, both from local and offshore servers.
The company has come under fire from consumer lobby groups for its so-called "pay-per-gig" billing model.
Critics argue that there’s no point in encouraging people to access content – local or foreign – while there is a bandwidth-capping policy in force.
Telkom argues that its broadband users consume an average of 2,5 GB/month and that the caps are in place to tackle network "abuse" and maintain quality of service.
Installed in the newly created post of broadband officer, Samuels oversees Telkom’s broadband offerings, including a newly created programme called TelkomMedia, which delivers voice, data and video content as a bundled service over a single network.
However, Samuels has no authority over Telkom’s Internet service provider, TelkomInternet.
Nor does he have any say over the submarine telecom cables that link SA with the world.
This could make it difficult for him to achieve his goals.
His pledge to drive users to local content comes as broadband subscriber numbers finally begin to lift off.
Telkom is committed to increasing its broadband penetration from 120,000 to 1m lines within the next three years.
MTN, Vodacom, Sentech and Wireless Business Solutions are all offering wireless broadband and the recently licensed SNO is also likely to enter the market.
Samuels’ job is not an easy one. Besides competition, he has to placate a customer base that is constantly complaining about the high cost of broadband access, poor quality connections and a slow extension of service.
Samuels says the concerns of customers are being addressed.
Telkom is committed to reducing prices as more broadband lines are provided.
He says there are several ways Telkom plans to push up the pace of its broadband deployment.
Besides offering a do-it-yourself broadband kit (no technician required), it is also bringing in subcontractors to install lines.
Samuels is reluctant to say what percentage of the programme the subcontractors will be responsible for, citing competitive reasons.
He says Telkom has already received spectrum allocation for WiMax, a wireless means of delivering broadband.
WiMax will, however, not be the main thrust of Telkom’s broadband programme.
Rather, it will be complementary to its fixed lines.
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