City slicker
Not only is fixed line monopoly Telkom blamed for high broadband tariffs – ADSL still accounts for the bulk of high-speed connections in this country – but further delays in the rollout of the second network operator’s (SNO) offerings also indicate that the status quo is likely to remain.
However, some alternative telecoms infrastructure providers are beginning to change the landscape. Charles Kuun, head of the Global Digital Hub – a project by the city of Tshwane (née Pretoria) to bring broadband connectivity to residents within its precincts – says municipalities could prove to be the biggest structural underpinning for broadband connectivity and accessibility.
Says Kuun: "Despite enjoying monopoly status, Telkom didn’t provide the required connectivity, and the SNO – whose initial target is likely to be the lucrative corporate market – might just adopt a similar position. The onus is on municipalities that have acquired private telephony network (PTN) licences to establish their own backbone infrastructure."
Information from telecoms regulator Icasa indicates that more than 12 municipalities – among them, Tshwane, Ethikwini (Durban), the City of Johannesburg, Buffalo City (East London), the Nelson Mandela Metropole (Port Elizabeth) and Knysna – have successfully applied for PTN licences.
Though Ethikwini and Buffalo City are still in the early stages of rolling out their networks, Tshwane and Knysna have already deployed backbone infrastructure critical to providing connectivity and affordable broadband to their communities.
Kuun says that Tshwane has deployed a fibre optic backhaul network and launched broadband over power lines (BPL is cutting edge technology that turns every power point in homes and offices into a potential network point). With almost 75% of its telecoms services now running independently of the Telkom network, the city is saving in excess of R50m/year.
Kuun says that savings could well increase once Tshwane’s IT services are freed from the Telkom network. Most of the services that Telkom previously provided now fall within the ambit of the city’s information management division (IMD) – an IT division solely set up to provide services to the municipality.
The role of the digital hub headed by Kuun has been to provide connectivity to residents. "We’ve also deployed wireless infrastructure for the purposes of proof of concept and the result so far has been encouraging. With the trial run almost coming to a conclusion, small businesses and academic institutions within the city will be able to receive very low-cost connectivity and telephony services."
Kuun says that Tshwane’s decision to launch commercial broadband services is within the confines of SA’s telecoms regulatory framework. "We’re running on an open access network. Legislation amended in February 2005 now allows PTN licence holders to lease spare capacity to licensed operators and value-added network providers (Vans)." Previously, only Telkom could lease its infrastructure to Vans.
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