Global reach is a major cost factor
INTERNATIONAL bandwidth is one of the major cost factors of internet usage in SA because most of the websites users access are hosted overseas.
It also affects quality of service and throughput speeds because mobile operators and service providers are forced to stretch bandwidth capacity resources across a greater number of users to keep prices as low as possible, which is why access speeds are a lot better at 3am than at 3pm.
“At least half the total cost of internet connectivity is in the international bandwidth portion,” says Pieter Uys, Vodacom group’s chief operating officer.
There are plenty of broadband access service alternatives for connecting to the ISP, by cellular mobile data, wireless, ADSL or leased line, but the bulk of international internet traffic is carried over the SAT-3/SAFE undersea cable system over which Telkom has the monopoly from SA.
SAT-3/SAFE provides high-speed digital links between west and southern Africa, the Far East and Europe, but plans are afoot to build three new undersea cable systems by the end of 2010, two of which will be on the east coast of Africa and the other on the west coast.
The Seacom undersea cable system will connect south and east African countries with India and Europe and the East African Submarine Cable System (EASSy) will link 21 African countries to each other and to the rest of the world.
An additional undersea cable project is expected to be built along the west coast of Africa as a result of a recent decision to combine the UhuruNet and Infraco cable initiative, on which work has already begun .
The UhuruNet undersea cable is an initiative by Nepad and SA’s communications department, initially intended to form a communication ring around Africa connecting the continent to the rest of the world.
The Infraco undersea cable, referred to as AWCC, is an initiative by SA’s public enterprises department originally intended for the west coast of Africa.
Uys says that Vodacom and other industry players have been lobbying for these two projects to be combined.
He says once these new cables are installed it will provide four international data communication alternatives, plenty of capacity and healthy competition that will result in lower costs.
“Costs should come down by a factor of 10,” says Uys.
Vodacom is becoming a tier-one ISP and is acquiring its own international transmission links, initially with SAT/3 through Telkom and eventually by securing its own capacity on the new undersea cables.
“From April we will be able to improve the control over how many subscribers we support on the overseas internet links, and the quality of service.”
Uys says the company has 360000 3G/HSDPA data cards in the hands of customers, compared with the 415000 ADSL lines that are installed. Of its 5600 base stations, 2700 have 3G/HSDPA capabilities, mostly in towns and cities, and these all provide throughput speeds of 3,6 Megabits per second.
He says most of the 3G data cards in use already have 3,6 capabilities, but users of older models may need to buy a new 3,6-capable modem.
Uys says Vodacom is moving into WiMAX technology through its shareholding in WBS, the owner of iBurst, which already has a licence for this technology and the wireless spectrum it runs on, and is building its own fixed-line fibre network infrastructure.
He says the company plans to upgrade many of its base stations nationally with enhanced GPRS, which will provide up to 1Mbps throughput needs.
GPRS enhancement involves upgrading the existing GSM cellular system at each base station, but 3G requires a more complex upgrade process, because it is a different technology that requires a new network, says Uys.
International bandwidth discussion
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