Vodacom goes first tier
Vodacom is set on becoming a major Internet player in South Africa. The mobile operator is currently the largest wireless provider in South Africa, but the company is not content to stay put, they are spreading their wings to become a true first tier ISP.
Through Vodacom Business – a new Vodacom division which will be launched officially in late February – the company is establishing itself as a big player in the ISP market, competing with the likes of Internet Solutions and Vox Telecom.
Speculation persists that Vodacom – along with other large IT players like Altech – is one of the major bidders for Verizon Business South Africa. Such an acquisition will definitely give Vodacom Business a jump start in the corporate market, but Verizon Business is rumored to have become very expensive which may make it less attractive than previously.
Vodacom COO Pieter Uys further pointed out that Vodacom has already invested hundreds of Millions of Rands in Vodacom Business, making a large acquisition less necessary.
Apart from its own physical fiber infrastructure in local cities, Vodacom is also investing in its own international fiber links to international destinations.
Vodacom currently purchases international bandwidth through the likes of SAIX and Internet Solutions, something which is holding the company back when developing and delivering services to corporate clients.
Uys said that Vodacom is also working closely with all new international submarine cable projects like EASSY, SEACOM and InfraCo to secure future bandwidth for the company.
In the case of failure of all of these projects Vodacom is willing to build their own international fiber infrastructure, but this, Uys said, is definitely a last resort as it makes more financial sense to pool resources with these international projects.
Futhermore Vodacom is progressing well with their 802.16e (mobile WiMax) network rollout. The WiMax offering will be designed an ADSL replacement service and also to serve the bandwidth needs of corporate clients.
While Uys would not elaborate on potential pricing models, he did say that WiMax will not be seen as an HSDPA related offering and added that the pricing models may well vary significantly.
Vodacom is planning to launch a commercial WiMax offering before April.
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