Broadband Infraco getting ready to cut telecoms prices
Broadband Infraco was officially established around two years ago with the aim of developing the necessary long-distance telecommunications network infrastructure to increase access to broadband and to provide access to telecommunications connectivity services at significantly lower prices.
Until now Neotel was Broadband Infraco’s only customer, in accordance with the Right of Use and Operate Agreement between the parties, which has been in effect since 1 December 2007.
Once licensed, something which Broadband Infraco is confident will happen this month, the company may look to attract new business. Broadband Infraco said it will adopt a wholesale, carrier-of-carriers business model, as the most effective way of making the network and services available to its future target market. Broadband Infraco indicated that it will not participate in the retail telecoms environment.
“The focus will be mainly on serving ECNS licensed operators, as well as ECNS licensed ISPs & metro network operators, ECS licensed service providers, large corporate customers, large government institutions, multinational operators and licensed operators in previously underserviced areas,” Broadband Infraco said.
Network growth
Over the last year Broadband Infraco invested significant capital to grow its network, increase capacity and enhance the quality of service.
The Broadband Infraco network infrastructure currently comprises of 11 765 kilometres of optical transmission links and 137 long-distance sites, with regional connectivity to three neighbouring states.
Over the last financial year Broadband Infraco expanded its transmission capacity by 33% while the quality of the network was enhanced with the objective of achieving service availability levels of 99.95%.
Interconnects to Botswana and Mozambique were completed while work commenced on the interconnections to Namibia and Zimbabwe.
Broadband Infraco is also one of the investors in the West Africa Cable System (WACS). The amount that Broadband Infraco will invest in WACS equates to a 12% stake in the total capacity – 3.84 Terabits per second of the system.
WACS is expected to be ready for service in mid-2011.
Future plans
Over the next year Broadband Infraco plans to start the transition from being an infrastructure provider, to a long-distance wholesale telecommunications operator that is ready to serve multiple customers.
This process will include the recruitment of additional staff and finalising the Broadband Infraco value proposition to its target market.
Broadband Infraco also plans to continue its network growth with regional interconnects and backhaul capacity for international traffic landing at the SEACOM Mtunzini landing station.
Broadband Infraco is further planning to establish points of presence in the major metro areas, improve its redundancy & network quality and deploy switching equipment for the provisioning of internet protocol services to customers.
“With the strategic initiatives that are planned for the next year Broadband Infraco will be well positioned to deliver on its mandate and support the Government objective of lowering the cost of telecommunication services in South Africa,” Broadband Infraco said.
Broadband Infraco – will they help with telecoms prices?
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