Dear Colleagues,

It appears that the cartel is starting to fall apart. This could be
excellent news for the spread of ICT and Telecommunications throughout
Africa.

Let's hope.

Respectfully,

Ken DiPietro
New-ISP
NextGenCommunications

***************************************

NITELNET, the Internet arm of the National Carrier has concluded plans
to launch its wholesale internet service next week. Nitelnet wholesale
internet service would sell bandwidth on wholesale basis to Internet
Service Providers (ISPs), Private Telecom Operators (PTOs) and
Application Service providers at discounted rates designed for volume
customers.

But even before it launches the service, NITEL has clinched a deal with
a consortium of bandwidth users led by Kemson Concepts Limited.
KemsSAT-3 Wholesale Internet Services is a set of Internet connectivity
services that will enable Internet Service Providers (ISP's),
Application Service Providers (ASP's) and IP Carriers working with
Kemson to have access to NITEL's SAT-3 IP carriage capacity throughout
Nigeria to provide broadband internet service to Providers, Resellers
and User members of the community.

The special advantage for the members of the consortium is that they
would benefit from special volume discounts that NITEL gives to volume
buyers even though their individual monthly consumption could be small.

Describing how it would work, Benjamin Aduli MD/CEO of Kemson Concept
says that the consortium would aggregate the purchase of Bandwidth from
Nitel SAT-3 and get the Bandwidth at a cheaper cost to each individual
member of the consortium.

That way, if 4 members of the consortium consume 4MB in month one, the
cost per MB for each member will be $5,688.00. However if by month two
10 members of the consortium consumes 16 MB, the cost per MB for each
member will be $4,345.00 thereby saving each member the sum of $1,343.00
per MB consumed. As the consortium membership grows, so the volume of
consumption and the higher the savings made for each member.

Foundation members of the KemSat3 consortium include Chams Limited,
National eGovernment Strategies (NeGST) Ltd, VGC Communication Limited,
XS Broadband, PAC Solicitors and Vital Telecoms Limited.

Messrs VGC Communications and XS Broadband are expected to provide the
last mile service, which guarantees connection from the Nitel IP Gateway
in Lagos to members of the consortium. VGC will provide DSL data
costumer premises equipment that will be connected via copper to VGCCL
data network switches to Kemson Gateways in Lagos, Abuja and Port
Harcourt and then connected via the SAT-3 cable to the worldwide
Internet. XS Broadband would however use a Wireless Access Solution of
3.5 GH to deliver to the consortium members.

Nitel IP Gateway is connected via the SAT-3 cable to the worldwide
internet and gives connectivity to the Lagos Internet Exchange that will
be established in the nearest future. For this service a dedicated
connection to the Internet is delivered at the Nitel IP gateway located
at Necom House in Lagos. The wholesale service customer can be connected
either at the Nitel IP Gateway or at the customer's location by using an
additional Leased Line service from Nitel.

NITEL Wholesale Internet Service is sure to have a strong competition
from Globacom which said last week that it would soon complete work on
its undersea cable to the UK and the laying of optic fibre cable across
different parts of the country including Lagos. It is expected that
Globacom would come up with pricing which would put the bandwidth market
on edge. Globacom says it would deliver bandwidth to the doorsteps of
its customers in different parts of the country.


The article can be found here:
<http://www.vanguardngr.com/articles/2002/features/technology/
tec512042005.html>



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