 Extra bandwidth a boost for SA STATE-OWNED telecommunications infrastructure provider Broadband Infraco will launch services commercially in the third quarter — a move that should increase competition in a telecommunications infrastructure wholesale market previously dominated by Telkom . Broadband Infraco was formed about three years ago to expand the availability and affordability of electronic communications networks and services in the country. The group aims to ensure bandwidth requirements for specific projects of national interest are met. These specific projects include the Square Kilometre Array Telescope being built in the Northern Cape. Broadband Infraco’s 2009 annual report stated two objectives : to normalise market efficiency rapidly by increasing available bandwidth capacity, and to lower the cost to those parts of the network that impede private-sector development and innovation . Broadband Infraco’s assets include the 12 000km national long- distance fibre-optic network, once owned by Transnet and Eskom. It was also part of the consortium that would build the West Africa Cable System — the undersea cable that will link west Africa with the rest of the world. So far Broadband Infraco, which falls under the Department of Public Enterprises , has been allocated R1,4bn for operations. CE Dave Smith said this week Broadband Infraco would test its network from June before opening it to the market. “Our launch will also be guided by the success of the trial. There are a number of interested parties that we are in discussions with to buy capacity. We will provide the quality that customers require at lowest possible pricing,” he said. Broadband Infraco’s final capital injection (part of the R1,4bn) will be made this year, and thereafter the company will be expected to sustain itself. Smith expects Broadband Infraco to be earnings-before-interest-tax- deprecation and amortisation positive in the next three years and cash- flow positive within five years. Commenting on recent broadband price reductions, Smith said he was not convinced the reduction had been passed to consumers fully. But he expected the increase in competition in the wholesale market would benefit consumers. Broadband Infraco has 85 employees and aims to double its workforce within a year. Steve Ambrose of World Wide Worx said the availability of additional fibre-optic cables in the market would benefit the economy, and would ultimately result in a reduction in prices. “Broadband Infraco will play a role in boosting fibre capacity in the country,” he said. [email protected] You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] . To unsubscribe, reply using "remove me" as the subject. |
