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Deregulation to boost VSAT future

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 05 Jan 2011

An expected increase in deregulation of very small aperture terminal(VSAT) technology services in SA this year will stimulate activity and growth of the industry.

So says Dawie de Wet CEO at Qkon, who believes that the immediate future of the technology in the key areas of South African and African telecommunication market looks promising.

“We anticipate the introduction of more active operators and this will drive service development and price competitiveness. This is positive and will support opportunities for growth,” says De Wet.

He also refers to recent developments within the domestic VSAT market, and across Africa, particularly the number of satellites that have been completed and those that are still in the pipeline.

“Our viewpoint is that this will open up the market significantly and enable a more flexible growth of services. Capacity will become more available with more market-orientated terms, which is also encouraging,” De Wet adds.

In that vein, he urges service providers to capitalise on this opportunity and progressive environment, and add value by introducing relevant services to the market.

“Our feeling is that the timing of these services could not be better,” says De Wet. “VSAT services will increase in significance and relevance, and will continue to be seen as a solution to meet the demand for connectivity in Africa.

“Whilst the first option will always be fibre, the volume of demand for immediate services means that the market is not always in a position to wait for fibre.”

According to De Wet, it is important to place the growth of the satellite space in context. “This specific area of the market has been limited within Africa over the past three years and this has held back the development of platforms servicing the continent.

“The fact that Internet access has been expensive and limited compounded the problem and retarded opportunity for local VSAT hub projects, leading to limited supply in the market,” De Wet adds.

He explains that the situation is changing rapidly, adding that in terms of the implications of an increase in VSAT service delivery and activity, VSAT is really the 'anywhere' solution for communication.

Describing the limitations of the technology, De Wet singles out perception and cost, both of which, he says, will be greatly improved this year.

“Extended fibre networks coming into Africa will, against all expectations, only grow the demand for VSAT services. With Internet access now becoming affordable in the capital cities, implementing VSAT hubs for broadband and corporate connectivity is more feasible.

“This drive will make VSAT more readily available in all markets which will drive the adaptation,” De Wet notes.

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