JSE-listed Growthpoint Properties has partnered with Dimension Data to look into bringing high-speed Internet to more than 350 properties across SA.
The property holding company announced the collaboration, an exclusive five-year partnership, yesterday. It says the two entities will "evaluate the viability of open-access high-speed Internet" to Growthpoint's 353 commercial and industrial properties nationwide.
DiData says the partnership could mean occupants of Growthpoint's properties - which include 48 retail, 134 office and 230 industrial properties across SA - could enjoy faster, more reliable Internet connectivity. "[This is] the first project of its kind and scale by a South African property company."
Need for high speed
Rudolf Pienaar, Growthpoint's offices divisional director, says high-speed Internet is one of the must-haves for businesses in today's connected world.
The company's industrial divisional director, Engelbert Binedell, adds that - while high-speed Internet is usually associated with office buildings - the DiData partnership also speaks to increasing demands associated with Growthpoint's manufacturing, warehousing and distribution clients.
"Many [of these clients] invest heavily in technology to ensure business efficiencies. More reliable broadband connectivity has become essential for them."
Pienaar says, while undersea cables like WACS, Eassy, Seacom and SAT3 have given SA high-speed connectivity to the rest of the world, tapping into this high-speed Internet and expansive bandwidth remains impossible for many businesses.
"Last mile connectivity is the critical barrier to entry. If a building isn't wired up, or if it isn't in a major centre, businesses still can't access all this bandwidth potential."
He says Growthpoint's aim is to be able to wire buildings for fibre, regardless of where they are located. DiData will provide the fibre-optic infrastructure for the last mile link to Growthpoint's buildings, and clients will be able to choose their own service providers.
Lowering costs
Pienaar says the setup of shared fibre infrastructure will also enable service providers to offer connectivity at a lower cost. "In fact, it creates an opportunity for small service providers not capable of deploying their own infrastructure, to offer their services to businesses in Growthpoint buildings. All service providers can access the infrastructure on an equal footing."
Growthpoint says its broadband project aims to provide broadband connectivity, especially as its properties outside major metropolitan areas, which would not otherwise be wired for fibre, are being included in the project.
"It's good for the environment. It reduces cabling needed for connecting each business in multitenant buildings, cutting out cable clutter. This is especially important in buildings that aren't designed for today's massive cabling requirements," notes Pienaar.
Wired buildings are becoming more prevalent internationally due to business demand, and high-speed Internet is becoming a primary consideration when developing new buildings.
"While SA has a long way to go in embracing technology and truly integrating it into our buildings, more and more businesses are beginning to expect this level of sophistication and simplicity for their premises. Growthpoint believes our last mile broadband initiative will help clients increase their operational efficiencies and reduce costs."
Derek Wilcocks, CEO of Dimension Data Middle East and Africa, says the partnership represents "ground-breaking" development in the broadband arena.
Growthpoint Properties is the largest South African listed property company with property assets valued over R50 billion. It owns and manages 412 properties in South Africa; 44 properties in Australia through its investment in Growthpoint Properties Australia, in which it has a 65% stake; and a 50% interest in the properties of the V&A Waterfront in Cape Town.
Share