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Liberalisation unshackles satellite industry

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 13 Sept 2004

Satellite technology is set for takeoff now that telecommunications regulations are being eased, says Roy Ingle, regional director, Africa for satellite owner-operator Europe*Star.

Communications minister Ivy Matsepe-Casaburri announced this month that there would be major liberalisation of some telecommunications regulations from February 2005.

"While satellite technology was not specifically discriminated against in terms of the existing regulations, the obligation to deal exclusively through Telkom made it a costly and bureaucratic procedure. Many corporate communication specialists chose to dodge adding satellite to the mix because this extra hurdle drained value from the solution," he says.

Ingle says this is also the time for communication service integrators to liberate their thinking and be more imaginative about how they can expand their client offerings to include satellite technology.

"For far too long they have restricted their thinking to their understanding of what Telkom would allow and charge, and often felt it was too much of a hassle to include satellite. Those integrators that liberate their thinking in sync with the relaxation of the restrictions will find a dynamic market opening up for them.

"The major boost to satellite communications within southern Africa is allowing value-added networks (VANs) to build client networks using the most cost-effective telecommunications components available on the open market.

"For too long the implementation of the best communications solutions have been inhibited by the heavy hand of an over-regulated market. VANs can now deal directly with satellite companies, rather than having to buy the facility through Telkom. This accelerates the time to implementation because there are fewer entities involved in the process and brings down the costs."

Ingle maintains that major beneficiaries of satellite communications are enterprises that need to communicate with branches around southern Africa and to remote areas where there is no terrestrial-based communications network. Cellular and satellite technologies are ideal to reach these places.

The costs of the VSAT hardware needed for satellite communications have steadily decreased during the past few years and, with the easing of the regulations, southern Africa can now afford to benefit from world-class communication technologies, he says.

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