Gauteng's development lovechild, Soweto, will receive a business boost with a R1 billion investment by shared broadband infrastructure company, Dark Fibre Africa (DFA), to lay fibre in the township.
The company has already set down 30km of fibre across Soweto and expects to more than double that by the end of the first phase, expected to be completed by June 2009.The company's total investment by the end of 2009 will be R1 billion.
“The design of the layout is complementary to our clients' needs to meet business demands in Soweto,” says Malcolm Kirby, sales director of DFA. He says the company is responding to interest from its clients for business development in the area.
The company expects the banking sector and larger businesses to benefit from the roll-out. Soweto is the only township being covered by the DFA. “There is a drive to move hi-tech business, such as business process outsourcing (BPO), out of Sandton and the northern suburbs, and fibre in Soweto will be a driver in that regard.”
The company has laid more than 200km of fibre infrastructure over the last year in some of SA's highest-density metropolitan areas and is preparing to speed up its network expansion. According to reports, the planned growth is expected to hit R2 billion by 2010, making the Soweto investment half of the planned financial boost.
Good news
BMI-TechKnowledge senior analyst Tertia Smit says the township has traditionally been considered “white space” when it comes to connectivity. “Soweto has been plagued with poor fixed-line infrastructure and a severe lack of proper broadband.'
Soweto has been poorly covered with fixed broadband infrastructure like Telkom's ADSL products. iBurst currently provides in the area and has been involved in Internet caf'e projects. “Otherwise, resident business are using dial-up,” adds Smit.
The cost of rolling-out infrastructure for Telkom may not have been a feasible option for the company, she adds. However, DFA says shared infrastructure makes more sense.
She says the region will gain an excellent economic boost from the investment. “It won't be long before small businesses, alongside the bigger businesses, gain access to the fibre broadband and benefit from the roll-out.”
According to Smit, the benefits will be small in the beginning, but will grow and enhance the area, especially in the hi-tech arena. “There is a fairly well educated workforce already available. In areas like BPO, we have seen some companies try to bring the sector to outlying areas with little success. Having it near where people live and with a boost in infrastructure could make sense.”
She adds that schools and other more needy institutions will also gain from the roll-out in the long-term.
Investment hub
According to Kirby, the second phase of the roll-out plan may well impact the small businesses and residents of the area. The company has also been in discussions with the municipalities in the area in terms of municipal broadband provision.
Soweto has become an investment haven, with money streaming in from both government and the private sector. According to media reports, the township's Mopanya Mall has been a driver of retail investment in the area.
SA's national retailers reportedly forked out R4 billion in an effort to gain space in the shopping centre.
Other reports show a significant R400 million is being pumped into Soweto to turn it into a peak travel destination before the Soccer World Cup hits South African shores. Housing developers are also seeing the value of the area.
Smit says these investments will be more profitable with proper broadband infrastructure, traditionally lacking in the area.
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