Broadband for Africa as SA lags behind

As broadband players launch high-speed solutions into the rest of Africa, local users still have a limited choice. Players in the market say this is because only Telkom and Sentech can currently offer these services locally.

The Telecoms Act of 1996 gave Telkom a five-year exclusivity on public switched telecommunications services. The Act was amended in 2001, which saw Sentech licensed as a "carrier of carriers" and as a multimedia licensee, says William Stucke, management committee member of the Internet Service Providers` Association of SA.

"Sentech is a state-owned monopoly broadband operator in much the same way as Telkom is in the fixed-line space."

Any company that does not have an appropriate licence is precluded from offering satellite broadband in SA.

Global communications company Intelsat this week launched a high-speed connectivity solution that can only be targeted at the larger African market.

Intelsat South Africa MD Ibrahima Guimba-Saidou describes the new offering, GlobalConnex (GXS) Network Broadband, as a "low-cost last mile broadband solution that will offer access to all IP-based applications".

The service will also enable access to multiple satellites from a single hub, he adds. "This will be particularly ideal for multinationals."

The company has already appointed Internet Solutions (IS) and M-Web Africa as channel partners.

IS Africa Services GM Jacques Rautenbach says the company will initially target corporates, adding that it will also offer a low-cost service to small and medium enterprises.

However, the South African-based company will not offer the service locally, says Rautenbach. "Currently the service is ready for the rest of Africa, but not in SA because of certain legislation and ICASA rulings.

"We are as disappointed as anyone else about the South African situation."

It is not clear how long it will take before local companies can offer satellite solutions, says Rautenbach, adding that the GXS solution would be competitively priced.

"This service will deliver at a price that fits the pocket - the price would be up to 300% cheaper than some of the present South African offerings," he says.

Intelsat data, carrier and Internet global sales VP Stephen Spengler says the African telecoms market is extremely lucrative, a trend which is likely to continue.

"The region has been a driver of much of our strategy. Africa is booming - it is our fastest growing region and represents 20% of our revenue."

Also this week, Telkom launched SpaceStream Africa, a low-cost Internet connection that can be deployed anywhere in Sub-Saharan Africa.

Telkom`s solution has a reseller model whereby the company will sell wholesale broadband to licensed service providers within Africa, who can then brand the offering under their own name and brand, says Telkom wholesale product manager Tebogo Chake.

"It is known as a 'white label` service, as it can be re-branded by the Internet service provider (ISP) to the point that the man on the street is often not even aware that the service is provided by Telkom."

He says that as a wholesaler, Telkom is prepared to sell the service to as many ISPs as want to buy it - "it is up to them to provide the value-add and develop their own competitive-edge".

Telkom will target ISPs, which will then sell the service on to non-governmental organisations, schools, Internet cafes and private users, adds Chake.

The SpaceStream Africa solution is available from 64Kbps, which has a 500MB monthly cap, up to 512Kbps, capped at 3GB. All offerings are upgradeable as required, says Chake.