Johannesburg, 27 Sep 2007
A potential Telkom-Vodacom-MTN deal could hold unexpected benefits for 2010, says Zakes Mnisi, the Soccer World Cup Local Organising Committee's (LOC's) IT director.
"It will play in favour of 2010" for wireless service providers to invest in fixed-line infrastructure and the potential Telkom sale of its fixed-line assets could provide MTN with just such an opportunity, he says.
Following recent cautionary notices issued by Telkom and Vodacom (in which Telkom has a 50% stake), it was speculated that Telkom is not only looking to shed its Vodacom share, but that it might be offering its fixed-line assets to cellular competitor MTN. Both mobile operators recently announced fixed-line strategies.
Telkom's share price surged on the news, but all parties involved in the talks have been mum on details ever since.
Mnisi says that, while he has no inside knowledge of the Telkom deal, "the broadband guys will need fixed-line" for 2010.
"In reality, wireless is not enough for the media requirements of the 2010 World Cup. The progress in terms of photographs, for example, is such that wireless is 'Mickey Mouse' - you need fixed lines."
Mnisi says resent research done around the Olympic Games shows the trend is towards the media needing "big pipe" connectivity with "full digital and IP".
"There will be no such thing as deadlines anymore - everything needs to be instant. WiFi is not for the media."
Mnisi explains that, if journalists are filing news on a 2010 game, "the last thing you want is for the network not to work properly. You need fixed-lines to be able to send data content quickly."
All three of SA's cellular providers (Vodacom, MTN and Cell C) have indicated they will invest in fixed-line infrastructure in the near future.
MTN recently announced it would invest R1.3 billion in a 5 000km national fixed-line network, with MTN MD Tim Lowry saying such a network would allow MTN to self-provide 50% of its services by 2009.
Mnisi points out that MTN, as a FIFA partner for the 2010 soccer cup, would have the rights to carry content for the event, but would be allowed to resell this right to other telecommunications players.
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