ADSL is a huge success, with big corporate companies using it to provide cheap broadband Internet, while 3G serves as a backup option when fixed lines go down. Smaller companies, however, often face challenges in getting similar access.
This is according to Suveer Ramdhani, strategy advisor for Seacom, speaking at the ITWeb Broadband conference held in Johannesburg this week.
Ramdhani believes using 3G as backup is a good solution for small and medium enterprises (SMEs). “ADSL is cheap for corporate organisations with extensive networks. It is very costly to get fibre to the curb and home for SMEs and consumers though. It costs about R500 000 a kilometre to get fibre to the home and we need to change that if we want smaller players to have a chance.”
Telkom has a good infrastructure and it will be hard to top that, said Ramdhani. “We will need billions of rands to create a network to effectively compete with Telkom.”
He suggested that alliances and partnerships between various operators is the only option to effectively compete with the telecom giant, which has recently announced its next-generation network.
“Operators in developing countries are forming alliances, but not fixing the problems,” Ramdhani pointed out. Seacom's strategy for developing countries, he added, is to go to operators and take the complete Capex cost burden. This will be done by paying people to build the needed links between the Seacom landing stations and border stations to city centres and rural areas.
“This, we hope, will entice operators to build infrastructures to fix the problems and effectively compete against larger providers.”
Call for consolidation
Robert Wuestenenk, senior manager, broadband networks and customer solutions at Ericsson, said Africa is leading the wireless broadband wave, with the rest of the world slowly moving that way.
“Mobile broadband provides instant access and there is no need to wait for fibre to be installed to homes and small offices.”
But he stressed that government participation is greatly needed. Broadband access should be made a government priority, he argued, and governments should invest more in solutions to provide broadband access to citizens and businesses, as the benefits are plenty.
According to Wuestenenk, if governments and the private sector work together on broadband issues, overall industry growth will soar; government services to citizens, such as SARS eFiling, will be more efficient; and start-up companies will be able to effectively interact with other enterprises.
Wuestenenk believes the solution is collaboration between fixed line and mobile providers. He noted that fixed line operators are realising the African market is dominated by mobile users, and are moving towards consolidation.
“Consolidation is happening, but we need more of this to happen if we want to gain the benefits of broadband in SA and across the continent,” he concluded.
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