APC to discuss SAT3`s future

By Damaria Senne for Telkom

Johannesburg, 04 Jul 2006

The Association for Progressive Communication (APC) will host a workshop on the future of the SAT3 undersea cable, as the national monopolies granted to African SAT3 consortium members expire in June 2007.

Until now, the monopolies have given consortium members the sole rights to sell fibre capacity on the system from their countries to SAT3`s European landing point in Portugal. Nine African countries make up the consortium - Ghana, Benin, Nigeria, Cote d`Ivoire, Cameroon, Senegal, Angola, Gabon and SA.

According to a statement from the APC, Telkom, as the managing agent of SAT3, has been invited to brief the participants at the workshop on 24 and 25 July in Johannesburg.

The aim of the workshop is to brief regulator and policymakers on the issues which will arise following the expiry of the national monopolies, and discuss strategies for tackling these. The idea for the workshop came from regulators who attended a meeting organised in Senegal, in 2005, to address ways of getting cheaper international connectivity in the region, says APC executive director Anriette Esterhuysen.

Costly connectivity

"SAT3 national monopolies in each of the nine countries have tended to keep the price of international connectivity very high," says Esterhuysen. SA is no exception, with Internet service providers (ISPs) and market commentators having stated repeatedly that Telkom levies exorbitant charges for access to SAT3.

Richard Hurst, an analyst with BMI-TechKnowledge, says with the expiry of national monopolies these costs will be lowered, with the result that ISPs will be able to pass the cost savings on to the South African consumer.

Rudolph Muller, founder of MyADSL, wants action faster than the expiry of the national monopolies. He urges government, which previously promised to provide access to the SAT3 cable on a cost basis, to act on its promise and not let the issue drag on.

Albi Modise, communications director with the Department of Communications, was unable to comment on whether government will attempt to declare Telkom`s stake in SAT3 a national resource, or whether it will allow Telkom`s monopoly to expire.