State-owned telecoms infrastructure provider Broadband Infraco is staffing up in preparation for a trial service on its network in the next few months.
Infraco was formed three years ago, when government combined Eskom and Transnet's ICT infrastructure with the aim of launching a backbone that would aid in reducing the costs of communication in SA.
CEO David Smith tells ITWeb that the state-owned entity is gearing up to be able to provide services to the telecommunications market. He says there are a number of activities under way to enable Infraco to launch. “We are busy with a pipeline of initiatives.”
The entity will start trialling its services within the next few months, and expects to file tariffs with the Independent Communication Authority of SA shortly, says Smith. After that, the state entity is expected to make an announcement regarding its launch date.
Infraco is a long distance open-access carrier that will sell high-capacity long-distance transmission services to licensed fixed and mobile network operators, Internet service providers and other value-added network service providers on a cost-plus basis.
This is expected to trim the costs of communication in SA, as well as expand the reach of broadband as Infraco's licence requires it meets certain targets.
Connect for less
The infrastructure provider has completed 11 800km of fibre-optic cable, which connects Gauteng to the major metropolitan centres of Bloemfontein, Kimberley, Cape Town, Port Elizabeth, East London, Durban, Nelspruit and Polokwane.
Smith explains the company is busy with recruitment to acquire the skills it needs to make the entity a success. However, he says, Infraco is “competing for skills in a small pool”.
An advertisement in a weekend paper indicates Infraco is looking for a CTO, who will be responsible for identifying new technologies, as well as ensuring network extensions can be integrated into the existing backbone.
Smith explains that Infraco needs to provide long-distance connectivity to the rural areas and, while Sentech has been tasked with rolling out a rural broadband project, the two entities will not duplicate infrastructure.
Smith says a number of technical and network solutions still have to be implemented, as well as the customer-facing technology. “There is still a lot of work that has to happen in the metropolitans to get to the end-users,” although this will have to be done by other service providers, he says.
Already cheaper
A recent statement by government's Infrastructure Development Cluster said the availability of Infraco's national network has already had an impact on wholesale prices of communication.
Government expects investment in the West African Cable System marine cable will continue this positive trend in downward pricing.
BMI-TechKnowledge MD Denis Smit says: “Broadband Infraco is a fact; it's going to happen.” He says the entity is staffing up and is in the process of getting ready to launch, which is great news for local consumers and companies.
Smit adds that Infraco's presence in the market will have the effect of dropping the cost of connectivity, as it “won't have the same return on investment requirements as a private company”.
The key, however, is the Department of Communications' National Broadband Strategy, which will articulate the roles of Sentech and Infraco. Smit says it would make sense for Sentech to go back to being a broadcast provider. However, it would then have to give up its telecommunications-related licences.
Broadband Infraco has an electronic communications network licence, which was granted by the Independent Communications Authority of SA last November. The licence allows the government entity to build, operate and maintain its long-distance fibre network and transmit data.
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Broadband Infraco still on the cards
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