The introduction of digital subscriber line (DSL) will not significantly reduce the cost of the Internet for businesses in SA. The bulk of Internet traffic is carried over sophisticated long distance local and international digital networks and it`s just the cost of the local connection to an ISP that may be reduced. Companies can expect between 5% and 15% reductions at best.
DSL technology, which can carry voice, data and video simultaneously over a regular copper line, is a short-haul technology and not geared for long-distance traffic which is how an Internet service provider`s network is established.
"DSL can be used by companies to connect to an ISP`s network but beyond that traffic has to go over long distance dedicated digital and fibre links," says Stuart Hardy, general manager of the access division at Internet Solutions (IS).
Many people believe their Internet communications bills will be slashed if DSL technology is introduced but the reality is that only a small portion of the cost will be effected. Companies that purchase large amounts of bandwidth will see a 5% benefit on average, if not less. Companies with small lines to service providers may experience a saving of 10% to 15% on average.
"DSL is a local loop technology aimed at consumers and small businesses. It employs asymmetric bandwidth and efficient use of the available frequency spectrum on a pair of copper wires, connecting a home or small office to a local telephone exchange, to allow high speed downloads and lower speed uploads.
"DSL has as many shortcomings as it does successes," says Hardy. "The real problem with DSL is that it does not address backbone bandwidth pricing or restrictions. For South African Internet users, the bulk of the cost is in the national and international lines making up the Internet. This cost is unaffected by DSL. This relates in the same way to international bandwidth where the low cost of DSL will have no effect on pricing. The infrastructure that connects consumers or corporates to their respective providers is usually the least expensive component of their Internet access cost.
"The introduction of DSL will have an effect on the cost of access circuits in SA, but not substantial enough to make a real dent in bandwidth costs due to the cost of long haul local and international backbone infrastructure. This cost reduction will have a greater benefit to small businesses and therefore could have a positive effect on the e-commerce arena in SA as a whole," he says.
Share
Internet Solutions (IS) is SA`s leading provider of infrastructure foundations for electronic business and the forerunner in providing companies with effective connectivity solutions. At present, it connects over 1 500 organisations to the Internet and over 3 000 sites through its range of VPN solutions, thus forming the primary electronic business community in SA.
IS offers a fully managed environment together with expertise in areas such as internet access, VPNs, hosting, dial-up, security and data management. Their best-of-breed infrastructure is without equal and has been the preferred choice of leading companies since 1993.
As the Internet industry leader, IS is also dedicated to sharing its success with others by providing improved access to education and information to all South Africans, particularly previously disadvantaged communities. For more information, go to www.is.co.za.
Editorial contacts