Virtual private network (VPN) service provider, MTN Network Solutions (MTN NS) has signed contracts with Telkom and British Telecom for the provision of a 45Mbps fibre circuit for R100 million over three years.
Mike Brierley, MTN NS CEO, says the deal reaffirms MTN NS`s position as the fourth largest Internet service and international bandwidth provider in the country.
"As a tier one Internet service provider, one has to have a circuit between SA and the US or Britain. Half of the circuit is purchased from Telkom and we have chosen to use British Telecom as the other provider.
"The advantage is that we now no longer need to buy bandwidth from our competitors, can provide our Internet clients with a faster and more reliable option when connecting to the Internet, and will be able to use the circuit to deliver VPNs to any point in the world," Brierley says.
With bandwidth costs decreasing and there being more benefits in using fibre circuits to access the Internet, including greater reliability, the elimination of weather problems and lower latency, Brierley says fibre will prove to be a better option than satellite for accessing the Internet.
Brierley says that as a result of the circuit, MTN NS will not increase the price of its standard services this year.
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