Neotel eyes Intelsat for broadband

By Dave Glazier for Intelsat

Johannesburg, 19 Oct 2006

Global satellite provider Intelsat, flying 51 satellites of which 25 serve African customers, is in negotiations with SA`s second national operator, Neotel, to become a potential customer.

"We hope Neotel will use Intelsat," says Flavien Bachabi, Intelsat`s regional VP for Africa. He confirms talks between the companies are in progress.

While there is still much speculation about Neotel`s other sources of wholesale bandwidth, the new operator will only have access to the Telkom-monopolised SAT-3 cable in April next year.

The new East African submarine cable, also expected to be used by Neotel, is unlikely to be operational before 2009, in light of dissention among stake-holding African countries.

Intelsat has about 20 customers in SA, including Telkom, Sentech, MultiChoice and the cellular operators. In Africa, about 200 customers use Intelsat`s infrastructure, notes CEO Dave McGlade.

Satellite TV

Commenting on the liberalisation of the South African satellite and subscription TV markets (the regulator is expected to license competitors to MultiChoice in mid-2007), McGlade asserts liberalisation and privatisation in any market is always a good thing.

"It spurs innovation. It accelerates growth. Just look at the African wireless markets - since many African markets have been opened up, there are now 80 million cellular subscribers in Africa."

While he believes the opening-up of SA`s satellite TV industry is a good thing, he adds: "MultiChoice is still a valued partner, and we will do everything possible to help them succeed."

Submarine cable

Intelsat has also been active in the South African VSAT market with many institutions, especially small businesses, hospitals and schools.

"Telkom alone runs 10 000 VSAT systems," notes Bachabi.

McGlade agrees the East African submarine cable may have some impact on Intelsat`s sub-Saharan business, but is untroubled.

Pointing to international precedents, he responds: "A submarine cable always does [have an effect] - but they have always been predictable in doing that. Our strength is in point-to-multipoint, or multicasting."