In what it claims is a first for SA, T-Systems, which is owned by Deutsche Telekom (DT), has brought the global telecoms giant`s multi-protocol network to SA.
The arrangement removes the need for interconnection agreements with other operators, so the company can, for its highest level of service, offer dedicated (rather than shared) bandwidth under service level agreements (SLA) that include latency and quality of service (QoS) guarantees and strong security measures.
"This is the first time a major global network has a fully-redundant backbone network in SA, as opposed to just a long link to Germany," says Desmond Seeley, the company`s GM for telecommunications services.
The network, which complements the domestic network operated by T-Systems under its VANS licence, is aimed at multinationals operating in SA, offshoring operations, foreign companies wishing to terminate voice calls in SA, as well as South African companies with a strong global presence.
Seeley believes there is sufficient bottled-up demand for this type of service so Telkom`s long-term customer agreements will not pose a threat to T-Systems` revenue.
DT has invested R100 million to cover routers and other network upgrades, bulk up a dedicated local support staff, and carry the operating costs for the next three years.
Physical infrastructure is leased from Telkom, which Seeley describes as having been co-operative in this venture. The network has access to separate undersea cable landing points, to ensure adequate redundancy at all levels. Not being dependent on interconnect agreements, the network - including devices and cables leased from Telkom - will be fully managed at DT`s global network operations centre.
Unlike Internet-based networks, bandwidth is dedicated rather than contended.
"This allows us to offer real QoS to industries like the call centre market, with penalties against performance," Seeley says.
According to Janet McKenzie, a telecoms expert at Cliffe Dekker attorneys, the Telkom half-circuit on international links costs six times the corresponding half-circuit owned by other consortium members, such as DT.
Because DT is a member of the consortium, it can mitigate this cost by establishing least-cost routes among multiple global locations. Pricing, according to T-Systems, will be "competitive".
"Do we solve all the problems [with telecoms service offerings under existing law]? No, but we`re moving a logjam. It`s not the final step, but it`s a step in the right direction," Seeley says.
He points out that this network differs from existing market offerings in that it is wholly-owned and managed by an operator-class company. Existing alternatives include independent, privately managed networks in star configurations around individual locations, Internet-based virtual private networks that offer only best-effort bandwidth, and local partner connectivity to global networks via interconnect agreements, which splits the management and SLA commitments between multiple suppliers.
Both Johannesburg and Cape Town will enjoy local points of presence, with several more to be established in the near future.
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