PowerNet Telecommunications, a joint venture between InovaTech Africa, ICT Connect and several local shareholders, intends to supply last mile telecoms services in areas that are beyond Telkom`s ADSL service coverage.
PowerNet`s head of sales and marketing Leroy van der Westhuizen says the company will build, finance and operate telecoms networks with a special focus on underserviced areas such as new housing estates, business parks, multi-dwelling residences, game lodges and holiday resorts.
The infrastructure will be a mix of optical fibre, power-line and wireless technologies, as appropriate, he says.
He adds that the company, which was launched earlier this month at BMI-TechKnowledge` Digital Cities Forum, is engaged in discussions with various developers, residential estates and municipalities to create awareness of its presence in the market.
Selling capacity
In addition to providing telecoms services to customers, PowerNet plans to sell capacity on its network to other telecoms providers, Van der Westhuizen says.
The reselling of capacity will follow the example of the Japanese "imode" network, where various small information and data service providers sell their services over the network and share revenue with the network operator.
"We are not looking to re-invent the wheel or be a competitor of Telkom," he says. "What we offer is quality of service and a reliable uninterrupted broadband and telephony service that will provide a service people are paying for."
No free lunch
PowerNet, which has a value-added network service provider licence, also intends to provide free broadband and telephony services to organisations identified by municipalities.
The type of organisations that would be eligible include schools, universities and municipal service agencies, such as emergency services, Van der Westhuizen says.
The offer is not part of a licence obligation and has been implemented in other countries where PowerNet stakeholder InovaTech provides services, he notes.
"We don`t believe that municipal services, which aim to serve citizens, should pay for telecoms services."
PowerNet also questions the sustainability of efforts by municipalities to deliver free broadband Internet access to residents. "There is no such thing as a free lunch."
Van der Westhuizen adds that care should be taken by service providers not to offer services they cannot afford, as it would have a negative impact on the market. It would also make life difficult for smaller service providers that may struggle to secure investors when consumers are being offered free services, he says.
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