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ISPA looks to outsource local Internet exchanges

By Alastair Otter, Journalist, Tectonic
Johannesburg, 16 Apr 2002

The possible outsourcing of the Johannesburg and Cape Town Internet exchanges is attracting interest from operators that are aware of the possible strategic and marketing advantages of hosting of these facilities.

The Johannesburg and Cape Town Internet exchanges (Jinx and Cinx respectively) route local Internet traffic through local servers rather than through exchanges based offshore. Jinx has been in operation since 1996 and Cinx since 1998.

The Internet Service Providers` Association (ISPA) last week called for proposals on the possible relocation of the exchanges.

Ant Brooks, an ISPA management committee representative, says the call for proposals is part of an evaluation process and although outsourcing is the most likely option, it is not a given. "What we are doing is an evaluation of what it would cost to outsource."

Brooks says a number of companies have already expressed interest in hosting the exchanges, including five in Johannesburg and one in Cape Town, although he says this is no guarantee that all will tender for the project if ISPA decides to go the outsourcing route.

According to Brooks, ISPA previously considered outsourcing the exchanges and sent out a call for proposals in 1998 but there had been little interest.

He says the response to the latest call for proposals clearly indicates that there is an "increasing awareness of the strategic value of hosting the exchanges".

"Many operators may see the hosting of the exchanges as a strategic advantage ... and we may end up with a situation where the hosting of the exchanges is done for free."

In this case, he says, ISPA may consider establishing two separate redundant exchanges in Johannesburg, similar to other cities such as London. This would prevent service degradation in the case of severe damage to either of the exchanges.

Deadline for proposals is 8 May and the evaluation process will depend on the number of proposals received. Brooks says the evaluation and decision process is expected to be concluded within three months, and either a new exchange or an upgraded version of the existing exchanges will be operational within six months.

Only ISPA members are allowed to connect to the Jinx and Cinx exchanges. Brooks says that around 15 operators are connected to Jinx and 10 link to Cinx.

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