MTN plans to roll-out a national fixed-line infrastructure that could cost it as much as R1.3 billion.
This announcement follows MTN's cautionary that it was in discussions with Telkom that would result in the mobile operator buying the latter operator's fixed-line assets.
Speaking at a media briefing this morning, MTN MD Tim Lowry said the fibre optic network will cover 5 000km nationally.
MTN will take the project to tender soon, and expects to complete the tendering process by November. "Clearly, once you've made a decision, you'd best get on with it; no need to hang about."
Lowry noted the network would allow MTN to self-provide 50% of its services by 2009.
He said the final cost of the investment would depend on whether the company is able to come to a "sensible" partnership with other telecoms providers, including Vodacom and Neotel. This arrangement would include equal access to the network for all partners.
Cutting costs
The network roll-out is primarily for MTN's own internal use, he explained. However, the company will consider selling capacity to other providers. "We don't need to sell to anyone else to make the business case, but we will consider selling in any case."
MTN's transmission costs currently account for 2% of its operational costs, and these could climb as high as 7% of total costs if MTN continues to grow its services. Once MTN deploys the network, transmission costs will go down, he noted.
Lowry would not directly address questions regarding the potential Telkom assets acquisition. However, he commented that, until something changes regarding that situation, it will be "business as usual" within the mobile operator's operations. "We will not go into a deep freeze."
Lowry said MTN has rolled out fibre networks in Nigeria and Ghana, and has the capacity to do so in SA.
Speeding up
MTN also announced its MTNFibre Connect solution, which will provide last mile access for corporate customers.
MTN Networks Solutions CEO Mike Brierley said the offering provides almost unlimited speed.
Virtual private network connectivity can be provided within six to 12 weeks, and provides a good service level agreement, he added. This is unlike Telkom, which can take as long as 12 months before connectivity is provided, he pointed out.
"We've lived through a legacy for many years of trying to run a network on straws."
MTNFibre Connect is made up of three products: an Ethernet MPLS service, an Ethernet private line service and a multi-tenant connect service.
The Ethernet private line service provides point-to-point service, while the multi-tenant product allows companies to share infrastructure and keep communication costs low, he added.
Between Christmas and the first quarter of next year, MTN will launch an Ethernet e-LAN, dual connect service and provide full-redundant connectivity to minimise the number of points of failure, he said.
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