Neotel reveals Ethernet master plan

Network infrastructure giant Cisco Systems will build - through local deployment partner Dimension Data - metropolitan Ethernet networks across several South African towns and cities for Neotel.

The partnership signals the most recent step in Neotel's gradual process of readying for the launch of residential telecommunication services.

Craig Zeeman, Cisco's regional sales manager, explained yesterday that metropolitan Ethernets link local businesses, and provide access to the Internet by whatever national backbone a telecoms company may use.

"It has proven to be commercially successful in other parts of the world."

While Neotel has said it will use a combination of wireline (DSL) and wireless (WiMax and other radio frequency technologies) to attain national coverage, further details have not been disclosed.

Wider broadband access technologies would connect to the edge of the Ethernet network, notes Zeeman. In WiMax's case, this would be through the base stations.

Neotel's head of communications, Mala Suriah, confirms: "Motorola is working with Neotel on the RF planning for the deployment of WiMax technology."

Asked how the two partnerships will co-exist, she said yesterday: "These services will complement each other."

The metro network will be rolled out in phases, with the first phase encompassing Cape Town, Johannesburg, Pretoria and Durban. Other cities and towns will follow as the three-year long project progresses, Zeeman added.

In order to seriously compete with Telkom, Neotel must have broad coverage, he noted. "It should benefit both corporate and residential customers."

The value of the deal has not been announced, and Zeeman says it not yet known how many DiData staff will be dedicated to the project.

Neotel has selected Cisco's 7600 series carrier-class edge router to offer integrated Ethernet switching, and IP/Multiple Label Protocol Switching routing.

"The Cisco 7600 Series will enable Neotel to generate revenue by supplying not only network access, but services that add value to that connectivity for their customers," he said.

Zeeman added that with the 7600 Series, Neotel would be able to differentiate its service offerings and charge a premium for the value-added services.

DiData will procure much of the equipment and work together with Cisco's Advanced Services team to deploy the Metro Ethernet network.

While DiData's manager of technology and operations, Jeff Jack, is out of the country and unavailable for comment, he is quoted in a Cisco press statement as saying: "While Neotel is unlikely to supersede the incumbent's dominant position, the stimulatory effect on the market in terms of pricing and service availability will be considerable."

He adds that Neotel's prospect of deploying a next-generation broadband network, without the barriers and complexities of legacy equipment, is a "tantalising one".

Investment in establishing Neotel and its networks will have a stimulating effect across the ICT market, he notes. "The network has to be supported by call centres, billing systems, offices and people.

"This is a development that South Africans have been awaiting for years and is a huge advance for the country."