Telkom SAT-3 monopoly ends

By Staff Writer for Neotel
Johannesburg, 10 Apr 2008

Neotel says it has gained access to the SAT-3 landing station, allowing it to bring international services to SA users that are not carried over Telkom's national network, at any point.

"Access to the landing station means that Neotel can now carry traffic from Johannesburg to London on its own network", says Neotel CTO Angus Hay.

ICT stakeholders have previously noted that it costs as much to transport traffic from London to the landing station as it does to transport it from the landing station, in Melkbosstrand, to Johannesburg. In some instances, prices between the landing station and Johannesburg were even higher.

Customers using Neotel's NeoLink Global will receive an end-to-end service that makes exclusive use of the second national operator's network for connectivity within SA, says Hay.

Neotel has deployed its own equipment at the Melkbosstrand and Mtunzini landing stations of the SAT-3/SAFE undersea cable system, connected directly over its own high-availability optical fibre routes into its national network, he says.

He adds that Neotel obtains international capacity on SAT-3 (routes to the West) and SAFE (routes to the East) at competitive rates, and is able to pass the cost benefits on to customers of services that depend on these routes. However, he did not clarify as to whether there will be price cuts in the immediate future.

Neotel will also able to offer long-term capacity on the SEACOM cable, which will be available from June 2009, linking SA to Europe along the East Coast of Africa.

"For the first time, users of international leased line telecommunications services out of SA have a real choice of carrier, rather than just of re-seller, enabling them to switch to their preferred provider, or simply to implement redundancy to reduce their business risk," Hay says.

Neotel has previously noted that it would launch its services to consumers this month. The second national operator will have a phased approach, beginning with metro areas.

Meanwhile, the Independent Communications Authority of SA (ICASA) is in the process of finalising regulations prescribing essential facilities.

ICASA also calls for interested parties to submit written comments on the draft regulations in December.