Vodacom ISP nears lift-off

Johannesburg, 06 Feb 2008

Vodacom is believed to be launching its Internet service provider (ISP) to the public and media on 22 February.

Group CEO Alan Knott-Craig first announced the cellular operator's entry into the corporate ISP market in June last year.

He explained that the new company, then named Vodacom Converged Solutions, would start by building six or seven pilot optic fibre rings in metropolitan areas to create additional capacity for data growth.

While this was initially a case of self-provisioning, the group said it aimed to on-sell additional services to customers by 2008.

"Converged Solutions will initially focus on the corporate market and offer a full range of services on one integrated electronic communications network, including virtual private networks, WiMax and an ISP," said Knott-Craig.

Failed plans

Although Vodacom initially intended to acquire an ISP "about the size of Dimension Data's local operations" it has been forced to develop the company organically.

This was due to competitive concerns, said Knott-Craig in November.

"We said we wanted to identify a tier one ISP to kick-start our entry into the market, but it's been difficult at times. Our size in the market, together with Telkom's shareholding in our business, could see a deal held up by the Competition Commission. We're still looking, but we are ramping up our own organic growth initiatives while that process is going on."

What's ahead?

Yesterday, Vodacom chief communications officer Dot Field confirmed the launch date. However, she declined to provide any specifics of the division's offerings, or operational ability, until its launch.

However, Vodacom Business managing executive Ermano Quartero said last year the company intended to become a first tier ISP, providing wholesale local and international connectivity, in both the fixed and mobile arenas.

Additionally, it aimed to be a managed services provider, a corporate access provider (including the last mile) and broadband access provider, Quartero said.

At the time, Quartero noted the company already had 26 points of presence (POPs) in SA. As a first tier ISP, Vodacom Business would have POPs in London and New York initially, with another POP scheduled to be established in the East at some point.

Vodacom Business will provide nomadic broadband access, managed VPNs, managed voice solutions, hosting and data centre, storage and security services, he said.