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SEACOM...
The dependency on Telkom for raw connectivity or bandwidth is something that the
SEACOM undersea cable system is aiming to limit or end by offering much cheaper raw
connectivity to ISPs.
The only problem is that many reseller ISPs, especially the large
ones, are locked in existing long term contracts with Telkom or the SAIX. This means that they are too a large
extent not able to make a full switch to SEACOM at this stage, which means they are not able to cut their ADSL
prices substantially. This makes the ADSL Broadband market a very interesting place to observe over the coming
months, because despite various agendas, most ISPs will be forced to make changes to their businesses in the coming
months or risk going out of business altogether.
ADSL South Africa (Broadband South Africa) trusts that our fellow
Average Joes will see Afrihost’s R29 per GB ADSL Broadband offering for what it is: A short term cost saving driven
by a PR stunt, which is perfectly fine when viewed from the right angle.
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