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Bigger ISPs optimistic
ADSL South Africa (Broadband South Africa), 3 June
2007
South Africa’s bigger Internet Service Providers (ISPs) seem to be optimistic about prospects
that stem from the Communications Minister’s budget vote speech.
‘The country’s bigger Internet service providers (ISPs) are optimistic that they will
soon be able to build their own networks and end their reliance on Telkom in providing broadband and voice services
to consumers. Their optimism stems from the budget vote speech by communications minister Ivy Matsepe-Casaburri in
parliament last week in which she promised to accelerate the liberalization of the sector’ (Two steps forward,
McLeod, Financial Mail, 1 June 2007).
In other words, Telkom and other operators
will have a run for their money if the Minister keeps her promises this time.
Is government changing its approach to liberalization?
It seems so.
‘The minister’s speech represents a significant break from government’s tip-toe
approach to liberalization and should pave the way for cut-throat competition’ (Two steps forward, McLeod,
Financial Mail, 1 June 2007).
In other words, the gloves are coming off (or so we hope).
Any ISPs who have indicated that they’re going to build their own
networks?
Yes.
‘Already, Dimension Data subsidiary Internet Solutions (IS) has said it will take advantage of the changes to build a full-service
telecommunications company that will compete head-on with Telkom and other network operators’ (Two steps
forward, McLeod, Financial Mail, 1 June 2007).
In other words, Internet Solutions (IS), which forms part of the JSE-listed Didata
Group, plans to compete directly with Telkom and other network operators by building their own network.
Will ISPs be allowed to build their own networks?
It seems so although only some will be allowed to do so.
‘Matsepe-Casaburri has directed industry regulator Icasa to consider whether “none,
or only certain, of the existing Vans licensees [value-added network service licensees, mainly ISPs] can … provide
and operate electronic communications facilities”. The industry has taken this to mean that Matsepe-Casaburri is
willing to allow some ISPs to build their own networks of provincial or even national scope. A number of companies,
including IS, MWeb and Verizon Business, have been issued with radio frequency spectrum to test WiMax, a wireless
broadband technology that can be used for telecoms and, more importantly, Internet and telephony services’ (Two
steps forward, McLeod, Financial Mail, 1 June 2007).
In other words, while the door is not wide open or open yet, we can expect that ISPs
such as IS, MWEB and others will be allowed to build their own
networks.
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