do what you love. love what you do. geoff rehmet sat3 – 2007 and beyond internet solutions
TRANSCRIPT
Do what you love. Love what you do.
Geoff Rehmet <[email protected]>
SAT3 – 2007 and beyond
internet solutions
Do what you love. Love what you do.
IS Market position
Over 24% market share in leased line internet access market* Over 6 300 leased line connections 18 000 ADSL lines (4000 uncapped & 14 000 capped) Over 700 000 dial up connections (incl. MWeb, ABSA & VISP’s) 65% market share in corporate Complex Managed Hosting* 23% market share in Co-location Hosting* Over 80% of the top 250 listed companies use IS as their network
service provider 3500 corporate customers 300 Channel partners IS is the de facto online business community in South Africa ITIL compliant service provider
* BMI - SA Internet Services Market 2005
Do what you love. Love what you do.
IS Infrastructure Investment
Privately owned and managed network – MPLS core• Internet network• MPLS VPN converged network• African Satellite network• International backbone• Local and International data centres
International partners for VPN reach, Internet and Voice peering
Over 1Gbps international bandwidth
Do what you love. Love what you do.
Impact of High International Bandwidth Prices
Internet Access• E.g. ADSL
International telephony
Contact Centres
Competition issues
Do what you love. Love what you do.
ADSL – Service structure
IP Connect National Network International b/wDSL Line
Telkom IPCloud
ISP NationalNetwork
International bandwidth is a significant cost element for internet access, especially ADSL
Do what you love. Love what you do.
ADSL Internet Cost Breakdown
National: R 33.57 / gigabyte IPC: R 11.47 / gigabyte International: R 78.64 / gigabyte
Overall: R 67.58 / gigabyte• 50% national / 50% international
USA: $ 2.00 / gigabyte
Do what you love. Love what you do.
Telephony and Contact Centres
Telephone calls to and from African countries directly impacted by bandwidth pricing
Contact Centres• High cost for connectivity• Uncompetitive against the likes of India, Phillipines
Do what you love. Love what you do.
Competition issues
Incumbents abuse monopoly on SAT3 through exclusionary behaviour
• Competitors cannot buy facilities on a wholesale basis and compete against incumbents’ retail products
Telkom SA:• Sells ADSL accounts @ R57 / gigabyte via SAIX• Competitors’ cost is closer to R68 / gigabyte
Using facilities, sourced at wholesale prices from Telkom
• End users suffer as a result of no competition
Do what you love. Love what you do.
Minister’s budget speech
“In accordance with the spirit of Section 3(2) of the ECA we will ensure affordable access to international broadband infrastructure. I will be consulting shortly with ICASA on my intention to issue a policy directive to the Authority regarding this matter.
This relates to the time-frame within which ICASA will ensure that, amongst others:all arrangements regarding access to, or use of, international cables and/or facilities do not unfairly exclude others, access to such cables and/or facilities is provided on a cost basisand access is duly regulated as access to essential facilities as
provided for in section 43 of the new Act.
I hereby declare that as a matter of policy all holders of licences that will qualify to be converted into individual electronic licences will have the ability to self provide with respect to their international traffic within six months of the promulgation of the ECA.”
Do what you love. Love what you do.
2007 and beyond
Access to landing stations• All licensees in each country• All consortium members• Collocation in landing stations• Declaration of landing stations as essential facilities
Ability for all licensees to buy capacity from any consortium member
Access to capacity at cost-related prices Fair access to all licensees
Do what you love. Love what you do.