SA SAT-3 monopoly may end November 2007

A recent Government Gazette publication outlining the Communications Minister’s policy decisions and directives suggested that the end of Telkom’s SAT-3 monopoly is in sight.

In the Government Gazette No. 29923, the following clear guideline is given by Communications Minister Ivy Matsepe-Casaburri: “I have taken a policy decision, in terms of section 43(11) of the ECA to consult with relevant governments of the SAT-3 consortium members indicating the 1st November 2007 as the date from when the exclusivity provisions contained in the SAT-3 agreement or arrangements entered into shall be declared null and void in South Africa.”

In her budget speech last week Matsepe-Casaburri mentioned that fair access to international submarine cables was important.

“It is Government policy that the cost of access to international connectivity is affordable and that all arrangements regarding access or use of international cables and/or facilities do not unfairly exclude others from use of or access to the cables,” the minister said.

Matsepe-Casaburri further said that she directed ICASA to prioritise and urgently prescribe a list of essential facilities, ensuring that the electronic communications facilities connected to the SAT-3 submarine cable can be accessed soon.

While everything looks on track to break Telkom’s monopoly on SAT-3, the process seems to be subject to negotiations with other governments which may complicate the process.

Neotel, which is an indirect shareholder in the SAT-3 cable through VSNL, said previously that equal access to SAT-3 is the best short term solution for driving down international bandwidth rates and creating competition in this space.

Neotel further pointed to the EASSy cable (aka the NEPAD ICT Broadband Network) as a longer term solution, but said that they are also exploring other options.

According to the minister the NEPAD ICT Broadband Network is planned to be operational by mid 2009.

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