Wednesday, May 16, 2007

South Africa Telecoms Falling Behind

A recent analysis of the the South African Telecom Sector claims that though they once had the most advanced and cost effective systems in Africa, recent technology and market changes have eliminated the advantage. Further, they have not positioned themselves well for the next generation of changes.

Telekom's dominanace of the SAT-3 Landing station and its large margins have not been leveraged to upgrade to new technology or capacity.

-Morrocco already has more broadband capability than South Africa.

-Vast Telecoms capacity is coming into many places in Africa over the next few years.

They may be trusting in political and economic maneuvers to limit access to the new fiber optic submarine cables coming in, but that will just prolong the life of Satellite networks, still cheaper than their retail costs.

When the British 1st Battlation 24th Foot in the Battle of Isandlwana sat still and waited hoped that their better firepower would defeat an overwhelming force of Zulus. It did not. I hope that is not what South African Telecoms are hoping for, again.

-Lee Royal

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