ICT News and Developments

[Lydon]

Naspers is investigating four staffers employed by its pay-TV operation MultiChoice

Media group Naspers is investigating four staffers employed by its pay-TV operation MultiChoice on suspicion of fraud.

The four are accused of defrauding Africa’s largest media company of R11m, according to the group’s 2008 annual report.

They allegedly manipulated the billing system MultiChoice uses to collect subscription fees, and redirected funds into their personal accounts.

Naspers head of investor relations Meloy Horn says the employees were based at MultiChoice Africa’s Randburg offices. “The investigation is at a sensitive stage. We are pursuing the matter in the courts and are awaiting a trial date. The case is sub judice.”

Last year Naspers suspended six employees of Media24, its printing arm, for inflating magazine circulation figures. It paid close to R40m in compensation to advertisers who were affected.

http://mybroadband.co.za/news/Telecoms/6099.html

Multichoice discussion

[Pule]

Intelsat to launch $250m satellite for Africa


By: Reuters
09 Dec 08

Private-fund owned satellite firm Intelsat and a South African investment consortium plan to build and launch a $250-million satellite to serve Africa and improve communications on the poorest continent.

Intelsat and an investment group led by Convergence Partners said in a statement on Tuesday that the "Intelsat New Dawn" satellite was expected to enter service in early 2011 and would be funded by project financing.

Demand for fixed satellite services in Africa is growing given increased investment on the continent and as more people get hooked up to phones, the Internet and pay-TV. Poor communications are cited as a deterrent for foreign investment.

The companies said the project would cost about $250-million and would be funded with 15 percent equity and 85 percent debt, with the debt coming in the form of non-recourse project financing provided by African institutions.

Mobile operators Vodacom, joint-owned by Vodafone and Telkom, and Kuwait's Zain have indicated they will use the satellite, and pre-orders for capacity or backlog total more than $350-million.

Nedbank Capital, part of the Nedbank group, and a telecom project financier in South Africa have arranged the debt financing, and Nedbank and the Industrial Development Corporation of South Africa are the biggest participants in the debt funding consortium.

Intelsat will provide 74,9 percent of the equity and the Convergence Partners-led group will provide 25,1 percent. Intelsat's cash contribution to the project is expected to be approximately $25=million, the statement said.

Edited by: Reuters

[Pule]

Neotel secures R7,5bn to fund infrastructure roll-out

By: Chanel Pringle
10 Dec 08

outh Africa's second fixed-lined operator Neotel was now assured that its infrastructure rollout would not be constrained by a lack of funding, after having raised R4,4-billion in debt, CEO Ajay Pandey announced on Wednesday.

A consortium of financial institutions, comprising Nedbank Capital, Investec Bank, the Development Bank of Southern Africa, the Industrial Development Corporation and the Infrastructure Finance Corporation, would provide the funding.

Combined with R3,1-billion in equity raised by its shareholders, Neotel had R7,5-billion funding in total, which was its peak funding requirement.

The operator planned to spend between R10-billion and R11-billion on its infrastructure rollout, with generated revenues expected to provide the balance of the funding.

Pandey said that the deal it had signed with the consortium was significant, given the current market turbulence and the difficulty companies had in raising capital.

He noted that this was a clear indication that the financial institutions in South Africa had confidence in the telecommunications industry.

Nedbank Capital head of Infrastructure Project Finance Mike Peo agreed that the telecommunications sector was one of the key sectors the bank needed to be in.

Meanwhile, Neotel had already spent about R2-billion on its infrastructure rollout and would be spending another R1,5-billion to R2-billion in the next three years, said Pandey.

He noted that Neotel had, so far, gained entry into the wholesale, enterprise and the consumer markets.

Pandey said the uptake of its products and services by the enterprise market had been good, with plenty of new clients, as well as repeat business.

Further, he said that while its entry to the consumer market was still limited, the response from the market place had been "phenomenal".

Neotel had only been providing its products and services to the consumer market for about six months and planned to grow its market share further.

"We are definitely making substantial progress," commented Pandey, adding that the price and value for both enterprise customers and consumers should make for an attractive offering, especially with the slowdown in the economy.

This would allow Neotel to increase its market share, despite the tough economic conditions.

[Pule]

Mobile group mulls SA introduction of successful African money-transfer scheme

By: Leandi Cameron
12 Dec 08

Vodacom's and Vodafone's mobile money transfer service, which has been implemented in Tanzania and Kenya, might be the answer to fill the unbanked gap in South Africa.

"South Africa has a large unbanked market and this product would certainly fill that void," says Vodacom chief communications officer Dot Field.

Vodafone developed the money transfer service, known as M-Pesa (Swahili for 'mobile money'). It was first launched in Kenya in March 2007 and in Tanzania in April 2008.

M-Pesa is a service that allows mobile users to transfer money with their mobile phones within the country where the service is provided.

With this service, users can deposit money, withdraw money, send money to any mobile customer within the country, buy prepaid airtime and manage their M-Pesa account.

It also allows mobile users to convert cash into electronic money at authorised M-Pesa agents. With a simple phone transaction, the mobile user can then transfer some of the cash to any other mobile user, and then a SMS notification will be sent to the recipient who, in turn, can encash the money at an M-Pesa agent.

Users of the service do not need to have a bank account as M-Pesa holds the money in a bank account on behalf of the mobile user.

However, Field says that, at present, no decision has been made by Vodacom to introduce this product in South Africa as the company is still carrying out all the necessary evaluations.

"Once this is complete, we will convey the M-Pesa money transfer service to the South African market," she adds.

Vodacom's Tanzanian operation is its second-largest operation in Africa. It has achieved good customer growth of 34,1% with subscribers totalling 4,9-million in the six months leading up to September.

Vodacom CEO Pieter Uys recently noted that the company was rolling out aggressively in Tanzania to match its competitors, and that M-Pesa was launched in the country to find new revenue streams and retain customers.

"Vodacom will continue to maintain its leadership in all the mobile markets in which it operates," Uys averred.

He added that the company would continue to leverage all the operations it had across Africa, and to use further investment from Vodafone, its parent, to expand its operations into Ghana and Kenya.

This was part of the firm's strategy to move away from being a mobile-centric company to becoming an entity providing total communications.

The company started rolling out fibre networks, building microwave links and conducting fixed-mobile convergence. It also established a solid broadband data subscriber base to build on, to continue to drive its broadband technology leadership.

Uys said that its horizontal expansion was taking the company from a traditional mobile business into the converged information and communications technology space.

"As we grow and develop the business horizontally towards the total communications provider space, we will also need to bring with us the technologies that we develop and spread them across the rest of the continent," he concluded.

[Gulivar]

Sounds like a good idea.

[Lydon]

THE Competition Tribunal has approved the merger between MTN and I-Talk Cellular


THE Competition Tribunal has approved the merger between MTN and I-Talk Cellular after a long battle by some interested parties to discourage the deal.

The tribunal heard statements from interested parties yesterday in the final competition hearing for the R511-million acquisition of mobile service reseller I-Talk Cellular, where MTN received full support from the Competition Commission.

MTN voiced its desire to purchase the remaining 59percent of the company last year (MTN owns 41percent). Huge Telecoms also made a bid for the company.

But MTN had pre-emptive rights to purchase the KwaZulu-Natal- based reseller.

When the commission assessed the merger late last year, Huge tried to convince the authority that the deal would diminish competition in the industry.

But Huge changed its tune yesterday when making its statements to the tribunal.

James Herbst, Huge Group chief executive, said: “Huge no longer has any commercial interest in I-Talk. Without a shadow of a doubt, there is no lessening in the mobile communication landscape as a result of this merger. It would be minuscule,” Herbst said.

Though Huge no longer has commercial interest in I-Talk, it still opposes a merger with MTN.

Herbst’s argument was that allowing a different company other than MTN to purchase I-Talk would increase competition in the market.

“We would have partnered with a micro-lender or a micro-lender could have acquired I-Talk and advanced contracts to lower LSM customers at a much lower rate than what is currently available.”

Thabelo Masithulela, mergers and acquisition analyst at the commission said: “We are still of the view that the merger should be approved.”

http://mybroadband.co.za/news/Cellular/6482.html

MTN iTalk Cellular discussion

[Lydon]

MTN’s R1,4bn bid to acquire the African operations of Verizon became easier

MTN’s R1,4bn bid to acquire the African operations of Verizon became easier when a fierce opponent of the deal belatedly gave up its hard-won right to participate in Competition Tribunal hearings.

The hearings were expected to drag on for five days, largely because hi-tech company Altech had gained permission to present evidence meant to sink the deal. Altech had the right to cross-examine witnesses from MTN and Verizon and to request witnesses of its own, giving it far more power to influence the verdict than it could achieve by merely outlining its objections to the deal.

On Wednesday, the tribunal said Altech had withdrawn its intervention, but gave no reasons for the surprise decision. The only comment Altech made was to say that MTN “has given a number of general undertakings in respect of the way in which it proposes to conduct the Verizon business.

“These undertakings have given Altech satisfactory comfort to address its competition law concerns.”

Acquiescence by the most vocal critic makes it likely that MTN will win permission to complete the deal, particularly since the Competition Commission has already recommended that the move be approved without conditions.

Altech CEO Craig Venter had been a vocal opponent until now, citing “a profound concern” that if MTN took over Verizon it would use its dominance in the voice market to cross-subsidise its internet services unfairly, and become too dominant in the data market.

Altech has a variety of interests in the telecoms sector and is eager to become a voice and data network operator in its own right. Altech was short listed

Despite written objections by several companies, the Competition Commission has declared that it sees no reason to block the deal. Rivals fear that if MTN absorbs Verizon it will eliminate a rival, let MTN avoid some regulations and let it offer combined services that other players cannot match.

The commission believes that rivals will still be able to compete effectively.

MTN declined to comment on how much easier the tribunal process will be now it has gained Altech’s acquiescence.

http://mybroadband.co.za/news/Telecoms/6497.html

MTN Verizon deal discussion

[Lydon]

Neotel to launch its NeoFlex broadband service next week

Many consumers have eagerly been awaiting Neotel’s latest broadband offering: NeoFlex. This is the first data-only service from Neotel aimed at the residential market and has theoretical downlink speeds of up to 3.1 Mbps and uplink speeds in excess of 1 Mbps.

In early testing the service performed well providing real-world speeds rivaling Telkom’s ADSL service and Vodacom and MTN’s HSDPA offering.

Neotel said that it plans to commercially launch the NeoFlex service next week, making it available to customers falling within the Neotel coverage area.

The company said that there was no real delay as such in launching the product, but that the holiday season necessitated a January release date.

“The product testing and software uploads will be completed this week in readiness for the announcement next week,” said Neotel spokesperson Mala Suriah.

Neotel did not want to divulge any pricing, simply saying that it will be included in the press release accompanying the launch next week.

http://mybroadband.co.za/news/Broadband/6537.html

Neotel NeoFlex discussion

[Lydon]

Wi-Fi provider covers Cape Town

High speed wireless connectivity now in Cape Town CBD

Getting connected in Cape Town just became easier with the introduction of a new point-to-point wireless network by Internet Service Provider Snowball Effect.

The company’s solution covers some 95% of the city’s central business district, giving businesses in the area a more affordable, rapidly deployed solution to connect branch offices or outlets.

According to Snowball Effect CEO Eugene van der Merwe, the company recognised the need for companies with several outlets within the city centre and Western Cape to connect their branches.

“This was formerly only possible with a Diginet line, which is costly, has capacity limitations and can take months for installation. With our two wireless ‘high sites’, we are able to provide a link of up to 2 megabits per second between one location and another at a fraction of the cost. And we guarantee installation within two weeks,” says van der Merwe.

According to van der Merwe the connectivity speed is faster than traditional Diginet lines which start at 64 kilobits per second and comes in at about half the price.

He explains that many companies, such as retailers, car dealerships, restaurants and more, have several outlets within the city basin and Western Cape. “The ability to connect these locations cost effectively means inexpensive communications over the point-to-point network. Whether it is voice or data exchange, the network allows such organisations to stay in touch, while area managers are able to get information from every branch quickly for analysis and reporting.”

The service is initially available in two configurations, one uncapped and the other limited.

http://mybroadband.co.za/news/Wireless/6553.html

Wi-Fi discussion

[Lydon]

MTN has fibre projects on an inner city, national and international scale.

MTN recently announced its partnership with Neotel in which the two companies plan to build a R2 billion national long-distance fibre optic network together. This project should provide near unlimited bandwidth capabilities and in time mean higher speeds and lower prices for broadband services.

The initial fibre segment of this national network will connect Johannesburg and Durban while onward connectivity to Mtunzini will allow for interconnection with the in-progress African East Coast submarine cables EASSy and Seacom.

Seacom will be the first cable to land in June 2009 while EASSy is expected to land in the first half of 2010. While Seacom has made headlines for its timely delivery, high capacity and affordable pricing, MTN is optimistic that EASSy will provide them with even more benefits as the cellular provider is a shareholder in the project.

This national network will reduced the dependency of MTN on Telkom for its transmission quality and links and also save the company hundreds of millions in Telkom bills. MTN SA MD Tim Lowry said that he expected this national network to save MTN an estimated R200 million in 2009 and as much as R300 million in 2012. MTN is currently paying Telkom in the region of R1 billion per year for its transmission needs.

According to MTN this national network will improve network availability, increase its capacity to carry national traffic and provide a direct connection with MTN's international sea cable assets. This, MTN said, will enable it to provide high speed connectivity to corporate clients and provide adequate bandwidth for speed intensive applications like Internet connections.

Apart from investing in a national fibre network MTN is also progressing well with its Gauteng fibre project – an inner city network in the Gauteng region. Around 100km of the planned 200km network has already been completed and this network is expected to provide MTN with far more affordable and readily available bandwidth to serve its corporate clients and mobile customers.

These projects are good news for consumers who will benefit from higher bandwidth capacity and lower prices in South Africa. Lowry made it clear that the benefits of its fibre network would be passed on to consumers, something which MTN customers will be encouraged to hear.

The first segment of the MTN/Neotel national fibre network is expected to be finished in August, coinciding with the landing of Seacom.

http://mybroadband.co.za/news/Broadband/6591.html

MTN fibre projects discussion

[Lydon]

Vodacom may join Neotel and MTN in building a national fibre network

MTN SA and Neotel recently announced a joint agreement to co-build a national long-distance fibre optic network. The network will cover a distance of 5 000 km, connecting the major centres across South Africa.

The initial fibre segment of this national network will connect Johannesburg and Durban while onward connectivity to Mtunzini will allow for interconnection with in-progress African East Coast submarine cables EASSy and SEACOM.

This new network will compete directly against existing national fibre networks from Telkom and Infraco and provide additional national bandwidth capacity.

Neotel currently uses, and partly operates, the Infraco national network and despite Neotel MD, Ajay Pandey, insisting that not much will change with its Infraco arrangement it is highly likely that the second national operator is looking towards it own network for future needs.

Vodacom also part of it?

What was not announced is that Vodacom may form part of this project. Vodacom has previously indicated that it plans to connect its existing and future data centres in Gauteng, Cape Town and Durban via its own national network, and it is hardly surprising that Vodacom seeks to partner with MTN and Neotel in building a national fibre network.

The three operators are however tight lipped regarding Vodacom’s involvement. A person close to the deal has confirmed Vodacom’s involvement in the MTN/Neotel national fibre network, but Vodacom did not officially want to confirm this.

“Vodacom has been building metropolitan fibre networks for the last 2 years, and has also been closely involved in the discussions around a national fibre network. Vodacom will make more information about our transmission plans available at the appropriate time,” said Dot Field, Chief Communications Officer for the Vodacom Group.

Neotel said that they are always keen to get other partners involved, but would not comment on Vodacom’s involvement in this project.

Neotel did say that the project costs will be shared by the parties concerned, and that MTN and Neotel are currently the only parties involved. “Other than the two entities [MTN and Neotel], Neotel has an agreement with SANRAL to build this network along national roads.”

MTN however denies any agreement with Vodacom. “As far as MTN is concerned, there is no such agreement in place,” said Vodacom’s biggest competitor.

http://mybroadband.co.za/news/Telecoms/6600.html

Vodacom part of the MTN, Neotel plans? - Give your view

[Lydon]

MAREDI has filed an urgent court application in a bid to stop Telkom awarding a multimillion-rand tender

MAREDI Telecom and Broadcasting has filed an urgent court application in the Pretoria High Court in a bid to stop Telkom awarding a multimillion-rand tender to Ericsson South Africa and Telsaf Data.

Telkom’s tender to the two companies has been shrouded in controversy and claims of corruption since it was announced in December last year.

The row has called into question Telkom CEO Reuben September’s close business relationship with Ericsson’s senior management.

Parties crying foul over the tender include the Communication Workers’ Union (CWU), which has since called for a probe into alleged corruption.

The union said it had evidence that senior directors at Telkom altered documents to influence the tender.

Telkom has denied allegations of any wrongdoing.

In court papers, Maredi Telecomms and Broadcasting CEO Takashi Utsunomiya claims Telkom violated the Promotion of Administrative Justice Act, which deals with fair awarding of contracts by entities with a significant government shareholding.

Utsunomiya said Telkom violated the Act because it acted capriciously and in bad faith and did not follow fair procedures.

He said Ericsson did not comply with critical criteria as it twice failed physical tests in the tendering process performed in conjunction with a Telkom team led by technical manager Giel Laubscher.

But it is understood that Marius Mostert, Telkom’s group executive for network infrastructure provisioning, overruled Laubscher’s critical report about the equipment and said Ericsson SA should get another chance because its equipment had been damaged while in transit from Sweden.

Utsunomiya said the JSE-listed Telkom deliberately misrepresented the results of the technical testing that took place to ensure that the tender was not awarded to Maredi Telecomms.

“We offered Telkom a technology that meets local and international standards, at very competitive commercial terms and within a model that advances black economic empowerment,” he said.

“It is a matter of serious concern to us that we have not been given any reason why our bid was rejected.”

The tender for a point-to-point microwave system was awarded to Telsaf Data and Ericsson in a 60:40 split.

The microwave serves as the back-haul system for cellphone base stations and Telkom’s broadband wireless access network and will help the company improve its capacity to provide broadband services.

On Friday, Telkom confirmed to Business Times that it had received a court application to review and set aside an award for the tender.

“Since the matter is sub judice, Telkom cannot divulge any further information,” said Telkom spokesman Pynee Chetty.

However, Chetty confirmed that Telkom’s board had appointed auditing firm KPMG to conduct an internal audit of the tender deal and investigate if there was any wrongdoing.

Chetty said Maredi was unsuccessful because it achieved unsatisfactory scores in critical categories of the tender.

Ericsson SA’s black shareholders include businessmen Mandla Langa, Dali Tambo and Sisa Bikitsha. Football legends Fani Madida and Steve Komphela are also BEE partners.

http://mybroadband.co.za/news/Telecoms/6608.html

Telkom tender discussion

[Lydon]

Disappointing prices in my opinion...

-----

Neotel launches its multi-user data service with 10 GB and 15 GB packages

Neotel has announced the availability of NeoFlex data, its multi-user data service. The NeoFlex data service will enable small businesses and high end consumers to connect multiple computers in their home or office environment, to the Internet.

“We have been listening closely to the market feedback received since our launch last year,” says Mukul Sharma, Executive Head of the Consumer Business Unit at Neotel.

“The launch of this service is our response to the feedback which asked for a data product for multiple users.”

The multi-user device is an Axesstel MV420, a Rev A CDMA wireless router, with the ability to connect multiple users simultaneously, through either Ethernet or Wireless LAN.

The device also acts as a Dynamic Host Configuration Protocol (DHCP) server which enables it to automatically assign IP addresses to the users connected to it according to Sharma, the NeoFlex data service has almost simultaneous uplink and download speeds resulting in an enhanced user experience.

Research has shown that these speeds are between 450kbps to 900kbps downlink and 300kbps to 700kbps on the reverse link.

As with all of Neotel’s consumer products, this is a wireless solution with its main advantage being that there is no need for lengthy installation times. “In addition, this service can be used anywhere in Neotel’s region of coverage, which means that users can open new offices or relocate existing offices in a quick and hassle free manner,” explains Sharma.

The NeoFlex data service is available in two packages.

NeoFlex 10G provides the customer with 10 Gigabytes of data per month for R699-00 including VAT, while NeoFlex 15G provides the customer with 15 Gigabytes of data per month for R899-00 including VAT. Both packages are inclusive of a recurring monthly device fee of R100-00 over 24 months.

“These packages are extremely cost effective and should easily cater for the Internet requirements of small businesses and high end consumers. If customers reach their data cap, our out of bundle rates are charged at a nominal fee of 8 cents per Megabyte. With the 24 month contract you are getting the best of both worlds as you have the benefit of being able to pay off your device over the 24 months with no upfront payment required; however, should you wish to cancel your contract there are no penalties, you simply have to settle the outstanding amount of your device” concludes Sharma.

http://mybroadband.co.za/news/Broadband/6610.htm

Neotel Neofex pricing discussion

[Mo Rush]

forgive my pessimism but with all these developments and improvements I really dont see how it substantially improves basic things such as communication costs for homes and businesses.

[Lydon]

The huge cost saving will come later this year when SEACOM lands. Prices are expected to fall to a good 10th of what they currently are.

All these developments help with cost saving as companies no longer need rely on Telkom to provide them with local networks, allowing them to self-provide. By cutting out Telkom from a good portion of the picture, they save, and in many cases we save too. As I said, when SEACOM lands no one need use Telkom at all which is why they're scrambling to build their mobile network.

[Mo Rush]

Originally Posted by Lydon

The huge cost saving will come later this year when SEACOM lands. Prices are expected to fall to a good 10th of what they currently are.

Im hopeful but not optimistic.

[Lydon]

Originally Posted by Mo Rush

Im hopeful but not optimistic.

Pricing has already been released.

[Lydon]

Three weeks ahead of a final voter registration drive the IEC has made its website available to non-Microsoft users.

With just over three weeks to go to a final voter registration drive ahead of this year's elections, the South African Independent Electoral Commission (IEC) has made good on its promise to open up its website to all Internet users.

In November last year IEC chief information officer, Libisi Maphanga, said that the organisation planned to spend R3 million to fix the website which was inaccessible to computer users not using Microsoft Windows or Internet Explorer.

Maphanga said that the organisation, which oversees elections in the country, would spend R3 million to make its website accessible to all Internet users.

Today the IEC website is available to all users and the error message that previously infuriated users has been removed.

The website is now functioning and, despite occasional error messages, does allow citizens to check their registration status online. The site also contains a number of election guides to assist citizens.

Maphanga said previously that the IEC restricted access to the website to ensure that non-Microsoft users were not given the wrong information. This however frustrated many users, some of which filed a complaint with the human rights commission. Users argued that the South African government had an open source software policy and that denying citizens access to the website using their own choice of browser was a violation of human rights.

http://mybroadband.co.za/news/Internet/6607.html

IEC website discussion

[Lydon]

Telecoms operator Neotel is now officially majority owned by Indian companies

Telecoms operator Neotel is now officially majority owned by Indian companies, with the government finally sealing a deal to sell its 30% stake in the business to Bombay-listed Tata Communications.

The shares were previously jointly held by state-owned enterprises Eskom and Transnet, and the move means Tata now owns 56% of Neotel.

The value of the deal has not been disclosed — Tata published a press release on the Bombay Stock Exchange yesterday but did not mention any financial figures.

Tata first bought into Neotel in 2001 when the operator was being set up. It took the 26% stake earmarked for a foreign operator with the cash and the experience to build the business and to pull together the other diverse and largely incompatible shareholders.

Plans for the government to pull out and allow Tata to increase its stake were first announced last June. “This reaffirms Tata Communications’ commitment to its expansion and investment plans in the emerging regions of Asia, Africa and the Middle East. We will support Neotel’s efforts to provide global quality telecom services in SA,” said its CEO, Srinath Narasimhan.

Neotel CEO Ajay Pandey said the move would strengthen its position as a stable player in the local market, and let Neotel capitalise more fully on Tata’s global best practices and vast international network.

Shedding the government as a shareholder should speed up Neotel’s decision making and hone its operations by streamlining its ownership. The sale has already been beneficial, since a fresh cash injection of R3,1bn from all its shareholders in December saw Tata supply 56% of the money, in anticipation of owning 56% of the business. Neotel expects to invest a total of R11bn in infrastructure, and presumably the government’s reluctance to contribute its share of that was one of the reasons for striking its exit deal.

The government is also selling out because running a telecoms business is not a core activity for either Eskom or Transnet, and Transnet has been divesting from noncore activities.

One insider said it was crucial to get the state-owned enterprises out of Neo tel to protect the operator from politics and to improve the decision-making processes. Its other shareholders are the black empowerment group Nexus with 19% and CommuniTel and Two Telecom Consortium with 12,5% each.

Pandey said it was very encouraging that a global telecoms giant was continuing to invest in SA and in Neotel in particular, given the economic climate. “Such transactions reinforce international investors’ confidence in the country and more specifically in SA’s telecommunications market,” he said.

http://mybroadband.co.za/news/Telecoms/6620.html

Neotel-Tata discussion

[Lydon]

Vodacom is likely to participate in a R2bn plan to build a national fibreoptic network, joining its rivals MTN and Neotel in the venture.

MTN and Neotel are planning to split the costs in half, while Vodacom is rolling out underground cables by itself. But co-operation between the trio would dramatically cut the costs for all by splitting the construction bill three ways.

Vodacom has not yet officially been named as a partner, probably

One source close to the deal said: “Vodacom will join in the collaboration. It can’t at the moment because it has Telkom as a shareholder, but they are going through the divorce.”

Vodacom’s spokeswoman, Dot Field, came close to endorsing that, saying: “Vodacom has been building metropolitan fibre networks for the past two years, and has also been closely involved in the discussions around a national fibre network. Vodacom will make more information about our transmission plans available at the appropriate time.”

The 5000km cable will link SA’s major centres, with the first leg to be laid between Johannesburg and Durban.

Cost-cutting collaboration will be supported by Vodacom’s other shareholder, UK operator Vodafone, which has been a pioneer in striking deals with its rivals for the sake of efficiency.

Numerous telecoms operators have debated sharing their infrastructure to cut the costs for all, but actual agreements remain rare.

Vodafone is one of the most active and began collaborating with Orange in the UK last year. The two now share their mast sites, saying the deal is better for customers, better for both businesses, and better for the environment.

http://mybroadband.co.za/news/Telecoms/6618.html

Vodacom link discussion