Synopsis
South Africa’s second national operator (SNO) Neotel is gaining traction in the market in competition to Telkom SA, using wireless technologies such as CDMA and WiMAX to provide alternatives to the incumbent’s copper access network. In addition, the government has created Broadband InfraCo, a national infrastructure company to provide cheap backbone network capacity to service providers, and the major mobile network operators, Vodacom and MTN, are moving into the fixed-line sector under a new converged, service-neutral licensing regime. Despite the significantly increased competition between different service providers, many municipalities in South Africa, including the country’s largest cities, are implementing their own fibre and wireless broadband networks.
The arrival of Seacom as the second international submarine fibre optic cable in South Africa in 2009 has brought down the cost of international bandwidth dramatically. Previously, Telkom had been monopolising access to the only major cable serving the country, SAT-3/WASC/SAFE. Several other cables are scheduled to go live in 2010 and 2011.