Thursday, July 29, 2010

Monopolistic Principles and Poor Service Stifle Players

Jonathan Maliepaard, MD of eNetworks, says the biggest hurdle to progress is the cost of bandwidth from the likes of Telkom and Neotel, which is disproportionately high.
"Local bandwidth now costs more than international bandwidth," he comments.
He says when the 5.6 gigabit West Africa Cable System (WACS) undersea cable lands in SA in 2010 the biggest problem will be affordable local bandwidth to access it. "The cost of deploying long-haul fibre is expensive, so the same old big companies are installing it and keeping prices high."