NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2006/12/14 - Government of South Africa plans to form a broadband infrastructure firm in order to reduce key costs of national long distance connectivity by the year 2007.
The South African government will create a broadband infrastructure firm based on long distance, fiber optic network built up by Transnet and Eskom, as per Alec Erwin - minister for Public Enterprises (SA). Formation of the broadband infrastructure company, which is provisionally named as "Broadband InfraCo", is anticipated to rapidly reduce one of the key expenses of broadband i.e. national long distance connectivity.
Emergence of analogous ICT (Information and Communications Technology) market in the country would be fast tracked by the formation of this company. Although it would take liberalization a few years to achieve this, InfraCo would achieve it in the early 2007 itself", according to the minister.
The move will likely result in a swift movement towards a globally analogous ICT market, wherein operators will be competing for customers on the basis of price and service while making use of considerably common infrastructure. Globally, infrastructure of ICT was more and more treated as an article of trade with differentiation being attained through content offerings and/or services".
Three challenges namely high costs of and restricted access to broadband in South Africa, lack of broadband's worldwide competitiveness, and digital gap between the 1st and 2nd economy had to be addressed for the country for participating in international information communication technology sector.
A senior Research Analysts at RNCOS, who has recently researched a report on "Middle East and Africa Broadband Sector Analysis (2007)", said, "While the uptake of Internet is growing robustly, market penetration is still very low owing to the lack of dependable phone lines, launching broadband services will likely lead to further growth of broadband services in Africa."
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