Broadband Infraco

Broadband Infraco’s vision is to be a catalyst for greater efficiency in the telecommunications market, so as to support economic growth.

It was established as an intervention to rapidly normalise telecommunications market efficiency (and address the cost of broadband to the industry players and end users) by making infrastructure on the national backbone – and international connectivity – available at reduced prices.

THE NEED FOR BROADBAND

In a modern economy the existence of high speed, high capacity communications technology is a major driver of economic growth and access to socioeconomic services such as healthcare and education.

The high cost of broadband locally means that South African businesses cannot compete with their peers globally. Infraco has the mandate to both supply capacity and bring down the cost of broadband.

Infraco will provide and own the long-distance Full Service Network (FSN) originally developed by Eskom and Transnet.

Infraco is a stand-alone entity reporting to the Department of Public Enterprises.

STRATEGY

To utilize the fibre optic backbone known as the Full Service Network, deployed by Eskom and Transnet in 2002/3
To upgrade the infrastructure to achieve commercial carrier grade quality
Expansion of the network
Implementation of DST projects for SANReN, Meerkat (with the preparatory work for KAT & SKA projects)
To enact Broadband InfraCo through a Broadband InfraCo Act by introducing the ECA Amendment Bill for Parliamentary approval.

INFRACO'S PLACE IN THE BROADBAND MARKET

Broadband InfraCo is a Government Entity aimed at addressing the Commodity Zone (Phase I and phase II). The Innovation Zone is for typical connectivity providers such as Vodacom, MTN, Sentech ISP etc.

The Broadband Pyramid

ADDITIONAL INFORMATION

CONTACT DETAILS

Mr R D Smith
Chief Executive Officer
Tel: +27 11 800 2550
Fax: +27 11 800 4998
Email: dave.smith@infraco.co.za

Mr F Mohamed
Company Secretary
Tel: +27 11 800 6560
Fax: +27 11 800 4998
Email: fahim.mohamed@infraco.co.za

Postal Address
Postnet Suite 321
Private Bag X26
Sunninghill
2157

WHY COSTS ARE HIGH IN SA

A huge percentage of costs associated with the delivery of a broadband connection to a South African consumer are paid directly to the incumbent monopoly provider towards long distance & marine cable connectivity.

Broadband InfraCo has been staffed from Eskom's PTN and Transnet's PTN teams, all individuals with many years of experience in the design, deployment and operation of particularly long distance fibre based telecoms networks
Broadband InfraCo model is different from a market facing Telecoms company, in that it only sells wholesale capacity
Pre-licensing and post-licensing staffing scenarios are considered
- The InfraCo intervention comprises two key elements, namely
National Long Distance fibre optic network, based on the fibre optic assets deployed by Eskom on power transmission line and Transnet on railway lines in anticipation of licensing of the Second Network Operator, and
- International Marine Cable network comprising two new marine cables to be deployed between South Africa and Brazil and South Africa and the United Kingdom respectively
The long distance connectivity provided by InfraCo will be provided to the market at a huge discount as compared to the prevailing retail rate for the equivalent capacity from the monopoly provide in the market today.
The Investment plan to address the above key elements is highlighted in the following images

FUTURE PROSPECTS

DOMESTIC INVESTMENTS

Domestic Investment: Broadband Infraco Launch Network

Domestic Investment: Broadband Infraco Neotel Phase I Expansion

Domestic Investment: Broadband Infraco SANReN Expansion

Domestic Investment: Broadband Infraco Kat Project Expansion

International Investments

The high cost of international connectivity in Africa is a result of limited African investment in submarine cables

Cape Town - Forteleza (3 Terrabits)
Cape Town - London (3 Terrabits)
Mtunzini - Cape Town (6 Terrabits)

The Marine Cable Project

Objectives of the marine cable project

Create sustainable and efficient international telecommunication bandwidth market in South Africa
Connect the South African knowledge economy with key global knowledge economies
Lower cost of international bandwidth to level at least comparable with international benchmarks
Provide cost effective access to international bandwidth for key projects such as the SKA
Place Government in a position to easily control market power with minimal regulatory intervention, should it be necessary

Innovative funding structure: joint public-private funding