Anatomy of a link b pe-sa
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A 10 minute presentation on why the end-user does not see an immediate price improvement as soon as new cable systems land
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Anatomy of a link b pe-sa
- 1. Anatomy of a link Presented by: Collin Mamdoo Internet Solutions
- 2. 1993 Credit: Steve Song
- 3. 2014 Credit: Steve Song
- 4. Link Anatomy FDDI CLS WWW Last Mile National Backhaul Submarine FDDI
- 5. Terrestrial
Hinweis der Redaktion
- Based on the time limit, we will spend 2 minutes per slide to try to disect the an internet link delivered to a home user.
- Collin: In 1993, we saw our first link to the rest of the world over a lower latency link – SAT2. This link was a 540Mbps link connecting to Spain and Portugal. It presented a monopoly, at the time as it was controlled by Telkom. At this point, offering BPO services anywhere on the continent was certainly an issue.
- However, things have changed drastically and will continue to do so at least over the next 2 years. With bandwidth leaving our shores growing from 540Mbps to 81.7 Terabits per second – (163400% growth), we certainly need more users of this bandwidth. Currently internet penetration, albeit growing steadily, is still quiet low, currently sitting at 13%. Certainly businesses that operate beyond the borders of SA will turn out to be the biggest users of this bandwidth. Whats important to note is that once we land the 5th cable system on our shores, we are able to offer availability of services that become indistinguishable from 100%.These cables also offer various latencies to reach different parts of the globe and should be considered in the design phase of rolling out any multinational network.However, the most important point to take away from this session, that additional cables may not necessarily reduce the final cost passed on to the consumer. Once has to note that the investors need to recover the exorbitant costs relating to the build of the cable systems. Costs will inevitably drop after a few years depending on a few factors. These factors are discussed in the final slide.
- Here we note that the cost passed on to the consumer is VERYmuch different to the actual cost of the cable.Firstly on top of the per megabit price of the cable, the service providers have to pay colocation and cross connect charges at the landing station. Then, each provider has to provision their own backhaul from the landing station to either their local nodes (PoPs) or continue onto National transmission services to get to the inland areas.Clearly, if users are closer to the coast, cost of connectivity should be less than inland. This is one of the reasons why companies looking to BPO, are based at the coast.Finally, from the exchanges inland, these services are then delivered across last mile infrastructure.This is one of the key reasons why local loop unbundling has become paramount in reducing costs. Furthermore many service providers are looking at building their own last mile infrastructe like Fiberco and IS’ Wiband services.
- This si a quick snapshot of what our terrestrial footprint looks like across South Africa. Certainly the activity here will need to drastically increase to enable the delivery of the coastal bandwidth to the inland areas.