State-owned Sentech is reviving plans to build a national broadband network. It wants a second chance and is promising to do things differently this time. However, as much as Sentech’s heart is in the right place, government must not allow it.
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Predictions are a tricky thing. Fifteen years ago, when the Internet was first flexing its gobal wings, futurists were predicting the end of all “traditional” media, particularly television. And while the dot-com bust deflated a lot of expectations, some of those predictions finally seem to be coming true. Time spent on everything from newspapers to cinema has been falling while Internet usage has been climbing inexorably higher.
Wondering what all the Heita branding is about? It’s all pointing to a teaser campaign by Telkom ahead of the launch of its mobile network next week. But can the fixed-line operator really take on the cellphone incumbents at their own game?
If you sued one of the world’s largest companies for defamation and won, you might expect a bit more than €5 000. But in the case of “Mr X” vs Google, which was recently tried by a French court, it is a full €5 000 too many. The rather sordid tale of Mr X began when he was arrested and tried for allegedly raping a 17-year-old girl.
It’s been almost six months since Southern Africa’s broadcasting industry was thrown into turmoil over the department of communications decision to review the standard SA should use for digital television migration. And with the clock ticking
Blockbuster Video. It’s a great name, isn’t it? For nearly two decades it has ruled the video-store roost, both in the US and around the world. But now, after years of billion-dollar losses and with its share price in tatters, it is filing for bankruptcy. What happened? Well, many things, including corporate bloat (it has more than 6 500 stores), some questionable management decisions, and much stronger competition from cable television. But if we have to pick a villain here, it’s the Internet.
In the past month, news has emerged of plans to build yet more high-capacity undersea cables to wire up Africa. With the continent about to be awash in bandwidth, attention needs to shift to bringing broadband to consumers.
South Africans are a cynical lot. When it comes to telecommunications, that cynicism is often justified. Too often, SA operators are big on promises and short on delivery. But Cell C’s new strategy may indeed shake up SA broadband. Cell C CEO Lars Reichelt is a dynamic and colourful character. His colleagues at the cellular network operator say he works harder than anyone they’ve met, often pulling stints late into the night and insisting that his team be available to work similarly long hours.
Holding out for cuts in wholesale mobile termination rates to lower the extortionate cost of mobile communication in SA is a sure recipe for disappointment. If you want to see action, you have to look for a more direct intervention. Mobile termination rates are the tip of the iceberg that makes up SA’s mobile call cost structure. According to AfricaNext Research, the differential between peak on-network and off-network airtime prices is less than 20%.
Sentech is dysfunctional. That’s the gloomy picture painted by the state-owned company’s board in a presentation it was meant to give to parliament last week. But the company was prevented from delivering the presentation, entitled “Strategic Plan 2010 – 2011” because it failed to supply supporting documentation, needed by members of parliament ahead of time, before the scheduled meeting.