Tuesday, 17 March 2009

SEACOM signs up Neotel as first big customer

Neotel signed up with SEACOM as their first big customer and was also appointed to actually manage the cable on behalf of SEACOM. The SEACOM undersea cable is expected to land in South Africa in June this year and will drastically extend the available international bandwidth available to the African continent.

I have an ADSL account that is on the SAIX backbone (uses Telkom's SAT3 cable, currently SA's ONLY undersea cable!) and I'm therefore subjected to inflated bandwidth prices. Naturally I'm licking my lips for SEACOM's arrival to see what kind of cheaper products my ISP, Webafrica, will come up with.

A drop in expected international bandwidth fees from 80% to 50% is a bit disconcerting though.

From Neotel scoops up cheaper bandwidth (Business Day - Lesley Stones):

Seacom president Brian Herlihy originally expected the cable to slash SA's bandwidth fees by 80%, but the threat of its arrival has already prompted Telkom to drop its own data fees by up to 80%. Herlihy still believes Seacom can charge at least 50% less for its bandwidth when it goes live in June or July.


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