The South African economy will receive a major boost with the laying of a 5000 km fibre-optic network. This investment in the countries communications infrastructure will bear fruits for years to come and the impact will be felt at a grass-roots level with end-users and small businesses reaping the greatest benefits.
Fiber-optic technology transmits information by sending pulses of light through an optical fiber and has many advantages over the older copper wire technology particularly with regards to long distance and high demand applications. The adoption of fiber-optic technology has revolutionised the telecommunications environment. It has played a major role in the convergence of media technologies accelerating the growth of the Internet and making globalisation a reality.
For many years most of South Africa’s telecommunications infrastructure was owned by the national operator creating a monopolistic environment in-which the high cost of communication inhibited economic growth. Telkom’s monopolistic stranglehold was loosened with the entrance of the second network operator Neotel.
Neotel has access to 10 000 km’s of fibre optic network owned by Transnet and Eskom in South Africa’s metro’s. The focus of Neotel’s investment, until now, has been on last mile infrastructure expanding the access network to the premises of individual customers. Recently Neotel, South Africa’s second largest fixed line operator teamed up with MTN the countries’ largest cellular operator to embark on the joint development of a 5 000 km fibre optic network. This landmark collaboration which will cost between R1.7 and R2 bn. will be fully installed within two years.
Fiber-optic networks have enormous potential bandwidth making them the preferred information transmission medium of the developed world. They are able to simultaneously transmit voice, data, image and video placing a strong fiber-optic network at the core of modern telecommunications infrastructure. Being small in size and weight they are ideal for use in cities where duct congestion is often problematic. They are more secure and free from electro-magnetic interference whilst low transmission loss reduces system cost and complexity. Fiber optic systems are also more reliable and easy to maintain.
For telecommunications consumers the many advantages of a fiber-optic network translate to lower costs, improved quality and reliability. The expansion of South Africa’s communications network will bring about advances in health care, education and government’s service delivery resulting in numerous economic and social benefits.
For a country such as South Africa a significant investment in communications infrastructure will attract new business and lead to the creation of jobs. Reducing the costs of local and international telephone calls will also lead to an increase in international trade whilst improving South Africa’s telecommunications infrastructure will attract foreign investment and see the country playing a larger role in the global marketplace.
This in-turn will stimulate economic activity and create a more favourable business environment particularly for small enterprises. Improving their telecommunications capabilities will enable them to explore a plethora of new markets and supply chains. It will also lead to growth in the reliance on IP telephony and other advanced technologies which will allow small businesses to utilise their resources more efficiently.
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