Due to submarine and terrestrial fibre-optic cable developments gaining momentum, prices of bandwidth are set to fall in the near future.
Brain Neilson, research director at BMI-TechKnowledge said that the cable projects have been planned since 2006, there is at least 10 fibre cables and a significant number terrestrials cable planned or under construction.
According to Neilson the cost of using ADSL has dropped from R1000 per month to about R400. By 2010 the cost of ADSL is said to be R200 per month. Competition to provide international bandwidth in South Africa will also increase dramatically, but competition in national long distances and local access is also necessary because the price reductions in international bandwidth will be part of the overall cost structure.
BMI-T predicts that by 2011 the dial up market in Africa will decline to 1.9 million subscribers as the number of DSL connection rises to 5.4-million, while total wireless connection is said to raise to 5.2 million.
By IT News Africa staff reporter.
