TELKOM CLEARS UP SAT-3 EXCLUSIVITY EXTENSION SPECULATION

Internet

Telkom’s 5 year exclusive rights to on-sell SAT-3 bandwidth capacity in South Africa will come to an end in April 2007, sparking speculation of a possible extension. This speculation was put to rest by Telkom.

In a reply regarding the undersea cable, Telkom said that there can be no extension to the rights that are already contained in the SAT-3 agreement.

“Telkom does not have exclusivity on SAT-3. Terms and conditions of the agreement cannot be changed and as such no extension or diminishing of rights or changes in rights can be made other than what is already provided for and contained in the agreement,” said Candice Jeffreys, media specialist at Telkom.

The cost of SAT-3 access and international bandwidth has long been highlighted as a major reason for the high telecoms and broadband costs in South Africa.

The minister of communications has also recently pointed to the high cost of international bandwidth, saying that access to this resource will become available to ISP’s and telecoms providers at cost in future.

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