International operators eye local market

Issued by
Cape Town, Mar 26, 2010

More international telecommunications companies could be heading for SA as international bandwidth and local infrastructure continue to improve, says Teraco MD Lex van Wyk.

This week, vendor-neutral data centre operator Teraco opened its Johannesburg facility to complement the one in Cape Town. A section of Teraco`s new facility will be operated under the Telehouse brand, which is the world`s longest established carrier neutral data centre company.

Telehouse has taken up 50 square metres in Johannesburg. “It doesn`t sound like a lot, but they will be encouraging their established telecommunications clients to use it,” notes Van Wyk.

He says Japanese telecommunications group KDDI, a long established Telehouse client, will make use of some of the facilities in Johannesburg - the first time it has created a presence in SA.

“Telehouse are now considering establishing an office in SA and so are some of their other telecoms clients,” Van Wyk adds.

He says the improvement in international connectivity is helping to increase access by international telecommunications operators to the African markets. International connectivity has been boosted by the landing of the Seacom East Coast cable, the laying of the East African Submarine Cable System, and the move to lay another cable on the West African coast.

“The only thing they [Telehouse] really have to get to grips with is the regulatory environment and, should they get the appropriate licences, then they will be competitors to some of the local operators,” Van Wyk says.

Teraco is continuing to expand its facilities in Johannesburg and Cape Town. It also plans a third data centre in the Durban area.

“We have definite plans to expand into Africa, but we want to wrap up what we are doing in SA first,” Van Wyk says.