Re: Tanzanian ISPs move closer to establishing an Internet exchange

[Brian Longwe <brian at pch.net>]

On Tue, 13 May 2003, Brian Candler wrote:

> On Tue, May 13, 2003 at 07:01:21AM -0700, Brian Longwe wrote:
> > Our ideal/vision is  for "digital arteries" - optical fibre trunks -
> > between countires that would allow direct exchange of traffic; telecoms,
> > data, internet etc. Thus limiting the inordinate use of overseas
> > facilities for interconnection.
>
> Sure. But can you make money on it? Is there enough traffic between your
> country and your neighbour to justify the cost of putting in fibre? The
> labour costs for digging the holes should be low, after all.
>

the financial basis for cross-boorder connection has been trumpeted for
years. The big problem is monopolies, legislation, plicies and regulation.

if opportunities can be creatd for regional carriers, then the rest is a
no-brainer.

> If you could make money, but it's not being done, then maybe there are
> non-financial obstacles (regulatory regimes, political regimes, and the
> associated risks which scare away capital). Or as you say, the people who
> are making money on the current system don't need to bother shaving a tiny
> fraction off their base costs, since their margins are so high anyway.
>

v. correct...

> > Africa for this interchange of traffic. I will post a graph later that
> > demonsttrates how a handful of western  teleom companies have been reaping
> > big time from this situation
>
> Oh I've seen that close hand, I assure you. But where I saw it, the problem
> was the government which maintained a private monopoly at the expense of its
> own people. Fixing governments is a more difficult problem...
>

this is the thing - but the ongoing wave of liberalisation, privatisation
and deregulation is creating momentum, which has some chance of being
"guided" to a place where some the things forementioned can start
happenning.

Longwe


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