FinancingTelephoneNetworks

Financial cost per home
Building a telephone exchange costs R55000 via underground ducting as explained under TelephoneNetworkCosts Assuming 45 homes per 1km street the cost per home is R1220. Compare non-recuring R1220 to the eternal line rental of R150 alone to get a perspective on just how stupid Telkom must take the average South African to be.

This R1220 includes the cost of 6 DsLamand two TwistedPair wires per home for a total bandwidth capacity of 46megs/home. Two TwistedPair allows for an ADSL modem and VDSL bridge to stream Internet and CctvCameras data independant of each other. The most important factor is to get the cableing in. Once the cableing has been done the rest is easy.

Establish your own bondmarket
Borrow the R55000 from the bank at say 20% interest. Make everybody sign a debit order for 12months at R115/month and within two weeks you will have a 24meg local loop connection and a substantial reduction in your Telkom Internet fees! Lets create our own Telephone network bondmarket. Streets building their own exchanges are profiled in terms of their risk and other factors. A house could decide to pay back his R1220 capital amount over 30years at R20/month. The other house decides to pay it back within a year. It all depends on the individual home-owner how he will finance the non-recuring amount of R1220.

Residents in Waterkloof, Hatfield in Pretoria and Bishopscourt in the Cape could combine their efforts and negotiate a financing package. There will obviously be the odd defaulter, but by combining our efforts and funds we should be able to smooth out the risk and carry the few defaulters.

In this way we will break the forced subsidising of of the rest of country. Each community must pay for his own communications and the government must subsidise poorer communities, not expect the creators of wealth to finance a flawed communications policy. Over a three year period the line rental from Telkom = R5400. R5400 is enough money to gradually purchase an additional $85 Versatek VDSL bridge(DsLam), ZoneMinder box, CctvCameras and Fiber optic cable to connect to the CentralOffice accross the road to the next CentralOffice. The CO will become the street ISP.

Links
*TelephoneNetworkCosts *TelephoneNetworkRollout