Africa INX was established in 2009, upon identification of an opportunity and requirement in the market to provide licensed operators with an alternative to the existing “reseller” models currently provided by the four largest Operators in the South African market. AfricaInx recognised that none of the larger providers offer a pure wholesale model, which supports License Holders need for growth, through real choice, low prices and Independent networking. In fact, almost all providers’ services and solutions are tied into their network, making it very hard for License Holders to buy services from other providers. This is often done by creating artificial barriers to these options, such as unjustifiably high port costs. Africa INX provides complete independence and choice in their network by promoting the following: Autonomous network address space Each License holder should have their own address space, ASN etc.
Supporting and helping companies achieve this so that they can be more independent is key driver for Africa INX. A network free of red tape and restrictions An example of this philosophy: Companies that already connect to our Metro E networks, can bring in transit bandwidth services from other service providers for a low cost port fee of R2 500 (up to 100 megs). Because International and local transit bandwidth is expensive, restrictions cannot be placed on companies bringing such services into their network, if better rates are available to them. Therefore if there are better options available for transit, than what Africa INX can provide, companies are free to contract those services without being penalised with high port fees, or without having to move their Metro E or national network services.
Independent organization partnerships Africa INX work with several independent organizations, like Three6Five to assist License Holders in developing their own managed service offerings. License Holders that have grown large enough can gain real value through buying bandwidth at a wholesale level, and aggregating and managing their own services over that network. Improved margins and increasing control of service delivery are two immediate benefits. Africa INX is the first and only, wholesale provider, (Carrier of Carriers) of layer 2 telecommunication services, in the South African market, full stop. This can be measured by the following: Africa INX does not have a direct to market selling strategy. As a result, Africa INX clients can expect zero competition from Africa INX in the retail or corporate market. This strategy ensures that we do not undermine relationships, whereby we sell to clients, and simultaneously compete with them in the market using more favourable rates.
There are unfortunately hundreds of examples of operators pricing retail solutions lower than what they sell to their resellers. This model can only be properly managed, if a wholesale company does not sell to the direct market. Africa INX provides a real wholesale model, whereby clients will buy core bandwidths services and access components, but build their own managed services layer to deliver products to their clients. This is unlike other operators in the market which provide managed services and sell these at discounted rates to their resellers.
Restrictions are built into these reseller programs which limit resellers from purchasing services from other operators in the market, thus locking in companies and allowing organisations to keep wholesale prices artificially high. Africa INX will not deliver managed services on their network, such as QOS based MPLS VPNs. Our clients will establish their own MPLS networks on top of the wholesale network, and run their own QOS. Africa INX will not configure QOS on their core network as it provides only wholesale dedicated bandwidth. Africa INX provides only layer 2 network solutions through their metro E regional networks.