Affordable voice and broadband: Wi-Fi providers shake things up
| Rudolph Muller | September 22, 2010 | No comments |
Two operators are providing affordable broadband and voice services in areas where some players don’t see much potential
Most of South Africa’s largest broadband providers have established fixed line and mobile networks in most affluent areas in the country, but they are far less likely to invest in low-income and rural areas.
The typical service offerings from players like Vodacom, MTN and Telkom in rural and low-income areas also often don’t suit residents, and the absence of suitable services created a niche which some Wi-Fi providers are starting to capitalize on.
Uninet director David Jarvis has previously shown that it is possible to deploy a profitable Wi-Fi network in townships or even squatter camps, and two other Wi-Fi providers are now growing their networks in high density inner city environments and sparsely populated rural areas.
Rural Wi-Fi services
Jireh Technologies, which was founded in 2008, is focusing on providing telecommunications technologies to under-serviced areas, and to previously disadvantaged individuals.
The company has been flying under the radar to date, but that does not mean they are not making waves in the broadband space. The company has signed up in excess of 20,000 broadband customers in mostly rural areas.
Jireh has an established Wi-Fi network with 220 high sites while services are typically provided using spectrum in the license-exempt 5.4 GHz and 5.8 GHz bands.
Pricing is in line with ADSL costs which are very attractive to residents in areas where they have no access to consumer broadband services line ADSL, iBurst Wireless or Neotel’s NeoConnect and NeoFlex services.
City dwellers also get access
South Africa’s major cities have good wireless broadband coverage, but the broadband and voice services on offer are not always exactly what consumers in low-income areas like Hillbrow need. This is where Rael Lisoos, director at Dabba Telecommunications, saw a gap in the market.
Speaking at the 2010 ISPA iWeek conference Lisoos explained that densely populated suburbs like Hillbrow and Braamfontein are very suitable for wireless offerings, and this is where Dabba is now growing their Wi-Fi network and providing broadband and voice services.
Dabba, which aims to bring data and voice to the underserviced and overcharged, is showing strong growth in areas like Hillbrow and Yeoville with affordable wireless voice and data offerings.
The company has successfully launched their own R10 Bob Marley and R20 Che Guevara recharge vouchers which have proven to be popular choices among residents in the areas where Dabba operates.
Jireh Technologies and Dabba Telecommunications are however only two of a myriad of wireless providers bringing broadband and telecoms services to residents in underserved areas, and who have proven that a sustainable business model is possible in these regions.
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