Competition around the corner?
ISPs could soon be allowed to build alternative access networks, rivalling Telkom’s, using new wireless technologies. Until now, ISPs have had to sell their services using Telkom’s phone lines. Many of them allege that Telkom is competing unfairly by cross-subsidising its own ISP business from its monopoly infrastructure division.
But a new wireless broadband technology, known as WiMax, has got ISPs excited at the prospect of independence from Telkom. WiMax is an inexpensive technology that delivers broadband access around a base station.
The Independent Communications Authority of SA (Icasa) has already issued a number of test WiMax licences to companies such as Internet Solutions, Verizon Business, Altech and MWeb Telkom, Sentech and iBurst have been given WiMax spectrum in the 3,5GHz spectrum range; Icasa has, however, denied access to the cellphone groups.
MWeb’s test network went live last weekend. It has built eight base stations so far, including one in Soweto, and wants to sign up 1000 trialists.
MWeb CEO Rudi Jansen says the consumer premises equipment — the modems needed to access the WiMax network — cost about R2000 each but expects this to fall dramatically. By next year, PC makers will have begun integrating WiMax capabilities into new notebooks, he says.
But hurdles remain. It’s unclear what conditions Icasa will attach to the new licences or even if it can legally award them. Companies that build their own national network infrastructure are supposed to be licensed as communications network providers. But those licences can be granted only with the say-so of communications minister Ivy Matsepe-Casaburri, who has dragged her feet in opening the market to competition.
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