Cell C’s broadband plans
Over the last few years Cell C has been the black sheep of the South African cellular market regarding mobile broadband services. The mobile operator did not invest in a 3G network which means that it could only provide its subscribers with GPRS/EDGE data services.
Cell C’s ‘Mobile Internet’ pricing is in line with Vodacom and MTN’s HSDPA offerings despite the fact that it only offers its subscribers speeds of up to 244 Kbps – well below the theoretical maximum speed of 7.2 Mbps from Vodacom and MTN’s HSDPA services.
Cell C’s decision not to roll out a 3G network was questioned, but former CEO Jeffrey Hedberg said in early 2007 that he did not see a good business case at the time for investing in a 3G/HSDPA network, adding that it will be difficult for a cellular provider to show a return on its mobile broadband investment. He reiterated this view in 2008, saying that while they have a 3G-ready core network, ‘3G is hype and we won’t fall prey to hype’.
Hedberg however started to warm up to the idea of a 3G network toward the end of his tenure at Cell C, and the company’s new CEO Lars Reichelt yesterday announced that they will indeed be investing in their own 3G/HSPA+ network.
Cell C Broadband Network
Reichelt said that the company will invest R5-billion in its network in 2010, and that there will be a strong focus on broadband. According to Reichelt the planned HSPA+ network will support speeds of up to 21 Mbps, significantly faster than Vodacom and MTN’s current peak speed of 7.2 Mbps.
HSPA+ (aka Evolved High-Speed Packet Access) supports data rates up to 56 Mbps on the downlink and 22 Mbps on the uplink with MIMO technologies and higher order modulation, but Cell C will initially roll out the ‘more stable’ 21 Mbps HSPA+ technology. In future there may be upgrades to the network to support higher speeds.
It is interesting that Cell C will be using all their available frequencies for their broadband rollout – including 900 MHz, 1800 MHz and 2100 MHz. Cell C will therefore be the first operator in South Africa to use 900 MHz for its broadband service, and Reichelt added that they have already started migrating voice traffic to their higher frequency bands to accommodate their HSPA services on the 900 MHz band.
The Cell C CEO said that they are currently in discussions with all four mobile network providers, and that a decision regarding vendors has not been made yet. Huawei has become the vendor of choice for many mobile broadband providers – including Vodacom and Telkom – but Reichelt would not comment on which company he feels will best serve Cell C’s needs.
In a surprise move Reichelt announced that Cell C will be investing in its own fibre infrastructure. Vodacom and MTN have been rolling out their own fibre network to limit their reliance on Telkom for their transmission needs, but Cell C also came late to the party in this regard. Reichelt said that Telkom is trying hard to provide them with a quality transmission network, but that it can be challenging to deal with the fixed line provider and ensure high service levels.
Reichelt further urged ICASA to provide the cellular operators with more microwave frequency to use for backhaul purposes, especially for use in more rural areas. He explains that it is simply not feasible to roll out fibre in the ‘countryside’, and that adequate microwave spectrum will help tremendously in their efforts to carry traffic in more remote regions.
Rather late than never
Reichelt downplays the significance of its late play in the mobile broadband market, saying that their late entrance may in fact benefit Cell C. According to Reichelt more mature technologies, lower equipment pricing and more abundant and affordable international bandwidth means that the timing is great to invest in a broadband network.
The Cell C CEO would not speculate on potential pricing models, but Reichelt did indicate that he would be very competitive in the mobile broadband market which may well indicate that pricing will be one of the ways in which Cell C plans to gain market share.
Cell C mobile broadband – discussion
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