Sentech's WiMax Broadband plans
Speaking to journalists in Fourways, Sentech’s CEO, Dr Sebiletso Mokane-Matabane, says that everything is on track to build a wireless broadband network to serve South Africans.
This network will be based on the 802.16 e – or mobile WiMax – standard, and will effectively replace Sentech’s current IPWireless technology which is used for their MyWireless service.
MyWireless to be integrated
Sentech did not want to divulge specifics about their current MyWireless subscriber base, but there is speculation that it is between 2000 and 3000 users. The company also did not want to give details about their current Biznet user base.
Sentech’s CFO, Siddique Cassim, pointed out that the current MyWireless broadband offering will be absorbed into the company’s new broadband strategy and business plan.
It has not been decided whether to run WiMax and IPWireless networks in parallel or to convert all the current MyWireless subscribers to WiMax, but this is something which Mokane-Matabane said is being thrashed out in their strategic planning.
Cassim said that while no specific pricing details are available yet, he is confident that their broadband network will result in more affordable broadband access in South Africa.
Mokane-Matabane said that the company does not want to subsidize anyone, and that their business models and pricing will have to take this into account. She further pointed out that a mobile voice offering may be in the pipeline.
WiMax network building to start in next few months
The company is currently in the final stages of vendor selection, after which equipment delivery and network deployment will follow.
Sentech said that they will start deploying the network – which will follow a phased approach – before the end of this fiscal year, and they are currently working on a launch date for their first ‘new’ broadband offerings.
The planned wireless broadband network is estimated to take between 10 and 15 years to complete, and will come at a cost of R 4.4 Billion. Of this amount, Government is expected to fund R 3.2 Billion while the rest will rely on private financing.
Cassim said that Sentech has not started looking for independent investment partners yet and that the company will embark on this process after the go-ahead is given by Government. Cassim said that he expects this to happen soon.
Sentech is planning to act as a network provider which means that VANSs will most likely receive access to this network to allow them to offer value-added services to their subscriber base.
Skills
One of the biggest challenges for telecoms companies in South Africa is finding and retaining skilled employees. Sentech is no exception, and they have recently lost many of their staff members to competitors like Neotel, MWEB and Internet Solutions.
Mokane-Matabane said that Sentech’s employees, who typically have a wide range of technical skills, became a prime target for new and existing network operators.
The Sentech CEO is however confident that her company will be able to poach technical staff from other players, and seems to be well aware of the fact that competitive salaries will play a key role here.
Mokane-Matabane said that strategic partnerships with countries like South Korea, China and India can further assist in developing the necessary skills of technical staff.
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