Vodacom prepares for 100Mbps
Vodacom has already prepared their mobile network to deliver 7.2Mbps HSDPA, and is getting ready for LTE (long term evolution). This is according to Ermano Quartero, managing executive at Vodacom Business.
LTE is the next generation of mobile broadband technology, promising download speeds of up to 100Mbps and upload speeds of 50Mbps.
These speeds are however of little value unless there is adequate backhaul capacity to support these speeds, something which Quartero said remains a major problem in South Africa.
It is common knowledge that Vodacom is holding back its 7.2Mbps HSDPA launch because of a lack of backhaul bandwidth supplied by Telkom. According to Quartero there are between 15 000 and 20 000 outstanding Telkom E1 orders, a situation which is not likely to be resolved soon.
MTN has also said that their 3.6Mbps HSDPA rollout is hampered by long waiting periods for additional transmission capacity from Telkom. Its phased rollout of 3.6 Mbps HSDPA is partly related to the availability of adequate backhaul capacity to ensure a good quality of service.
Considering these bandwidth shortages it is hardly surprising that both Vodacom and MTN are investing heavily in their own fibre infrastructure.
Unlike companies building fibre networks and hoping to sell this capacity to cover the cost of their initial investment, both Vodacom and MTN will be their own biggest customers after their fibre networks are operational.
There is therefore an immediate value proposition for them to invest in their own fixed line networks and decrease their reliance on Telkom for transmission services. The cost savings in Telkom bills are reason enough to invest in fibre both cellular companies said.
The additional capacity will also enable Vodacom and MTN to compete against Telkom and Neotel in the fixed line market, driving bandwidth prices down and bringing more choice to consumers.
Vodacom mobile broadband discussion