LICENCE FOR A REVOLUTION?
Internet service providers think the changes could free them of their dependence on Telkom, allowing them to build wireless networks independently, and therefore serve their customers directly. Major service providers accuse Telkom of competing unfairly and charging exorbitant prices for access to its infrastructure.
Because of this, they are keen to build their own networks, using new wireless technologies, such as WiMax. Some have already been granted test licences by the regulator, the Independent Communications Authority of SA (Icasa). And the Electronic Communications Act, new legislation that will govern the sector, will allow them — in theory, at least — to apply for licences to operate these networks commercially.
Internet Solutions (IS) is one of six companies that have been given WiMax trial licences. The others are Telkom, Cell C, Vodacom, MTN and underserviced-area licensee Bokamoso Communications IS says it is impressed with how well the technology works. Business development director Hillel Shrock says IS will begin offering services on a commercial basis as soon as Icasa allocates it radio frequency spectrum.
When that might happen, though, is anyone’s guess right now. Shrock says it needs to be resolved quickly if WiMax is to take off in SA.
Icasa says the licences of some operators will first have to be amended as they don’t make allowance for fixed wireless access technologies in the 3,5GHz band, the frequency at which most operators will want to build WiMax infrastructure. Even when Icasa does allocate the spectrum, some operators will be disappointed as there are only four slots available. Icasa says that because of this it may make 5,8GHz, part of the so-called industrial-scientific medical band, available for WiMax.
Some companies, such as IS, will also have to apply for a new licence to build a network. It’s not guaranteed this licence will be granted, though government has promised to consider seriously any approaches to it in this regard.
Cellular operators seem less enthusiastic than Internet service providers about WiMax’s potential. MTN, which is also testing the technology with a small network, says it will be used for niche applications only. “We didn’t expect any miracles from the technology and didn’t see any,” says MTN chief technology officer Karel Pienaar “We will deploy a WiMax network but it will mainly be used by small and medium businesses as a fixed-line replacement.”
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