Wireless Business Solutions (WBS) will beat SA's leading mobile operators to the punch by introducing a commercial fully-fledged 4G network in the first half of next year.
The company's pending launch of a long-term evolution (LTE) network will bring SA more in line with international countries, which are increasingly moving to the next generation of wireless broadband.
According to the GSM Association, there are now 51 LTE network commitments in 24 countries - a 96% increase in the past eight months. However, although local operators have been testing the technology, they cannot roll it out until more spectrum is allocated, as current frequencies are becoming saturated.
Vodacom, Cell C and MTN have been testing the viability of LTE, but are waiting for the Independent Communications Authority of SA (ICASA) to auction much-needed spectrum as there is not enough space in current allocations.
LTE is set to revolutionise wireless broadband communication. The technology, also known as 4G, allows for faster speeds, and makes it possible to stream larger amounts of data.
WBS is now set to be the first company to provide LTE to speed-hungry consumers and businesses, as it already has spectrum in the coveted 2.6GHz range, as well as at 1.8MHz.
Theoretically, 4G offers speeds of up to 100MBps, while current HSPA+ networks have peak download speeds of up to 42MBps.
Huge demand
Executive head of regulatory affairs Mlindi Kgamedi says the company will initially invest about R500 million in upgrading base stations in SA's metropolitans. WBS will roll out a fully-fledged commercial network by the middle of next year.
The company plans to start upgrading its base stations this month and will build 2 500 base stations as part of its first phase. It expects to launch commercial LTE in the first half of next year, which it says is an “an early Christmas present for the entire country”.
Kgamedi says, once the network is up and running, the service will be offered through iBurst - its consumer-facing brand - and Broadlink, which offers a last mile telecoms alternative through the use of licensed microwave technology.
WBS will use its current fibre and microwave network to provide backhaul, says Kgamedi. He adds that, over the longer term, the company will expand its presence across SA.
The company expects to more than double its current customer base, from just over 80 000 to about 200 000, initially. The company aims to have a total of five million customers on the network in five years, notes Kgamedi.
Kgamedi says South Africans are hungry for high-speed mobile broadband services. “If such services are offered at good prices and efficiently, we expect the take-up to be quite remarkable.”
WBS expects to create about 1 000 direct and 5 000 indirect jobs through the initiative. It has signed agreements with “reputable international partners” to source funding and secure equipment.
Waiting game
Mogen Naidoo, senior research analyst at IDC, says WBS, which is not well known in the marketplace, will be steps ahead of the other operators. He adds that the other cellular companies are still waiting for spectrum to be auctioned.
Operators have been waiting for at least five years for ICASA to auction spectrum in the valuable 2.6GHz and 3.5GHz bands. The frequency is vital to roll out the latest technology because there is not enough space in current allocations.
Vodacom, MTN and Cell C, which have been testing LTE, have argued the upgrade cannot be deployed countrywide without more spectrum, such as in the higher ranges around 2.6GHz and 3.5GHz.
Naidoo says being first will give the company an advantage as consumers and businesses are hungry for faster speed as networks become congested. “WBS will be in a good position.”
WBS will be able to gain an advantage over the other operators while they wait for ICASA to move ahead on a spectrum auction, comments Naidoo.
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