Cell C has 3G potential

By Siyabonga Africa, ITWeb junior journalist

Johannesburg, 30 Sept 2008

Cell C will not offer 3G services despite migrating its network to a more powerful Huawei core switching network. The cellphone operator says the technology is still in its early stages.

"The early stages of introducing new technology are characterised by over-expectation and not the real customer need. The so-called technocrats initially buy into the new technology, which has largely been the case with regard to 3G until recently," says Cell C CTO Pierre Obeid.

"Our strategy for the roll-out of the future radio evolution is in its final stages. 3G is not only about the radio and core networks, but about the services we put on top of those. The services that are deployed on top of the infrastructural layer depend on the readiness of the back-end IT infrastructure," explains Obeid.

Cell C says the switch is part of its back-end architecture, which is aligned with Web 2.0 principles, and service-oriented architecture framework, needed for providing compelling 3G services on top of a 3G network. It will be able to offer 3G, 4G and HSDPA services in the future.

Obeid adds Cell C does not intend to provide 3G services any time soon, having migrated its core network to a Huawei core switching network, in March. "We don`t commercially offer 3G services yet, but the new Huawei network allowed us to cope with the Woza Weekend offer in a more cost-effective way," he says.

Cell C`s new network is a combined 3G/2G layer compared to legacy networks running two separate layers. Obeid says this will allow Cell C to offer 3G services off a converged network. Future services, such as 3G, 4G or WiMax services, will be influenced by subscriber need and economic viability.

Huawei Technologies COO Xue Bo states the company`s products are a match for Cell C`s business requirements. "Huawei is proud to be part of this evolution within Cell C. And we look forward to a strengthening strategic partnership in the near future," he says.

BMI-TechKnowledge telecoms analyst Fezekile Mashinini says Cell C`s move makes sense in the context of the general trend towards telecoms and media convergence, and the need to have a sophisticated data offering for all customer groups in future, including low-end consumers.

"Cell C would also need to grow out of its existing target base in future, even if through mobile virtual network operator partnerships such as the current one with Virgin Mobile. Having a 3G network would make enormous sense for Virgin, and also for Cell C`s own subscribers."

He adds that if Cell C goes further and merges with another telecoms player, whether fixed or mobile, these 3G assets would also factor into the perceived value of Cell C to the prospective partner.