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Vodacom to take on Sentech, Telkom

By Stephen Whitford, ITWeb contributor
Johannesburg, 10 Jun 2004

Using third-generation (3G) technology, Vodacom will compete with both Sentech and Telkom to provide high-speed Internet access and other multimedia services, says Pieter Uys, Vodacom Group COO.

Uys says Vodacom will spend R100 million this year upgrading parts of its network to provide 3G and EDGE (Enhanced Data rates for Global Evolution), which is three times faster than GPRS (General Packet Radio Service). Vodacom says the technology will provide users with guaranteed speeds of 256Kbps and as much as 384Kbps to mobile phones.

"To make the user understand that affordable data at decent speeds is on the horizon, we will offer specials on GPRS, either by providing free data or lower tariffs, depending on the ruling by ICASA (the Independent Communications Authority of SA)," he says.

These specials are expected in the next month or two. Once 3G is introduced, consumer tariffs for GPRS and 3G will be standardised. Uys says users will receive guaranteed speeds of 256Kbps, while corporates will be able to purchase dedicated bandwidth up to 384Kbps.

"And with a new standard being developed for data transfer, we should see speeds increase to 2Mbps in the next two to three years," he says.

Complete solution

When approaching corporates, Uys says Vodacom will partner with other companies to provide a complete solution.

"Through Vodacom and its partners, corporates will receive a complete solution, allowing employees to download their e-mail in a matter of seconds, access their company network and its applications, as well as have video conferencing calls from their cellphones. We will also ensure seamless transition between wireless networks and the 3G mobile network," he says.

Vodacom will also be looking to take on Telkom in rural areas, rolling out Internet and e-mail access to people in rural areas and in schools, Uys says.

"And unlike Sentech, which is having teething problems in rolling out its new network, Vodacom simply has to upgrade its base stations to 3G. About R100 million has been set aside for upgrades in high-density areas for corporate customers. We hope to provide 3G access to consumers for the December holidays. Capacity will then be increased where needed and the 3G availability will be enlarged," he says.

The major metropolitan areas of Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal and the Free State will receive 3G first, followed by the rest of the country.

Uys says 3G and EDGE are also ideal for online multiplayer gaming, music downloads, video clips and video conferencing in real-time, and location-based services using a combination of current technology and GPS to provide exact positioning.

Advantage in market?

Vodacom and MTN were both provided three-month temporary commercial licences in May at a cost of R1.5 million.

Vodacom has access to research and technology from shareholder Vodaphone, which holds a 35% stake in Vodacom.

"Vodaphone has done a lot of research on 3G handsets, working to simplify menu systems and presentation, so we don`t have to reinvent everything. This will enable us to reduce costs and put services quickly into market," he says.

Vodacom has already submitted test data to ICASA on tests done with 3G technology and hopes to have its temporary licence converted to a permanent licence by the end of the year.

Related stories:
Vodacom, MTN in race to 3G
Cell C debuts GPRS

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