MTN downplays 3G hopes

While technologies like EDGE (Enhanced Data rates for Global Evolution) and a third-generation (3G) network will provide high-speed data connections to users, it won`t happen overnight, says Karel Pienaar, MTN CTO.

Speaking at an MTN demonstration of EDGE and 3G technologies at the MTN Innovation Centre yesterday, Pienaar took a cautious view on when consumers would have access to 3G technology.

"In 1997, the data boom started with SMS, then we launched GPRS (General Packet Radio Service) in 2002, and by upgrading our current infrastructure and then gradually phasing in 3G, we`re going to bring broadband wireless and 3G to everyone in SA, followed by the rest of the African continent," he said.

Pienaar said MTN initially projected 3G roll-out to consumers early in 2006, but with the advances in technology, 3G will most likely be rolled out sooner.

"And once this technology is rolled out, I am confident 3G will be far more dominant in the market than other technologies like WiFi and Wimax," he said.

[VIDEO]Handsets are the biggest inhibitor to rolling out 3G, said Pienaar.

"There is not a wide variety of 3G-enabled phones, which means the cost of those handsets are high. We need the prices of 3G-enabled phones to come down to the average price of normal GSM phones, because we`ll only see the functionality on 3G phones when they are being pushed to the mass market."

Pienaar also spoke out against Telkom`s monopoly, saying a competitor is needed to drive down the prices of service to the cellular networks.

"We need bigger pipes from our base stations to our switches to carry the increased load of data and the current price of those links is too high. With a monopoly in the market, we need a competitor to drive prices down. While policy has been put in place to create competition in the market, we need more support to see that a competitor enters the market."

[VIDEO]Pienaar said MTN had rolled out EDGE capability to some of its base stations during the last three months. EDGE will provide data speeds three times as fast as GPRS, reaching 150KBps. With more EDGE-enabled phones entering the market, EDGE could be made available to users next year.

While Vodacom has said it hopes to provide 3G technology to consumers by December, Pienaar said he will "eat his hat" if pervasive 3G services are rolled out by the end of the year.

Pienaar said that when 3G is made available, it should have direct benefits to the consumer in terms of functionality and cost.

"Because 3G technology gives the network greater capacity, costs on calls and data will be cheaper, and we will be moving those cost benefits across to the consumer. The reduction in call revenue is expected to be matched by increased revenue from data."

Pienaar said 3G will be rolled out in metropolitan areas, giving users connections of up to 388KBps. The next technology, HSDPA, which will sit on top of a 3G network, is expected to give download speeds of 3.7MBps, he said.

Increased data speeds will enable effective download of e-mail, the streaming of video clips to phones, multiplayer gaming, video conference calls and broadband Internet access.

"The technology will transition the way we communicate from voice to multimedia. I am confident that in five years most people will be using 3G phones and communicating with one another using video."

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