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3G to help close digital divide

By Rodney Weidemann, ITWeb Contributor
Johannesburg, 20 Oct 2004

The growth of third-generation (3G) networks and technology in SA will be driven by innovative applications, says Christian Lacroix, Alcatel`s VP for Southern and Eastern Africa.

He believes the development of applications specific to the country, rather than generic ones applicable throughout the world, can also be a key driver in bridging the digital divide.

"Alcatel wants to play its part in overcoming the digital divide, but to do so properly requires cheap technology, and technology only becomes cheap when its volumes are high," says Lacroix.

"Another issue is that all subscribers in a market want the top technology, so we cannot offer different technologies for the different sides of the divide."

Lacroix says while it will take some time for 3G technology to reach a point where it will be widespread enough to play a role in levelling the playing fields, people need to remember that the same was said about GSM phones 10 years ago.

"GSM phones also started out as something that was expensive and aimed mainly at the elite, but through an increase in the volume of handsets, mobile phones have reached a point where the majority of citizens can afford one now.

"Based on the uptake of 2G and 2.5G technologies, I would say it will probably be around three to five years before 3G reaches a stage where it will truly play a role in eliminating the divide."

Pricing issues

According to Lacroix, one key problem that may affect the growth of 3G is the price of the handsets.

"Subsidised GSM handsets played a major role in making mobile telephony affordable, and for 3G to become similarly affordable, we will either need a lot of early adopters to drive the volumes in the market, or the handset manufacturers will have to consider a similar subsidisation scheme."

"The important thing is that with the legal framework in SA changing, the market should become more dynamic, leading to new suppliers with new applications entering the market, and this will help to drive adoption of the technology."

He says Alcatel also has several projects under way in the country that are contributing to the upliftment of underprivileged communities.

"The Makuleke Pilot Project in Limpopo is part of the company`s Digital Bridge Initiative, and is a joint venture with Vodacom that allows some 300 cotton farmers access to market information."

Other projects include a Web development project to help the Self-Employed Women`s Union in rural KwaZulu-Natal to market its wares; Presley Infotech, an SMME development that offers young black entrepreneurs opportunities; and the organisation`s ongoing work with the Telkom Centre of Excellence at the University of KwaZulu-Natal.

Lacroix says the company has begun the selection process to find a replacement for former CEO Thoko Mokgosi, who recently joined HP.

"We are currently interviewing candidates and are seeking someone with the correct BEE credentials, but it will probably be around three months before we have someone on board."

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