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African ISP market goes mobile

Rodney Weidemann
By Rodney Weidemann, ITWeb Contributor
Johannesburg, 09 Oct 2003

MTN Airborn, Sun Microsystems and Systemsfusion have joined forces to create a pre-packaged provider (ISP) solution, bundling Sun blade server and -attached storage hardware with Systemsfusion`s Evolutionware suite and a range of value-added services and software.

"Hampered by a lack of fixed-line infrastructure, Internet penetration stands at less than 1% in Africa, meaning that GSM operators are well positioned to capitalise on the growing demand for Internet access and e-mail services on the continent," says Zak van der Merwe, senior manager of business development at MTN Airborn.

"Communication over distance has long been a critical need in Africa, because families are often split up because of migrant labour and similar issues, which is why up until now the mobile operators have primarily focused on voice traffic, and have let the data side of things fall by the wayside."

He says there is a desperate need for Internet services in Africa, and with a predicted growth in user rates of between 400% and 500%, this provides an ideal revenue opportunity for GSM operators who want to increase annual revenue per user by giving customers access to data services.

"GSM operators generally have a greater geographical footprint in Africa than fixed-line operators, as well as having the infrastructure to cater for the prepayment of ISP services in areas where cash is still the predominant method of payment," says Nevo Hadas, VP of marketing at Systemsfusion.

"There is something of a shortage of technical skills in Africa, which only makes it more difficult for voice providers to take their eye off the ball and focus on data, whereas we have studied the UK and European markets, so we understand what is required to provide a proper ISP."

Because moving into an ISP market involves a steep learning curve across multiple technologies for a GSM provider, Hadas says Sun and Systemsfusion will leverage their experience in the ISP space to get the provider up and running in the quickest time with the minimum complexity.

According to Jan Dry, solutions and technology manager at Sun Microsystems, MTN has an infrastructure and network across much of Africa that will enable the partners to provide a First World ISP service.

"The beauty of this service will be that it is an enabling technology. It will allow users to create e-mail or product bundles, set up voice over IP networks and develop many other possible revenue-generating options, depending on what works best for them," he says.

"The technology platform provides the GSM operator with every component it needs to create an ISP - from the server and storage hardware to ISP services such as e-mail, Web servers, proxy servers and Web mail as well as services such as customer care, network management and billing modules."

"Looking at it from a convergence perspective, Africa has the opportunity to leapfrog technologies by going straight to mobile access, meaning the continent can avoid all the technology growth pains First World markets have suffered," says Van der Merwe.

Related story:
Unisys partners with SA`s Airborn to take mobile Internet to global markets

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