While a new WiFi voice calling service from AlwaysOn is not about to usurp mobile operator SIMs, it will serve as an effective test bed for WiFi offloading - and may ultimately prove to be a significant catalyst for movement in the market.
This is according to ICT experts and comes as Internet Solutions-owned WiFi provider AlwaysOn is about to launch a service that will offer the public an alternative to the mobile networks for voice calling.
AlwaysOn MD Hayden Lamberti says the new service - aimed at "showing people they have options" - will to a degree compete with SA's four mobile networks.
Set to be launched early next week, the service will cost users R50 per hour (83c per minute, on a per second basis) for calls to landlines and other mobile operators, while AlwaysOn to AlwaysOn calls will be free of charge.
Lamberti says users who register to use the service do not need to use it over AlwaysOn's WiFi network, but can use it over any WiFi or mobile data network. "Because 3G coverage is sketchy at best, [it] might sometimes give quality issues, but let's be honest - we are used to quality issues on mobile voice."
Africa Analysis analyst Dobek Pater says AlwaysOn will become a de facto voice over IP (VOIP) provider, but whether it will pose a threat to mobile operators will depend on pricing and ease of use.
AlwaysOn has over 2 000 hotspots spread across SA, with the majority of these in Gauteng, and one million monthly users.
"In general, I think, the threat will be very limited over the short and perhaps even the medium term, but long term the threat may be very real," says Pater.
Thin edge of the wedge
What is clear, according to analysts, is that the service will certainly spur movement in the space.
Ovum analyst Richard Hurst says wireless service providers and other entities that play in this space could prove to be the thin end of the wedge for mobile operator voice revenues. "I think that, combined with the likes of AlwaysOn, WhatsApp and other over-the-top (OTT) players could prove to be a significant and real threat to traditional voice revenues."
Pater says other players are bound to get in on the action, whether in the form of mobile virtual network operators, WiFi or other VOIP providers. "They would want to be able to offer more comprehensive services like voice, data and video.
World Wide Worx MD Arthur Goldstuck says it is in the data space - in terms of pricing - where real opportunity lies for AlwaysOn.
On the other hand, say commentators, the move positions AlwaysOn nicely in terms of future prospects of partnerships with mobile operators.
Pater says, ultimately, AlwaysOn may be setting itself up as a preferred partner to the mobile network operators, once the mobile VOIP and OTT competitive environment heats up.
Effective test bed
Goldstuck adds there has been ongoing debate about the need for mobile operators to use WiFi offload to take some of the pressure off their networks, which are laden with voice and data.
"Using WiFi hotspots would reduce the pressure and they haven't taken the initiative in pursuing that option, but the fact is it's been an unstated opportunity and was always likely that other entities might step in to fill the gap - and become a test bed for WiFi offload in the process."
And, while AlwaysOn's move may not frighten mobile operators, they will look more intently at options with regard to WiFi offloading, says Goldstuck. "I would not be surprised if this turns out to be a demonstration of how networks could use the AlwaysOn network. We could very well see a partnership being forged between AlwaysOn and the mobile operators."
AlwaysOn's venue partners include Airports Company SA, City Lodge Hotel Group, Wimpy, Woolworths, Absa, Tsogo Sun, Sun International, Mugg & Bean, Crown Plaza, Holiday Inn, Netcare and McDonalds.
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