Broadband over WiMax: A recipe for successful African fixed-mobile convergence

Fixed-mobile convergence is presently highly topical in the South African telecommunications market and WiMax technology is likely to take it from concept to success. As deregulation of the industry gathers pace and the introduction of services from the recently licensed second network operator draws near, fixed-mobile powered by WiMax offers a solution for the distribution of connectivity into relatively large areas (such as neighbourhoods or business districts) at a low cost and with a high degree of convenience.

However, it may come as something of a surprise that fixed-mobile convergence (FMC) is nothing new. It may come as even more of a surprise that for all the apparent benefits, the concept has not enjoyed a great deal of success elsewhere in the world.

In the United States, for example, companies have made attempts to deliver connectivity over wireless networks for over 10 years. Businesses like Winstar and Teligent launched broadband wireless services - but were met with limited acceptance. Sprint Telecom introduced fixed wireless using Multipoint Microwave Distribution Service; targeted at the consumer market, the venture cost the company over $1 billion in unrealised gains.

Back then, the contributing factors to the failure of FMC were myriad. The MMDS technologies were proprietary, spectrum availability was limited and microwave depended on line-of-sight to deliver a decent signal. With a relatively small market for broadband (despite the fact that the nineties witnessed a telecommunications boom) operators could not achieve economies of scale; coupled with poor quality of service and the absence of long-term commitment from operators, it is hardly surprising that consumer acceptance of wireless broadband was lukewarm at best.

Since it failed in far more developed markets, why should FMC succeed in South Africa - and indeed in other African countries?

One simple justification for the introduction of connectivity via FMC is the reality that there simply isn`t enough copper or fibre on (or in) the ground. Demand for connectivity is ramping up considerably; according to www.internetworldstats.com there are presently 23.5 million Internet users across Africa, a figure which has grown 424% since 2000. The estimated population of the continent, meanwhile, is some 800 million people - there is enormous room for growth. And as convergence of voice and data become a reality, it is likely that the massive growth will continue, as people want to use inexpensive telephony.

That shortage of copper and fibre means operators need a handy solution which will get the connectivity to their potential clients. WiMax is that solution. Instead of the multiplicity of proprietary technologies, WiMax is an industry standard. It does not require line of sight and spectrum is readily available. It delivers the bandwidth and the quality of service which is required for an effective converged network, and a single base station can distribute a powerful signal over a wide area of some 30 kilometres. In Africa - as indicated - it is quite possible for operators to achieve massive economies of scale given the potential market demand for affordable connectivity (although business models will have to be based on potentially low average revenue per user given the condition of poverty of much of the populace).

FMC is a highly viable concept model which meets the unique demands of Africa very well; with WiMax as the enabling technology to bridge the so-called `last mile` and provide access into wireline networks, it is becoming a reality in South Africa and beyond, with several successful deployments already operational, such as those of the municipalities of Umhlatuze, Solplaatjies and Buffalo City and many more.