Access to broadband is set to become the "digital divide" of the future, and will drive fixed-line networks, which are expected to grow at a faster rate than mobile networks, says Transtel CTO Dr Angus Hay.
Speaking at ITWeb`s Wireless 2005 conference last week, Hay said SA`s telecommunications landscape is characterised by a lack of competition, with a few large players dominating the fixed and mobile markets.
"There is an increasing realisation that we are falling behind," Hay told delegates at the conference.
However, he said the telecoms regulator, the Independent Communications Authority of SA, is starting to understand its "real" role and government is becoming a facilitator for the industry while some hope remains for a "repaired" Convergence Bill.
Discussing the "telco of the future and the future of the telco", Hay pointed out that a telecoms company cannot be seen as a telephone company. It is, he said, a provider of infrastructure and integrated ICT services, as well as an integrated enterprise ICT provider and a channel for multimedia content.
The telecoms company of the future will provide true broadband access, and more than just connectivity. Hay argued that the telco of the future would be a driver of enterprise service revenue and not costs, with voice merely being one of the applications offered.
Meanwhile, Hay stated, broadband is already the driver of fixed-line network growth, and, with more than 150 million fixed lines in SA, growth in this sector is expected to be faster than mobile.
"The new 'digital divide` is about broadband, and not telephones. Basic telecoms and Internet are colliding," he said, adding that, in future, telecoms companies will offer bundled services, including voice, video and Internet.
Fixed-mobile substitution is moving faster than fixed-mobile convergence, Hay claimed, adding that broadband is restoring the positive fixed-line trend.
Globally, he said, the telecoms market is reaching the end of the mobile explosion, and is passing the point of inflection in subscriber growth. Mobile average revenue per user will continue to decline and regulators will continue to limit mobile and interconnect charges.
"Telecommunications have created the global village, and supports service-based economies. Basic telecoms business models are being redefined and telecoms are fundamental to any economy," Hay stated, adding that a few multinational players are increasingly dominating the global market.
Share
