Distant sound of thunder

South Africa`s wireless landscape looks rosy, and most industry observers agree a boom is fast approaching. The majority even feel that SA - the traditional late-adopter - is on par, or maybe even a little ahead, of the rest of the world.

While monopolistic market conditions, and prohibitive pricing practices, hindered the development of fixed-line networks, government`s efforts in recent years to liberalise the market and encourage competition are opening the door for wireless technology.

Industry experts are quick to point out SA`s keen interest in wireless technology in the enterprise space, as well as, increasingly, in the commercial sector, as evidence of the general appetite for wireless.

Yet there is an overall feeling that the country`s enterprise space is somewhat slow on the uptake, in part, seemingly due to a prevailing attitude that employees need to be bound to a desk in the office for at least some of the time.

Delia Macmillan, UK-based Gartner research VP in mobile and wireless, recognises this. For example, she says, SA has widely adopted the use of SMS, compared to many global markets and is now proving to be an early adopter of 3G, which is seen as the most commonly adopted wireless technology among the country`s corporate sector.

"But, some are still shy to invest," Macmillan comments, adding that traditional business culture has, in some instances, been a restrictive influence, as many organisations feel reluctant to "lose personal touch" with their employees through the adoption of wireless technology.

Things within the wireless sector are just about to start happening. Wireless technologies, such as WiMax, are just starting out.

Richard Hurst, telecommunications analyst, BMI-TechKnowledge

Even so, she claims, this will be overcome in the near future, especially when businesses recognise the cost saving potential that flows from wireless implementation.

In this context, the European business sector has been a somewhat bolder mover in terms of wireless adoption, showing a greater willingness to try out new technology and take chances, partly driven by the confidence instilled by successful GPRS implementation.

"There is generally a fast adoption phase in Europe, with a huge uptake in vertical markets, which ensures new technology takes off quicker," Macmillan explains.

Perhaps another stick in the mud for wireless adoption is the industry regulator`s unwillingness to take a firm stance on the country`s fixed-line monopoly, Telkom, which is slowing the introduction of much-needed competition within the telecommunications sector, she says.

Macmillan also notes that feedback from South African businesses has shown that many are still unsure about legislation that governs wireless, with many feeling that laws are restrictive.

"This perception is having an adverse economic impact on the industry, as it does not create an environment open to investment."

However, she claims, the business sector is beginning to exert pressure on the telecommunications regulator, the Independent Communications Authority of SA (ICASA), to open up the sector and provide more clarity on legislation.

"The next six months will see the introduction of the second national operator (SNO), and the sector is waiting to see what will happen. Disappointingly, feedback from South African businesses has been that there is little difference between the tariffs of mobile service providers, Vodacom, Cell C and MTN, so there is some scepticism about the SNO`s influence."

BMI-TechKnowledge telecoms analyst Richard Hurst is optimistic about the long-term prospects for wireless in SA, alluding to the country`s enthusiastic adoption of mobile GPRS technology.

In total, there are 25 million mobile users, and Hurst believes market saturation can be expected at between 31 million and 32 million subscribers.

"Things within the wireless sector are just about to start happening. Wireless technologies, such as WiMax, are just starting out," he remarks. But he also warns that clarity is required regarding the final shape of the Electronic Communications Act (formerly the Convergence Bill), for the country to completely move away from a technologically agnostic frame of mind.

"Enterprise wants to be informed about the assignment of spectrum and how it will be managed. A lack of clarity about legislation holds the danger that SA could fall behind the adoption of wireless technology.

"This is not only a concern for the guys who wish to roll-out wireless solutions, but I`m sure the SNO would also like to see some clarity."

But Hurst also acknowledges that SA has so far seen a relatively slow roll-out of wireless solutions since the arrival of wireless technology, and feels that a low quality of service has seen wireless service providers already missing an opportunity to compete with Telkom for market share.

"They could even have jumped ahead of Telkom with the right quality of service, but until now there has been no effective wireless network that has been able to deliver. And, initially, this was during a time when customers would have been willing to go with anyone but Telkom."

Nonetheless, Hurst also believes a wireless upswing is imminent, but both he and Macmillan foresee teething problems with large-scale wireless adoption by business.

At present, Hurst argues, South African organisations possess little in the way of wireless technology skills, in contrast to a well-developed skills pool in the GSM and 2.5G areas.

"It will be difficult to pull away skills and move them to 3G. As such, network operators may find themselves with silos of expertise with no integration. There will be teething problems, and initially wireless networks will not be optimised.

"However, except for hyper-developed countries such as Sweden and Finland, the rest of the world is more or less in the same boat. Training and education will be critical, as networks` abilities to provide seamless quality services will be key," he says.

Macmillan is also of the opinion that new technology may be difficult to integrate with the country`s existing networks.

"In many cases companies are still investigating what is possible and what is not in terms of wireless solutions, and employers are often not even sure what they should allow employees to do with wireless technology," she says.

Despite this, many organisations have especially taken to 3G wireless applications as the rewards of improved productivity and cost-savings are beginning to become apparent.

"Wireless technology has not only facilitated the process of communication, but also facilitated mobility and connectivity to visiting company reps, who need access to their company`s intranet to receive immediate up-to-date information," says Drive Control Corporation`s (DCC) network specialist Pierre Holtzhausen.

Industry is pushing the regulation to provide more clarity, which would be a boost to wireless roll-out.

Hendrick Bredecamp, manager for mobile systems, Ericsson

In addition, organisations are beginning to dabble in the concept of increasing the mobility of their managers who do not leave the company premises, but are no longer tied down to their fixed PCs, he explains.

Danie Steyn, Intel business development manager, agrees, saying 3G is enabling mobile sales staff to remain connected, and is also proving useful in terms of the "office warrior", specifically where movement is required between regional offices.

"There has been a definite productivity improvement due to this; companies are starting to justify the expense on additional laptops for their employees," Steyn adds.

However, there seems to be some disparity in the industry regarding which sector is most likely to adopt wireless technology first, with many saying wide acceptance is more likely to come from the private sector.

Heinz Stephan, products and technology director at Comztek, feels wireless networking is experiencing more rapid growth in the home environment, rather than in the corporate sector.

"Growth in the office will be slow until the mobility culture and technology behind it improves. In the home and small office environment, however, it is a different scenario as the advantages of wireless networking are becoming better known," he notes.

Stephan contends that a typical large company operating a wired local area network (LAN) or a wide area network (WAN) system has already made a large investment in its infrastructure.

"Combine this with the fact that wired network technology has advanced to the point where gigabit transfer speeds are the order of the day and most, if not all, companies use sophisticated switches instead of shared media, and you have a strong argument for the use of wired networks.

"The bottom line is that it is switched, faster, more reliable and more secure. The wireless network at best offers a data rate of about 125Mbps in its latest 802.11g turbo incarnation," he explains.

Stephan also points out that security is a factor causing concern among South African organisations, as the most popular wireless encryption protocol, WEP, has long since been cracked.

"There are other encryption tools, and WEP 2 promises better security, but companies want security now, not tomorrow."

Security around wireless networks seems to be an issue on which few industry observers agree, with some arguing that wireless security protocols still have some way to go, while others downplay the wireless network vulnerability. The latter claim security measures, akin to those for wired networks, are available, but say many wireless users fail to implement adequate security policies.

Gavin Slevin, product manager of client products at Dell, maintains that security is the biggest challenge in terms of wireless roll-out, as IT administrators are often not aware of what security precautions are required on wireless networks.

This, and not a lack of skills, may hamper the swift adoption of wireless technology in SA, he claims.

"Wireless technology requires a different protocol to wired applications, but the skills-set is relatively simple. The technology is not very complicated," Slevin says.

Enterprise risk management group Magix director Amir Lubashevsky shares the view that SA`s enterprise space is getting carried away with the implementation of wireless devices, often without paying too much attention to security factors.

"There needs to be a balance between security and productivity, and wireless creates potential security breaches. 3G cards can be given to any employee, but how do you ensure data transferred from one side to the other is secure?" he asks.

Lubashevsky says corporates need to realise that granular protection should be implemented for wireless applications and devices, and claims that due to the many unknown risks associated with this technology, many organisations may be reluctant to implement wireless solutions.

He points out that "digital membrane"-type products have been successful in nullifying vulnerabilities created by wireless and mobile devices.

"A digital membrane will determine whether a specific user will be allowed access to a network, the level of access and for what purpose. Such a solution is seamless and tamper-proof and may only be accessed by IT administrators or supervisors.

"There needs to be a proper enterprise security policy in place, which does not neglect WiFi. Wireless risks have only recently become apparent and many corporations may start to see 3G as more of a danger than a useful solution, while mobile operators may realise that 3G can`t simply be sold as a gadget," he states.

If security surrounding wireless technology is a matter of dissent between industry players, legislation is an even greater source of disparity and certainly one that is causing confusion.

BMI-T`s Hurst feels more clarity is needed before wireless implementation becomes a full-scale reality, a view shared by DCC`s Holtzhausen, who believes wireless uptake could have followed that of mobile telecommunications.

Hendrik Bredenkamp, Ericsson`s manager for mobile systems, argues that legislative confusion is creating uncertainty among organisations about when and what applications to launch.

"The industry is pushing the regulator to provide more clarity, which would be a boost to wireless roll-out and would probably also drive down the pricing of wireless technology," he says.

Meanwhile, industry players such as Lubashevsky admit that legislation is an obstacle, but does not see it as the biggest problem facing wireless adoption.

"We are over-regulated, but that will change as a result of market forces. Legislation will probably remain unclear, but it`s not going to be an inhibiting factor," he says.

Even ICASA admits many within the sector do not seem to understand legislation governing wireless implementation.

However, Lee-Ann Cassie, ICASA`s manager of telecoms enforcement, maintains the laws and policies governing wireless technology exist.

"It must be realised that anyone providing a telecommunications service in SA needs to be in possession of a telecommunications service licence, unless such a person is exempt from licensing, all of which is subject to the provisions of the Telecommunications Act. The Telecommunications Act not only provides the legal framework for the provision of telecommunication services, but also for the use of telecommunication facilities.

"The use of wireless technology for the provision of telecommunication services constitutes the use of telecommunication facilities; the use of which must be done under and in accordance with legislation," she says.

WiMax technology is expected to be considerably cheaper to deploy.

Thomas Makore, CEO, Spescom Telecommunications

Cassie adds that there are several categories of telecommunication service licences. Within these categories there are two types of licences pertaining to the use of wireless technology, which would fall into the categories of private telecommunications networks (PTN) and value-added network services (VANS), where there may be a lack of understanding regarding legislation governing wireless implementation.

PTNs, Cassie explains, are networks operated principally and integrally related to the operations of a business, such as a network within an organisation that facilitates internal communication. VANS provide commercial services, which generate revenue for a licensee.

"Wireless facilities have been used since the advent of mobile cellular telecommunication service (MCTS) licences to provide mobile cellular telecommunication services. Telkom, in terms of its licence to provide public switched telecommunication services (PSTS), is also entitled to make use of wireless facilities to provide a fixed wireless service, which does not permit call handover between cells.

"However, the 2001 amendment to the Telecommunications Act entrenched legislative entitlement to MCTS licensees and PSTS licensees for access to the 1 800MHz and 3G frequency spectrum bands," Cassie says.

She says the fact that MCTS and PSTS licensees have legislative entitlements to the 1 800MHz and 3G frequency spectrum bands, does not preclude licensees, who are entitled to approach the authority for access to frequency spectrum bands, from doing so.

"There seems to be confusion regarding the use of telecoms facilities by VANS licensees. While it may be seem to be currently somewhat restrictive, regulation of the use of telecommunication facilities by VANS licensees must take place under, and in accordance, with policy encapsulated in current legislation. The regulatory framework for VANS licensees are thus in accordance with the Telecommunications Act and in line with the ministerial determinations which were promulgated in September last year.

"The much-talked about convergence legislation may, however, change the landscape to a certain extent. But this is not yet finalised, so no legal inference can be drawn from there."

She also points out that from 1 February 2005 VANS licensees are no longer obliged to obtain their telecoms facilities from Telkom for the provision of value-added networks.

However, with regard to the use and obtaining of telecoms facilities for the value-added network service, under the new terms and conditions pertaining to VANS, no self-provisioning is allowed by VANS.

"VANS are entitled to obtain their facilities from 'any other person` duly licensed to provide them with telecoms facilities. A VANS cannot, for instance, if it wishes to use wireless telecoms facilities for the value-added network service for which it would need access to frequency spectrum, approach the authority in its own capacity," Cassie says.

In terms of PTNs, she says that if a PTN is situated on a single piece of land, or contiguous pieces of land owned by the same entity, there is no obligation for telecoms facilities of the PTN to be obtained from Telkom or a PSTS licensee.

"If, however, the land issue is not met, the facilities have to be obtained from Telkom or PSTS licensees. A public road often cuts across two buildings of a commercial entity operating a PTN - this means the land is no longer a single piece or contiguous. As such, the facilities have to be obtained from Telkom or a PSTS licensee."

Cassie also dispelled the commonly held misconception that the industrial, scientific and medical band is unlicensed and, as such, the frequencies within this band can be used without regulation.

"This band is by no means unregulated. There exist radio regulations which govern usage within this band."

While most industry observers agree that a wireless boom is around the corner, many also agree WiMax is the next-generation technology that will be widely adopted by the South African enterprise space.

3Com network consultant Wolfgang Held explains that wireless technology uses the 802.11 a, b or g standard, with the 11g standard being the most popular among corporates, due to its backward compatibility, range and speed. This standard offers a connectivity speed of 54Mbps within the 2.4GHz spectrum.

The next wireless technology development is the 802.16 standard, which is WiMax, says Held, adding that this standard will offer infrastructure for greater geographical scope, and will be a wireless broadband alternative to Sentech and iBurst.

"Typically, WiMax will offer greater speeds - more than 100Mbps - and will be ideal for building-to-building connections and cover greater geographical distances. WiMax will be suited to wireless broadband ISP-type services," he says.

However, the 16 standard has not yet been ratified, and many companies are waiting for finalisation before launching 16-based offerings.

"WiMax is still a way off - it`s currently in the pilot phase in SA."

Held claims Telkom is understood to be experimenting with 802.16 technology, which would give it the edge in the wireless arena. Essentially, he explains, the 11n standard offers aggregation for multiple channels to boost speed, and offers better performance than 11a or 11g turbo mode.

Spescom Telecommunications CEO Thomas Makore argues that one of the major hurdles to be addressed by ICASA is issuing of licences and bandwidth for WiMax access providers.

"WiMax technology is expected to be considerably cheaper to deploy and quicker to realise revenue compared to fixed-line broadband deployment. Hence it will provide a viable alternative to consumers and the industry at large.

"The challenge that remains is the cost of broadband. In terms of technology and fixed-mobile convergence, the technical solutions exist and it`s now a matter of planning, scaling and deployment of technology that will provide a richer service experience for users," Makore says.