A Brazilian trade delegation highlighted some telecoms trends in the South American country, at this week`s Brazilian Software Partnership Seminar, that could likely also affect the South African sector.
Information technology company CPqD`s international business director, Paulo Xavier Filho, spoke of the change in the telecoms sphere since the 1990s.
"Although the technology has been around since the 1990s, it is only now that we are converging voice, video and data," he explained.
Filho believes the public switch telephone network (PSTN) will remain an active industry factor, because of its outstanding quality and reliability, despite the competition from technology such as mobile and voice over Internet Protocol (VOIP).
Filho also argued that despite VOIP`s shortcomings, it is here to stay. "It is affordable and gives the impression of PSTN quality," he said.
He added that broadband penetration will continue, but profitability will decline, noting that broadband connections will outnumber dial-up in the near future, as it is the best platform for full communication.
Price focus
"Broadband providers will focus on price, not value, and use will revolve around PC applications," he said.
Filho explained that WiFi will continue to grow as a revenue generator, and it is duelling for demand for broadband in homes.
With regards to WiMax, he said although it is a potentially disruptive technology, and a direct threat to wireless operators, it will accelerate broadband deployment in rural areas and small towns.
Filho described "fibre to the home" as being the most potent weapon for fixed operators due to its unequalled reliability. "Fibre is the future," he said. "It is a viable investment that pays for itself."
The 3G outlook is not very positive, he stated. This is due to a disconnect between what mobile networks can offer and what customers want. "3G should complement 2G and not replace it, as many have been doing."
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