MTN positive on PTT

Johannesburg, 14 Nov 2003

MTN says push-to-talk (PTT) technology has huge potential and it is developing a business model while awaiting standardisation from handset manufacturers and clarification over regulatory issues.

Farhad Khan, MTN GM of business segment marketing, says PTT`s ability to give a cellphone a walkie-talkie-type functionality, where the user connects directly on a one-to-one or one-to-multi-party basis using GPRS, could appeal to a number of niche markets in SA.

"There is a definite potential for the uptake of a technology like PTT in the corporate and public service sectors as well as the youth market," he says.

Khan says that as with America, MTN expects it would roll-out the service to corporates first, followed soon after by an offering to individual users.

He says PTT could replace two-way radio services like Tetra in the public sector. "Unlike Tetra, PTT does not provide an instant connection (with a delay of about two seconds), but it could still provide the same functionality while costing less."

PTT also has huge potential among the youth market and older users, says Khan. "From the consumer point of view, sending an SMS takes time while PTT`s instant communication could prove more popular."

The obstacles

Khan`s first concern is that there needs to be standardisation between handsets so that users with different handsets will still be able to communicate with each other via PTT.

"We are aware that Nokia, Motorola, Siemens and Ericsson have made a submission to the Open Mobile Alliance standards body to ensure interconnectivity. We are hoping they will make a ruling by early next year."

Khan says the biggest local issue standing in the way of PTT is that it is voice-over-IP (VOIP) and therefore there is a question over its legality.

"We have already tested the technology and are researching the technology. We are also having internal discussions about the legality of PTT because VOIP is such a grey area. Once those are concluded, there will then have to be clarification from ICASA [the Independent Communications Authority of SA] as to whether it is legal or not."

From an infrastructure point of view, Khan says it will be easy to launch PTT once these obstacles have been overcome.

"With GPRS already in place, we would simply need PTT servers supplied by vendors and then we would be able to launch the service."

While MTN has yet to make a decision on its pricing models, Khan says there may be different models with corporate users possibly being charged per megabit of data, while private users could be charged on a pay-as-you-use or subscription basis.

While Nokia, Ericsson and Motorola will release PTT-enabled handsets next year, Khan says it is impossible to predict when the infrastructure will be up and running as there are too many variables affecting its roll-out.