Though SA's telecoms sector boasts the continent's most advanced networks in terms of technology deployed and services provided, delays in suitable frequency spectrum allocations are inhibiting next-generation technologies from growing.
This is according to a report published yesterday by Research and Markets, giving an overview of trends and developments in the local telecommunications market.
The research firm says that, in a virtually saturated voice market, four mobile networks - Vodacom, MTN, Cell C and Telkom - are competing for market share in the next growth wave - mobile broadband.
It also points out that 3G/HSPA mobile broadband services now rival available DSL fixed-line offerings in terms of speed and price, and have consequently taken the upper hand when it comes to subscriber numbers.
All four operators are preparing for the introduction of the next generation of mobile technology, LTE (also referred to as 4G), but are being held back by spectrum allocation delays.
An independent report by analyst firm Analysys Mason, commissioned by the GSMA, concurs, saying spectrum allocation and the levying of additional taxes on mobile services are the major barriers to wider mobile broadband deployment and the setting up of LTE in SA.
“It is imperative that ICASA provides clarity over future spectrum release plans and offers assurances that spectrum awards will follow international best practice. Harmonised spectrum allocations must be made to bring SA in line with the rest of the world, and to maintain the momentum of HSPA and hasten the arrival of LTE,” says GSMA spokesperson Ross Bateson.
Research and Markets adds that, while emerging as the country's leading broadband providers, the major mobile operators are also branching out into fixed-lines, fibre backbone networks, international fibre connectivity, mobile banking and entertainment in a rapidly converging environment.
Fixed-line incumbent Telkom has reacted by rolling out its own 3G mobile network and the country's first commercial WiMAX service, but various competitors, including second national operator Neotel, are hot on its heels rolling out the same technology, the firm points out.
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