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SA networks ahead of cell innovation

By Leigh-Ann Francis
Johannesburg, 06 Oct 2010

SA has seen an influx of high-end smartphones, which will likely put high demands on the country's mobile networks. Despite ongoing criticism of network coverage and quality, analysts argue that the networks are among the best globally and ahead of the innovation curve.

Mobile consumers have been treated to a selection of new smartphones with the recent unveiling of the Samsung Galaxy X, the Apple iPhone and, today, the highly-anticipated BlackBerry Torch.

Vodacom says the device will be available from Vodaworld and other major Vodacom outlets by the end of the week. MTN says it will deliver the device by next week and Cell C will offer it during November.

While the devices have been welcomed by the mobile consumer, doubts remain as to whether the country's networks would be able to keep up with the high usage demands required by the devices.

In addition, the rate at which cellphone manufactures are innovating is exponential and doubts have been cast as to whether Vodacom, MTN and Cell C's networks will be able to keep up with the higher network demands.

Keeping up

WWW Strategy MD Steven Ambrose says SA's mobile networks are way ahead of the innovation and curve. He explains that 3G has become the de facto alternative to fixed-line Internet in the country to such an extent that the smartphone is simply another dimension to an already mature offering.

He points to the introduction of the iPhone in the US market, where operators had to make significant adjustments to keep up with a surge in data demands.

In the South African context, the high data demands have already been met and so the networks are well prepared for the demands of new high-end devices, maintains Ambrose.

Frost & Sullivan industry analyst Spiwe Chireka agrees, saying SA's mobile networks are on par with global counterparts as all the three operators have now delivered HSPA+ networks.

MTN and Vodacom have also begun testing Long-Term Evolution (LTE) technology in the country.

BMI-TechKnowledge MD Denis Smit agrees that the industry is advanced, but cautions: “The operators will be able to keep up with these phones if they manage to secure more spectrum. Should they fail to secure the needed spectrum, they will encounter difficulties.”

Smit refers to the auctioning of high-frequency radio spectrum in the 2.6GHz and 3.5GHz band. The sought-after spectrum is ideally located for high-speed connectivity, specifically for LTE and WiMax technologies.

Preferential treatment

Nonetheless, analysts are in agreement that the current network status of the three operators will suffice to meet the demands of the high-end phones.

Chireka explains the networks have the tools and capabilities to give preferential network treatment to their high-end users. She explains this is part of the mobile operator's business strategy to get more out of their high-paying consumers.

However, this may also be a downfall, as Chireka maintains that affordability remains the greatest hurdle in the South African context to the uptake of smartphones.

She explains that, although the consumer stands to benefit from the data price war under way between the operators, the cost of the device is still out of reach for many.

Whether the preferential treatment will be implemented remains to be seen, she says, but it will go a long way in quelling concerns of network limitations for smartphones.

Managing quality

While the networks have been commended for technological soundness, quality of the service remains an issue among South African consumers.

SA's mobile networks have yet to be fined for poor-quality network coverage by the Independent Communications Authority of SA (ICASA).

The End-User and Subscriber Service Charter regulations, finalised in July 2009, call for operators to maintain 95% network service availability over a period of six months and an average of 3% or lower in connectivity failure rate. Failure to do so is supposed to result in a R500 000 fine.

However, ICASA has confirmed that to date no fines have been issued, saying it is continuously monitoring the mobile networks for adherence to the regulations.

Vodacom claims it comfortably exceeded the 95% network availability target and its connectivity failure rate was significantly lower than the stipulated minimum of 3%.

MTN makes similar claims: “The connectivity failure rate of the MTN network is well below the international minimum standard of 2% dropped calls,” notes Robert Madzonga, chief corporate services officer at MTN SA.

Even third mobile operator Cell C, which publicly admitted and apologised recently for poor network coverage and dropped calls, claims it has exceeded the 95% network service availability threshold over a period of six months, in with section 4.1 of the regulations.

Cell C's connectivity failure rate has also not exceeded the 3% threshold over a period of six months, in compliance with section 4.6 of the regulations, maintains the company.

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