Mobile operators need to embrace the relatively new technology of TV white spaces (TVWS), or face competition that offers much cheaper pricing, filling a gap in the local market as government works to bring down the cost to communicate.
TVWS essentially uses the spaces between television channels to provide broadband, an opportunity that will increase once SA finally moves off analogue television, although it can be rolled out as soon as the regulatory framework is wrapped up. Microsoft SA MD Mteto Nyati says if mobile operators do not embrace the technology, it will compete head-to-head with their current offerings.
Although TVWS is very cheap in comparison to other offerings - at between R20 and R30 a month for uncapped services - it is currently not as fast as long-term evolution, or fibre. However, Nyati notes speeds will improve when the technology advances.
Price contender
Ovum analyst Richard Hurst says SA needs to look at innovative ways of delivering cheaper broadband, and TVWS is one solution. He says at the speeds offered, the price suggested is "wow".
Currently, Vodacom offers a GB of data at R79, while Cell C offers 2GB (and an additional 3GB for late-nigh surfers) at R99. Telkom Mobile's 2GB (with 1GB additional night time data) is R149, and MTN provides uncapped data from R1 699 a month.
Hurst says TWVS offers real potential to shake-up the market and is a great platform to increase Internet penetration. He notes it is very cost-competitive and those who do not want higher speeds may well migrate to TVWS technology. A speed test performed at Doasho High School, in Limpopo, last week, showed upload speeds of 3.58Mbps and download speeds of 2.49Mbps.
Nyati hopes the operators will embrace the new technology, offering it as a complementary solution for those who do not want fast broadband. He adds, however, that uptake of TWVS could see the addition of new players in the market. "This is serving a need; it is serving a real need."
Hurst says, for the incumbents to remain relevant, they will need to "buck up their game". He notes the real threat to current operators will come from a series of small battles, which could lead to a lot of bleeding. "Every bit of competition will increase the tempo of the game and the incumbents will have to follow with offerings that make commercial sense."
Questions abound
Cell C spokesperson Karin Fourie notes TVWS technology is in its trial phase and radio frequency spectrum has not yet been allocated by the International Telecommunication Union, or accommodated in the SA National Radio Frequency Plan for this purpose. "In the absence of licensed spectrum and associated spectrum fees for TVWS, Cell C cannot comment on the implementation of such technology."
Richard Boorman, speaking on behalf of Vodacom, says it is an interesting initiative and something the operator is keeping an eye on. "There are some regulatory questions that still need to be cleaned up, but I think we need to look at all alternatives that may help alleviate the current scarcity of spectrum which is holding back the provision of mobile broadband in SA."
Tenet's TVWS manager, Arno Hart, notes interested parties in the space are working with the Independent Communications Authority of SA (ICASA) to develop a regulatory framework. He says the regulator has assigned a budget and a team to develop the framework, with a view to a public review at the beginning of next year, paving the way for commercial deployment in 2016. ICASA was unable to confirm this process as its business plan has yet to be approved.
Hurst questions how the technology will be commercialised once the regulatory aspects are resolved. He suggests the service could perhaps be bundled along with television offerings by some of the smaller players.
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