Telkom is planning to introduce WiMax services in early 2007 to complement its ADSL product range expansion, says CEO Papi Molotsane.
Molotsane says Telkom, which concluded WiMax trials with technology partner Intel earlier this year, is excited by the opportunities that new technologies like WiMax present for emerging markets and for Africa in particular.
"The world is going broadband and there are now more than 123 million global broadband access customers," he says. Telkom previously stated it has an ADSL subscriber base of 160 000.
Molotsane notes that, while ADSL is a powerful tool, it suffers serious drawbacks in an emerging market environment with access and infrastructure challenges.
"WiMax technology promises to enable us to take the next step in bridging the digital divide by bringing cost-effective, accessible ICT to rural areas," he says.
Mixed reaction
Telkom`s announcement has been met with mixed reaction from market analysts and players. Samsung, MyADSL and BMI-TechKnowledge have welcomed the move, as WiMax will allow for faster roll-out of broadband services to the mass market.
"The ADSL lead time is lengthy, and rolling out WiMax services will help Telkom cut down on the waiting period for broadband services," says Gavin Coetzer, Samsung`s GM of networks.
However, Gateway Communications COO Mike van den Bergh is concerned that Telkom`s provision of WiMax services will continue the concentration of power among traditional telecoms operators.
A large chunk of WiMax spectrum is held by Sentech, Telkom and Neotel, with the rest allocated to underserviced area licensees, he notes. No new generation ICT players are being allowed entry, he adds, despite the fact that the Electronic Communications Act specifically provides for broadening the competition base.
However, Van den Bergh says the Independent Communications Authority of SA has indicated it is looking into the issue and may consider a "use it or lose it" basis for spectrum allocation.
WiMax deliverables
Richard Hurst, a BMI-TechKnowledge analyst, notes there are still elements that are unknown regarding WiMax`s potential.
"When compared with GSM, we don`t know how many connections we will get, or what the average revenue per user will be like," he says, adding that there are few case studies around the world which SA can refer to.
Hurst, however, notes that WiMax has proved popular in Pakistan and Russia, which have broadband trends similar to SA. For example, in both countries, wireless technologies have enjoyed a higher adoption rate than fixed-line, as a result of the limited wire-line infrastructure.
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