On the Cover

This year will see all the major operators clambering to launch WiMAX, but who will be the first to offer it commercially? Up to 70 Mbps wireless broadband is possible IT`S REGARDED BY MANY as being one of the best sources of broadband currently available. Some even see it as the answer to South Africa`s high-speed Internet problems. However, at the beginning of 2007, and while other African countries have already seen the benefits of WiMAX, we are still without a commercially available WiMAX offering.

A number of pilot studies and tests are in progress (some in a rather secretive manner) by our larger telecoms players. The most recent of these was the agreement between Samsung and to roll out a test WiMAX network in the Midrand area, north of Johannesburg. The details on this partnership are closely guarded. With WiMAX, they often are.

has said it plans to begin deploying its WiMAX network in the first quarter of 2007, with the help of infrastructure partner Saab Grintek. And telecoms business analyst , from BMI-TechKnowledge, predicts the fixed-line colossus will be the first to offer WiMAX broadband to consumers. "Telkom appears to have gone through an extensive testing phase, and has obviously weighed the benefits of the standards in line with the services it intends to deploy," he reasons.

AIR SPEED RECORDS

In terms of wireless broadband services, local consumers can choose between the 3G and HSDPA offerings of and , `s Edge, `s MyWireless, and WBS`s iBurst. Some are better than others, and some really stretch the limits of what is considered `broadband` speeds.

However, WiMAX is a standardised (IEEE 802.16) technology, limited to certain radio frequencies, and said to offer many advantages over these other wireless Internet options, especially in terms of downlink speed, cost of deployment, coverage, and interoperability.

"Various [WiMAX downlink] speeds have been promised by equipment vendors, with 70 Mbps being the most touted speed," says Hurst. `s head of communications, , agrees that 70 Mbps WiMAX is possible, over short distances and with sufficient spectrum, but believes current typical peak speeds for the technology are around 8 Mbps.

However, Hurst adds: "Since we`re dealing with the air interface, factors such as distance from the tower, weather conditions and interference play an important role, implying that the holy grail of 70 Mbps may be something that we will only see in the future. But in the South African market even a speed of 2 Mbps would be considered good," he adds.

OBSTACLES

In May last year, Teledata Mozambique deployed the first certified WiMAX network in Africa, in an exciting partnership with local WiMAX infrastructure specialists Technology.

Arnoud De Nooy, CEO of the relatively unknown Rapid Cloud, is extremely passionate about the technology. "The Internet market in Mozambique has literally rocketed. In Teledata`s case they have already extended the network to Beira and soon Nampula, providing well-priced connectivity to thousands of users."

He says other African operators in Zambia, Kenya, Ghana, and Nigeria have also seen the business case for WiMAX. So why has SA been left behind, as other countries north of the border stride ahead in this apparently wonderful wireless world?

"The lack of clarity over the allocation of the spectrum has been the inhibiting factor for the development and roll-out of commercial WiMAX services in SA," proposes Hurst. "A number of operators have been awarded test licences, but this does not necessarily imply that they will be given commercial licences."

PROTECTING ENTRENCHED TELCOS

De Nood agrees, and is quite candid with his thoughts on the regulatory issue: "Only Telkom, Sentech, Neotel and WBS have been allocated reasonable and feasible allocations of WiMAX frequency spectrum, and the remainder has been earmarked for the under serviced area licensees (USALs).

"One might say that the regulatory situation sadly continues to protect the interests of entrenched telecoms entities."

But while regulation has been the major issue, he adds that the first certified products were confined to a restricted frequency set (3.4 Hz), which was also somewhat of a constraint. Currently, certified products are available on alternative frequencies, allowing for more available spectrum for allocation to operators and service providers.

"The mobile WiMAX debate has become so intense that opportunities are being missed for wireless Internet service providers and USALs. That said, the first commercial WiMAX deployments are anticipated during the first half of 2007."

SENTECH`S BROADBAND REVIVAL

But government`s inaction, when it comes to WiMAX, is evidenced not only in the ambiguous regulatory environment, but also in the lack of funding for Sentech`s ambitious WiMAX plans. At least 20 companies responded to Sentech`s WiMAX tender, which closed late last year. According to the tender document, it calls for "wireless broadband access equipment that specifically complies with the IEEE 802.16 standard, to provide managed access services for both fixed (802.16d) and mobile (802.16e) applications."

Sentech`s head of telecoms technology, Gift Zowa, cautions that it is not so much a tender, since no quantifiable amount of installation work is stipulated, but more of an effort by Sentech to find a partner, or partners. "We`ve reached a critical stage - we`re now going through the internal process of checking the submissions received," Zowa tells iWeek.

It`s expected that the announcements on the size of budget that government will allocate to Sentech for its WiMAX rollouts will be made "during the course of normal parliamentary sessions", he adds. But while Sentech has been identified by the communications minister as being of strategic importance to government`s ICT strategies, no concrete figures have yet been placed on budget allocation for WiMAX.

"We`re just keeping our fingers crossed," says another, unnamed, source at Sentech.

NEW IMPETUS

Neotel`s Suriah tells iWeek that while the new operator intends deploying various access technologies, "WiMAX is one of the candidate technologies for customers seeking broadband services, with multiple, bandwidth-hungry applications.

"Since WiMAX is a real alternative to wire-line telecoms infrastructure all the way to the customer`s premises, the installation and operating costs for the technology are expected to be lower, allowing for better pricing for the customer," she promises.

Neotel recently signed a contract with Motorola, a major WiMAX installation company (it has deployed four WiMAX networks and is running 22 trials worldwide). The terms of the agreement are that Motorola - in combination with some smaller, black-empowered consulting firms - will conduct a full planning evaluation for WiMAX and CDMA technologies.

Whether Motorola actually lands the contract to deploy the infrastructure is still not clear, but the fact that it has been commissioned to do the planning seems to be a good sign.

SET STANDARDS

"With its recognised technology leadership, Motorola is ideally placed to bring its vast global experience and competency to effectively support Neotel in achieving its ambitious growth objectives," says Neotel`s MD .

And while Suriah says many players, of all sizes, could deploy the technology, an effective commercial deployment of WiMAX requires access to a high-capacity back-haul and core network to deliver the bandwidth required by a large customer base.

"More important than the actual technology, though, is the support a standard gets from equipment vendors and network operators globally. WiMAX has a very strong support base, which will result in widely available and competitively priced equipment, making it a practical choice for broadband providers."

Suriah refuses to discuss Neotel`s WiMAX strategy in detail, saying only that it has "an ongoing procurement process across all elements of its network, including broadband wireless" and adds that partnerships will be announced in due course.

It seems we`re teetering on the edge of a new broadband era. The current wired and wireless broadband options are either expensive or unstable, or both. So 2007 might just be the year this begins to change. It might just be the year for WiMAX.



Tags: On  The  Cover