As the ICASA (Independent Communications Authority of South Africa) grapples to define WiFi and its place within local telecommunications, South Africa's ICTE vanguard, SAVANT, raises a concern: Too much regulation could extinguish wireless hotspots before the technology is even proven to be a valuable commodity within the local market.
Wireless hotspots are established wireless networks within a public (or private) location which enable mobile connectivity to the Internet. Examples include airports, hotels, restaurants, coffee shops, shopping centres and conference venues. Users of Wi-Fi-enabled PC notebooks or handheld devices can log on to the Internet, send and receive e-mail and connect to the office network from this networked environment or 'hotspot'.
ICASA has approved and released a discussion paper that seeks to acquire input from the industry in order to make informed decisions as to whether hotspots require licences and if a special licence category should also be created. The paper stipulates a deadline of 21 July 2003 for those interested in submitting views regarding the provision of wireless Internet access using ISM frequencies.
"We are pleased that ICASA will canvas industry opinion before deciding the appropriate action. There is no doubt that South Africa has the skills, infrastructure and resources to establish hotspots and has done so already. What we are saying is that to consider enforcing regulation upon what is essentially an unrealised market is, at this early stage, an exercise in futility. Remote wireless connectivity offers a host of benefits - both for the individual and for the establishment. However, these advantages and the positive results should materialise before energy, time and financial resources are poured into regulation through licensing," says Adrian Schofield, president of the Information Industry South Africa.
"There are issues that may well require some regulation such as signal strength, signal containment and Internet security," he adds, "but there is no evidence currently to suggest that licence fees are merited. Indeed, there is growing evidence that regulation of communications reduces a nation's ability to derive the benefits of technology."
Alan Hirsch, chief director of economic policy in the Presidency comments, "It is widely understood that the Internet is an important vehicle for social and economic development. A recent study has shown that excessive regulation of the Internet can seriously slow down its rate of diffusion. I expect that the authorities will be mindful of this when deciding on the regulatory framework for Wi-Fi."
D-Link, a manufacturer of wireless network solutions, has taken into account the widespread interest that hotspots have generated overseas, and according to D-Link SA branch manager, Attie Pienaar, there are no reasons why South African businesses cannot experience the same benefits. "There are many businesses today that could benefit from Wi-Fi and hotspots. The SA economy is such that we cannot afford to have regulation determine whether or not we can make a living. A free market economy has to be fair, but our situation calls for a proactive approach to regulation."
"The last thing we need is a licensing fee for technology that has yet to prove capable of generating a sustainable revenue," concludes Schofield.
SAVANT has invited the industry to participate in an opinion poll on the subject. Readers may forward correspondence to [email protected]
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