Are hotspots really that hot?
19 November 2003
News
ICASA has finally made a decision on the legality of wireless 'hotspots' in South Africa and it appears that everything is go for the rollout of what is the foundation of mobile computing - wireless connectivity.
"The fact that hotspots are now legal may not spur a sudden rush of 'hotspot' deployment," says Steve Nossel, country manager for Intel South Africa. "In fact we are unlikely to see very much uptake on this new technology until the cost of mobile and fixed line bandwidth to support it comes down."
"One of the unfortunate side-effects of South Africa's monopolistic telecom structure is the cost of bandwidth," says Nossel. "Broadband here costs the equivalent of about $120 per month, or around R800. Over a 12 month period this translates to about R9600 for bandwidth. When you consider that you can buy a new computer for less than R7000 today, consumers and business users are questioning whether having broadband at all is worth it. As a result, the growth of the wireless computing market in South Africa may remain low."
Internationally, analysts last year predicted that by the end of 2003, wireless hotspots would number around 37 000 worldwide. This figure has since been revised to 71 000 as the demand for wireless services in countries that are not constrained by telecom monopolies or strict government control. Additionally, analysts at Gartner predict that by the end of 2005, 80% of notebook computers in use would feature integrated wireless connectivity. By the end of 2008 more than 167 000 wireless hotspots will have been deployed.
Adds Nossel, "It seems ridiculous that while PCs have become more affordable than ever before, the price of using the Internet or communicating with a corporate network remain as high as they are. The kind of growth in wireless communication that regions such as the USA and Europe have experienced may not occur here as the costs of communication remain restrictive. It is up to business and consumers alike to pressure government and telecom providers into making bandwidth cheaper and more accessible to a wider market."
For more information contact Steve Nossel, Intel SA, 011 806 4530, [email protected]
Further reading:
RE+ South Africa 2026: From strategy to execution
News
Taking place at Gallagher Convention Centre in Johannesburg from 02 to 04 June 2026, this new addition to South Africa’s energy landscape introduces a focused commercial and industrial energy event within a proven exhibition platform.
Read more...
Africa Energy Indaba announces 2027 dates
News
Following the continued success and growing global impact of the Africa Energy Indaba, organisers have announced the dates for the 19th edition of the Africa Energy Indaba 2027.
Read more...
RS South Africa named master distributor for the Arduino UNO Q
RS South Africa
News
RS South Africa announced that it has been named Master Distributor for the Arduino UNO Q SBC platform across South Africa and the broader African region.
Read more...
Engineering in a world that cannot assume connectivity
Technews Publishing
Editor's Choice News
Across industrial automation, networking, and defence systems, engineers are rediscovering the importance of resilience and autonomy in an increasingly connected world.
Read more...
IOT secures major industry partnership
IOT Electronics
News
IOT Electronics has announced a new strategic partnership with Powell Electronics, becoming an Official Authorised Reseller in South Africa.
Read more...
Successful Proteus training conference
Dizzy Enterprises
News
Dizzy Enterprises recently hosted two hands-on Proteus Training Conferences, bringing together electronics professionals, designers, and enthusiasts to explore the latest capabilities of the Proteus Design Suite from Labcenter Electronics.
Read more...
Hitachi reinvents asset management solution
News
Hitachi Energy, in collaboration with Microsoft, is accelerating the digital transformation of essential infrastructure - from electricity networks and transportation corridors to heavy industrial operations - by reinventing how critical assets are managed and maintained.
Read more...
Mycronic releases mixed Q4 results
News
Mycronic reported mixed Q4 results for the year ended January to December 2025, while delivering record full year order intake and net sales.
Read more...
AGOA: Businesses should diversify or face significant exposure
News
Cross-border payments platform Verto has called on South African and African businesses to accelerate their transition toward a “post-AGOA” trade strategy following President Donald Trump’s signing of a one-year extension to the African Growth and Opportunity Act (AGOA).
Read more...
European components distribution growing
News
European electronic components distribution returned to growth in the fourth quarter of 2025, according to newly released figures from DMASS Europe.
Read more...
printer friendly version