News


WiMAX delays dampen impact in SA

2 April 2008 News

Delays in the award of licences for providing the new WiMAX high-speed wireless broadband service to businesses and consumers has resulted in dampening of its potential impact.

This is the core conclusion of the first study on the impact of the technology in South Africa, conducted by World Wide Worx. The report, 'WiMAX in SA 2008: Year Zero', shows that only those companies that have already deployed WiMAX have appreciated its impact.

These companies are all using Telkom's scaled down version of WiMAX, which is provided only where its ADSL fixed line service is not available, and only at ADSL-type speeds. WiMAX can theoretically offer speeds of up to 70 Mbps, as opposed to ADSL's fastest option in South Africa of 4 Mbps. Even at far lower speeds, however, the potential offered by WiMAX is not yet on the horizon, since no serious competition exists to spur its roll-out, says Arthur Goldstuck, MD of World Wide Worx.

"The impact of such low roll-out is that expectations for WiMAX are being kept artificially low," he adds. "The long wait for the availability of the technology resulted in both frustration and suspicion that it cannot deliver."

The study reveals that a mere 8% of corporations had adopted WiMAX options as part of their connectivity mix in 2007. However, they did not use WiMAX as a preferred or only form of connectivity, but deployed it where no other options were available, such as in rural areas or areas with rough terrain that made fixed line connectivity impossible or uneconomical.

A number of factors, such as lower cost, smaller base stations and easier deployment, mean that WiMAX is an ideal solution for providing broadband data and even telephone services to rural and remote areas. It is also seen as a powerful technology for bringing affordable yet quality Internet access to isolated communities. In addition, it is regarded as an ideal technology for connecting corporate networks at high speed, and it is already playing a small role in this regard.

Projections for 2008 indicate a significant increase in WiMAX deployment, with 20% of corporations deploying it as an element of their connectivity solutions. Once again, it is not yet a primary form of connectivity, but rather being deployed where fixed line and digital line options are not available.

The fact that only those companies deploying WiMAX had appreciated its impact and importance, said Goldstuck, pointed to the damage that regulatory delays had inflicted on the WiMAX cause. Although WiMAX trial licences had been issued to a number of operators more than a year ago, and these licences had officially expired in January this year, the trial networks were being allowed to continue operating in pilot status until full licences are awarded.

However, this means that commercial services still cannot be offered by these licence holders.

While Vodacom has announced that it will include WiMAX among its new access services, it has not yet announced pricing or performance options. Meanwhile, it is already able to sell such services through a loophole provided by its shareholding in iBurst. The wireless broadband network has a licence that technically allows it to offer WiMAX, although it is not specified in its licence.

This adds to the confusion rather than supports the WiMAX case, says Goldstuck. "Another consequence of delayed roll-out is that few corporate customers, let alone consumers, are aware of whom the appropriate suppliers will be - further limiting their ability to include WiMAX options in their budgeting and infrastructure plans."

Even when WiMAX's importance is rated as an emerging technology over the next five years, from 2008 to 2012, its significance is not recognised outside those companies that have already deployed it, according to the research.

For more information contact Arthur Goldstuck, World Wide Worx, +27 (0)11 782 7003, [email protected], www.worldwideworx.com





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Fro the editor's desk: AI – a double-edged sword
Technews Publishing News
As with any powerful tool, AI presents challenges, some of which, if not carefully managed, threaten to undo the potential that it can offer.

Read more...
Global semiconductor sales increase
News
The Semiconductor Industry Association (SIA) has announced global semiconductor sales were $57,0 billion during the month of April 2025, an increase of 2,5% compared to the March 2025.

Read more...
Avnet Abacus announced new president
Avnet Abacus News
Avnet Abacus has announced that Mario Merino will succeed Rudy Van Parijs as president of Avnet Abacus, effective 1 July 2025.

Read more...
Avnet Abacus wins multiple prestigious awards
Avnet Abacus News
The awards from Molex recognise outstanding performance, collaboration, and significant growth in the challenging market conditions of 2024.

Read more...
Components distribution slowdown Q1 2025
News
European components distribution (DMASS) experienced a continued slowdown in the first quarter 2025.

Read more...
Semiconductor sales increase 17% YoY
News
The Semiconductor Industry Association (SIA) recently announced global semiconductor sales were $54,9 billion during the month of February 2025, an increase of 17,1% compared to the February 2024 total.

Read more...
Silicon Labs – Q1 results
News
Silicon Labs, a leading innovator in low-power wireless, recently reported financial results for the first quarter, which ended April 5, 2025.

Read more...
Strengthening industry through strategic partnerships at KITE 2025
Specialised Exhibitions News
The KwaZulu-Natal Industrial Technology Exhibition is not just an exhibition, it is a powerhouse of industry collaboration where visitors and exhibitors gain access to authoritative insights, technical expertise, and high-impact networking opportunities.

Read more...
Solar Youth Project calls on industry to step up
News
With the second cohort completed training and the first cohort returning for their final module, host companies are urgently needed to turn the training into a long-term opportunity.

Read more...
Conlog powers SA’s future with national smart meter rollout
News
Conlog recently secured the RT29-2024 contract from National Treasury, which is seen to be a major milestone towards modernising SA’s utility infrastructure.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved