With the introduction of third-generation (3G) data networks to the South African market, consumers have more choice and improved mobility for accessing the Internet. And as new advances are introduced to the networks that power mobile data access, the reach of the technology is likely to extend and drive further market penetration.
That is according to Greg Cress, senior account manager: End-to-End Solutions and 3G at Siemens South Africa, who says there is a viable business case for the service - and notes that further developments are coming in the very near future.
"The services that are enabled by 3G networks have wide appeal as business people increasingly demand access to vital Internet-enabled services - most notably e-mail, which is still the primary application driving adoption of mobile data access," he says.
While demographic information puts this market at a relatively low percentage of the total population - there are approximately 48 million people in this country, of which 9% fall into the living standards measure (LSM) 8 and above group, with a household income of over R13 000 per month - Cress believes the advantages of the technology cannot be underestimated.
Vodacom, the operator that launched 3G and which has a subscriber base estimated at 14-million users in the country, is hoping to sign up 100 000 3G subscribers by the end of 2005.
Cress notes that to date, 3G has been pitched as a data card that enables mobile Internet access with a notebook.
"It is anticipated that the increased availability of 3G handsets will accelerate adoption, and several manufacturers - Siemens included - are in the process of introducing new models that will spur consumer demand," he says.
On demand for 3G, Cress notes that it would be a somewhat backward view to consider a relatively limited market as a restriction.
"Before releasing any service into the market, operators conduct significant feasibility studies to ensure that any investment can reliably be recouped," says Cress. "Vodacom also has the benefit of applying the lessons learned by Vodafone in European markets, including the need for standardisation, strict handset specification as well as the availability of appropriate content."
Mobile network operators have shifted from their position of telecoms providers, moving up the value chain into a content-delivery market. As such, the advent of 3G and beyond is inevitable. Siemens recently demonstrated a newer technology called HSDPA (high speed downlink packet access) which accelerates 3G downloads to up to 14 Mbps with a minimal additional cost to network operators; all it requires is a software upgrade to existing 3G base stations.
"These new advances will propel 3G firmly into the realm of DSL broadband access speeds, without any of the physical limitations of wired networks. The launch of cellular services into South Africa in 1994 was met with astounding growth, and while 3G may not have as dramatic an uptake, but there is certainly likely to be a wave of adoption as the technology becomes mainstream," he concludes.
For more information contact Sharon Schön, Siemens Communications, +27 (0)12 678 2751.
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