Wholesale mobile broadband network for SA? Jan Vermeulen <http://mybroadband.co.za/news/author/jan-vermeulen> August 24, 2011 No comments<http://mybroadband.co.za/news/broadband/32424-wholesale-mobile-broadband-network-for-sa.html#comments-box> The current model for rolling out mobile broadband in South Africa is inefficient, argues industry players South Africa’s mobile network operators, 8ta<http://mybroadband.co.za/vb/showthread.php/276092-8ta>, Cell C <http://mybroadband.co.za/vb/showthread.php/213919-Cell-C>, MTN<http://mybroadband.co.za/vb/showthread.php/226943-MTN>, and Vodacom <http://mybroadband.co.za/vb/showthread.php/227063-Vodacom>, all build and run their own networks. This involves not only putting up towers in strategic locations (which in itself can be difficult task), but also linking up those towers to a core network. Before you can do anything with a cellular tower however, you need to get a license to use radio frequency (RF) spectrum in particular frequency bands. In South Africa, operators like 8ta, Cell C, MTN, and Vodacom all have such licenses to operate their networks, but industry players are saying this isn’t always the way to most effectively make use of spectrum, especially in the lower frequency bands. Open access radio network Earlier this year (2011), Vodacom CEO Pieter Uys<http://mybroadband.co.za/vb/showthread.php/210077-Pieter-Uys>told MyBroadband that instead of operators battling it out for a slice of scarce spectrum, a single network<http://mybroadband.co.za/news/wireless/20324-open-access-radio-network-for-south-africa.html>should be built to maximise the value of this resource. This is especially needed in the part of the RF spectrum known as the “digital dividend<http://mybroadband.co.za/news/broadcasting/17725-digital-tv-standards-battle-ends-logic-prevails.html>” – lower frequency spectrum set to become available when South Africa completes its migration from analogue to digital TV broadcasting. [image: Pieter Uys]<http://mybroadband.co.za/news/broadband/32424-wholesale-mobile-broadband-network-for-sa.html/attachment/pieter-uys-2> Pieter Uys Uys said that all stakeholders, including SA government, IT companies and network operators should work together to get South Africa connected and a single open access network is a sensible way to go about doing so. Wholesale mobile broadband network an attractive option Zoltan Miklos<http://mybroadband.co.za/vb/showthread.php/322353-Zoltan-Miklos>, executive of converged data networks at Telkom<http://mybroadband.co.za/vb/showthread.php/227037-Telkom>Mobile, suggested that a possible scenario for future mobile spectrum allocation is a wholesale model. This would allow providers to buy wholesale services from a mobile operator provider rather than licensing their own spectrum and building their own network including towers. Such a model would need to serve the interest of providing national broadband coverage at competitive prices, Miklos said. [image: Zoltan Miklos]<http://mybroadband.co.za/news/broadband/32424-wholesale-mobile-broadband-network-for-sa.html/attachment/zoltan-miklos-600> Zoltan Miklos Miklos said that mobile operators are grappling with providing mobile data at prices that recover the significant capital and operational investment of rolling out their own network. One could argue such models would make more efficient use of spectrum and resources, Miklos said. Director-general of the Department of Communications (DoC), Rosey Sekese<http://mybroadband.co.za/vb/showthread.php/337821-Rosey-Sekese>, said that a wholesale model for spectrum is under discussion at the DoC and that they see it as a very attractive option. Sekese said that part of the issue is that incumbent operators with licenses for spectrum want more, but as private businesses they will want to roll out in the most profitable areas first. Typically these areas are found in more urban South Africa. A wholesale model that offers operators spectrum in urban and rural areas could help address this issue. Uys previously said that the lower frequency digital dividend spectrum is particularly suitable to cover rural areas, and as it is hardly profitable for operators to roll out data networks in these areas, a combined effort will make the most sense to operators and South Africa as a whole. Neutral operators the beginning? American Tower Corporation (ATC)<http://mybroadband.co.za/vb/showthread.php/360534-American-Tower-Corporation-(ATC)>, a wireless and broadcast telecommunications provider, bought Cell C’s tower infrastructure in 2010 with the aim to offer a “network and service provider agnostic approach” to pave the way “for a more open and competitive market.” According to ATC, they offer an infrastructure sharing model, or Infrastructure as a Services (IaaS) which gives everyone access to the same level and type of geographic coverage. “Infrastructure sharing or, to be more specific in our case, tower sharing, is nothing new,” explained CEO of ATC South Africa, Pieter Nel<http://mybroadband.co.za/vb/showthread.php/229877-Pieter-Nel> . “It has been happening in some form in South Africa for some time now, but we are the first independent, pro-competition service provider to adopt this network agnostic model, which has been steadily gaining popularity in other countries around the world due to the numerous benefits.” According to Nel, the trick to getting this model right is ATC South Africa’s ability to acquire or build out network infrastructure and manage and maintain it in a manner that works out cheaper for MNOs than self-provisioning the same capabilities would. ATC said that they already boast most of the major mobile network operators as clients and are currently in talks with “most of the current and future broadband solution providers.” http://mybroadband.co.za/news/broadband/32424-wholesale-mobile-broadband-net...