Attempts by industry regulator the Independent Communications Authority of South Africa (Icasa) to bring more competition to the telecommunications market, by making radio spectrum available for low-cost mobile phones, are being resisted by state-owned telecoms company Sentech.
Icasa wants to make access to channel 65 of the radio frequency spectrum 822megahertz (MHz) to 830MHz available for non-broadcasting services. Second National Operator Telecommunications (SNO Telecoms) plans to roll out a cost-effective network using wireless technology using this spectrum, which has been used in India to offer consumers among the lowest call rates in the world.
Indian consumers make use of mobile phones that use wireless technology as a cheaper alternative to global system for mobile communication (GSM) cellular phones.
The radio spectrum is, at present, used for the broadcast of terrestrial television by Sentech.
Icasa has proposed moving broadcasting service currently using channel 65 to alternative channels. However, SNO Telecoms argues that this process will take too much time and that, instead, a sharing system could be arranged for both channels 65 and 66.
Sentech argues that wireless networks and broadcasting cannot co-exist on the same channel because interference will take place and that telecoms companies should look at other spectrum options other than the 800MHz spectrum.
SNO Telecoms counters that it has conducted successful trials with the Council for Scientific and Industrial Research and that 800MHz is the optimal spectrum for Code Division Multiple Access (CDMA) wireless networks, the most cost-effective solution.
SNO Telecoms provided evidence of a trial run in early 2005, by Qualcomm (the inventors of CDMA) together with Transtel, Eskom, MTN and Ericsson, which it claims proved that the 800MHz CDMA2000 (an updated version of the CDMA) could be deployed in South Africa without affecting broadcasting.
Bob Horwitz, who heads Open Spectrum International, which works to increase public access to license-exempt radio bands, particularly in emerging democracies, agrees with the SNO’s proposal that CDMA technology and broadcasting can co-exist on the same channels.
“I find it hard to believe that there would be interference,” says Horwitz. “Broadcasters operate at a much higher power than data networks; it’s rather more likely that the data networks would experience interference from the broadcaster.”
Transtel’s chief technology officer, Angus Hay, speaking on behalf of the SNO, said the Sentech response was expected and he thought that Sentech was not disputing the trials themselves, but rather that it was not involved.
Hay said that currently South Africa’s spectrum was being used extremely inefficiently and, during the trial, it had used channel 66 in the heart of Sandton with no interference.
“We have proposed what may be viewed as a more complicated solution, but in practice is a simpler solution involving sharing spectrum,” says Hay.
“In relative terms, the benefits are enormous by freeing up 2% of the spectrum that the broadcasters don’t need. They may want it, but they don’t need it.”
Icasa’s discussion paper on the matter says making channel 65 available to non- broadcasting services will advance competition and have huge socio- economic benefits.
India has among the lowest call rates in the world, a result of operators using the rollout of CDMA networks to shake up the telecoms industry and aggressively supply previously ill-serviced areas.
SNO Telecoms strategic equity partner the Tata Group already has CDMA operators in India and this technology is viewed as key to delivering cost-effective communications to poor communities in South Africa.
India’s wireless service rates have fallen from a peak razte of $0,50 per minute in 2003 to the current rate of $0,02 per minute.
Critics have argued that Sentech, which is also preparing to roll out a wireless network, has self-interest in the argument it is pursuing.
“It is quite important that the SNO gets this CDMA technology,” says Russel Southwood from IT website Balancing Act. “Currently they have precious little where they can compete against the incumbent. If they get this they can prepare for a converged future.”
“This to us is the thin edge of a launch programme; if we don’t get the spectrum, we will carry on waiting like we have been waiting for years,” says Hay.
Sentech’s communications manager did not respond to telephonic requests to be interviewed.