Spectrum and site rollout a concern: mobile CEOs
South Africa’s mobile market is fiercely competitive with Vodacom (VOD), MTN (MTN), Cell C and 8ta (TKG) battling it out for market share. Neotel has also started to launch tablet PCs and mobile dongles using their CDMA network.
This increased competition has seen faster services and lower prices, but most people agree that more can be done to improve mobile services – both in terms of pricing and quality.
MyBroadband BusinessTech asked the cellular CEOs what can be done to help them to to bring better and cheaper services to end users.
Cell C’s newly announced CEO Alan Knott-Craig says that it is absolutely critical for the permission process to build sites becomes more efficient.
“That does not mean dumping common sense and destroying the environment – but it does mean a slicker, quicker and smarter process for allowing network rollout from the authorities. How else can they build a competitive network?” said Knott-Craig.
Knott-Craig added that having enough spectrum will make an enormous difference to the quality, speed and price of cellular services.
“So the regulator has to be top-notch. And using USAF funds to provide even lower prices to the rural areas would be helpful to rural South Africans, indeed,” said Knott-Craig.
MTN SA CEO Karel Pienaar says that the costs for modernising and running networks, as well as increasing coverage, is significant – and such investments influence pricing.
“Regulators have a role to play in terms of this. One suggestion could be the implementation of rollout incentives to increase the establishment of broadband networks in rural and remote areas,” says Pienaar.
“Lower spectrum fees are required for the rollout of broadband access as well as management. Allocation of spectrum that could decrease the rollout of broadband access (800MHz which requires fewer sites) will also contribute to lower prices.”
Pienaar added that infrastructure sharing will enable rollout initiatives and alleviate site acquisition hurdles which inhibit deployment, and could also reduce the costs associated with site building and maintenance.
“There is a need for market restriction – in terms of managing the number of operators in a market – to ensure that the operators can operate sustainably in a limited market that is close to saturation,” Pienaar concluded.
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