Mobile telecommunications operators and Internet service providers (ISPs) need to work together to bring more value-added Internet services to a broader African market.
This is according to Gopal Govinder, director of business development and professional services at CommuniCom.
"At the moment, most mobile telecommunications operators build parallel ISP arms for their subscribers, as they see it as a strong revenue stream for business and corporate solutions."
Frost & Sullivan research analyst Spiwe Chireka says instead of mobile operators setting up their own ISP divisions, they could make use of existing ISPs to increase company revenue, as well as boost market growth on the continent.
ISPs can effectively act as "middlemen" for the mobile operators and become resellers of mobile Internet services, says Chireka.
"Existing ISPs could enhance the mobile operators' offerings for a better Internet end-user experience."
Alternatively, mobile operators can serve as a reliable carrier for ISPs to provide added value services in vertical markets, such as the health, education, government and corporate sectors, says Govinder.
WiMax threat
The competitive position of the mobile operator network for Internet access services is especially weakened in the office environment with the increased use of WiFi, and the possible deployment of WiMax technologies, explains Govinder.
This is where synergy between ISPs and mobile operators is essential. ISPs have the potential to provide mobile operators with an opportunity to counter the threat of wireless Internet, and to use WiFi, or other technology, to provide last mile capacity.
Through collaboration, the ISP can then share in a larger piece of the customer pie, servicing a large mobile subscriber base on behalf of the mobile operators.
"The cost of mobile telephony infrastructure and deployment will be far too damaging for the average ISP. Yet with collaboration, they can help mobile operators with a faster time to customer and quicker time to market, in return for capacity on the mobile operator's backbone," says Govinder.
Globe Internet Malawi is the collaborative ISP for mobile operator Celtel Malawi, explains Chireka. The partnership has increased Globe Internet Malawi's subscription base by up to 50% since the partnership began in 2005/6, she adds.
Rural perspective
Not only will the synergy create strong business propositions for ISPs and mobile telecoms companies, it will help bring Internet to more rural parts of the continent, says Chireka.
"Poor fixed-line infrastructure has created a ripe platform for mobile telecoms operators to offer Internet services to under-serviced areas."
The combined service factors of ISPs and mobile operators could increase rural Internet usage on a mobile platform, explains Chireka.
SA-based ISP MWeb is offering HSDPA access over the Vodacom network, which is creating Internet access in areas of low or non-existent fixed-line telephony.
Share