While it is understandable that third-generation (3G) technology has taken slightly longer to get to the African market, this could prove to be an advantage for local operators.
"This is the right time to be moving into the 3G arena, as not only is the technology and the peripherals better developed now, but South African operators can also learn from the errors already made in the developed world," says Tomi Ahonen, a 3G strategy consultant.
Ahonen, formerly of Nokia`s 3G Business Consultancy department, will deliver the keynote address at tonight`s First Tuesday Vodacom Mobile Connect event. He is the author of three books on mobile and 3G technology.
He says 3G has many advantages for the local market, both in terms of the high-end business sector, which requires rapid access to data, and the young, hip crowd that demands quality entertainment services.
"Obviously it is a technology that will be expensive to begin with, but once you cross the threshold and hit the mass market, this will change, with services and products getting cheaper as there is a greater uptake," he says.
"It will ultimately prove to be a very attractive proposition to the man in the street, as voice calls are often less expensive than on GSM. In fact, 3G offers the potential for up to 75% savings on straight voice."
Ahonen points to the airline industry for an analogy. He says 30 years ago, we still had jets that could fly between London and Johannesburg, but it was only the advent of bigger planes, which allowed for many more passengers, that gave airlines a chance to begin selling cheaper economy tickets.
"It will be similar with 3G, where the real money comes from the data services, but this allows the networks to offer discount prices on other services," he says.
"A key target market for operators will be the 20-something, employed, technologically aware crowd, as they are the people who will probably already have an advanced phone, and will potentially want to own a second one, which will likely be a 3G handset."
"For this group 3G is a very attractive proposition, as the data services such as video clips and music downloads are right up their street, but they are also heavy users of voice and text, so the lower costs for these services will also appeal to them."
Discussing the pitfalls of the technology, Ahonen says the key thing for operators to remember is they must not overpromise on the technology.
"They will need to ensure users are made aware of the fact that it is still an evolving technology and will take time to perfect."
He says operators should also carefully monitor what has happened in other regions where 3G has already rolled out, in order to learn from their mistakes.
"In South Korea, for example, one operator initially offered live TV and video content at a very cheap price, but this congested their network so much they had to cancel the service for a while, and when it was reintroduced the tariffs were much higher.
"As for the digital divide, far from increasing it, I believe 3G has the potential to close the gap. For example, this is a technology that could be used by rural doctors to get second opinions - complete with video clips - from colleagues in urban hospitals."
The First Tuesday Vodacom Mobile Connect event will take place at the Sandton Convention Centre tonight, with registration taking place between 2pm and 3pm, followed by the workshops, awards and keynote, which is due to start at 7pm.
To register, visit www.firsttuesday.co.za/vodacom/register.html.
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