Knysna municipality and Uninet are optimistic that the WiFi voice and data system being installed will cut telecommunications costs in the Western Cape town despite the initial high price of the handsets.
The system, which went live last Monday, currently has no commercial or individual users, apart from municipal staff. However, municipal manager Grant Easton says it is only a matter of time before companies and other customers start seeing the benefits.
"From a municipal point of view we are already seeing productivity gains. About 10 of the finance department staff have connections at their homes and they have been able to work during the night. We are already considering closing our month-end financial systems a day early," he says.
In terms of the deal between Knysna and Uninet, the wireless installer will set up 13 base stations and sell the data and voice over Internet Protocol services to the residents of the Knysna municipal area. As more people subscribe to the Internet connection service, either for home or office use, each station connected also becomes a mini-base station extending coverage.
Uninet has set up a call centre and an operations centre in the town and has demonstrated the service during municipal open days.
The company is also employing about 30 people who will carry bright red handsets and will be present at public gatherings, such as football games, to show off the voice service to the public.
David Jarvis, Uninet CEO, says the current installation covers about 50% of the Knysna area, but expects this to soon reach 100% as more stations come online.
"The current handset cost, of about R1 800, is expensive and it has been the biggest hindrance. But we expect that to drop to less than R400 per handset as we start importing them."
He says another big issue is that of interconnection, or the perceived lack of it, as neither Telkom nor the GSM service providers have given any such agreement. However, this has been overcome by the use of least-cost routing, which emulates a landline call.
Knysna`s Easton says he is disappointed that neither Telkom nor the GSM service providers have decided to get involved in the project.
"They must realise that this is a social development project. It will not only help our poorest people, but it will attract businesses to Knysna," he says.
Easton says there has been a touch of scepticism from the local Internet service provider community, "who possibly don`t understand what`s in it for them. However, there has been considerable interest from businesses and individuals within the town."
He says further uses for the system include the installation of closed circuit TV cameras for public security and urban planning purposes.
"We still have to do financial analyses of these, but the uses are numerous," he says.
Related stories:
Knysna WiFi on track
Storm brewing over Knysna WiFi
Knysna to go WiFi
Share