R54m WiMax network heads to ECape

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 13 Mar 2007

Underserviced area licensee (USAL) Amatole Telecommunication Services will, in June, deploy the first phase of an eventual R54 million WiMax network in the Eastern Cape, says operations director Bevan Booy.

Booy says the network will consist of about 15 base stations that will encompass the Amathole municipal district and will also serve the Buffalo City (East London) municipal area.

Towns to be covered in the first phase include Alice, King Williams Town and Fort Beaufort, through the deployment of eight base stations at a cost of around R20 million.

Booy says Amatole is due to receive its second R5 million infrastructure grant from the Universal Services and Access Agency of SA (USAASA). The rest of the funding would hopefully come from the Industrial Development Corporation and the Development Bank of Southern Africa, he adds.

"We are reserving 20% of the investment for private investors."

Municipal support

According to Booy, there is still a business case for USALs, despite the negative publicity and comments made by the public and private sectors.

"There is still a definite need for cheap broadband and deployment and to expand and encourage greater participation in the telecommunications industry."

Booy says the Amathole and Buffalo City municipalities have indicated strong support for the project, with final pricing the only issue being worked out.

"Buffalo City has its own wireless network deployed; however, it does not have all its areas covered and we can do that."

Amatole has signed a facilities leasing agreement with Telkom and is due to sign an interconnection agreement with the operator. This means Telkom will handle all its interconnection with other telecommunications network operators such as the cellular companies.

"Cooperation from Telkom has been fantastic," Booy says.

Network equipment supplier Tellumat will be Amatole's technical partner in the project and will supply a microwave link for backhaul purposes.

He rates cooperation from USAASA and the Department of Communications as being "fair" and believes they could do a lot more to support the development of USALs.