Vodacom ISP on track

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 13 Feb 2008

Vodacom is gearing up for the launch of its tier one Internet service provider (ISP) business, with the roll-out of a WiMax solution.

According to Wally Beelders, executive director of Vodacom Business, a commercial WiMax solution will be available in the second quarter of this year, following the opening of the ISP business unit.

"The WiMax solution will focus on applications and access for the business and SME markets," says Beelders. However, users who have WiMax-enabled devices can choose to use the service as an alternative to 3G, HSDPA 1.8 or HSDPA 3.6, he adds.

According to the company, Vodacom Business is gearing up to offer a range of services to the business, SME and value added network markets. However, it would not add any details of what services would be available.

Full details about the ISP unit will be provided on the day of the launch, says Vodacom chief communications officer Dot Field.

Organic growth

Group CEO Alan Knott-Craig first announced the cellular operator's entry into the corporate ISP market in June last year. The company initially intended to acquire an ISP "about the size of Dimension Data's local operations", but it has been forced to develop the company organically.

This was due to competitive concerns, said Knott-Craig in November.

"We said we wanted to identify a tier one ISP to kick-start our entry into the market, but it's been difficult at times. Our size in the market, together with Telkom's shareholding in our business, could see a deal held up by the Competition Commission. We're still looking, but we are ramping up our own organic growth initiatives while that process is going on."