SEARCH

WEATHER

 
Ctn | Dbn | Jhb | Other
OUR ONLINE SHOP »
WELCOME
The South African Cellular Industry
Posted Thu, 12 Apr 2001

Cellular in South Africa has burgeoned into a massive, multi-billion rand business since the heady days of 1994, which saw the introduction of South Africa's first democratic government and the first two cellular networks. Few predicted the heights to which the industry would rise, or the vast potential waiting in the wings.

At present there are just over nine million cellphone subscribers in SA, a figure which experts predict will double to 18 million by 2005. The industry has grown at a rate of knots, and should be given yet another boost when third cellular network Cell C roll out their operations in December 2001. Cell C have been granted a GSM 1800 license, which provides scope for faster call switching, and wireless opportunities. Both MTN and Vodacom operate 900 GSM networks, so the competition from the new network will be stiff.

South Africa is rather unique in it's motivations by embracing cellular technology. Although there is an obvious need for cellphones to cater to the ever-changing needs of business, cellular means a lot more to many South Africans than simply being connected. With the high crime figures in the country, the safety that cellphones provide has become a major motivating factor behind many a decision to purchase a cellphone. From daddy not wanting anything nasty to happen to his precious daughter, to stranded motorists on the N2 and the notoriously dangerous townships, the cellular industry has meant that an emergency number is a mere button click away. Many have described this connectivity as the most important reason in factoring their decision to own a cellphone.

In the past, cellphones were primarily what they claimed to be - hands-free telephones for chatting to your mates. The technology has developed at such a rate, however, that chatting with Aunty Moira in Richard's Bay is probably the last thing anyone would consider using their phone for.

First there was short message servicing (SMS), which allows short messages to be sent from one handset to another, or from the Internet to a handset. On 1 January 2000 Vodacom switched 700 000 sms's in the first hour of the new millennium, showing that the technology was definitely here to stay. Then came Wireless Application Protocol (WAP), which allows users to browse the web using their phone, and in some cases send and receive email. Despite the fact that WAP never really took off in this country, few are prepared to purchase a phone without it.

Next up is all sorts of weird and wonderful developments. In 1998 a new standard called Bluetooth was introduced to feature-hungry cellular users. Bluetooth utilises a short-range radio link to exchange information, enabling effortless wireless connectivity between mobile phones, mobile PCs, handheld computers and other peripherals. It allows portable devices, such as personal digital assistants (PDAs), cell phones and notebooks, to communicate within 30 feet of one another without wires. One possible application of this would be the ability to input data about yourself into your cellphone in the hope of finding someone who has similar interests and needs. Should two similar people walk past each other in the street the cellphones would ring, alerting one another to the fact that a possible match has been found and is standing a few feet away. Another application would be advertising - you could be walking past a McDonalds and your phone will send you a message asking if felt like a Big Mac and a cup of coffee. Although these are rather flippant applications, the idea is there and is set to develop in all sorts of unimaginable ways.

Bluetooth has not exactly taken South Africa by storm, mainly because the networks need upgrading in order to be able to accommodate the technology. This process should be speeded up once Cell C enter the cellular equation.

Cellphone models come and go at an alarming rate, meaning there is a plethora of choice for any would-be purchasers. With the huge competition in the industry the prices of cellphones keep coming down, with earlier models often unable to sell. Second-hand shops the country over are brimming with old phones, but it is proving more and more difficult to get rid of them.

So there we go - the cellular industry is booming in South Africa, with all graphs still continually rising. Well over 70% of the country is covered by both networks, and the country has never been as connected as it is today. Should this trend continue, and all the indications are that there is no way it won't, one in three people will own a phone by 2005, most of these pre-paid customers.

So if you're looking for a new direction in life strongly consider going into cellular communications - it may just change your life.