Better late than never

ADSL South Africa (Broadband South Africa), 2 April 2007

ICASA has finally allocated the frequency spectrum in the 800 MHz band to Neotel. This means that Neotel will now be able to roll out ‘…cost-effective voice and internet services for individual and SMME customers across South Africa’ (Neotel gets 800 MHz spectrum from ICASA, MyADSL, 30 March 2007).
 
What was Neotel’s response to the news?
 
Mixed.
 
“In spite of the spectrum only being allocated to Neotel now, we have already made significant progress in our plans to introduce a variety of voice and data services, including high speed internet and true broadband access services for the consumer segments. We are on track and ready to roll out initial services to consumers around the middle of the 2007” (Neotel gets 800 MHz spectrum from ICASA, MyADSL, 30 March 2007). This is according to Managing Director of Neotel, Ajay Pandey.
 
In other words, while Neotel will not go so far as to praise ICASA for exceptional service, its not unhappy about the news either.
 
Why is access to the 800 MHz frequency band so important?
 
A list of reasons:

• Economic growth and job creation - “Competition in the provision of basic telecoms services will support the government’s aim of boosting economic growth and job creation in the country. Access to the 800MHz frequency band is an important facilitator to competition in the telecoms market, and Neotel intends to play a major role in the growth of the South African economy" (Neotel gets 800 MHz spectrum from ICASA, MyADSL, 30 March 2007). This is according to Pandey.
   
  In other words, access to the 800 MHz frequency band will result in greater competition, which in itself will lead to more jobs as the economy grows, assuming that we won’t sit with jobless growth.

• Economies of scale – ‘According to Neotel the use of CDMA2000 mobile technology in the 800MHz spectrum has been proven globally to provide larger coverage for both voice and high speed internet services at lower costs, providing optimal economies of scale. This should translate into improved affordability of telecoms services. CDMA’s superior call handling ability and spectral efficiency has made it the technology of choice for fixed wireless operators the world over’ (Neotel gets 800 MHz spectrum from ICASA, MyADSL, 30 March 2007).
   
  In other words, savings are now possible that wouldn’t be the case if Neotel had no access to the frequency band.

• ‘Access to new, innovative and world-class technologies’  - “The allocation of this spectrum should also be seen in the context of ICASA’s drive to put South Africa on a path that will open up access to new, innovative and world-class technologies and the provision of services to low-income consumers for whom telecommunication has previously been unaffordable” (Neotel gets 800 MHz spectrum from ICASA, MyADSL, 30 March 2007). This is according to Paris Mashile, Chairperson of ICASA.
   
  In other words, access to the 800 MHz frequency band opens the door to the introduction of new technologies. 

ADSL South Africa (Broadband South Africa) welcomes ICASA’s move to allocate the necessary frequency band to Neotel. Mashile, keep this up and we might start to give you the benefit of the doubt.