INTELLIGENT BRANDS // Mobile Technology
Is 5G hype or reality for
South Africa?
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W
ith global 5G rollout gathering
speed and the recent launch of
5G in Lesotho by Vodacom, the
question of whether South Africa is ready for
the transition to 4G’s successor is dependent
on various factors that could cause a delay in
the integration of 5G. Affordability is also factoring into slow
growth of the subscriber base, and while
MNOs are ready to launch the 4G network,
3G is expected to be the dominant
technology over the next three to five years
as it can support voice and data services for
both feature and smartphone devices.
Mobile communications have been the
catalyst for the development of new
business models with mobile phones
becoming more than just a communication
tool. In South Africa, 87% of households
have access to mobile phones. With limited
development of fixed Internet (ADSL, fibre)
and usage of satellite in the last mile, mobile
communication remains vital to bridge the
digital gap. The 4G service will attract few users. It
will be a niche market and is unlikely to be
universally available. It will be predominantly
available in affluent areas.
During the International Telecommunications
Union conference (ITU), which took place
in Durban, President Cyril Ramaphosa
outlined the role of communications and its
importance in the economy, including the
auctioning of 5G spectrum.
The 5G ecosystem is still being defined by
ITU and other communications stakeholders;
there are still devices, infrastructure and
equipment that need to be developed to
allow users to benefit from the ultrafast and
low-latency network. So, is there a demand for
5G in South Africa or the rest of Sub-Saharan
Africa? Yes, but most likely in niche markets
with healthcare, education, agriculture and
automotive benefiting the most.
“When it comes to a 5G network, South
Africa and the rest of the Sub-Saharan
region are still in the early development
stages,” said Govan-Vassen.
Local operators expressed their
dissatisfaction with the regulator’s pace in
releasing the spectrum they need to expand
their high-capacity mobile networks such
as 4G and 5G following the launch of 5G in
Vodacom’s Lesotho operation.
“This has been attributed to continuous
delays in completing the country’s digital
migration, which was targeted for June 2015
but is more likely to be done in 2019,” said
Lehlohonolo Mokenela, ICT Consultant at
Frost & Sullivan.
“Despite promising significantly higher
speeds than 3G and 4G, there are still
concerns about the immediate relevance
of 5G while a significant portion of the
African market is still struggling with basic
connectivity. Its immediate future may,
however, more readily lie in enterprise
applications and fixed wireless Internet in
the residential sector and for SMEs.” n
While there is political will to get the
communication sector back on track, there
is still a lot of work that needs to be done
before even thinking of a 5G network.
Completing digital migration, providing
direction on the SA connect and licensing 4G
spectrum are some of the plans that need to
be implemented.
“The delay in the spectrum auctioning
is hampering development along with
expensive data packages,” said Naila Govan-
Vassen, Senior ICT Industry Analyst at Frost
& Sullivan.
“The auction of 700MHz, 800MHz and
2,600MHz is crucial for the rollout of an LTE
network, but its stringent requirements are
posing a challenge for the licensing process.”
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