In South Africa few households have fixed internet access. From a population of around 42 million, only 5 million have fixed lines at home compared to 20 million mobile subscribers. This is because of the varying quality of the country's network infrastructure, according to Ericsson's Pieter Van Der Westhuizen, key account manager for MTN.

"The wireless infrastructure is very modern and the fixed line infrastructure is so far behind," he says. An indicator of this is the low number of ADSL subscribers – there are only 100,000 in South Africa.

"Fixed line is very poorly developed and geographically there are difficulties for the fixed line operator to roll out infrastructure – people are too spread out across the country – and that is creating this large opportunity in South Africa," Van Der Westhuizen says.
 

The wireless alternative to ADSL, as demonstrated for the first time by MTN and Ericsson in Cape Town in December, presents a cost efficient solution to cover large areas and reach prospective users.

The simple home set-up works by receiving HSDPA signals from the network. "You can very rapidly deploy this for a similar cost base as with a fixed connection," Van Der Westhuizen says. "A home owner who wants internet connectivity can go to a shop and buy the device and subscription over the counter. They connect it to their computer and have broadband data services up and running – instant wireless ADSL."

The solution uses both Fixed Wireless Terminals and HSDPA technology. Fixed Wireless Terminals provide voice and high speed data services using widely deployed mobile networks such as WCDMA. HSDPA is a new technology used in 3G networks enabling true broadband data rates. Combining the two allows operators to delivering broadband data services to residential markets.
 

The service is not limited to traditional ADSL areas; people in the whole mobile network coverage area can take advantage of the technology. As a result, the offering will help bridge the digital divide in developing countries by enabling cost efficient access to the internet and email. It also has the long-term capability to respond to demand for advanced services.
 
"In the future, there is the possibility to offer mobile TV," Van Der Westhuizen says. "Consumers want more advanced services and if you can't access them via fixed line, the wireless method is a good alternative, especially because the pricing about the same – you will not pay more because you have wireless ADSL."

South Africa has already showcased the technology but, as Van Der Westhuizen explains, many other parts of the world will be able to benefit. "Potential markets are developing regions with poor fixed line infrastructure," he says. "As well as South Africa and the African continent as a whole, this will be of interest to most parts of Asia and South America."  

Ericsson will commercially launch HSPDA Fixed Wireless Terminals globally in 2006.

The project entailed following a summer concert tour that was sponsored by Tele2 and included some of the country's top pop acts. A five-person demo team was on hand to circulate in the crowds and target an audience of mainly 16 to 30-year-olds. "Their brief was to arm themselves with a phone, a good knowledge about the services and go out and spread the message," Sjölin says.

Demo team member Mia Christenson, from Stockholm, says the response from the public was enthusiastic. "A lot of people were excited and amazed about the possibilities and had lots of questions," she says. "We asked them what kind of phones they had and what kind of music they liked to listen to. We showed them how to download music and gave them a free ringtone."

However, the reaction was mixed between generations. While teenagers were already adept in using music portals they were keen to learn more. Meanwhile, many of their parents who also showed interest had no idea they had a phone that could be used for much more than voice calls and SMS. "I think the project definitely worked and had a positive effect," Christenson says.

The demo team had a mandate to make 500 quality contacts at every concert, which had a noticeable effect. As Sjölin says: "There was ten times more traffic during the project and that was partly due to the fact that we were present and actively engaging people."

Tele2 also reports an encouraging response and expects to use similar marketing methods in the future. "We received lots of positive feedback," Oldmark says. "We are already doing more of these projects and we will need to continue as we launch more sophisticated and advanced services."

According to Sjölin, the success of the project means that Ericsson will continue to work hands-on with operators, helping them to market and make better business from their services.