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Figure 6-11 Metal shipping container converted to a central office and calling center in Africa
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work was complete we took a trip into the bush to do some wildlife photography, and on the way to the game area we passed the most remarkable sight The one word that comes to mind when I think of South Africa or Africa in general, for that matter is vibrant I have never seen, in any of the countries I travel to, the degree of entrepreneurial vibrancy that I regularly see in Africa As we approached the intersection of two dirt roads in the middle of the bush northwest of town, I saw the usual gaggle of people standing on all four corners of the intersection, selling the usual collection of fresh fruit, roasted corn, cell phone chargers, toys, and newspapers On my left, a row of baboons sat on a highway guardrail like old men watching the world go by from the front porch of a general store As I looked beyond the cacophony at the intersection, I saw what looked like a metal shipping container sitting in the dirt And sure enough, that s what it was (see Figure 6-11) a shipping container that had been converted into a mobile telephony central office and phone services store Vents on the roof hid a microwave link that connected the switching equipment inside the box to a remote office, and hanging on the wall inside were phones that could be used for a fee by those who did not own their own mobiles This innovation was the result of a challenge put before the wireless players in South Africa The government handed out spectrum with the following proviso: We give you this with the expectation that you will cover 70 percent (or so) of your served area within 5 years If you don t we will come after you with stiff penalties The licensed providers took this challenge to heart Many of them farmed out the services deployment to
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contractors, who set up little offices like the one in the picture Within 2 years they covered 90 percent of the served area Imagine In Africa, as in so many regions of the world, wireless is the dominant connectivity solution, even though wireline is far more prevalent and far better in terms of quality than it has ever been before in these regions Yet because the capital and expense costs to deploy wireless are so much lower than with wireline (because there is no need to dig trenches or put up poles), and because wireless now supports satisfactory levels of data applications, mobility has become the access method of choice in many parts of the world And well it should Furthermore, because of the high cost of telephone calls in many countries, many subscribers use their mobile devices for chat they rely on IM/SMS to stay in touch with their friends The cost to send an SMS message is far cheaper than a phone call; so, in many cases, people use their mobile handsets exclusively to chat! This is what I love about telecommunications: When technology is applied to real human problems and challenges, magic happens
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Perhaps no area of the greater telecommunications industry has been more fraught with misunderstanding and misdirection than wireless Because of poor market positioning, blind reliance by service providers on technology as a synonym for marketplace solution, capability promises that could not be delivered, and occasionally less than stellar customer service, wireless has become a symbol for much of what is perceived to be wrong with the telecommunications industry The financials bear this out: The average wireless customer in the United States talked 50 percent more in 2001 than in 2000, but paid only 5 percent more and 2002 through 2004 numbers reflect a continued trend as usage climbs and revenue declines Usage is dramatically up, but average revenue per user (ARPU) is dramatically down not a healthy picture In the last 5 years, average ARPU has dropped from $65 to roughly $45 In 2001, the subscriber base for wireless grew 14 percent in the United States to roughly 177 million users This amounted to a 63 percent market penetration rate, which will most likely grow to exceed 90 percent penetration by 2006 According to Pyramid Research, 13 million new subscribers joined the service ranks in 2003, a drop from 17 million in 2001 and 2002 Meanwhile, prices have dropped 10 15 percent, which has obvi-
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Downloaded from Digital Engineering Library @ McGraw-Hill (wwwdigitalengineeringlibrarycom) Copyright 2004 The McGraw-Hill Companies All rights reserved Any use is subject to the Terms of Use as given at the website
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