On the back of an excellent reputation for innovation in the Internet connectivity market, Internet Solutions is turning its attention to new areas of opportunity in the mobile market, and is poised to deliver low-cost, high quality mobile voice to its customers.

A VAST ARENA OF OPPORTUNITY

In the fast-paced South African telecommunications environment, the mobile market is emerging as the new arena of opportunity. It’s an arena where competition can create the value for money which, to date, has been denied to consumers. And it is an arena in which Internet Solutions is staking a great deal – the company, on the back of a sound reputation for innovation in the Internet connectivity market, is poised to deliver that which customers want most: lowcost, high quality mobile voice.

That’s according to Justin Spratt, Internet Solutions VoIP mobile general manager. He says the industry stands at a watershed moment with the impact of two very important forces. “The first is that government is finally on board with the interconnect debate, which will see reductions in the cost of calls to other networks of up to 50%. The second is in the mobile platform space; the introduction of the Apple iPhone has wrested power away from the carriers, something no other handset manufacturer has ever done before, not even when Nokia was at the peak of its popularity.”

CONNECTING WITH INTERCONNECT

Tackling the issue of the imminent reduction in interconnect rates – the fees which network operators charge each other to terminate calls which originate outside their own network – Spratt explains that this move, in effect, allows for more competition. “While the direct result for the end user may not be substantial, reduced interconnect means operators can enter the market more easily,” he says.

Since such operators, typically Value Added Network Services (VANs) providers, are unlikely to have any customers on their own networks at inception, they are presently hamstrung by interconnect costs. “This is what the major network operators fear – increased competition, not a direct reduction in what the end user pays,” says Spratt. However, Spratt explains that as more operators are able to enter the market, and competition increases, end user pricing will inevitably come down.

Just how important such a move may be, says Spratt, is demonstrated by research that shows that a 10% increase in access to telecommunications can have a 1% increase in the country’s GDP growth.

MOBILE PLATFORMS AND THE IMPACT OF THE iPHONE

Turning his attention to mobile platforms and the impact of the iPhone, Spratt says that the open platform that this device represents allows service providers like Internet Solutions to take their existing business model mobile.

“Before open platforms on mobile, the network operator dictated what the consumer and owner of the handset saw and could use. There was no choice; the consumer had no power at all,” he explains. However, with open systems the door is opened wide for third parties to develop applications for handsets which give owners the ability to choose how they use their phones; from Facebook and Twitter to Fring and Skype, the handset in effect becomes a computer. Google’s Android operating system is expected to accelerate open platforms for mobile devices.

“What that means to Internet Solutions is that we are able to take our voice business – which presently moves 40 million minutes a month – and put it on to mobile phones. By delivering VoIP on the handset, the cost of mobile to mobile calls is halved,” Spratt says. Presently in testing, he reveals that Internet Solutions’ mobile VoIP delivers call quality which exceeds that of the GSM networks (using industry-accepted PESQ and MOS tests).

Spratt says mobile communications which leverage the power of the Internet for low cost, high quality communication plays a pivotal role in the future of Internet Solutions. “We are investing substantially in this sector while bringing the same values of quality and competitive pricing to our customers. Mobile communications is an R80-billion per year industry and one in which customers are looking for a better experience at a reasonable price. That’s something which Internet Solutions will offer.”  

C O N T A C T

Justin Spratt
Voip mobile General manager IS
tel: 087 365 1000
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.is.co.za