A remarkable shift is underway in Africa. Driven by the world’s youngest and fastest-growing population, dynamic companies across the vast continent continue to revolutionise diverse sectors, from transport to financial services and renewable energy. As a result, Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, according to the African Development Bank Group.
At the centre of this transformation sits South Africa, home to the continent’s most sophisticated economy, with a GDP nearing $400 billion. Industrialised and diversified, the nation serves as a major business hub for the continent, attracting significant foreign direct investment projected to reach over $9 billion in 2024.
Despite this, the government faces a challenge to boost a stagnating economy. Only two years ago South Africa was described as the most unequal country in the world by the World Bank, and in 2023 the economy grew just 0.6%.
The reasons for this are multifaceted and complex, but bridging the digital divide could be key to unlocking long-lasting economic change. While ground is being gained — at the last Census the number of households without internet access decreased from 64.8% in 2011 to 21.1% in 2022 — progress is slowing.
The magnitude of the government’s ambitious broadband project South Africa Connect (SA Connect) is admirable, but there are challenges around the high costs and infrastructure requirements of 5G and fibre deployments. Fibre rollouts, in particular, face hurdles in densely populated urban areas due to logistical complexities, right-of-way issues and prohibitive capital expenditure. It’s clear a new approach is needed.
Bridging the digital divide with mmWave FWA
In a pivotal move towards improving connectivity, the Independent Communications Authority of South Africa (ICASA) recently took the decision to open up the 60GHz band for outdoor communications. This decision holds the potential to be a game-changer for the nation’s digital landscape.
The abundant bandwidth and super-fast speeds of the 60GHz spectrum are revolutionising Fixed Wireless Access (FWA) operations. By leveraging this spectrum, Wireless Internet Service Providers (WISPs) can rapidly and cost-effectively deploy robust gigabit wireless networks, circumventing the substantial capital expenditure associated with widespread fibre rollouts, which can be complex and time-consuming in dense urban environments. The quick deployment cycles and lower costs of FWA networks translate into accelerated time-to-market and enhanced affordability for end-users — a critical factor in driving digital inclusion.
While FWA cannot entirely replace the need for fibre backhaul and last-mile connectivity in high-density areas, its ability to provide a complementary solution is undeniable. By swiftly blanketing underserved communities with high-speed wireless broadband, FWA can serve as a catalyst for socioeconomic development, enabling access to educational resources, e-commerce platforms and remote work opportunities. In densely populated cities like Johannesburg, Cape Town and Durban, where multi-dwelling units and informal settlements pose unique connectivity challenges, FWA offers these areas high-speed internet without prohibitive trenching or cabling costs.
Opportunities ahead for WISPs
There is a significant challenge with high interference levels in the 5 GHz band, which can hinder network upgrades and limit available bandwidth. However, the decision to open up the 60GHz band for outdoor communications presents an opportunity to overcome this obstacle. The 60GHz spectrum offers abundant bandwidth and minimises interference, enabling WISPs to rapidly deploy robust gigabit wireless networks without the constraints of the congested 5 GHz band. By tapping into this unlicensed and completely unutilised spectrum, WISPs can provide high-speed, reliable connectivity to urban areas, circumventing the limitations of existing bands and accelerating the rollout of advanced broadband services.
The opportunity for WISPs in urban FWA deployments is substantial, as evidenced by early investments from local players and international giants alike, underscoring the immense market potential at hand. As FWA solutions mature and 60Ghz mmWave spectrum has become available, a burgeoning ecosystem is emerging where WISPs can rapidly cater to unserved and underserved communities, catalysing economic growth and social development across South Africa’s cities. This disruption is already taking root.
The 60GHz decision is merely the beginning of South Africa’s drive for universal broadband access. Ongoing spectrum allocation efforts, coupled with technological innovations and advanced beam-steering techniques, will further amplify FWA’s disruptive potential, paving the way for a more connected and inclusive digital future.
Connectivity is changing, and South Africa’s regulatory foresight in unleashing the 60GHz band is commendable. As WISPs capitalise on this opportunity, urban communities around the country stand to benefit from improved broadband access. This could not only bridge socioeconomic divides, but propel the nation’s economy towards strong growth.
