Service issues weigh on Bharti-Zain deal

19.02.2010

The actions in Niger have raised the debate of investments in 3G and WiMax and the availability of both spectrums. WiMax spectrum is scarce and 3G licenses are expensive, forcing most mobile operators to partner with smaller companies with WiMax licenses, allowing separation of voice and data services.

"In Niger, mobile operators Zain, Alink Telecom, Orange, Moov and Sonitel offer WiMax connections, but only in the capital city, Niamey," Iro said.

The rising number of Internet users and the widespread use of mobile phones has raised a dilemma for mobile operators: Do they choose voice over data or can they do both and survive?

"The dilemma is how to ensure good quality on both without sacrificing one or the other; data will generate higher revenues in the future, particularly when targeting the business market segment, but it will take time. Meanwhile, you have to be in the game now," added Pater.

The debate whether 3G networks can deliver services as good as WiMax will go on, but meanwhile Zain will have to address questions of quality before license renewal.