• Wi-Fi Hotspots for the Disadvantaged

    The technological advancement in South Africa in terms of the digital device has made Telkom payphones review their public phones and introduce the Wi-Fi hot spots at a radius of 10 metres.

    In 1994, only 15 percent of South Africans had access to telephony, thus payphones were of more help to the citizens.

    The major reason for this project to be launched is to help citizens that are disadvantaged in terms of internet access.

    To read the article titled, “Telkom's Wi-Fi hotspots to benefit disadvantaged citizens,” click here.

    SABC News
  • Google’s Low Cost Smartphone Announced

    Google has announced that it is working on a low-cost smartphone aimed at emerging markets as part of an initiative called Android One.

    Google senior vice president, Sundar Pichai, points out that the Android-powered handset will be built with a basic set of features including FM radio, have a screen slightly smaller than five inches (12.7 centimetres) and be priced at R1 000).

    Pichai states the Android One initiative sets out to work with smartphone makers and others in the ‘ecosystem’ to pool resources and standardise hardware platforms to provide ‘turnkey solutions’ for making handsets, according to Pichai.

    To read the article titled, “Google’s low-cost phone for emerging market,” click here.

    IOL News
  • Free Wi-Fi at South African Taxis

    The South African National Taxi Council (SANTACO) has announced that it will be providing free wi-fi to commuters in taxis and around taxi ranks.

    According to reports, while the project has been spearheaded by the taxi association, it is being implemented through a collaboration between Telkom.

    Telkom will be providing the connections and Wi-Taxi South Africa will be responsible for the infrastructure.

    Meanwhile, SANTACO chief executive officer, Nkululeko Buthelezi, says that taxis will not increase their fares, and that the wi-fi was simply a ‘value-add’ included in the normal fee.

    To read the article titled, “Plan for free wi-fi on all taxis,” click here.

    IOL News
  • ICASA Reviews Proposed New Call Termination Rates

    The Independent Communications Authority of South Africa (ICASA) says it has started the process of reviewing its proposed new call termination rates.
    ICASA spokesperson, Paseka Malekathe, says in order to do the process in a transparent and fair manner, questionnaires will be sent to every licensee to seek information for the review.
    ICASA, which was given six months by the court to amend its regulations, has given the licensees are required to submit responses to ICASA by 13 June 2014.
    To read the article titled, “ICASA reviews proposed new call termination rates,” click here.

    SABC News
  • SA Has A 'Right' to Cheap Data

    According to Duncan Alfreds, data cost remains a barrier to many South Africans accessing the Internet and reducing that cost should be the priority, an industry insider insists.

    In his article titled ‘SA has a 'right' to cheap data’, Alfreds echoes Kevin Hurwitza, chief executive officer’s view that, "Access to cost-effective data should be a basic right to consumers, not a luxury."

    He argues that despite South Africa having the potential of six million cable broadband connections, there are only around 800 000 ADSL subscribers, adding that most South Africans who access the Internet, do so on mobile phones.

    To read the article titled, “SA has a 'right' to cheap data,” click here.

    News 24
  • Education 'Key' to Open Wi-Fi Networks

    South African cities are engaged in the process of rolling out public Wi-Fi hotpots in an effort to make high speed mobile data freely available.
    According to a security consultant at Fortinet, Jonas Thulin, states that the new service though, could be used by criminals to entrap users who are unused to the environment.
    "While access for all is a commendable goal, there are security risks in extending free and low-cost Wi-Fi access in public places," explains Thulin.
    The cities of Tshwane and Cape Town are in the process of rolling our Wi-Fi access points for residents, and Thulin said that newbie users had be educated about the risks of an open network.
    To read the article titled, “Education 'key' to open Wi-Fi networks,” click here.

    News 24
  • Massive Increase in SA Smartphone Purchases

    The numbers from South Africa's largest mobile phone retailer show that a massive shift is happening in the smartphone market.

    The shift from feature phones to smartphones in South Africa is happening faster than anyone could have imagined just a few months ago.

    Sales figures from the country’s largest mobile phone retailer, PEP stores, reveal a radical transformation in the phone-buying habits of the low- and middle-income segments of South Africa’s population.

    PEP’s overall numbers, however, are equally startling. In the year to the end of June 2014, it sold no less than 6.7-million pre-paid phones – half of all phones sold on pre-paid deals in South Africa during that period, according to John Edwards, cellular executive at PEP.

    The biggest surprise in its numbers, however, lurk in the smartphone sales figures.

    In the half-year to December 2013, 1 percent of prepaid phones sold were smartphones. For the full year, by the end of June 2014, that number had shot up to 7 percent, implying a rise to 13 percent in the first six months of 2014.

    But that is not where it ends. In one month alone – March 2014 – the smartphone contribution was at 23 percent, thanks to special offers and new low-cost handsets.

    “We’re forecasting that number to rise to 30 percent in the last quarter of the year,” said Edwards. “It’s driven by handset subsidies from the networks, but I suspect that if you took away the subsidies, the volumes wouldn’t be significantly lower.”

    WhatsApp appeal

    Edwards believes that smartphone demand has also been driven by the massive uptake of WhatsApp, the instant messaging app that is now accessible on many feature phones as well as all entry-level smartphones.

    The obvious devices, sub-R500 Android phones like the MTN Steppa and Huawei Ascend Y220, made a big contribution. However, PEP also made a massive impact by introducing a WhatsApp-specific feature phone: the AG Whutz-Zappa, at a cost of R399.

    Thanks to a funky name and a WhatsApp shortcut button, it has captured the imagination of the low-income segment that aspires to instant messaging services.

    A camera, MP3 player and WAP browser means it’s got the basics, but it is also, no doubt, a stepping stone towards owning a basic smartphone – which will come down to the same price in the next year or so.

    Rethinking data pricing

    That is good and bad news for the mobile operators, who are struggling with strategies to cope with declining voice revenues.

    “On the Android phones we sold, the average revenue per user (ARPU) is three times as much as on feature phones,” says Edwards. “There’s clearly a swing at the low end, from consumers who are desperate for access to Android devices and definitely to instant messaging.

    “But that is only part of it. My gut feel is, if you put the tool in people’s hands, they will use it. Before I saw the ARPUs, I assumed it was all about WhatsApp. Clearly, the data wave is coming.”

    That also means, however, that the operators will have to rethink their data pricing strategy. The network that is cheapest for voice calls, Cell C, is the most expensive for ad hoc use of data, at R2 per Megabyte.

    “A PEP customer buys, on average, a R15 voucher,” says Edwards. “These guys live hand to mouth. You can’t give them bill-shock. If they lose R15 for an app running in background, they’re going to dump the phone.” –

       - Arthur Goldstuck is the founder of World Wide Worx and editor-in-chief of Follow him on Twitter @art2gee. This article first appeared on the Mail&Guardian.

  • ICASA Challenged Over Call Rates

    Cellphone network operators, MTN and Vodacom, will continue to challenge the introduction of new asymmetrical call termination rates in the Johannesburg High Court.

    However, Kate Hofmeyer, for Cell C, believed that if MTN and Vodacom were granted interim relief through the court suspending the Independent Communications Authority of South Africa’s (ICASA) 2014 regulations, this would result in the market being unregulated.

    Call termination rates are rates that mobile operators have to pay one another for calls to other networks.

    To read the article titled, “Unregulated cell environment dangerous – ICASA,” click here

    Fin 24
  • Mobile Data on the Increase in SA

    According to a report, mobile data traffic in South Africa is expected to have a compound annual growth of 53 percent in the next five years.

    The Cisco Visual Networking Index Global Mobile Data Traffic Forecast for 2013 to 2018, points out that mobile data traffic will reach an annual run rate of two exabytes (one quintillion bytes) by 2018.

    The report also states that 60 percent of mobile connections in South Africa will be ‘smart’ connections by 2018, up from 20 percent in 2013.

    To read the article titled, “Mobile data in South Africa to boom in next five years,” click here.

    Times Live
  • Vodacom and MTN Put Profits Before People

    I often wonder if certain captains of industries are entirely disconnected from reality. It is the only thing that can explain the breathtaking gall of Vodacom chief executive, Shameel Joosub, who complained publicly that new regulations would cost his company R1 billion in 2015, threatening to sue as a result.

    His threat relates to the upcoming changes in mobile termination rates enforced by the Independent Communications Authority of South Africa (ICASA). These are the fees that our cellphone networks are allowed to charge each other when customers call numbers outside of their own network.

    After years of squabbling, ICASA has finally managed to force the larger operators to gradually reduce these fees from 56 cents per minute in 2012 to 20 cents starting in March this year (2014), and down to 10 cents by 2016.

    Let's be clear: we are not talking about Vodacom or MTN suddenly being unfairly fined or taxed. These termination fees are built into the cost of the phone calls we make. By forcing the operators to lower them, ICASA is acting on behalf of ordinary consumers because lowering these fees will stimulate competition and drive down call charges across the industry.

    So what Joosub is effectively saying is: "Vodacom looked at the numbers and these lower call rates will hurt profits. We like profits, so we are (probably) suing ICASA." Were Vodacom some kind of struggling non-governmental organisation or a scheme to dig wells for the impoverished in South Sudan, say – we might have some sympathy. But Vodacom is a spectacularly profitable giant with over 50 percent of the South African market in its grasp.

    In the year ending December 2013, Vodacom declared over R13.2-billion in pure profit – a rise of nearly 30 percent on the previous year. So the amount Joosub is complaining about does not even equal 10 percent of last year's profits. By 2015, it will probably be closer to five percent. Shame.

    One of the things that is most vexing to Joosub and his compatriots at MTN (who control a healthy 33 percent of the market) is that ICASA has decided to treat the smaller networks – Cell C and Telkom Mobile – differently. They will receive much higher termination fees from Vodacom and MTN than they pay in return. 

    The logic behind this decision is that the larger players, left unchecked, might exercise their market power to squeeze the smaller players out completely. I am normally not a fan of such blatant market manipulation by a regulator, but given the alternative – a predatory duopoly – I am comfortable with the idea.

    It is pleasingly ironic to watch Telkom argue that it needs special treatment to help it defeat mean old Vodacom, in which it owned a 50 percent stake until mid-2009. The spectacle of one rapacious monopolist stabbing another former comrade-in-monopoly in the back is grimly amusing. The fact that consumers may benefit as a result is purely coincidental, but with Telkom's history I suppose we will take what scraps we can get.

    You could argue that Joosub and Zunaid Bulbulia, MTN's chief executive, are just doing their jobs. They are protecting their shareholders, many of them ordinary South Africans, against a regulator that blatantly seeks to make their companies less profitable. 

    But let us look at their profit margins in comparison to international norms. In its last financial year, Vodacom's net profit margin was 22.2 percent and the MTN group's was 17.8 percent. In the previous year, the figures were 17.5 percent and 19.5 percent respectively. International averages for the industry hover around 10 percent, and 15 percent is considered very high.

    Profit margins are meant to reflect risk. Supermarkets make lower margins than many riskier businesses because the chance of people not needing food regularly is zero. But they make up for this in volumes. 

    I would argue that mature telecoms operators are much more like supermarkets than riskier businesses such as software or construction. They have huge, established customer bases and provide a daily service to even the poorest people. They simply do not deserve the large risk premium they are currently extracting from the market. So bitching about giving five percent of your enormous profits back to your customers will only come across as tin-eared and out of touch.

    Oscar Wilde once said: "One should always play fairly when one has the winning cards." If I were Joosub or Bulbulia, I would take that to heart and shut my mouth.

    Alistair is the Mail & Guardian's Chief Technology Officer. This article first appeared on the Mail & Guardian website. 
    Alistair Fairweather
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