The campaign to target the cost of data runs the risk of missing the point, that data prices have in fact plunged – but not for the poor. By ARTHUR GOLDSTUCK.
When a hashtag campaign tells us that #DataMustFall, it’s easy to be caught up in the outrage at high data costs and the enthusiasm for cheap data. Aside from the operators who profit when prices remain high, no one would argue against it.
But there is one flaw in the campaign: it does not make it clear which data prices must be targeted, and why.
That’s important, because it is easy for the operators to argue that data has indeed fallen. The average price of data bundles has been cut by anywhere from 20 per cent to 50 per cent, depending on which bundles from which operators one buys. As a result, the operators can complain that they are not given credit for bringing down the cost of data.
That’s a devilishly disingenuous argument, though. Data has fallen only for the wealthy and the well-off, who can afford to buy large bundles upfront. For example, someone buying a 20GB monthly bundle from Cell C or MTN will pay only R499 a month, or 2.5c per Megabyte of data. That’s among the cheapest in the world. However, to afford that kind of bundle, you need to be earning a fairly decent salary.
For a 500MB bundle, the cost is as low as R39 a month on MTN, Cell C and Telkom Mobile. That works out at 8c per Megabyte. That’s not too shabby, either.
What is shabby is that these bundles are described as affordable, based on the per Megabyte cost.
The problem is that the bundles are not being sold per Megabyte. The problem is that entry-level smartphone owners are buying data only when they use it. The problem is that pay-as-you-go data comes off airtime. And the problem is that airtime data is the most expensive data one can buy.
It works like this: pay-as-you-go data, also described as ad hoc data because it is bought only when used, is billed at the ceiling price of data. On Vodacom, that is R2 per Megabyte. On MTN it is R1, and on Cell C it’s 99c.
Why would people endure such high costs when they could be paying as little as 8c per Megabyte? There are two answers.
The first is that at least a quarter of smartphone users are not incurring those costs. They know from hearsay that the moment they activate the Internet or data access on their phones, it starts chewing into their airtime. While there are valid explanations for this phenomenon – mainly apps updating in background or apps polling servers for status updates – it is perceived as data or airtime being stolen. It is estimated that a full 25 per cent of smartphone users do not access the Internet for these and related reasons.
The second answer is one that is a matter of pure economics. Those on the lowest income levels or earning no income will still go to great lengths to buy a prepaid voice package, as communication has become a basic human need. The fact that bundles start as low as R5 for a specified number of minutes provides the clue to just how little some voice customers can afford.
Data is not perceived as an essential purchase by most people in these segments, and is almost never bought in bundles. Even bundles as small as R25, which would achieve major savings in the cost of ad hoc data, are regarded as unaffordable.
As a result, for those who cannot afford data bundles, ad hoc usage on apps like WhatsApp, Facebook and email is almost always at the ceiling price. This means it is the ceiling price of data that must fall.
The networks call these out-of-bundle rates, but that in itself is a misnomer. It implies that it is a penalty for not buying bundles, and that further implies it is the consumer’s own fault. In other words, people are being punished for being poor.
It is ironic that it is only the once-vilified Telkom that seems to have understood this message. With any airtime recharge of R5 or up on its SIM-Sonke prepaid deals, the ceiling price of data is 29c per Megabyte. That, rather than a R5 data bundle, is what one might call affordable, despite the fact that it still limits how much usage can be made of data if most of one’s bundle is needed for voice.
Since 2011, when the smartphone revolution began in earnest in South Africa, World Wide Worx has been calling for the regulator, Icasa, to put a mandatory and affordable ceiling on the price of data. That could range from 20c to 40c, but Telkom has set a good precedent at 29c per Megabyte.
This is an obvious solution, yet it appears that the authorities would rather milk the situation for as long as it can. The Minister of Communications has mandated Icasa to investigate whether high data prices are a result of lack of competition. In other words, let’s build more time and cost into the equation, rather than acknowledge what has been obvious all along.
Some have called for data prices to be halved, but that still leaves the ad hoc user paying exorbitant rates ranging from 50c to R1 per Megabyte.
Yes, data must fall. But, rather than the carpet-bombing approach taken by a one-dimensional campaign, we need a precision strike that takes out the real enemy, namely the punitive ceiling price of mobile data.
Auto rivals team up for connected car demo
Rivals BMW, Ford and Groupe PSA, maker of Peugeot and Opel cars, have teamed up with the 5G Automotive Association (5GAA), Qualcomm Technologies and Savari for Europe’s first live demonstration of C-V2X direct communication technology operating across vehicles from multiple auto manufacturers.
The live demonstration also featured a live showcase of C-V2X direct communication technology operating between passenger cars, motorcycles, and roadside infrastructure. C-V2X is a global solution for vehicle-to-everything (V2X) communication in support of improved automotive safety, automated driving and traffic efficiency.
The demonstration exhibited the road safety and traffic efficiency benefits of using C-V2X for Vehicle-to-Vehicle (V2V) collision avoidance, as well as Vehicle-to-Infrastructure (V2I) connectivity to traffic signals and Traffic Management Centers (TMC). C-V2X was operated using real-time direct communications over ITS spectrum and demonstrated its ability to work without cellular network coverage, and underscores its commercial readiness for industry deployment as early as 2020. Superior performance and cost-effectiveness compared to other V2X technologies, along with forward-compatibility with 5G, make C-V2X direct communications a preferred solution for C-ITS applications.
Six demonstrations were shown including: Emergency Electronic Brake Light, Intersection Collision Warning, Across Traffic Turn Collision Risk Warning, Slow Vehicle Warning and Stationary Vehicle Warning, Signal Phase and Timing / Signal Violation Warning and Vulnerable Road User (pedestrian) Warning. The vehicles involved included two-wheel e-scooters provided by BMW Group, and automotive passenger vehicles provided by Ford, Groupe PSA, and BMW Group, all of which were equipped with C-V2X direct communication technology using the Qualcomm® 9150 C-V2X chipset solution. V2X software stack and application software, along with roadside infrastructure, were provided by industry leader, Savari.
C-V2X is globally supported by a broad automotive ecosystem, which includes the fast growing 5GAA organization. The 5GAA involves over 85 global members comprised of many leading automakers, Tier-1 suppliers, software developers, mobile operators, semiconductor companies, test equipment vendors, telecom suppliers, traffic signal suppliers and road operators.
Cellular modems will be key to the C-V2X deployment in vehicles to support telematics, eCall, connected infotainment and delivering useful driving/traffic/parking information. As C-V2X direct communication functionality is integrated into the cellular modem, C-V2X solutions are expected to be more cost-efficient and economical over competing technologies, and benefit from accelerated attach rates. C-V2X direct communication field validations are currently underway in Germany, France, Korea, China, Japan and the U.S.
C-V2X currently stands as the only V2X technology based on globally recognized 3rd Generation Partnership Project (3GPP) specifications, with ongoing evolution designed to offer forward compatibility with 5G. C-V2X also leverages and reuses the upper layer protocols defined by the automotive industry, including the European Telecommunications Standards Institute (ETSI) organization. C-V2X includes two complementary transmission modes:
- Direct communication as shown in this demonstration for V2V and V2I use cases
- V2N network communication, which leverages mobile operators for connectivity and delivers cloud-based services, including automated crash notification (ACN, as mandated by eCall), hazard warnings, weather conditions, green light optimal speed advisory (GLOSA), parking spot location, and remote tele-operation to support automated driving, to name a few.
“This demonstration builds on the successful C-V2X showcase we organised with our members Audi, Ford and Qualcomm in Washington DC in April, said Christoph Voigt, Chairman of 5GAA.
“We are excited to witness the growing momentum behind this life-saving technology and to see our members working together to deploy C-V2X, and to make it hit the road as soon as possible.”
“The BMW Group introduced the first C-ITS use cases already in 2013 with the market introduction of the BMW i3. Today most of envisaged C-ITS use-cases are already institutionalized. With the implementation of C-V2X, the BMW Group accomplishes the last set of the puzzle with a practical path to C-ITS showing quick benefits,” said Christoph Grote, Senior Vice President Electronics, BMW Group.
“With its ability to safely and securely connect vehicles, along with its evolution into 5G, C-V2X is integral to Ford’s vision for future transportation in which all cars and infrastructure talk to each other,” said Thomas Lukaszewicz, Manager Automated Driving, Ford of Europe. “We are very encouraged by preliminary test results in Europe and elsewhere which support our belief that C-V2X direct communications has superior V2X communication capabilities.”
“We’re moving forward with seamless communication between cars and their environment for enhancing road safety, as well as our customers’ safety,” said Carla Gohin, Group PSA’s Vice President for Research and Advanced Engineering. “Following the first European C-V2X direct communications demonstration we hosted with Qualcomm Technologies last March, we’re pleased to work with leading automotive and technology companies today to highlight that C-V2X interoperability is a reality.”
“This demonstration of interoperability between multiple automakers is not only another milestone achieved towards C-V2X deployment, but also further validates the commercial viability and global compatibility of C-V2X direct communications for connected vehicles,” said Enrico Salvatori, senior vice president & president, Qualcomm Europe and MEA. “We look forward in continuing to work alongside leaders in the automotive industry, like the 5GAA, BMW Group, Ford, Groupe PSA and Savari, to help advance the automotive industry’s shift towards a safer, connected and more autonomous future.”
“As one of the V2X pioneers, our company is extremely pleased to continue to help enable the next step in the V2X revolution that we helped start back in 2008,” said Ravi Puvvala, CEO of Savari. “For the last year and a half, the Savari team has worked diligently alongside the dedicated C-V2X engineers in the 5GAA partnership. The resulting string of increasingly impressive demonstrations is continuing to convince the world that C-V2X will soon be deployed around the world.”
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.