Connect with us

Featured

Data must be attacked, but by precision strike

Published

on

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.

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

Featured

Now download a bank account

Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.

Published

on

This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.

“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.

“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”

The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:

  1. Download the Absa App
  2. Choose the account you would like to open
  3. Tell us who you are
  4. To keep you safe, we will verify your cell phone number
  5. Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
  6. Tell us where you live
  7. Let us know what you do for a living and your income
  8. Click Apply.

 

Continue Reading

Featured

How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

Published

on

Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

Continue Reading

Trending

Copyright © 2018 World Wide Worx