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.
Cisco gives pre-owned tech a Refresh
In a market of constant upgrades, Cisco Refresh aims to keep quality product away from landfills, writes BRYAN TURNER.
When one gets a new smartphone upgrade, the old device may be used as a backup or can be used by someone else. In business environments, equipment upgrades may not be conducive to keeping old equipment around, which may send older, working equipment to landfills.
This is where Cisco’s Refresh initiative comes in. At Cisco Connect in Sun City this week, Ehrika Gladden, VP and general manager of Cisco Refresh, lifted the lid on a little-known aspect of the company’s strategy.
“Refresh is Cisco’s global pre-owned equipment business unit,” said Gladden. “It is certified to meet the quality and engineering standards of Cisco. It is licensed for software and it’s also inclusive of a services warranty.
“Our responsibility in 80 countries around the world is tied to both the recovery of assets and the ability to leverage those assets at a lower price point. This ensures our sustainability and proper usage of the Earth’s resources while providing access to small and medium businesses. The products are typically in the range of 20-40% cheaper. The products represent the entire portfolio for Cisco in some part, the majority of that product set is 2+ years in terms of generation.”
Cisco’s Circular Economy initiative ensures a sustainable loop through businesses willing to pay a premium for the latest, cutting-edge solutions, while Cisco markets older, working equipment for resale to those who don’t require the latest solutions. This ensures far less new components need to be used in a product range.
“We are leveraging the model of remanufacturing, refurbishing, recycling, and reusing,” said Gladden. “Depending on the product set, there is a certain set of product yield that we expect. They vary from product to product, but we do have a percentage that doesn’t make it through.
“Those are always reused, meaning we will look at those products and decide to use them completely differently, leveraging the components, remanufacturing back into the overall build process. If that can’t be done, we will go into a recycle process where we melt those products down to reuse them.”
Repairing and refurbishing older products isn’t just that. Cisco is creating repair centres that are owned by third-parties to uplift local ownership.
“The repair centres, as a global manufacturer, is Cisco’s entree into local ownership,” said Gladden. “I want to be precise about what I mean by local ownership. It’s critical for us to have a localised presence, but doing that through ownership. When you look at inclusive economies, those that are participative, to be sustainable – not in the product set, but generationally.
“The ability as a global manufacturer through a local ownership model isto create a repair centre where a product can be returned, screened, tested, and repaired, leveraging the talent that the Networking Academy is creating.”
Cisco is working closely with local governments to understand where it operates and how to leverage the skills in the market.
Gladden said: “We are also super excited about the National Development Plan and African Union statements which with we align: eradication of poverty, job creation, ownership, healthcare, education, it all fits in the model. So we were very excited to have the opportunity to come to Africa first to announce this. Over the next twelve months, we want to establish our first repair centres, and in the next 3 to 5 years, build that vision into a reality.”
Why Data Privacy has become a Pipe Dream
If you’re active on WhatsApp, Facebook or any other social platform, you’re not as safe as you thought, writes
AARON THORNTON, MD of Dial a Nerd
As you begin to read this, let’s perform a quick experiment! How many active conversations are you engaged in – right now – on WhatsApp? When was the last time you shared a picture or video on Instagram? Is Facebook currently open and active on one of your devices? And how many internet- connected devices are you using at this moment? Chances are, you have multiple devices running multiple applications most of the time. So what’s the problem, you ask? Since when did checking in with a high school buddy in Australia via Facebook become a dangerous act?
In reply, we say, read on if you can stomach it!
Nation-State Hacking & You
It might seem like a laughably long shot to say that you are a key player in the increasingly sinister and sophisticated world of nation-state hacking. Well, you are. Given that individuals, businesses and governments are now constantly connected, round the clock, consumers and businesses have become fair game in cyber espionage. And as we create and share more and more data, both the value and accessibility of that data increases. According to a report by McAfee, IP theft now accounts for more than 25% of the estimated $600 billion cost of cybercrime to the world economy.
With data having become the ‘new gold’, nation states are naturally pouring investment and key resources into building advanced cyber warfare tools. Indeed, entire divisions of armed forces as well as the upper echelons of corporate leadership are devising ways to harness data to gain economic, political and social power. At the highest level, tools and platforms are being developed with the specific aim of perpetrating cyber espionage and data theft. No surprise then, that the consumer and business environments are rife with increasingly advanced malware, ransomware and many other malicious hacking tools and methods.
Still not convinced? Yes, we can smell the scepticism from here! So let’s take a moment to see how this has already played out, beneath our noses.
Remember the Facebook–Cambridge Analytica data scandal of early 2018? For many, this was a watershed moment in the emerging war for consumer data – and the ensuing tensions between privacy, power and profit. Need a refresh? Well, in 2018, Facebook exposed data on up to 87 million Facebook users to a researcher who worked at Cambridge Analytica, which worked for the Trump campaign. In essence, the data was harvested without user consent and used for political purposes.
Another chilling but less direct example can be found in Russia’s meddling in the 2016 U.S. elections. According to Politico, Russia launched a massive social media campaign to ‘sow discord’ leading up to the elections. The website reported that as early as 2014, an infamous Russian “troll farm” known as the Internet Research Agency – a company linked to Russian president Putin – developed a strategy using fraudulent bank accounts and other fake identity documents to “spread distrust towards the candidates and the political system in general.”
When referring to the Russian hacks and their impact on election results, one U.S. Representative sagely noted: “They didn’t just steal data; they weaponized it.”
Ignorance is not bliss
Okay, so data is being ‘weaponized’, and ordinary people and businesses are being caught in the crosshairs of cyber warfare. A little bit frightening, but the good news is that savvy individuals like you can take steps to protect personal data and actively combat the creeping influence of juggernauts such as Facebook and Google.
Now that we’ve left you sufficiently spooked, you can get back to those demanding WhatsApp/Facebook/Instagram notifications (same company, by the way)…albeit, we hope, with a slightly altered [cyber] worldview!