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Fibrehoods vs Futurehoods: a battle won by consumers

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As fibre-to-the-home rolls out in earnest across suburban South Africa, the army with the most weapons is being left behind on the field of battle, writes ARTHUR GOLDSTUCK.

In the second decade of the 21st century, fibre-to-the-home represents the arrival of the future. Once the cost of installation is covered, it has the potential to deliver almost unlimited speed, capacity and quality in broadband connectivity, at a similar cost to far slower and unreliable services.

So imagine you have the potential to roll it out to numerous businesses in South Africa, as well as to hundreds of thousands of homes. Let’s say, in the process, you could not only revolutionise connectivity, but also win the goodwill of a consumer base that has done little but vilified you for the previous decade.

What would you do? The answer is obvious. Yet, a company that presides over a 144 000km network of fibre optic cable, and that has been the butt of consumer ridicule since the turn of the century, initially decided to sit out the battle for the future.

The company was Telkom, which has developed its fibre network to serve the exchanges from which copper wire extends to homes and businesses across the country. At one time, it had 5,5-million connections via this fibre-copper marriage. Today it is down to less than 3,5-million. ADSL lines, which deliver broadband to homes and small businesses, reached the million mark for the first time this year, but their growth is constrained by ever-lower ceiling of fixed lines, through which ADSL services are provided.

It’s been obvious for years that Telkom should be modernising its network, replacing copper with fibre and pioneering fibre-to-the-home services. In fact, it had done exactly that for larger business customers, resulting in a nimble, profitable and high-quality business division within the organisation. But it refused to enter the battlefield for smaller businesses and consumers.

Into this gap came the so-called second network operator, Neotel, which also failed the consumer, but got one thing right: it laid down an urban fibre grid, and began serving fibre to business customers more economically and eagerly. At the same time, a private entity called Dark Fibre Africa built out its own urban fibre grid, offering to lease capacity to any operator that needed to light up additional fibre to service its own network.

These businesses opened the way for smaller operators to use these backbones to roll out their own mini-networks in specific areas or niches. For example, Metrofibre serves business customers where many of them are clustered together, such as in central business districts or business parks. And the newest kid on the block, Vumatel, lights up consumer homes, one suburb at a time.

When the Parkhurst Residents’ Association announced last year it had appointed Vumatel as its fibre-to-the-home network provider, Telkom suddenly leaped into battle and declared it would also supply FTTH to Parkhurst, along with a bunch of other suburbs.

It quickly discovered, though, that Vumatel had that high-income suburb neatly wrapped up, and crossed it off the roll-out list. One suburb after another, it is having to do the same, as Vumatel engages directly with resident’s groups while Telkom declares its offerings from a distance.

It is no coincidence that it is even borrowing the terminology used by Vumatel in its suburban marketing. The latter calls the new connected suburbs “Fibrehoods”. Telkom calls them “FutureHoods”.  Unintentionally, the term underlines the extent to which Telkom is responding to competition rather than leading it.

Telkom also appears to have an additional connectivity weapon: LTE-Advanced, or 4G mobile broadband. That means it can offer high-speed connectivity through the simple mechanism of well-placed towers, rather than having to dig trenches across entire suburbs and still have to build connections into homes.

However, Vumatel see this as a means of job creation, and has fine-tuned the process to make it both efficient and economical. The result is that the average homeowner in a targeted suburb pays only R1500 to be linked up, and then chooses the Internet service itself from a range of service providers.

The cost of the service is equivalent to or little more than what many households were previously paying for the combination of fixed-line rental, ADSL rental and data charges. Fibre services typically include a fixed-type phone service at no additional cost.

The announcement last week that residents of Victory Park, Linden, Bryanston South and Blairgowrie had endorsed Vumatel may not have been big news in itself. However, it came on the back of similar announcements by residents of four other suburbs: Killarney, Riviera, Saxonwold and Parkwood. And these, in turn, were underlined by the switch-on of Parkhurst, Greenside and Parktown North.

Each successive endorsement or switch-on is trivial in itself. The momentum it represents, however, is revolutionary. With Vumatel expanding its reach from one suburb to the next, to cover an ever-increasing expanse of suburban Johannesburg, we are seeing nothing less than the emergence of an alternative communications network in the city.

As new suburbs are linked, hundreds of new fibre users suddenly discover the massive impact it makes on work, entertainment and communication activities. Word spreads, and the appetite for fibre mushrooms.

“We typically sat in a chicken and egg situation, where you don’t have high speed broadband so it’s difficult for people to understand what it means,” says Niel Schoeman, CEO of Vumatel. “Consumers are skeptical about paying for something they’ve never experienced. Its only know the price shift has happened that fibre broadband has been commoditised and people are willing to experience it.”

Meanwhile, Telkom has embarked on a marketing blitz to sell its FutureHoods via mobile broadband. But suddenly, its ability to offer both infrastructure and connectivity services in one package has become its biggest weakness: it has to attempt to be all things to all people, which forces it to take a couple-of-sizes-fits-all approach to packaging its services.

Vumatel, on the other hand, is able to draw on a dozen service providers, each structuring its packages to suit a different customer category. Competition between these providers has forced prices down even further. It is not so much a battle as a series of skirmishes that is being fought suburb-by suburb. In almost every case, consumers are the winners.

* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee, and subscribe to his YouTube channel at http://bit.ly/GGadgets

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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.

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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.

 

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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.

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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.

 

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