The CEO of Cell C, JOSE DOS SANTOS, hits out at MTN and Vodacom for trying to have services like WhatsApp and Facebook regulated in South Africa.
MTN and Vodacom have declared war on consumer interests. The infamous duopoly wants to limit how we use Internet services like WhatsApp – and it has nothing to do with fairness, competition or the future of South Africa. To the contrary, it is all about maintaining their stranglehold on a vital artery feeding our country’s economic and social future.
The two mobile networks have now successfully lobbied Government to investigate potentially regulating Over-The-Top (OTT) services, like WhatsApp. I suppose it was inevitable, given their views of OTT applications, Vodacom, for example, believes: “You have these [OTT] players which are getting huge benefit out of an industry without making any investment” and “Operators need to continue making a return.”
MTN has been less diplomatic. Former MTN South Africa CEO Ahmad Farroukh was quoted as saying that MTN was not prepared to spend billions of dollars building networks just so that OTT players can get a “free ride”. His successor, Mteto Nyati agrees. “You have to regulate them because clearly they’re making a huge amount of revenue on top of the infrastructure that the operators have paid for. Somehow they have to contribute towards the building of this infrastructure”.
Suddenly they are concerned with “levelling the playing fields” – only now when they face competition.
Regulation itself is not necessarily a bad thing and South African telecoms regulation could definitely use a little modernisation. We need to ask serious questions about privacy, consumer rights and infrastructure sharing to reduce costs. But in this case, that is not Vodacom or MTN’s aim. Instead they are hoping to confuse the issue, rather than sticking to clear, reasonable arguments.
Regulation would impose new costs. Costs that will either prompt OTT players to withdraw their services from South Africa or push up prices for the consumer, the very consumer that already pays for the data to use those services.
It is not hard to imagine the motivation of MTN and Vodacom, as both have historically resisted any attempt to “level the playing field” in the mobile industry. They have fought number porting and the elimination of interconnect fees. These are companies that have shown no interest in the welfare of the customers who keep them in business.
We believe that OTT services encourage consumers to participate more. The more they participate, the more they spend. Cell C is still a business and must make money. But good companies adapt and change to create new opportunities for themselves and their customers. Bad companies manipulate the system to only get what they want – the customer doesn’t matter.
I invite South Africans to interrogate the motivations of companies that would support this kind of regulation.
Connectivity is key to the welfare of a 21st century nation. These platforms empower individuals and communities. They allow people to connect and be part of a global community. Now think of all the conversations we have every day on Facebook, WhatsApp, Google Talk, Skype, WeChat and more. Consider the many services such as Gmail, Office 365, Sage Accounting and so on that allow small business to start and flourish.
OTT regulation will force extra costs on those services or force their withdrawal. It will hurt consumers and small companies. It will disadvantage everyone – everyone except the networks whose only interest resides in protecting their revenues.
Cell C has proven that by opting for partnerships instead of bullying, you can work alongside OTT services to the benefit of everyone. We offered free WhatsApp services for a year, during which Cell C customers did not spend any data to send messages. Since we have transformed this into a low R5-per-month offer and opened our free services to include Facebook.
As a consequence we have not lost customers. We have grown and those customers have grown as well. They are more connected and informed, but without needing to pay more for the privilege. No, not privilege. It’s a right. It is not fair that those with a voice are only those who can afford to have one.
As I said in the beginning, regulation of the telecommunication space is a conversation that should happen. But what MTN, Vodacom and their collaborators are trying to do is not address the big issue. They simply want to protect what they have and they are happy to sell the consumer out in order to get that.
As it stands, Cell C does not support OTT regulation in South Africa, because the only losers will be the people whose money make us all successful businesses in the first place.
Money talks and electronic gaming evolves
Computer gaming has evolved dramatically in the last two years, as it follows the money, writes ARTHUR GOLDSTUCK in the second of a two-part series.
The clue that gaming has become big business in South Africa was delivered by a non-gaming brand. When Comic Con, an American popular culture convention that has become a mecca for comics enthusiasts, was hosted in South Arica for the first time last month, it used gaming as the major drawcard. More than 45 000 people attended.
The event and its attendance was expected to be a major dampener for the annual rAge gaming expo, which took place just weeks later. Instead, rAge saw only a marginal fall in visitor numbers. No less than 34 000 people descended on the Ticketpro Dome for the chaos of cosplay, LAN gaming, virtual reality, board gaming and new video games.
It proved not only that there was room for more than one major gaming event, but also that a massive market exists for the sector in South Africa. And with a large market, one also found numerous gaming niches that either emerged afresh or will keep going over the years. One of these, LAN (for Local Area Network) gaming, which sees hordes of players camping out at the venue for three days to play each other on elaborate computer rigs, was back as strong as ever at rAge.
MWeb provided an 8Gbps line to the expo, to connect all these gamers, and recorded 120TB in downloads and 15Tb in uploads – a total that would have used up the entire country’s bandwidth a few years ago.
“LANs are supposed to be a thing of the past, yet we buck the trend each year,” says Michael James, senior project manager and owner of rAge. “It is more of a spectacle than a simple LAN, so I can understand.”
New phenomena, often associated with the flavour of the moment, also emerge every year.
“Fortnite is a good example this year of how we evolve,” says James. “It’s a crazy huge phenomenon and nobody was servicing the demand from a tournament point of view. So rAge and Xbox created a casual LAN tournament that anyone could enter and win a prize. I think the top 10 people got something each round.”
Read on to see how esports is starting to make an impact in gaming.
Blockchain is generally associated with Bitcoin and other cryptocurrencies, but these are just the tip of the iceberg, says ESET Southern Africa.
This technology was originally conceived in 1991, when Stuart Haber and W. Scott Stornetta described their first work on a chain of cryptographically secured blocks, but only gained notoriety in 2008, when it became popular with the arrival of Bitcoin. It is currently gaining demand in other commercial applications and its annual growth is expected to reach 51% by 2022 in numerous markets, such as those of financial institutions and the Internet of Things (IoT), according to MarketWatch.
What is blockchain?
A blockchain is a unique, consensual record that is distributed over multiple network nodes. In the case of cryptocurrencies, think of it as the accounting ledger where each transaction is recorded.
A blockchain transaction is complex and can be difficult to understand if you delve into the inner details of how it works, but the basic idea is simple to follow.
Each block stores:
– A number of valid records or transactions.
– Information referring to that block.
– A link to the previous block and next block through the hash of each block—a unique code that can be thought of as the block’s fingerprint.
Accordingly, each block has a specific and immovable place within the chain, since each block contains information from the hash of the previous block. The entire chain is stored in each network node that makes up the blockchain, so an exact copy of the chain is stored in all network participants.
As new records are created, they are first verified and validated by the network nodes and then added to a new block that is linked to the chain.
How is blockchain so secure?
Being a distributed technology in which each network node stores an exact copy of the chain, the availability of the information is guaranteed at all times. So if an attacker wanted to cause a denial-of-service attack, they would have to annul all network nodes since it only takes one node to be operative for the information to be available.
Besides that, since each record is consensual, and all nodes contain the same information, it is almost impossible to alter it, ensuring its integrity. If an attacker wanted to modify the information in a blockchain, they would have to modify the entire chain in at least 51% of the nodes.
In blockchain, data is distributed across all network nodes. With no central node, all participate equally, storing, and validating all information. It is a very powerful tool for transmitting and storing information in a reliable way; a decentralised model in which the information belongs to us, since we do not need a company to provide the service.
What else can blockchain be used for?
Essentially, blockchain can be used to store any type of information that must be kept intact and remain available in a secure, decentralised and cheaper way than through intermediaries. Moreover, since the information stored is encrypted, its confidentiality can be guaranteed, as only those who have the encryption key can access it.
Use of blockchain in healthcare
Health records could be consolidated and stored in blockchain, for instance. This would mean that the medical history of each patient would be safe and, at the same time, available to each doctor authorised, regardless of the health centre where the patient was treated. Even the pharmaceutical industry could use this technology to verify medicines and prevent counterfeiting.
Use of blockchain for documents
Blockchain would also be very useful for managing digital assets and documentation. Up to now, the problem with digital is that everything is easy to copy, but Blockchain allows you to record purchases, deeds, documents, or any other type of online asset without them being falsified.
Other blockchain uses
This technology could also revolutionise the Internet of Things (IoT) market where the challenge lies in the millions of devices connected to the internet that must be managed by the supplier companies. In a few years’ time, the centralised model won’t be able to support so many devices, not to mention the fact that many of these are not secure enough. With blockchain, devices can communicate through the network directly, safely, and reliably with no need for intermediaries.
Blockchain allows you to verify, validate, track, and store all types of information, from digital certificates, democratic voting systems, logistics and messaging services, to intelligent contracts and, of course, money and financial transactions.
Without doubt, blockchain has turned the immutable and decentralized layer the internet has always dreamed about into a reality. This technology takes reliance out of the equation and replaces it with mathematical fact.