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Uncapped is the new black

As video-on-demand and fibre-to-the-home begins to switch on in South Africa, the public will begin to learn the real meaning of data demand – and pricing models for data will have to change, writes ARTHUR GOLDSTUCK.

In the coming months, suburban South Africa will see an explosion in the use of both video-on-demand (VoD) and fibre-to-the-home (FTTH). The former will be driven by intensification of competition between ShowMax and Netflix, and the latter by the race between a growing number of start-ups laying down fibre in the suburbs. The fibre incumbent, Telkom, suddenly  finds itself up against Vumatel, Fibrehoods, Metrofibre, Maboneng Broadband and even MTN, among many others.

High-speed Internet theoretically eliminates buffering, although there’s nothing one can do about content that is housed on slow systems. However, for major commercial services like video-on-demand, the dream of instant streaming becomes reality.

Video-calling from home becomes a quality experience rather than the grainy, jerky visuals that have chased most consumers away from video chat. Online gaming tournaments where split-second reactions make all the difference are suddenly feasible. There are numerous other advantages and benefits, but there is also one major drawback: most fibre subscribers will run out of data almost as fast as they can say “Download THIS”.

The way FTTH works in South Africa is that the customer pays a once-off installation fee to the installer, such as Vumatel or Fibrehoods.  A choice is then made of service providers, who offer a range of packages based in line-speed and data allowance, either on contract or a month-to-month basis. Some of these providers will even carry the installation cost if their service is chosen.

The cheapest services start at 4Mbps with a 20GB cap (WebAfrica), at around R424 a month, and an uncapped 4Mbps service at R499 (Vox Telecom), both for month-to-month services. However, the typical FTTH customer has signed on to get serious speed and quality. Netflix itself advises a minimum speed of 5Mbps to watch streaming movies in high-definition. It says 3Mbps will do for standard definition.

What about ultra high-definition? Although the range of ultra-HD content isn’t great right now, it is accelerating fast to take advantage of new 4K TV sets and the increasing speeds of broadband. Bear in mind, most consumers investing in equipment right now are not expecting to have to repeat that spend in the next five or even ten years.

If one is already considering ultra high-definition movies, the minimum speed required is 25Mbps. For now, however, HD is expected to be the norm.

But then comes the data crunch.

According to Netflix, HD movies use about 3GB of data per hour. So if you are using Netflix to replace existing TV use, and you watch an average of 2 hours a day – and assuming only a single stream – that is already 180GB of data per month. This excludes regular Internet use, which in a typical suburban family of 4 can be well over 100GB when one adds social media, gaming, chat, YouTube binging, and trying out app after app.

This means that, to be safe, a family with fibre would need a cap of at least 400GB a month. If movies and videos are being streamed to more than one device, regularly, even that is an optimistic cap.

The real message is that, if VoD is replacing TV and you are moving existing heavy Internet use to FTTH, then uncapped makes sense.

Now it starts to get complicated. Uncapped services at reasonable speeds start at a seemingly reasonable R799 (from Cool Ideas and XDSL) – but there is a massive discrepancy between download and upload speeds: both offer 20Mbps down and 2Mbps up. Which is fine if one is only watching movies, but not much better than ADSL for high-speed gaming, video calls and anything else requiring high speed in both directions.

In short, the cheapest fast-download uncapped offers may well provide an experience equivalent to ADSL.

The weakness of ADSL lurks in the meaning of the acronym: “asynchronous digitals subscriber line”. The asynchronous part means you get about a tenth of the download speed for uploads. A line running – if you’re lucky – at 8Mbps downloads typically gives only about 0.8Mbps uploads. Hence the horrible quality of Skype video chats on typical ADSL lines.

The cheapest FTTH deals, then are also asynchronous, making them ADSL alternatives rather than the full experience of fibre. Cool Ideas offers uncapped 20Mbps up and down at R899, while XDSL offers the same at R999.

While both offer free installation and only a month-to-month commitment, the drawback of the sub-R1000 options is that most still do not deliver on the future that fibre promises. Based on currently available content, websites and behaviours, a no-limits service would start at around 50Mbps down, while some level of asynchronicity would be tolerable, i.e. from 5Mbps upward.

Here again, Cool Ideas leads the way with a 50/5Mbps uncapped package at R999, while a 50/50Mbps service comes in at R1099. The equivalent priced service from MWEB and Vox Telecom, with the same speeds, have 500GB and 400GB caps respectively, just scraping in to the minimum that a highly-connected family would need.

The truly high-speed home or office may well be looking at 100Mbps speeds, and here the cost shoots up, with Cool Ideas offering an uncapped 100/10Mbps service for R1499, and XDSL at R1549. The 100/100Mbps service from Cool ideas goes up only slightly, to R1599. At the time of writing, no one else seems to be offering uncapped services at these speeds, although Cell C is trialling its service.

MWEB offers an insanely fast 1Gbps download service, with 100Mbps up, but astonishingly places a data cap on it – a mere 500GB. The R2499 cost may be dirt cheap compared to an equivalent service just five years ago, but customers of the service would want a bit of uncapped to go with it.

The bottom line for both customers and service providers is to appreciate that isn’t their father’s ADSL. In a new content world, with quality of image and format rising fast and data demand going up even faster, uncapped is the new black.

Speeds may vary, and different usage will require different speeds. But just as ADSL as we know it is no longer good enough, service providers’ current data caps are out of sync with the content explosion these same service providers are promising.

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

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Mobile is the new branch

Standard Bank has launched an account for mobile devices that gives back 500MB of data a month

Standard Bank has introducd a R4.95p/m bank account called MyMo that customers can open on their mobile devices, loaded with data and airtime offerings and other benefits such as virtual and Gold physical card.

MyMo account holders will also enjoy the convenience of a cheque account through a Visa and Mastercard gold card. Once the account is open, users can choose to either receive R50 in airtime or 500MB of data a month, if their card is swiped more than four times a month. A further megabyte of data is loaded on the account for every R20 spent.

“MyMo is an account for everyone, whether you just landed your first job or have been around the block. With no documentation required it only takes a few minutes to open the account,” says Funeka Montjane, Chief Executive for Personal and Business Banking, South Africa, at Standard Bank Group. “For just R4.95 a month customer will be able to enjoy free swipes and ATM withdrawals at only R6.50 for amounts under R 1 000.

“Mobile is the new branch. This account is about bringing the mobile branch into customers hands, it is about convenience and security while banking.”

She says mobile offers low cost transactional banking which integrates people and businesses into the new connected economy, making mobile the new branch ecosystem that will drive and connect Africa’s growth. Physical connections to the economy are rapidly changing to digital where banks have to move from being financial institutions to service organisations.

“In the past people congregated in communities and eventually cities to maximise the advantages of connectivity. Today a simple hand-held device has the potential to open infinite doors, transforming individuals’ access to opportunities, regardless of where they are, and like never before in history. 

“Historically, a bank account represented access to economic citizenship. Today, having a simple device enabling digital access to a modern banking platform is a passport to global connectivity and vast human development potential.”

The bank says it is using technology, and mobile phones in particular, to deliver low-cost transactional channels accessible to all our customers. The evolution in mobile can be seen in transaction options like cash back at the retail checkout till rather than the ATM, free digital banking rather than using a branch, and the ability to transact using digital wallets, even without a bank account.

“Developing comprehensive connected ecosystems requires a mind-set change from Africa’s banks,” says Montjane. “Banks will evolve away from traditional financial service organisations, into service ecosystems enabling broad universal access to almost everything like enhanced purchasing experiences of vehicles and homes, online procurement of goods and services and lifestyle elements like rewards and travel. 

“These connectivity drivers will also act to future-proof evolving connectivity ecosystem by allowing us to offer untold future services while deriving income from as yet unrealised revenue streams,.   

From a customer perspective, the kind of ecosystems of knowledge, access and, ultimately, connectivity that banks will come to provide will radically transform the share of life that almost all individuals will be able to access.”

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Two-thirds of SA staff hide social media from bosses

With 90% of people in employment going online several times a day, it can be hard for most workers to keep their private and work-life separate during the working day (and beyond). The recently published Global Privacy Report from Kaspersky Lab reveals that 64% of South African consumers choose to hide social media activity from their boss. This secretive stance at work also extends to their colleagues, with 60% of South Africans also preferring not to reveal online activities to their co-workers.

Globally, the average employee spends an astonishing 13 years and two months at work during their lifetime. Interestingly though, not all this time is directly related to solving work tasks or earning a promotion: almost two thirds (64%) of consumers admit visiting non-work-related websites every day from their desk.

Not surprisingly, 35% of South African employees are against their employer knowing which websites they visit. However, more interestingly, 60% of South African are even against their colleagues knowing about their online activities. This probably means that colleagues constitute an even greater threat to future perspectives of an office slouch or maybe the relationships with colleagues are more informal and therefore, more valuable.

On the contrary, social media activity appears to be a less private domain for many and therefore, more suitable for sharing with colleagues but not the boss. This is probably because workers fear harming the public image of a company or interest in decreased staff productivity motivates companies to monitor employees’ social networks and make career changing decisions based on that. Such policies have led to 64% of South Africans saying that they don’t want to reveal their social media activities to their boss and 53% even don’t want to disclose this information to their colleagues.

A further 29% are against showing the content of their messages and emails to their employer. In addition, 3% even said that their career was irrevocably damaged as a consequence of their personal information being leaked. Thus, people are worried about how to build a favourable internal reputation and how not to destroy existing workplace relationships.

“As going online is an integral part of our life nowadays, lines continue to blur between our digital existence at work and at home. And that’s neither good nor bad. That’s how we live in the digital age. Just keep remembering that as an employee you need to be increasingly cautious of what exactly you post on social media feeds or what websites you prefer using at work. One misconceived action on the internet could have an irrevocable long-term impact on even the most ambitious worker’s ability to climb the career ladder of their choice in the future,” comments Marina Titova, Head of Consumer Product Marketing at Kaspersky Lab.

To ensure workers don’t fall prey of the internet threats at a work, there are some core guidelines to adhere to in the digital age:

  • Don’t post anything that could be considered defamatory, obscene, proprietary or libellous. If in doubt, don’t post.
  • Be aware that system administrators may at least, in theory, be informed about your web browsing patterns.
  • Don’t harass, threaten, discriminate or disparage against any colleague, partner, competitor or customer. Neither on social networks or in messages, emails, nor by any other means.
  • Don’t post photographs of other employees, customers, vendors, suppliers or company products without prior written permission.
  • Start using Kaspersky Password Manager to ensure your social media and other personal accounts are not at risk of unauthorised access by someone else in an office. Install a reliable security solution such as Kaspersky Security Cloud to protect your personal devices.

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