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Uncapped is the new black

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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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AppDate: DStv taps Xbox, Hisense for app

DStv Now app expands, FNB gets Snapchat lens, Spotify offers data saver mode, in SEAN BACHER’s apps roundup

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DStv Now for Xbox and Hisense

Usage of DStv Now, the online DStv service available free to DStv customers, is increasing rapidly with more than two million plays of live and Catch Up content per week. In addition to using DStv Now to watch TV on tablets and smartphones, an increasing number of DStv customers are also opting to use it as their primary method of getting DStv on additional TVs in the house. This is set to increase with the release of two new big-screen TV apps, one for Xbox gaming consoles (Xbox One, Xbox One S, Xbox One X) and another for Hisense smart TVs (2018 and newer models).

Expect to pay: A free download.

Platform: Any of the Xbox One range of gaming consoles and 2018 or later Hisense smart TVs.

Stockists: Visit the store linked to your Xbox console or HiSense smart TV.

Santam Safety Ideas

Start-up businesses that have a FinTech or InsurTech business venture brewing are called to enter the third annual Santam Safety Ideas competition. Safety solutions or InsurTech ventures that are ready for piloting could win up to  R150 000 worth of incubation support and R200 000 in seed funding. 

The Safety Ideas competition was launched two years ago in partnership with LaunchLab,  Stellenbosch University’s startup incubator that facilitates valuable connections for corporates and startups sourced from the startup ecosystem and partner universities in South Africa. The previous winners are Herman Bester and Anton Swanevelder, co-founders of MyLifeLine – a wearable panic device that won the competition last year; and Ntsako Mgiba and Ntandoyenkosi Shezi, co-founders of Jonga – a cost-effective security system for low income families, which won the competition in 2017.

Entries close on 28 February 2019. For more information on how to enter, visit: www.santam.co.za/safetyideas/

Click here to read about the FNB Snapchat lens, Spotify Free with data saver, and 00:37.

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Fortnite fixes hackers’ hole

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Epic Games has repaired a vulnerability that exposed Fortnite, the world’s most popular game of the moment, to hackers. The hole, which was left in Epic’s web infrastructure,  allowed hackers to target players with email that appeared to come from Epic Games, but would have led them to a phishing site, where their log-in details would have been stolen.

Researchers at cyber security solutions provider Check Point Software alerted Epic to vulnerabilities that could have affected any player of the hugely popular online battle game.

Fortnite has nearly 80 million players worldwide. The game is popular on all gaming platforms, including Android, iOS, PC via Microsoft Windows and consoles such as Xbox One and PlayStation 4.  In addition to casual players, Fortnite is used by professional gamers who stream their sessions online, and is popular with e-sports enthusiasts.

If exploited, the vulnerability would have given an attacker full access to a user’s account and their personal information as well as enabling them to purchase virtual in-game currency using the victim’s payment card details. The vulnerability would also have allowed for a massive invasion of privacy, as an attacker could listen to in-game chatter as well as surrounding sounds and conversations within the victim’s home or other location of play. 

While Fortnite players had previously been targeted by scams that deceived them into logging into fake websites that promised to generate Fortnite’s ‘V-Buck’ in-game currency, these new vulnerabilities could have been exploited without the player handing over any login details.

Click here to read how the Fortnite hack worked

To win a set of three Fortnite Funko Pop Figurines, click here.

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