Tag: communications

Rain takes on Vodacom, MTN

By Nick Hedley for Business Day 

The new mobile operator backed by prominent businessmen Patrice Motsepe, Paul Harris and Michael Jordaan is taking the fight over data prices to sector giants Vodacom and MTN.

Rain, a data-only network operator that launched mobile services two weeks ago, wanted to win over its rivals’ heavy data users with a simpler offering and competitive prices, CEO Willem Roos said.

Amid a decline in traditional voice revenues and public scrutiny over connectivity costs, data is becoming a major battleground for SA’s telecommunications companies, and the market is ballooning – Vodacom, MTN, Cell C and Telkom generated a combined R47bn in data revenues in SA in their financial years ended December and March.

Rain does not offer traditional voice services, but sells data for R50 a gigabyte, while outside of peak evening hours, its customers can use unlimited data for R250 a month, according to Roos, the former CEO of Outsurance.

In the two weeks since launching the product, “our business volumes have surprised us slightly on the positive side, particularly since we didn’t do any advertising”, he said.

“I really think we’ve addressed a few pain points in the market that customers have experienced, and although our offering is somewhat limited geographically and in being data only, for customers where that makes sense, I think it’s quite a compelling product.”

The metropolitan-focused operator plans to grow its network from 2,100 cellphone towers to 5,000 within the next three years.

Rain, which also offers fixed-wireless services, had mostly resolved “teething problems” related to delayed deliveries of SIM cards, Roos said.

The company, which is more than 40% black-owned, was promoting dual-SIM phones, where customers used Rain for data services and a rival’s network to make traditional voice calls. Roos said some customers were becoming comfortable with the idea of ditching voice-enabled SIM cards altogether and making all their calls on WhatsApp and other internet-based services.

With Rain’s coverage confined to cities and large towns, “we accept it’s slightly a niche product, but not small — I still think there are millions of people it would appeal to”.

Rain already lets Vodacom roam on its network and Roos said that it was considering giving mobile virtual network operators access to its spectrum and infrastructure.

“We have had discussions with a number of players. But I think the data-only aspect still needs to be proven, and we’re also keen on building our own business because the real value would lie in building a good retail business…. We’d like to become a decent-sized player.”

Africa Analysis director Dobek Pater said while it would take time for Rain to build market share, its mobile offering was likely to have a “significant” effect on the market.

It could stimulate competition by allowing new operators to use its network, while its larger competitors would probably have to reduce their data prices further, Pater said.

Bar some of Telkom’s offerings, Rain was the cheapest operator in the market for consumers who used less than 20GB of data a month.

“In terms of what Icasa [the Independent Communications Authority of SA] and the Competition Commission are trying to achieve in terms of reducing data prices and the cost to communicate, that will transpire to a large extent through private sector initiatives anyway. Competitive market forces will force prices down even further.”

Internet blackout in Zimbabwe

A core platform failure at Zimbabwe’s largest internet access provider saw Zimbabwe lose internet services for the better part of Tuesday.

The internet outage started at 11:30 and lasted until 17:00 and affected most operators that use Liquid Telecoms Zimbabwe, a subsidiary of Econet Wireless Global.

At the time of writing this story it was still unknown as to what caused the outage.

However, Econet Wirelesss Zimbabwe, which also rides on liquid, issued a statement saying: Econet Wireless apologises to its valued customers for the data outage experienced on Tuesday, December 5, 2017 resulting in customers being unable to access the internet and related data services on our network.”

Company spokesperson Fungai Mandiveyi said the outage was due a technical fault which has since been resolved.

“Econet sincerely apologises for any inconvenience caused,” he said.

Liquid Telecom is one of the fastest growing internet service providers in Zimbabwe in particular and Africa in general.

It provides state-of-the-art fibre internet which links Zimbabwe and the Southern African region to the outside world. It is the biggest internet access provider with a market share of more than 80%.

Its sister company, Econet Wireless, controls 75% of mobile phones meaning the outage affected approximately 75% of the telecoms market. Social media platforms such as WhatsApp were also affected.

The outage also affected most of the businesses that rely on online based activities including sending emails.

State owned fixed telecoms provider Telone also issued a statement saying: “This is due to faults that occurred on our main links through South Africa and Botswana.

“Our back back-up link through Mozambique has remained active with limited connectivity.”

ByCrecey Kuyedzwa for Fin24

ICT has progressed to a point where it makes no sense for businesses to use single or one-dimensional channels. Today, the advent of social networks, social media and other interactive platforms means that any sized business in any sector or industry can extend their reach to a wide audience immediately. Omni-channel communication has become the order of the day.

Omni-channel communication involves the use of several platforms, often simultaneously, including print, email, social, SMS and MMS.

Fred Steinberg, MD of Communication Genetics, a leading provider of customer communication solutions, believes that omni-channel communication makes sense because it offers so many more ways to engage the customer and these all promote interaction.

“This type of communication is directed at a wide base but can be personalised, so that individuals feel as if they’re the only ones being spoken to. It is a very effective means interaction and because these are all digital platforms, they are by default responsive. More businesses are beginning to tap into the potential that social platforms like LinkedIn, Facebook and Twitter offer, realising the intrinsic value of channels that are pervasive, dynamic and powerful,” says Steinberg.

Despite some of the more traditional business environments, like banking and financial services, still struggling to get to grips with social media and applications, the truth is that any credible business today cannot ignore the benefits of the omni-channel approach,” says Steinberg.

One of the main advantages that most markets are now familiar with is that of being able to ‘brand’ this communication – in other words tailor this communication to reflect the business, keep it fresh in the minds of recipients and basically use it as a form of consistent, low-cost but always accessible advertising.

The reality is that to continue operating, sustain performance and indeed capture market share, businesses must embrace digital tools and leverage these channels to integrate processes and procedures that form part of their core business.

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My Office News Ⓒ 2017 - Designed by A Collective


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