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Definitely, reason to celebrate

The recent defeat of South Africa’s Springboks at the Rugby World Cup may have resulted from their players’ desire to return home quickly and snap up some very enticing new pricing plans available for broadband service. Despite the rugby loss, South Africa is poised to become the Southern Hemisphere’s leader in telcoms.

A retail pricing war is underway in South Africa. Vodacom, MTN, incumbent carrier Tellkom, iBurst, and others are dramatically lowering prices while improving consumer choice and service quality.

An example of some of the changes:

…stepping up to the plate is MTN, which has launched an unlimited and uncapped data promotion that gives customers navigating options on MTN’s network at peak HSPA+ speeds from as little as R289 (FJD 70) a month.

And iBurst has also introduced new data packages ranging in price from as low as R49 (FJD 11) per month for 1GB to 50GB at R445 (FJD 105).

New devices such as smartphones and tablets drive consumer demand for data. Serame Taukobong, MTN South Africa’s chief marketing officer, said that with the increase in smartphones and tablet technologies data usage has gone up:

“We have seen a significant number of our customers taking up latest smartphones, tablet PCs, wireless routers and laptop deals that MTN is offering. This promotion is a response to the increased data appetite that comes with the usage of these devices,” he said.

At the same time, the Vodacom Apps Store has reached 100,000 downloads in its first month of operation and the company is now launching a program to support local talent in applications development.

New devices driving consumer demand for data

South Africa has achieved that enviable balance where the pipes are in place, and there are adequate numbers of players at wholesale and retail level to drive widespread adoption. As more consumers buy smartphones and tablets, increased data usage will enable even more volume discounting. Most importantly, there will be a user base in place to support an app development community that will have a local market of millions who are in position to buy their creations.

This thriving ecosystem is something the Pacific Islands can only dream of—as I was reminded by a local telecom CEO who said, “we don’t do applications and services”. You might as well be telling me that you don’t do the future. So much for all the empty rhetoric on ‘innovation’. 

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On June 4th, the Commerce Commission released its report titled PRICE AND ACCESS DETERMINATION FOR SOUTHERN CROSS CAPACITY AND NETWORK. You can access the full report on the Commision’s website and it’s also provided for download here.

schedule of price changes

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The May 2010 edition of Islands Business features an opinion piece written by me. I wanted to thank Laisa Taga, Editor at Islands Business, for including my writings in the region’s most important magazine. It means a great deal for me to be a part of this publication. I am trying to put together a series of articles for inclusion in upcoming editions of the magazine.

The piece is intended to inform policymakers and industry stakeholders of the importance of working concertedly toward lower telecommunication costs as well as thoughts and reflections on how other countries in the world are dealing with the fast pace of change in the industry.

You can read the full text after the jump.

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