Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Beyond Trump tariffs: the real threat to Cape Town’s film industry

      9 May 2025

      Is Google’s search empire crumbling? AI signals concern

      9 May 2025

      Spar says it’s gaining ground in on-demand groceries war

      9 May 2025

      R7-million ATM ‘software heist’ in South Africa

      9 May 2025

      Apple Silicon road map expands to AI servers and smart glasses

      9 May 2025
    • World

      Vodafone CFO to step down

      7 May 2025

      Lights, camera, tariffs: Trump declares war on foreign flicks

      5 May 2025

      UK to warn companies that cybersecurity must be ‘absolute priority’

      4 May 2025

      BYD sales are skyrocketing

      2 May 2025

      Pichai warns Google Search could be ripped apart

      30 April 2025
    • In-depth

      Social media’s Big Tobacco moment is coming

      13 April 2025

      This is Europe’s shot to emerge from Silicon Valley’s shadow

      10 April 2025

      Microsoft turns 50

      4 April 2025

      World reels from Trump tariff shock

      3 April 2025

      AI agents are here – but are they thinking for us or replacing us?

      12 March 2025
    • TCS

      TCS | Kiaan Pillay on fintech start-up Stitch and its R1-billion funding round

      7 May 2025

      TCS+ | Switchcom and Huawei eKit: networking made easy for SMEs

      6 May 2025

      TCS | How Covid sparked a corporate tug-of-war over Adapt IT

      30 April 2025

      TCS+ | Inside MTN’s big brand overhaul

      11 April 2025

      TCS | How South Africa’s Milkor became a global player in drone innovation

      28 March 2025
    • Opinion

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025

      ICT distributors must embrace innovation or risk irrelevance

      9 April 2025

      South Africa unprepared for deepfake chaos

      3 April 2025

      Google: South African media plan threatens investment

      3 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Candice Jones » Why Vodacom and MTN must do more

    Why Vodacom and MTN must do more

    By Editor18 February 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [By Candice Jones]

    A 2009 World Bank research report found that for every 10% increase in broadband penetration in emerging markets, the average per capita increase in gross domestic product is 1,2%. It’s a stunning figure, and yet meaningful broadband penetration in SA remains woeful.

    That’s why announcements from Vodacom and MTN in the past week about new Internet products aimed at getting more South Africans online are so important. It’s a pity that both companies have fallen short of delivering to the products’ full potential to bridge the so-called “digital divide”.

    Vodacom introduced the R749 WebBox; MTN responded days later with its R999 InternetOnTV offering. Both are innovative products that use a television set, instead of a PC (which many poor people can’t afford), to provide Internet access via the mobile networks.

    SA is renowned for its innovation in mobile. The country brought prepaid mobile telephony to the world, and its operators transformed the cellphone from a business device used by contract subscribers and put it in the hands of millions of ordinary people.

    Households in SA now have more cellphones than they have mattresses or radios. So, to see the country’s two largest mobile operators making an attempt to emulate what they achieved in voice in the data market is incredibly encouraging.

    There are many things the operators have got right with their new Internet TV products. But they could have done so much more.

    The first problem is the price the operators have attached to the new products. At R749 and R999, they cost more than the set-top boxes consumers will need to receive digital terrestrial television when the country migrates off analogue broadcasts in December 2013.

    Government believes it will be necessary to subsidise the cost of those boxes into poorer homes, so is it reasonable to expect strong take-up of the operators’ Internet TV devices? When the time comes to distribute those boxes, I have a feeling government may be surprised at just how many people will request a subsidy.

    At first glance, MTN’s product seems even more unaffordable to the poor, but at least it’s allowing customers to buy the product from retailer Jet over six months without incurring any interest. Just ask furniture retailer Joshua Doore what six months interest-free repayments mean to someone who earns less than what fees at some government schools amount to each month.

    But the retail prices of the devices is not their most disappointing aspect. Rather, it’s that neither operator has stepped up to the plate to make bandwidth more affordable to the target market.

    To the poorest South Africans, the data prices charged by MTN and Vodacom are largely out of reach. Both networks had a chance to introduce “worry-free” browsing and e-mail for a set monthly fee, much like BlackBerry does with its smartphones.

    Uncapped offerings aren’t even necessary, just affordable fixed prices specific to these devices that will ensure the majority of users can surf the Web without having to top up their data bundles regularly. They’d lose nothing in the bargain and gain a market that they would never have had before. And, let’s face it, once you’ve had a taste of the Internet, you want more and more.

    Don’t get me wrong: it’s fantastic that Vodacom and MTN are thinking about how to bring Internet access to all South Africans. But there’s still a lot more they can and should do. It’s time to think outside the box.

    • Candice Jones is deputy editor of TechCentral
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook


    Candice Jones MTN Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVan Marken: why I’m leaving Vox
    Next Article Billing crisis leads to protest

    Related Posts

    MTN to sell 4G smartphones for as little as R99

    5 May 2025

    Blue Label beats Naspers, Vodacom to lead JSE tech rankings

    5 May 2025

    MTN vs Turkcell: $4.2bn bribery lawsuit heads to SA’s top court

    30 April 2025
    Company News

    TCL unveils Mini LED TVs with new HVA panels and Halo Control technology

    9 May 2025

    Online schooling is fast becoming a financial no-brainer

    8 May 2025

    Satellite communications – the gold standard of enterprise data security?

    7 May 2025
    Opinion

    Solar panic? The truth about SSEG, fines and municipal rules

    14 April 2025

    Data protection must be crypto industry’s top priority

    9 April 2025

    ICT distributors must embrace innovation or risk irrelevance

    9 April 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.