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More robust fibre infrastructure will relieve pressure over mobile data costs

11th April 2023

By: Creamer Media Reporter

     

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Internet service provider (ISP) RocketNet is encouraging consumers to leverage uncapped data products using fibre-to-the-home (FTTH) for Internet access and believes there are creative avenues to get users connected outside of the home.

Mobile data is considerably more expensive per megabyte for consumers than installed FTTH and should be limited for roaming purposes when outside of WiFi range, says RocketNet CEO Simon Swanepoel.

There are many options to minimise voice spend using WhatsApp and other over-the-top (OTT) services, but RocketNet says more work needs to be done on better deals for South Africans relying on mobile data for connectivity.

“With current financial pressures escalating, we believe uncapped data products made available through FTTH services are a cost-effective choice over mobile data. Quality WiFi infrastructure in spaces like public transport vehicles and shopping malls, would create the perfect mix for highspeed data and access to Internet for work purposes,” he says.

ISPs, such as RocketNet, provide uncapped data products to their consumers while within WiFi range at home or work, which would also eliminate the concerns of “disappearing airtime” where consumers are billed for mobile data not used, were unaware their data bundles expired or that their airtime was used for data.

Millions of people living in rural areas do not have fixed-line infrastructure, such as fibre Internet and rely on mobile data for their communication needs, the costs of which are prohibitively expensive.

Further, issues with mobile data billing are caused by existing default billing rules on new prepaid SIM cards, he says, further referencing the Internet Service Providers’ Association’s (ISPA’s) recent statement that under existing End-User and Subscriber Service Charter (EUSSC) regulations, despite notifications being sent to subscribers by SMS when data bundles are at different states of depletion and the facility to purchase a rollover bundle to extend the validity of remaining data, it is still possible, and quite common, for all the airtime of a prepaid subscriber to be used for data.

“We need to continuously deploy FTTH services to achieve economies of scale that provide rural areas with high-speed fibre Internet connections. In these cases, fibre-to-the-light-pole, or fibre-to-WiFi-pole, would be a very competitive service to the mobile networks expanding the user base getting them connected at affordable rates.”

A recent announcement by the ISPA on World Consumer Day, on March 15, encouraged consumers to change their data limit lock to R0 as soon as they purchase a new prepaid SIM card, noting that opting out of allowing airtime to be used for data, which is usually at a much higher cost per megabyte than data bundles, is the only way to prevent this from happening.

There are new rights under the pro-consumer amendments to the EUSSC Regulations which will require telecommunications operators to rollover data bundles for a minimum of six months.

With the finalisation and adoption of the new regulations by the Independent Communications Authority of South Africa, telecommunications operators will be required to rollover data bundles for a minimum of six months.

Although these new regulations are expected to bring some mobile data relief; it remains to be seen if it will lead to lower data prices.

“Technology is a gateway to opportunity like we have never seen. We need creative solutions to get all South Africans connected so they can leverage these opportunities leading to education and income-generating avenues.

“We are willing to be part of a broader conversation where stakeholders across public and private sectors put their heads together and deploy cost-effective Internet solutions for all,” concludes Swanepoel.

Edited by Creamer Media Reporter

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