Report On Cellular Payment Systems In South Africa

This report is republished with permission from the author, Reuel Leach. You may contact him for more advise on saving money when using cellphones and Internet access on his cell 082 211 2619

Do you know what you are paying on your cellular bill every month. Maybe you do, but have you ever wondered what the networks costs are? Would you like to see something published on this subject? Read on. Its time that people started to get answers to these questions.

Lets start off with GSM. It’s a radio signal just like any radio frequency. You have a radio? You have a television, you pay a licence which is a minimum cost to get messages ( or Signals with information) to your home, office or car. With a radio frequency you choose which signal you want to pick up the messages you want to listen to or “watch”.

So what frequencies are there? Here are but a few common ones:

1.Short wave
2.Medium Wave
3.Frequency Modulation (FM)
4.Wi-Fi (Wireless)
5.Bluetooth
6.GSM
7.Edge
8.GPRS
9.UMTS (3G) which consists of data for internet and 3G video calls
10.HSDPA & HSUPA
11.Infrared

Lets focus now on the formats of some of these signals. What do I mean by that? Well, you listen to a CD with music of your favourite artist and its recorded in WAV format. You might be familiar to the more common format used called MP3. Now lets make a comparison with these two formats. WAV will give you 700 megabytes over 80 minutes and MP3 gives you about 70 MB ( megabytes ) over 80 minutes. When you record something with your cellphone, you might use AAC or a similar format which might give you around 2-4 megabytes an hour.

The format of GSM is AMR, it could be similar to AAC, but this is where the interesting part comes. Lets look at the speed of these frequencies. These are true speed real life situations, not what they tell you at the shops

True Speed example in South Africa

  • GSM – 6 to 13 kilobits per second
  • GPRS 1 to 6 kilobits per second
  • EDGE 6 to 25 kilobits per second
  • UMTS 30 to 120 kilobits per second
  • HSDPA 50 to 200 kilobits per second

But if you tried to do a voice call over GPRS or EDGE you might find it a bit choppy. Ok here is the first big issue. A voice call can be easily done one EDGE using Skype or MSN and the maximum you will use is around 2.5 MB an hour. At the current data rates an unbundled GPRS? EDGE? 3G connection will cost you R2/MB which is the most expensive DATA rate. If you use a data bundle you will go as low as R0.19/MB so an hours call on Skype voice to voice will cost you in the region of R0.46 and R5 an HOUR! But if you use your normal Cellular phone for the same time, it will cost you R90 to R180 an Hour! So lets compare R0.46 to R180 an hour which most people are paying. Are you going to do something about this….

You should resort to these forms of technology:

  1. Skype
  2. Google Talk
  3. Mxit
  4. Nimbuzz

Heres the real shocker! Do you know what the most expensive form of communication in the world is. And it probably in South Africa. Its called SMS. Yes you thought it was cheaper than a call. Think again. Here is the simple price plan comparison

Let me explain this bit by bit. 1 sms is 160 characters. That includes the spaces in between. I you type an A4 page there is place for approximately 3680 characters with a font of 10 on it. Divide 3680 into 160 and that gives ou 23 sms messages. If you pay the normal day time rate it will cost you at 85 cents R19.55 PER PAGE and after hours at 35 cents an sms it costs you R8.05 so its far more than a page.

Let compare this to Skype or mxit this one page will be only 27 Kilobytes and at R2 per megabye it will cost you R0.05 cents per page and if you are using a data bundle then it will be as low as R0.005 per page!

Ok so what does an SMS cost us per Kilobyte?
1 sms = 140 bytes = 7.3142 sms = 1kb
85 cents x 7.3 = R6.21/kb

What does an SMS cost us per Megabyte?
1024 x R6.21 = R6359/mb
(normal data costs between R0.19 to R2.00 per megabyte)

What does an SMS cost us per Gigabyte
1024 x R6359 = R6 511 656 per GIGABYTE

So if you were to write or type a 2 page letter and put it in an envelope it will cost you around R2.50 to R3.00 depending on paper and stamp costs. If you had to type the equivalent in SMSs you will pay for a 2 page letter:- R39.10 so its R40 to send a letter.

No why are the networks so expensive. If technology has become so cheap, why have they not given us the GPRS SMS function which almost every cellular phone has the function of? It will cost us a few cents only. If you connect your cellular phone to a PC or had Skype capabilities you could do a full skype call on 3G or HSDPA signal for between R0.39 and R5 per hour or a video call at R2.34 and R24 per hour!

If you had to send someone a full WAV cd over the internet at R0.19 per megabyte it will cost you 700 x R0.19 which is R133.00 and that’s 80minutes of music. If you spoke at the average cellular call of R2.50 (hidden costs excluded) at 80 minutes you will pay R200 for the call. Your bit rate for the wave 8MB per minute and your cellular call is 0.360mb per minute! So the intensity and quality is much better!

I suggest that people all cut off their smss, get Mxit and Skype and call over those mediums to make calls and send messages until the networks in the future.

I reckon that Wou-daar-Kom and Empty-N don’t pay more than R0.39 to R0.40 per hour for your call!
If they are paying more than that they should discontinue this old technology and give us the better faster stuff I mentioned above!

You may download the original report with graphics using this link: Report on Cellular Pricing Reuel Leach.

How to choose ISP or consumer Internet access in South Africa

ADSL modem and network cable unpluggedThis is a portion of an interview for Huisgenoot magazine from 2007. I’m not even sure if it was ever published because the journalist was forced to redo the initial interview, which focussed on Skype to include a few questions about Internet access.

1. What are the different Internet access options available to South African consumers?

Dial-up: is the original mechanism used by home users to connect to the Internet access. Your computer connects to the Internet via telephone line. Your operating system like WindowsXP or Linux uses a modem to connect a computer and a telephone line to dial into an Internet service provider’s (ISP) node to establish a modem-to-modem link, which is then routed to the Internet. It is an analogue connection and by comparison the slowest Internet connection. Prices vary from R45 to R145 per month.

ISDN: is a circuit-switched telephone network system, designed to allow digital transmission of voice and data over ordinary telephone copper wires, resulting in better quality and higher data speeds than
are available with analogue. It was often used in videoconferencing because it provides simultaneous voice, video, and text transmissions. Pricing is a combination of monthly subscription + hours dialed into the Internet.

Broadband: is an “always-on” on Internet connection which can be both over fixed telephone lines (ADSL) or wireless connections. Research by Arthur Goldstuck predictes South Africa will have 1.37 million broadband users by end of 2008.

  • ADSL is the form of DSL of all broadband connections. Telkom launched commercial ADSL in 2002 and prices have come down several times since then. Bandwidth capacity and speed has increased now to where up to 4mbps is available. Most ISPs offer ADSL and prices range widely depending on how much bandwith you use. Beginners should start with 1Gig account and business users 3Gigs.
  • 3G: is the 3rd generation of cellphone standards and technology. 3G technologies enable cellphone network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved efficiency. Pricing varies based on many different packages. You can purchase a contract and get the modem free; you can buy the moden and use pre-paid airtime; or you can use a 3G/HSDPA phone to connect using Bluetooth. HSDPA (High-Speed Downlink Packet Access) is a new mobile data protocol and is sometimes referred to as a 3.5G (or “3½G”) technology. It’s available from Vodacom, MTN, Cell C and Virgin Mobile.
  • iBurst: is based on IntelliCell technology from ArrayComm in the US. It uses radio frequencies with base stations and modems. Pricing vary from R49 to R1099 per month. They operate on a reseller model like ADSL so you can purchase it from most ISPs.
  • MyWireless: is a form of Internet connectivity that uses “wireless” technology by creating a radio-based connection to the Internet using network of specially erected towers (base stations). As such, MyWireless provides a secure Internet telecommunications platform at speeds of up to 512kbps. It’s similar to iBurst. Pricing varies from R499 to R1500 per month.

All internet connections require a modem unless you are using your cell phone as a modem. There are packages that includes free modems and some that don’t which can be more expensive per month.

(more…)

South Africa nearing 1 million broadband connections

MyADSL reports that South Africa is nearing 1 million broadband Internet connections…

South Africa is closing in on the one million broadband connection mark, mainly due to fast wireless broadband growth.

Telkom’s ADSL service is still the leading broadband service in South Africa with around 400 000 subscribers.

Vodacom’s 3G/HSDPA service is fast catching up to ADSL with 350 000 subscribers, and with a strong focus on broadband from Vodacom’s new Vodacom Business division 2008 may be the year where Vodacom surpasses Telkom in broadband subscribers.

MTN’s has not released any 3G/HSDPA subscriber numbers recently, but it is estimated that the mobile provider has around 70 000 subscribers.

iBurst continues to show good growth with 60 000 subscribers while Sentech has only a few thousand MyWireless subscribers left.

Wireless Internet Service Providers (WISPs) – typically using WiFi as a last mile access technology – account for 45 000 broadband subscribers.

This brings the total number of broadband connections in South Africa to 930 000. It is expected that the 1 Million broadband subscriber mark will be reached before the middle of 2008.

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