Subscribe

Simplify to avoid data bill shocks

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 02 Jun 2015
Complexity of the packages and their billing structures leads to consumers becoming frustrated with their mobile operators, says Nebula's Daniel Nel.
Complexity of the packages and their billing structures leads to consumers becoming frustrated with their mobile operators, says Nebula's Daniel Nel.

Consumers expect mobile operators to act with a level of responsibility when it comes to bill shocks that are a result of excessive data usage and especially high data roaming costs.

This is according to Daniel Nel, CEO of Nebula, who notes providing reliable, high-speed mobile data access across SA is now a must for mobile operators, and those that get it right consistently and with competitive prices retain loyal customers.

"The biggest challenge is the mismatch in the understanding of South African consumers' data requirements between the mobile operators, the corporate and individual users."

Complexity of the packages and their billing structures create a general lack of understanding in the market which leads to consumers becoming uneasy and frustrated with their mobile operators - especially after receiving a bill shock, he adds.

"Mobile operators need to work to simplify their packages and rates - align them with the needs of the customers - also taking into account the different usage patterns and requirements, even if those are not always clear to the customer themselves."

Nel believes resolving this discrepancy will lead to loyal and happy customers which in turn will drive more revenue for the operators.

Furthermore, providing reliable network coverage with high-speed data access, given the vastness of SA, coupled with the current economic climate, are other challenges facing the industry, he adds.

"For smaller operators and new entrants, these factors make it extremely challenging to compete - this is not good for the competitiveness of the market."

Operators need to continue to fund investment into infrastructure or find new, innovative and potentially disruptive ways to provide SA and Africa with access to the Internet, says Nel.

Sheriff Hamoudah, head of telecoms industry, MEA, Turkey and Pakistan at SAP, says the operator's relationship with a customer is as important as the quality of their experiences, more than the cost.

Speed and availability can often lessen the problems associated with charges and could serve as the real differentiator for users, he adds.

Many operators resort to hyping the consumption of data, which means better and faster networks, larger maintenance and upgrade bills, says Hamoudah.

He believes the next best thing is to develop a new set of service experiences that will entice the market.

Share