Subscribe

Devil in the detail

Cellular operators are punting HSDPA as an ADSL alternative, but unreasonable billing structures are unlikely to foster adoption.
By Warwick Ashford
Johannesburg, 24 Feb 2006

The concept of a direct connection to the Internet from just about anywhere without the hassle of a monthly payment to an Internet service provider (ISP), is an extremely appealing one, particularly when the cost of an all day connection is based only on the data downloaded.

In anticipation of the coming high-speed Internet access promised by evolved 3G using high-speed downlink packet access (HSDPA) with initial download speeds of 1.8Mbps, I have been exploring the world of ISP-free Internet using an EDGE GSM modem.

The first step to setting up the modem was to get a pay-as-you-go SIM card to connect to a cellular network. I chose MTN because it seems to have the best EDGE coverage and offers data bundles that work out at R1 per Megabyte, which is half the standard out-of-bundle charge for data. Hats off to MTN in this regard.

Although it was reasonably easy to find the pricing of the data bundles on the MTN Web site, I gave up trying to find information on how to actually purchase one. Instead I tried MTN`s 141 interactive voice response service and managed to find an option for purchasing data bundles. Success!

As this was my first foray into the world of cellular-based Internet, I decided to start off slowly by using my R30 airtime voucher to purchase a 10MB data bundle for R10, thinking I could always top it up later if necessary.

Initial Web surfing sessions were pleasing, even at the relatively modest maximum EDGE data transfer rate of 236Kbps, and data consumption was relatively low.

Spurred on by this and fantasies of what download speeds up to 14.4Mbps would be like, I made the fatal mistake of connecting to my e-mail account. In a flash, the whole data bundle as well as all the remaining airtime credit was depleted.

No warning signals

The MTN Web site does say that as soon as the in-bundle limit is exceeded, the out-of-bundle rate will apply. However, it does not spell out that users have to monitor data usage carefully, because the switch to the out-of-bundle rate takes place without warning.

I was unsure whether I was angrier with myself for not reading the fine print, or with MTN for hiding the fine print so well so that I hadn`t even found it.

Warwick Ashford, portals managing editor

At R2 per MB, the remaining R20 airtime was quickly consumed.

Resolving to keep a close watch on data consumption, I purchased more airtime and again dialled 141, only to discover that the data bundle purchasing option had disappeared.

Puzzled, I called MTN customer care, but gave up after 10 minutes. Stopwatch in hand, I made another call later in the day. A full 26 minutes later, my call was answered.

I was soon sorry that I called at all. I was unsure whether I was angrier with myself for not reading the fine print, or with MTN for hiding the fine print so well so that I hadn`t even found it.

Digging down several levels from the "connect" menu on the MTN homepage, I eventually found some cryptic information about data bundles, but it was only when I clicked the "terms and conditions link" that I was finally able to find the truth.

Decoding marketing messages

Buried in the legalese was the information that customers cannot purchase a data bundle while a data bundle is already "active", which means a data bundle with or without data credit left, anywhere in its one-month lifespan.

The devil really was in the detail, which finally explained the true meaning of the much more easily accessible marketing message that says: "GPRS data bundles are ideal for customers who have a good idea of how much they want to spend on data, and how much data they use."

Let me translate. If an MTN customer underestimates their data usage in any given month, that customer will have to pay for data at R2 per MB until the end of the month. Similarly, if an MTN customer over-estimates their data requirements, that customer will lose any data not used.

Either way, MTN wins, you lose.

While MTN and Vodacom are actively promoting HSDPA as an ADSL alternative that`s "ideal" for applications such as mobile and interactive TV, enhanced video telephony, multiplayer gaming and information sharing, neither of the operators has committed to a date when HSDPA will be available.

New services, new rules

Instead of punting HSDPA technology, perhaps MTN and Vodacom should get real about their pricing structures and make sure better pricing models are in place before rolling out the HSDPA services. An extortionist pricing model is not likely to do much to help foster HSDPA adoption.

Promises of greater productivity, improved mobility and faster download times will go only so far in luring subscribers once they realise the impossibility of predicting with any accuracy how much data will be required from month to month and just how costly it will be to get it wrong.

Let`s hope that when the network operators say they are considering various pricing options and alternatives, it`s an indication that they are trying to find a way of ensuring they can make enough profit without their data services being a complete rip-off.