Cell phones are big in Soweto

Mobile telephony is taking SA`s townships by storm, offering unprecedented communications options and new business opportunities. ITWeb toured Soweto to investigate.

As the three cellular service operators compete for business in a vast market, shipping containers are rapidly being converted into shops and public phone facilities by township entrepreneurs.

Container shops endorsed by the three network operators are sprawling across the townships and rural communities. Most are located in busy areas like taxi ranks, hospitals and universities.

Soweto entrepreneurs say they jumped at the opportunity of establishing cellphone businesses in the township.

Operating from containers painted in the distinctive red, green or yellow of their network, these businessmen offer consumers basic goods like airtime, cellphone pouches, cellphone covers, chargers and batteries.

Mike Mekong, who owns a Vodacom container shop in Soweto, says that when he started his business, there were only a few people operating in the area.

"Eventually people started noticing the gap in the market and decided to establish their own shops. Now I face stiff competition from the neighbouring shops. It is still a lucrative business but I have to maintain good standards like providing good service, providing discounts and create excellent marketing campaigns to acquire and maintain more customers."

Mekong explains that he applied for the container business in 2002. It cost him at least R26 000 to get a minimum of five phones, each containing R750 worth of airtime, billboards and other services for his business.

In his shop there are three e-talk Box public phones, utilising Vodacom`s service. "It only costs 50c per unit to make a call. Personally I think it`s reasonable. Products that generate the most money are the cellphone chargers, batteries, cellphone covers and holders. I also offer prepaid packages and affordable handsets", he says.

Cellphones aren`t just a communication tool - Sowetans also see them as a status symbol, and pawn shops do a brisk trade as consumers sell outdated models (sometimes only a few months old) to upgrade to the latest 'thing`.

Big news at the moment are cell phones equipped with digital cameras, radios, games, bluetooth, polyphonic ringtones and personalised screen savers.

"Status" phone owner Sihle Simelane says: "I just bought the latest Motorola V600 phone and I feel more pressure now that I own it. My peers keep telling me about other new releases in the hope that I will exchange my current phone. Little do they know that I saved a fortune just to get this one. I would rather use a prepaid phone than a contract."

The downside of owning this expensive mobile technology in a township is theft. Practically every mobile phone owner has lost at least one handset to criminals.

"It`s ridiculous," says Simelane. "I can no longer walk freely in the streets with my cellphone. If I do that a criminal will approach me to request for my phone. Last year I was mugged right in front of my gate."

Cellphone owner Lerato Mofokeng believes that there is too much hype surrounding cellphones. She says: "It`s just a status symbol for most people." However, she concedes that cellphones have improved the way she interacts with people. "People can get hold of you anywhere, unlike using a house phone."

Zanele Sekoaila and her three friends believe that MTN is the better network provider. "MTN is more affordable for making calls, I can 'buzz` my friends with only 5c remaining in my prepaid account. With Vodacom I can`t do that with only R1 remaining. MTN should provide airtime worth R10 much like Vodacom`s Yebo 5 recharge vouchers", says Sekoaila.

Mbali Skosana would like to own one of the latest phones with built-in digital camera. "The phones are really impressive but there are also too expensive. I can`t afford one right now but as soon as I start working, I will definitely get myself one."

Consumers say they place enormous faith in their cellphones. They have realised its potential for saving lives, as it provides a quick way of calling for medical attention or reporting crimes - which, sadly, are all too common in the townships.