Consumers become convergence savvy

Some 20 million of the cellular devices already distributed within SA are Internet compatible; it is just a matter of time before all consumers will be able to access the Internet.

This according to Frank Rizzo of KPMG Advisory SA, who addressed consumer trends in the convergence space during his keynote at the ITWeb Broadband event last week.

According to recent research by KPMG involving 19 countries, including SA, and 4 190 respondents with a mobile device, the focus area to drive market growth lies in the younger age group.

“Youngsters at the tender age of six to eight are already 'mobile smart', and most can access the Internet through their cellphones,” explained Rizzo.

Rizzo said the survey found those in the younger age group are more likely to use technology and are most willing to pay for music. This segment of the market is also most prone to the uptake of social networks and mobile TV. The older age groups are most willing to pay for navigation solutions.

Focusing on the younger market segment will drive short-term market growth, however, argued Rizzo, to achieve long-term market growth in SA key concerns around clear pricing models and security need to be addressed.

“Privacy and security remains a significant concern for South African consumers,” explained Rizzo. The survey found 70% of cellphone users were 'very concerned' about security and privacy when using a mobile device in SA, while the global concern level was set at 60%.

Findings of the survey also indicated that 72% of South African cellphone users find attractive post-introductory pricing extremely important. Some 60% of participants would like one contact point for managing subscriptions and 62% would like the convenience of single billing.

“Consumers are demanding simpler choices for pricing strategies,” opined Rizzo. “Service providers need to unbundle their pricing structures to create freedom of choice for the consumer,” he added.

The new Seacom cables switched on in July to increase bandwidth to Kenya, Tanzania, Uganda, Mozambique and SA will create a number of business opportunities, said Rizzo. “We cannot underestimate the future of mobile phones and what they can offer,” he concluded.