Interconnect fees have prompted new approaches to cellphone usage in SA, as consumers look for ways to cut costs, says World Wide Worx.
According to research conducted by World Wide Worx for its 2009 annual mobility study, while the number of cellular accounts continues to grow, user numbers have not followed the same pattern.
As a result of interconnect fees, which add R1.25 to the cost of every call, the gap between users and connections is growing as consumers and businesses find more innovative approaches to cellphone usage.
The study, concluded in partnership with First National Bank (FNB) and Research In Motion, reveals that, while the local cellular market reached a milestone of 50 million connections at the end of 2008, only 68% of these represented individual users.
The research shows the average number of SIM connections, or active cellphone accounts, per cellphone user in SA began to grow steadily after prepaid accounts were introduced in 1996. It grew from an average of one SIM card per phone user in 1997, to 1.2 per user in 2003 and to 1.47 per user at the end of 2008.
“This gives the impression that every South African has a cellphone, but that is obviously not possible. It's become clear that many prepaid users have a SIM card for each major network, to avoid incurring the interconnection fee charged for calls between networks. The low cost of new SIM cards - as little as 50c for a starter pack - also gives anyone the ability to have more than one number,” says World Wide Worx MD Arthur Goldstuck.
The research is based on analysis of government and institutional data, network operators and wireless application service providers, and reveals the applications for which subscribers are using their smartphones continue to grow.
“Cellphone functionality has progressively grown beyond the traditional voice and SMS, with the growing trend towards cellphone banking, mobile media, mobile marketing and mobile Internet access,” says Len Pienaar, CEO of FNB's Mobile and Transact Solutions.
“In-depth understanding of consumer perceptions and trends is critical in addressing the needs of the consumer,” he notes.
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