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BIS uproar uncalled for

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 27 Feb 2013
The end of the popular BlackBerry flat-rate data plan does not necessarily bode doom as operators try to offer services similar to BIS.
The end of the popular BlackBerry flat-rate data plan does not necessarily bode doom as operators try to offer services similar to BIS.

Consumer reaction to the lack of BlackBerry's R59 flat-rated data plan for devices running on its new platform has caused SA's mobile operators to sit up and take notice - and action.

Ever since it emerged, ahead of the launch of BlackBerry 10, that the popular "all-you-can-eat" BlackBerry Internet Services (BIS) would not be valid for devices running on BlackBerry's new operating system (10 OS), South African consumers have been up in arms, with many vowing to boycott the new BlackBerrys. Many have also said the move spells the end for BlackBerry - SA's smartphone of choice (according to IDC, 59% of smartphones in SA are BlackBerrys).

But analysts say consumers may be overreacting, as there are data packages currently being offered - and on the horizon - that trump the seemingly unbeatable R59 offer.

Besides, SA's mobile operators appear to be acutely aware of the sentiment surrounding the notion of no more R59 BIS for the price-sensitive South African consumer, with various offers being introduced in an attempt to mitigate criticism and disappointment.

Better deals

World Wide Worx MD Arthur Goldstuck says research has shown the majority of BlackBerry devotees use their BIS primarily for the smartphone's instant messaging service, BlackBerry Messenger (BBM). "For that, there are even more cost-effective packages on the market."

Goldstuck says mobile operators need to educate their customers more effectively with regard to the nature of BIS.

IDC telecoms analyst Spiwe Chireka says the changes in data plans for BlackBerry 10 do not then spell doom for the company. She says customers will simply purchase data packages, as is the case with iPhone, Android and Nokia devices. Plus, Chireka says, the packages that have come out so far for the BlackBerry 10 flagship Z10 smartphone are "pretty impressive".

"At an entry package of about R350 a pop (with Vodacom), it's still quite high, but then that is more or less what people are paying for iPhone packages, with half the perks included on the BlackBerry devices."

She notes that operators are seemingly trying to curb end-user issues with a lack of BIS with unlimited offers and competitive pricing.

"So overall, a nice move [by the mobile operators] towards ensuring the 'bang for buck' features of BlackBerry are still available."

BIS not dead

From BlackBerry's side, the company is trying to educate consumers as to the difference between BIS for BlackBerry 7 OS and the BlackBerry 10 propositions.

BlackBerry has repeatedly reassured customers that the BlackBerry 7 OS will co-exist alongside BlackBerry 10 in SA, and around the world. BIS packages for 7 OS (and earlier devices), assures the company, remain available to customers.

BlackBerry has also pointed out that BIS is a service that is sold in the market by carrier partners (the mobile operators) - which own the proposition.

Appeasing customers

The operators, and BlackBerry itself, have justified the doing away with of BIS by pointing out that BlackBerry 10 is a completely new and unique mobile experience, which necessitates a different setup to the BIS available on BlackBerry 7 OS phones. All four of SA's operators have confirmed BIS will not be available as a flat-rate on BlackBerry 10.

Vodacom says the company has used various channels to inform customers about the BlackBerry Z10 proposition.

The operator, SA's largest, has put together a series of packages for BlackBerry's first 10 OS phone, the Z10, ranging in price from R399 to R829 per month on contract. The packages include (in varying proportions) voice minutes, SMSes, data usage (in MBs) and unlimited BBM until 31 May.

MTN says it has constructed a number of customised plans, which will be based on, but not be the same as, the R59 BIS model customers are used to.

The operator says its Internet bundle rates and data price plans are "vastly reduced" in price. "We have reduced our data prices by as much as 40%. Therefore, our BlackBerry Z10 customers will continue to enjoy BlackBerry Messenger (BBM), e-mail, Internet browsing, social networking and other BlackBerry services at affordable Internet rates."

MTN's Z10 offering ranges from R399 to R1 599 per month, including varying amounts of airtime value and data.

Cell C, too, says its BlackBerry 10 packages are designed to ensure BlackBerry customers have a similar unlimited Internet experience to what they were used to with their old BlackBerry services.

Cell C's BlackBerry 10 Internet service plans were introduced together with unlimited BBM for the duration of the contract. Its Straight Up plans for the BlackBerry Z10 run from R389 (consumer) to R899 (business).

"Cell C is still offering BIS to customers on the BB7 OS. For BlackBerry 10, the company offers by far the most competitive offers in the market and our new plans offer value for money and an experience to match the performance of the BlackBerry 10 platform."

Telkom's mobile arm, 8ta, which was the first of the four operators to announce availability of the new BlackBerrys on 1 March, has not yet released specific pricing.

"8ta's BlackBerry Z10 offers will become available from 1 March. The device has been on pre-order for two weeks and we have seen positive interest from consumers even without a BIS offering. The 8ta voice and data offers will provide customers with options that will include BBM. While BIS will no longer be available, we believe the data offers will meet the varied data requirements of users."

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