Telcos data bundles offer way better value

telcos logos

A closer look at the various time-bound data bundles of the telcos in the country indicate even though they each have expiry dates, they give better value for money than unbundled data at default rates.

Several data customers of telcos claim they get confused about whether they are better off staying with the default rates, or going for data bundles on their respective networks. Some also say they do not understand why the telcos have placed expiry dates on the bundled data.

But Conrad Nyur, a Mobile Value Added Service provider said he is an active customer of all five GSM networks and he has data bundles on all five, which he uses to monitor how his VAS services are working 24/7.

He told Simcardblog “I could not have afforded to run data 24/7 without the data bundles. Even though there are expiry dates on the bundles, they still make absolute sense because by the time of the expiry date even if I have not consumed everything, I would still have paid way less for what I have consumed than I would have paid if there were no data bundles.”

Nyur said he therefore does not understand why some customers have issues with expiry dates on data bundles.

For those who complain that their data bundles run out faster than necessary, Conrad Nyur said every smartphone consumes data automatically once the phone’s operating system is activated. The applications automatically update themselves and they consume data so no one can accuse any telco of stealing their credit.

“There is something called a chronological timer which runs on the background and keeps checking for updates for all applications on your phone, once it finds an update it activates it for you and data is consumed. That cannot be blamed on the telco,” he explained.

A closer look at the various data bundles on all GSM networks would show Nyur is right.

Closer look

Default rate per a megabyte of data on MTN and Airtel is 10Gp, on Tigo and Vodafone it is twice that, 20Gp, while on Glo it is 8Gp and Expresso is doing 5Gp per megabyte of data.

This means if a data customer bought airtime and did not bundle any of it, he or she would be paying 10Gp for every megabyte used if that customer was an Airtel or MTN customers. If that person was a Vodafone or Tigo customer he/she would pay 20Gp for the same megabyte. But Glo data customer pay only 8Gp per megabyte with a bundle and Expresso customer pay only 5Gp for same.

But each of the data bundle categories on the various telcos offer way cheaper rates than the default rates each of the telcos offer. And even with the expiry data on the data bundle, the customer gets value for money even if he/she uses just half of the bundled data before the expiry data.

MTN’s default per megabyte rate is 10Gp, so for GHC20 unbundled, the customer gets only 200MB of data. But the highest a customer pays on a bundled data on MTN is 2Gp, and that is on 1GB (1,000MB) for GHC20 bundle. That is five times what one gets for unbundled data.

The other bundles on MTN even offer lower per megabyte rates. It is gets as low as 0.8Gp (less than 1Gp) per megabyte on the 100GB for GHC800 bundle. But that bundle is said to have no much patronage.

The default per megabyte rate on Vodafone is 20Gp, so for GHC20 one gets 100MB unbundled data. But Vodafone offers 1,600MB (1.6GB) bundled data for same price, GHC20. This means the customer pays only 1.25Gp per megabyte. Meanwhile other bundles on Vodafone even offer less prices per megabyte.

Meanwhile, Vodafone in particular offers a set of promotional bundled dubbed, Vodafone Red Packages. These offer both data, SMS and voice minutes for local and international calls for way less than what a customer would have normally paid.

Tigo’s default rate per megabyte is 20Gp so for GHC30, one gets 150MB of unbundled data. But Tigo is giving 5,500MB (5.5GB) of bundled data for GHC30, which means the customer pays only 0.54Gp (less than 1Gp) per megabyte. Tigo even have a 10GB (100,000MB) data for GHC50, which cost 0.5Gp per megabyte, the lowest rate on the market.

The default rate on Glo is 8Gp per megabyte. This means for GHC55, one gets 687.5MB of unbundled data. But Glo is offering 6,000MB (6GB) of bundled data for GHC55, and that comes of 0.9Gp per megabyte. Glo also has two other data bundles which cost 1.25Gp per megabyte each.

Airtel also has one of the highest default data rates of 20Gp per megabyte. This means for GHC60 one gets only 300MB of unbundled data. But for GHC60, Airtel gives 5,000MB (5GB), which is six times what one gets a default rate.

Surfline does not have a pay-as-you-go default rate. It only has bundles. And its bundles are currently priced between 0.45Gp and 1.25Gp per megabyte right now. Beginning from October 1, 2014, it would resume to its normal data rates and that would mean the highest rate would come to 2.5Gp and the lowest would be 0.89Gp.

Expensive

But even though telcos usually do lower prices on higher bundles, some of the telcos have slotted in some higher bundles which actually cost more than some of their own lower bundles.

Vodafone, for instance has a 3.5GB for GHC45 bundle, which comes to 1.29Gp per megabyte. It also has a 6GB for GHC80 bundle, which comes to 1.3Gp per megabyte. Those two cost higher that smaller bundles like 1.6GB for GHC20 and 2.5GB for GHC30.

Airtel also has a 6GB for GHC875 and 12GB for GHC150, which of which come to 1.25Gp per megabyte. This is higher than the 5GB for GHC60 bundle, because that one comes to 1.2Gp megabyte.

It is also important to note that, currently, the most expensive data bundle on the market is MTN’s 1GB for GHC20, which comes to 2Gp per megabyte and the cheapest is Tigo’s 10GB for GHC50, which comes to 0.5Gp per megabyte.

However, for those who would join Surfline from today, October 1, 2014 they would get half what the existing customers get for the same price, and when that happen, Surfline would then have one of the most expensive data bundled on the market, that is 1GB for GHC25.

But clearly, even though the various data bundles have expiry dates, the customer pay way less than he/she would have paid normally.

Affordable handsets and data packages drive smartphone adoption

A collection of affordable smartphones
A collection of affordable smartphones

The new GSMA Intelligence report on smartphone adoption across the world, indicates that affordable handsets, plus subsidies on handsets branded by telcos, and data packages from telcos among other factors are the main drivers of growth in smartphone connection worldwide.

The report titled “Smartphone forecasts and assumptions 2007-2020” pointed out that this is particularly true in the developing world, where smartphone adoption rate remain higher than in the developed world.

Indeed, GSMA Intelligence’s observation is not far from what pertains in Ghana regarding adoption of affordable smartphones, telcos branding and subsidizing low-end handsets and also offering juicy promotional data packages.

Ghana

On the affordable handsets front, Tecno Ghana, Huawei, I-touch and Nokia have introduced very sleek-look affordable smartphones unto the Ghanaian market and they are gaining market share as the high-end phones lose market share.

Tecno started with its Tecno N series of phones and now it is on the Tecno Phantom series. It has so far churned out Phanton A, Phantom A+, Phantom AIII and Phantom Pad Mini, and is gearing up to launch Phantom Z on Tuesday.

Meanwhile the company has five other affordable handsets, all of which have data packages from some telcos. They include Tecno P5, H5, S3M, R7, and M3. It also has four others, which are not on data packages yet but are relatively affordable.

Huawei has also introduced Ascend Y210 and Ascend Y220 plus other affordable collections unto the local market and they are all gaining grounds, and Nokia has also thrown in an affordable android-based dual-SIM smartphone, Nokia X. Ahead of that, there were the Nokia Asha range, which give access to some social media platforms.

Recently, I-Touch has introduced a collection relatively affordable Infinix smartphones unto the Ghanaian market, and they have been telling Simcardblog the handsets are moving fast and so far “we are even running out of stock.”

Alcatel Onetouch has also introduced a range of affordable handsets in collaboration with a number of telcos in Ghana. They first did Onetouch Scribe HD on Tigo, and the most recent one is the Alpha Idol, which was released on Vodafone.

Alcatel Onetouch is also doing Pixi 2 and Idol Mini smartphones on Vodafone, plus Pixi 2 and Pop C3 soon to roll out with data packages from Tigo.

Telcos

Meanwhile, the telecom operators themselves, are branding some low-end smartphones and providing subsidies as well as juicy data packages.

MTN Ghana has, for instance, branded Huawei Ascend Y210 and Y220, plus some Tecno phones and Nokia affordable phones and retailing them with juicy data packages at subsidized rates.

Moreover, MTN is also offering what it calls a Social Bundle, which is a data package that allows users to use social media platform like Facebook, Whatsapp and Twitter for only GHC5 a month (30 days).

MTN Ghana CEO, Sereme Taukobong recently stated that “the number of smartphones users with access to data on the [MTN] network increased from 525 in November 2011 to 1.7million in June 2014. This has been the result of strategic partnership with Original Equipment Manufacturers (OEMs) such as Tecno, Huawei and Nokia.”

Other telcos are also offering similar data packages, designed to suit different categories of lifestyles in society, and that is reportedly driving smartphone adoption and its attendant increased mobile broadband usage.

Airtel Africa, including Ghana, are also doing data packages and subsidies on the affordable Nokia X handset.

The GSMA Intelligence noted that on the back affordable phones, the developing world overtook the developed world in smartphone connections in 2011, and now two out of every three connected smartphones are in the developing world.

Taxation: negative impact

However smartphone adoption rate is still lowest in sub-Saharan Africa (15 per cent) largely due to taxation on smartphone import, the report observed.

“Smartphone growth is negatively impacted by taxation imposed on devices by governments, especially in price-sensitive developing economies,” it said.

And this is true of Ghana, where government recently brought back a 20% important tax on phones and accessories in addition to a 6% talk tax, to the chagrin of industry players.

Since the introduction of the tax, some distributors of particular high-end brands have taken on some low end-brands to shore up their revenues because the high-end phones are losing market due to pricing.

But the GSMA is hopeful the trend will change as more low-end smartphones, subsidies from telcos and data packages come on stream in those countries.

“Sub-Saharan Africa [including Ghana] is expected to be the fastest-growing smartphone region over the next six years as affordable devices become more widely available and mobile broadband networks are deployed across Africa,” the report said. “By 2020 four out of every five smartphones in the world will be in the developing world.”

Smartphones forecast

The report said smartphones will account for two out of every three mobile connections globally by 2020. Currently, smartphones account for one in three mobile connections, representing more than two billion mobile connections.

It forecasts that the number of smartphone connections will grow three-fold over the next six years, reaching six billion by 2020, and accounting for two-thirds of the nine billion mobile connections by that time.

Basic phones, feature phones and data terminals such as tablets, dongles and routers will account for the remaining connections. The study excludes M2M [mobile to mobile] from the connections totals.

China has the highest number of connected smartphones, but the top five countries with the highest rate of adoption (as a percentage of total connections) are Qatar, the UAE, Finland, South Korea and Norway.

Sub-Saharan Africa has world’s lowest smartphone adoption

smart africa

A new GSMA Intelligence Report on global smartphone connections said the rate at which smartphones are being adopted in sub-Sahara Africa is only 15 per cent, which is the lowest worldwide.

The Report titled “Smartphone forecasts and assumptions, 2007-2020″ found that smartphones account for one in three mobile connections today, representing more than 2 billion mobile connections.

It also noted that the number of smartphone connections will grow three-fold over the next six years to reach 6 billion by 2020, and that would be driven largely by a boost in smartphone connections in the developing world and expansion of mobile broadband access.

Despite the projected growth of the global smartphone market, sub-Saharan Africa still lags behind when it comes to smartphone connections.

According to GSMA, sub- Saharan Africa’s smartphone adoption rate is currently 15 per cent. This is the lowest rate worldwide in terms of smartphone adoption now, but the GSMA is optimistic about sub-Saharan Africa as it expects to see changes over the next few years.

“Sub-Saharan Africa is expected to be the fastest-growing smartphone region over the next six years as affordable devices become more widely available and mobile broadband networks are deployed across Africa,” the GSMA report states.

The GSMA further predicted that by 2020, four out of every five-smartphone connection worldwide would come from the developing world.

Affordability

The Report also pointed out that the main factors driving smartphone adoption in the developing world are affordability, subsidies by telecoms operators and data packages that telecom operators offer.

The GSMA Intelligence is confident that moving forward, those three factors and others would be the main drivers of increased smartphone adoption in the developing world, and eventually place the developing world way ahead of the developed world in terms of smartphone adoption.

Indeed, the report noted that the developing world passed the developed world in smartphone connections in 2013 on the back of affordable smartphone and it has since been leading.

In Ghana, for instance, some telecom operators have reported increased data consumption and revenues on their respective networks on the back of affordable smartphones.

MTN Ghana has said data consumption increased on its network after it introduced a number of affordable smartphones like Huawei Ascend Y210, Ascend Y220 and one of Tecno’s Phantom series among others.

Meanwhile, affordable smartphone dealer, Tecno Ghana is also introducing yet another affordable smartphone, Tecno Phantom Z unto the market, and promises data packages across networks in Ghana. Industry watchers believe that would shore up smartphone connection in Ghana and also drive internet penetration.

“The smartphone has sparked a wave of global innovation that has brought new services to millions and efficiencies to businesses of every type,” the report quoted Hyunmi Yang, Chief Strategy Officer at the GSMA as saying.

“As the study shows, smartphones will be the driving force of mobile industry growth over the next six years, with one billion new smartphone connections expected over the next 18 months alone,” Yang explained.

According to the report, Asia Pacific today accounts for about half of global smartphone connections, even though smartphone penetration in the region is currently calculated at below 40 per cent. The Asia Pacific total is boosted by the inclusion of China, the world’s largest smartphone market, with more than 629 million smartphone connections, states the GSMA report.

Below is a list of the GSMA’s top 10 countries with the highest smartphone connections as of Q2 in 2014:

Country                                  Smartphone connections (millions) 

  1. China     –                             629.2
  2. USA       –                            196.8
  3. Brazil      –                            141.8
  4. India        –                          111.0
  5. Indonesia    –                      95.0
  6. Russian Federation  –           83.9
  7. Japan             –                    66.1
  8. Germany    –                        48.5
  9. United Kingdom     –            45.4
  10. France             –                 43.5

The GSMA represents the interests of nearly 800 mobile operators worldwide and 250 companies in the broader mobile ecosystem, spanning more than 220 countries.

Companies with the GSMA include handset and device makers, software companies, equipment providers and Internet companies, as well as organizations in industry sectors such as financial services, healthcare, media, transport and utilities.

The GSMA also produces industry-leading events such as Mobile World Congress and Mobile Asia Expo.