South African cellphone users have been being encouraged to turn their phones off on Wednesday February 4 for 24 hours in a national protest against cellular network operators.
An anonymous chain e-mail currently in circulation has encouraged users to not support cellular networks in a protest against what it calls ”rate increases and poor service”.
It provides figures in comparison with the United States and alleges that South African cellular costs and tariff increases are excessive in light of those figures.
”South Africa then 1995 — R1,10 per minute off peak; now 2004 — R1,80 per minute off peak.
”United States then 1995 — 25c per minute peak; now 2004 — 10c per minute peak or $99 per month 7 000 free minutes,” it says.
But, the e-mail does not say whether the US figures indicated are in South African currency or dollars. At the current exchange rate of R7,05 to the dollar, the 10 cents referred to above may be R0,71.
The e-mail alleges that ”The South African cellular operators are some of the most profitable in the world … Yet we [the consumers] are continuously faced with rate increases and poor service.”
It calls on all South Africans who are ”tired of high cell bills to boycott on all incoming/outgoing cellular phone calls and visiting all cellular shops” to ”show the cellular networks and manufactures they need their 24 million (24,000,000) customers more than we need them. Spread the word to everyone by e-mail or word of mouth, not SMS!!!!!”
The Mail & Guardian Online calculated the possible loss of revenue on the assumption that the e-mail’s supposed 24-million users made one call each at the alleged tariff and came to a figure of R4,3-billion.
But, Vodacom’s tariffs listed on Vodacom.net indicate that an off-peak call costs R0,90 per minute on the Weekender package. MTN’s MyCall 100 costs between R0,88 and R0,98 for an off-peak call per minute.
The M&G Online found several comments on the internet regarding the boycott that range from outraged to ecstatic.
From a person named only as ”D”: ”You want South Africans to NOT use our cellphones for a whole day? Good luck, call me and tell me how it goes.”
And, from another ”D”: ”This would be the same as saying one can go without petrol or diesel for a whole day, in hope of achieving the same goal. For some, both are business tools!”
Others felt differently.
”Concern” said: ”Profiteering … An interesting concept, how far does a consumer have to be pushed before they do something about it? Yes, we all use or phones for business, and need petrol for or cars, but what about actually paying for what we get? The old what is in it for me principle.”
MTN issued a press release saying it had not received a formal notice of the boycott.
”However, MTN encourages customers to raise any concerns regarding products and services with the company directly.”
The release denies that service increases are exorbitant: ”Tariffs in the South African telecommunications industry are subject to approval by the Independent Communications Authority of South Africa (Icasa).”
The release says that MTN’s pricing is below the consumer price index (CPI).
”At MTN, tariff increases have been kept as low as possible (below CPI). For example, in 2003 the CPI rate (June 2002 to April 2003) was 7,32%. On average, contract subscriptions were adjusted by 5,48% and the only pre-paid increase (1,53%) was on the off-peak rates of Pay as You Go Call per Second.”ÂÂ
Vodacom’s press release — issued by Mthobi Tyamzashe, group executive corporate affairs — reiterates the one issued by MTN.
”All cellular tariffs in South Africa are submitted to the Independent Communications Authority of South Africa (Icasa) for approval and this helps ensure that they are reasonable. Operators are compelled by law to motivate for any price increase they wish to make and may not effect any increase without the express permission of the regulator.
”Icasa also ensures that annual cellular tariff increases in South Africa are below inflation. In fact, Vodacom has managed to keep its average annual tariff increases down to approximately 3% per annum since 1994.
”This is in spite of inflation often topping the 6% mark in South Africa. The regulator acts to protect the consumer from unjustified increases and to this end has managed to keep tariff increases below inflation despite the rise in the prices of everything else.”
But, it also disagrees with the e-mail and refers to hidden costs: ”Handsets are heavily subsidised by South African cellular networks to the extent that a handset worth a few thousand rand is often given away free.”
”South Africa is a geographically enormous country. The fact that Vodacom has had to build a cellular network that covers about 65% of the land surface in order to cover more than 95% of the population has obvious cost implications,” the release says.
The release argues that US coverage is limited by state borders, ”while it is possible to drive from Cape Town to the Zimbabwe border without leaving coverage, most cellular networks in America, for example, cover little more than their own state”.
It also says that South Africans have access to superior technology.
”South African cellular networks use the Global System for Mobile Communications (GSM) cellular standard. While outdated analogue technology is still employed in much of the world, South Africans have access to the world’s most advanced and best quality digital cellular standard.”
The anonymous originator of the mail could, of course, not be reached for comment.