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With Whatsapp, Skype, Who Needs SMS?(AllAfrica Via Acquire Media NewsEdge) Telecom companies are rushing to boost their internet services as the growth in mobile applications makes communication gradually cheaper. The increased use of internet-based services, mostly social networking applications such as Facebook, Twitter, WhatsApp, Skype, Viber, Tango and MySpace, has attracted many people. "Most of the communication that I have to make is through the internet unless I really need to make an urgent call. I think that nine out of 10 times that I am on my phone I am either on twitter or Facebook or checking my e-mail. WhatsApp is one of those applications that I cannot do without. I can't remember the last time I sent a text message," said an internet user who declined to be named. The trick is in the price. While it takes about Shs 130 ($0.05) to send one SMS, one is able to send far more messages using WhatsApp for the same amount of money. Since WhatsApp is internet-based, it works across all networks. And while it takes about Shs 500 ($0.19) to make a call that lasts not more than three minutes, it could easily take you more than 30 minutes on Skype. The mobile phone applications also come with more benefits. Attaching pictures, songs and videos is made easier using these simple applications. Michael Niyitegeka, a former lecturer at Makerere University's college of Computing and Information Sciences, who is now an IT consultant, believes telecom companies need to satisfy this market. "Users are moving faster than the telecoms. The telecoms have not yet figured out a business model (for this market)," he said. The growth of social networking sites was largely attributed to the feel it adds to the whole idea of communication. "There is a social attribute when one goes on the social networking sites because this communication changes the SMS messaging into a kind of a monologue," he said. The flipside of all this is that users need to have a smart phone. However, while smart phones used to be expensive, today they go for less than Shs 400,000. And some shops are selling used smart phones at far cheaper prices. Some companies are upgrading their data systems to tap into this growing market. Huawei Technologies, the service provider for Airtel, Warid and MTN, has been upgrading its network infrastructure to provide faster and cheaper internet. Companies upgrade MTN Uganda recently launched the Long-Term Evolution (LTE) network, offering multi-speed levels for mobile phones users. "Our full network of over 1,100 sites offers more than enough throughput to utilize applications such as BlackBerry Messenger (BBM) and WhatsApp," said MTN Uganda's Chief Marketing Officer Ernst Fonternel. Fonternel added that they were looking at bringing affordable phones to widen their data market. "The majority of handsets in Uganda currently don't support any form of data. We are looking into innovative ways to bring our own MTN specified internet enabled handsets to improve the Internet penetration in the country," he said. After launching its 3.75G internet data in August 2012, Airtel Uganda managing director, V.G Somasekhar, says "the smart phone is now mostly used for social networking, email and taking pictures. That is why we have 50% of our network on 3G. We hope to be part of this revolution of communication." As the revolution unfolds, telecom companies risk losing money as consumers embrace cheaper internet-based communication. But there is a catch for them, says Pius Kamugisha, Managing Director at Blue Cube Ltd, a text messaging service provider. "I think it's a win-win situation where the telecoms are selling data and the customers are buying bundles," he said, adding that the telecoms were earning revenues by selling high-end phones. Experts feel that while more forms of communication go through the data market, it is a long way before these customers outnumber those still sending messages the traditional way. Claude Vendette, CEO and Regional Development Director of One Solutions, a new broad-based technology service provider, thinks that will be the case. "I don't think data will replace the specific solutions business for the mass market, but it will certainly make communication cheaper," adding, "there will always be markets with specific needs." Copyright The Observer. Distributed by AllAfrica Global Media (allAfrica.com). |