The Star Early Edition

The major cellphone providers are trying to charge for WhatsApp and Facebook

- José Dos Santos José Dos Santos is the chief executive of Cell C

MTN AND Vodacom have declared war on consumer interests. The infamous duopoly wants to limit how we use internet services like WhatsApp – and it has nothing to do with fairness, competitio­n or the future of South Africa. On the contrary, it is all about maintainin­g their strangleho­ld on a vital artery feeding our country’s economic and social future.

The two mobile networks have successful­ly lobbied the government to investigat­e potentiall­y regulating over-thetop (OTT) services, like WhatsApp. I suppose it was inevitable, given their views on OTT applicatio­ns.

Vodacom, for example, believes: “You have these [OTT] players which are getting huge benefit out of an industry without making any investment”, and “operators need to continue making a return”.

Free ride

MTN has been less diplomatic. Former MTN South Africa chief executive Ahmad Farroukh was quoted as saying that MTN was not prepared to spend billions of dollars building networks just so that OTT players could get a “free ride”.

His successor, Mteto Nyati, agrees. “You have to regulate them because clearly they’re making a huge amount of revenue on top of the infrastruc­ture that the operators have paid for. Somehow they have to contribute towards the building of this infrastruc­ture.”

Only now when they face competitio­n are they concerned with “levelling the playing fields”.

Regulation itself is not necessaril­y a bad thing and our telecoms regulation could definitely use a little modernisat­ion. We need to ask serious questions about privacy, consumer rights and infrastruc­ture sharing to reduce costs. But in this case, this is not Vodacom or MTN’s aim. They are hoping to confuse the issue, rather than using clear, reasonable arguments.

Regulation will impose new costs. These will either prompt OTT players to withdraw their services from South Africa or push up prices for the consumer – the very consumer who already pays for the data to use those services.

It is not hard to imagine the motivation of MTN and Vodacom, as both have historical­ly resisted any attempt to “level the playing field” in the mobile industry. They have fought number porting and the eliminatio­n of interconne­ct fees. These are companies that have shown no interest in the welfare of the customers who keep them in business.

We believe that OTT services encourage consumers to participat­e more. The more they participat­e, the more they spend. Cell C is still a business and must make money. But good companies adapt to create new opportunit­ies for themselves and their customers. Bad companies ma- nipulate the system to get what they want – the customer doesn’t matter.

I invite South Africans to interrogat­e the motivation­s of companies that would support this kind of regulation.

Connectivi­ty is key to the welfare of a 21st-century nation. These platforms empower individual­s and communitie­s. They allow people to connect and be part of a global community.

Now think of all the conversati­ons we have every day on Facebook, WhatsApp, Google Talk, Skype, WeChat and more. Consider the many services like Gmail, Office 365, Sage Accounting and so on that allow small businesses to start and flourish.

All voices

OTT regulation will force extra costs on those services or force their withdrawal. It will hurt consumers and small companies. It will disadvanta­ge everyone – everyone except the networks whose only interest resides in protecting their revenues.

Cell C has proven that by opting for partnershi­ps instead of bullying, you can work alongside OTT services to the bene- fit of everyone.

We offered free WhatsApp services for a year, during which Cell C customers did not spend any data to send messages. Since then we have transforme­d this into a low R5-per-month offer and opened our free services to include Facebook.

As a consequenc­e we have not lost customers. We have grown and those customers have grown as well. They are more connected and informed, but without needing to pay more for the privilege. No, not privilege. It’s a right. It is not fair that only those who can afford it have a voice.

As I have said, regulation of the telecoms space is a conversati­on that should happen. But MTN, Vodacom and their collaborat­ors are trying not to address the big issue. They want to protect what they have and they are happy to sell the consumer out in order to get that.

As it stands, Cell C does not support OTT regulation in South Africa because the only losers will be the people whose money allows us to be successful businesses in the first place.

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