http://www.bizcommunity.com/Article/196/663/140682.html Why Cell C is fighting for unregulated OTT services By: Stuart Lewis<http://www.bizcommunity.com/Search/196/663/s-Stuart+Lewis.html> Founded in 2001, seven years after its two biggest competitors, Cell C is still largely a new kid on the block. However, in its stand against the regulation of OTT services like Whatsapp, it has drawn a line in the sand, with Vodacom and MTN on one side and itself, OTTs and the South African consumer on the other. To understand why it makes perfect sense for Cell C to do this, you have to understand the industry that it is operating in. The South African mobile market is divided into two kinds of operators: those that own infrastructure, and those that piggyback off of infrastructure built and owned by other companies. The four largest players in the country are, in order, Vodacom, MTN, Cell C and Telkom - all of whom built and maintain their own real world network of cellphone towers and other connections. The rest of the market is divided up between Neotel (those guys who are constantly digging cable trenches across busy roads) and mobile virtual network operators (MVNOs) like FNB Mobile and Virgin Mobile. MVNOs sell phones and contracts but use infrastructure built by other networks. For the most part, they are hosted on Cell C's network. As of April last year, the South African mobile network was estimated to consist of around 80 million connections, though this has undoubtedly grown significantly since then. Vodacom still controls the largest market share, though their subscriber base has largely stagnated and is starting to decline. MTN is rapidly closing in on Vodacom, however, and has grown steadily over the last four years. Cell C is growing at a significantly faster rate and is starting to capture much more of the market but still lags behind its much older competitors. Cell C is dwarfed by these two companies who are either the biggest African mobile operator, like MTN, or owned by the world's second largest telecommunications company, like Vodacom. It also only entered the South African market long after MTN and Vodacom were already household names so it is constantly playing a game of catch-up. In order to make up the deficit in infrastructure and customer base, Cell C has to be innovative and follow the demand in the industry rather than protect its profits. "Cell C is the challenger network," said Cell C's chief legal officer, Graham Mackinnon, in a recent radio interview. "We've had to come up with products that are very customer-friendly in order to attract customers to ourselves... We have worked out a model that says it would be best to embrace change, to embrace the OTTs and try and find ways to satisfy our customers." All their rhetoric around the OTT hearings has focused on the "anti-consumer" practices of MTN and Vodacom and how embracing rather than regulating OTTs will benefit consumers, thereby positioning themselves as the network on the consumer's "side". Putting the rhetoric aside, Cell C has recognised where the future of mobile usage is going and has realised that by pre-empting that growth they can steal a march on their competitors and maybe even grow past them. To this end, they offered zero-rated Whatsapp leading up to the OTT meeting in parliament to "show their support" and now offer a R5/30 days Whatsapp bundle. Since Whatsapp is the most used social platform in South Africa with upwards of 16 million users, this is an incredibly smart move. It also supports the next two most popular platforms - Facebook and Facebook Messenger - with its free Facebook offer. Cell C is openly and unapologetically targeting these platforms. We should not even begin to think that Cell C's positioning of itself as a crusader for our right to access these kinds of services means that it is in this battle for anything more than an increased market share and customer base. But for now, its interests align with the greatest benefit to the South African consumer. [Description: Description: Description: cid:image001.png@01C8F888.8FCCE630] Ebele Okobi | Head of Public Policy, Africa m. +44 (0) 771 156 1315 2 Stephen St | London | W1T 1AN ebeleokobi@fb.com From: Ebele Okobi <ebeleokobi@fb.com<mailto:ebeleokobi@fb.com>> Date: Wednesday, February 10, 2016 at 8:16 PM To: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> Cc: Ali Hussein <ali@hussein.me.ke<mailto:ali@hussein.me.ke>> Subject: Re: [kictanet] Fwd: Re: [global-nn] Colonialism in the Digital World I just wanted to say that we at Facebook STRONGLY reject the sentiments expressed by Marc Andreesen last night regarding India. He does not speak for us. Ebele Okobi | Head of Public Policy, Africa m. +44 (0) 771 156 1315<tel:+44%20(0)%20771%20156%201315> 10 Brock Street | London<x-apple-data-detectors://0/1> | NW1 3FG ebeleokobi@fb.com<mailto:ebeleokobi@fb.com> [6F376569-CC77-422B-BAD3-794055B1E02B] On Feb 10, 2016, at 7:20 PM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: Listers The issue of Net Neutrality is becoming pretty hot.. Marc Andreessen sparked a furious tweet storm by suggesting that India would have been better off under British rule because of the recent decision on Internet pricing and 'free' access. See link below. Africa needs to define its own Net Neutrality rules..And this needs to be done yesterday. Ali Hussein Tel: +254 713 601113 ---------- Forwarded message ---------- From: <director@ipop.org.pk<mailto:director@ipop.org.pk>> Date: Feb 10, 2016 4:42 PM Subject: Re: [global-nn] Colonialism in the Digital World To: <azrak_khan@hotmail.com<mailto:azrak_khan@hotmail.com>>, <global-nn@lists.riseup.net<mailto:global-nn@lists.riseup.net>> Cc: Famed venture capitalist criticized India net neutrality rule and tweeted India would have done better economically under the British Empire. http://www.bloomberg.com/news/articles/2016-02-10/marc-andreessen-pro-colonialism-tweet-riles-up-india-tech-world<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.bloomberg.com_news_articles_2016-2D02-2D10_marc-2Dandreessen-2Dpro-2Dcolonialism-2Dtweet-2Driles-2Dup-2Dindia-2Dtech-2Dworld&d=CwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=XwU3qvaNSsPJD-5aU8mNXGacNYPy-SD30XdipHN1R4w&s=77-JDP0Nl2jKxKw1em2BkqOpLEza-Iv2hJnumv2Njgg&e=> Arzak Sent by Outlook<https://urldefense.proofpoint.com/v2/url?u=http-3A__taps.io_outlookmobile&d=CwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=XwU3qvaNSsPJD-5aU8mNXGacNYPy-SD30XdipHN1R4w&s=3nYHBOlwi42wmk2D2gL98FICAniXZiyodhlVuPSKVKE&e=> for Android _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_listinfo_kictanet&d=CwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=XwU3qvaNSsPJD-5aU8mNXGacNYPy-SD30XdipHN1R4w&s=oKGywMNcDczUDS6QfCHCwImLN1oR0iI7BJscKntvang&e= Unsubscribe or change your options at https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_options_kictanet_ebeleokobi-2540fb.com&d=CwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=XwU3qvaNSsPJD-5aU8mNXGacNYPy-SD30XdipHN1R4w&s=b1jTy14Q9asxjoCTCSjT5lioCRvuSgbxfNJqTn3vrIY&e= The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. 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