|
|
|
WiFi loses out to 3G
20 November 2007:- Commercial WiFi hotspots face a dim future in
South Africa – at least among corporate workers on the move, a
new research study reveals.
Mobility 2007, the latest edition of World Wide Worx’s
annual study of mobile technology, released today, shows that the
corporate use of WiFi – small networks that allow wireless access
to the Internet - has fallen back after a steady rise in the previous
three years. By contrast, the use of 3G – wireless broadband
provided by the mobile networks – has rocketed.
“We have been warning for several years that commercial WiFi
hotspots, especially in hotels and conference centres, are in danger of
pricing themselves out of the market,” says World Wide Worx MD
Arthur Goldstuck, who led the research. “And, now that a monthly
subscription to a basic 3G service is cheaper than a few hours on most
commercial hotspots, the chickens have come home to roost.”
The corporate phase of Mobility 2007,
which also includes consumer and small and medium enterprise (SME)
research phases, shows the proportion of South African corporations
whose staff use 3G data cards rising from 58% in 2006 to 82% in 2007.
In contrast, the proportion that facilitate WiFi access by their staff
has fallen from 74% to 66%.
“Technologies and old business models cannot survive in an
environment where customers of the technology are informed and
experienced in the use of these technologies,” says Len Pienaar,
CEO of First National Bank’s Mobile & Transact Services, which backed the research.
Another factor that is having an impact on WiFi is the promise of WiMAX
– a high-speed long-distance broadband technology, which is being
piloted by a number of service providers in South Africa. As many as 8%
of corporations say they are trying it out, which exactly matches the
proportion that is dropping WiFi.
Among small and medium enterprises (SMEs), the picture is slightly
brighter, with WiFi deployment rising from 33% of respondents in 2006
to 36% in 2007. But the numbers are deceptive: the majority of these
SMEs – 26% - are using WiFi to network their offices more
efficiently, rather than enabling their staff to use it in wireless
hotspots.
In contrast, the use of wireless broadband services by SMEs has jumped
sharply, from 16% in 2006 to 31% in 2007. As with Corporates, most SMEs
using 3G are doing so to remain connected when out of the office and as
a back-up, rather than as a primary form of connectivity.
“It only takes one or two episodes of paying R30 for 30 minutes
access at a hotspot to realise that a 3G subscription costing less than
R100 a month makes far more sense,” says Goldstuck. “Thanks
to mobile technology, paid WiFi in hotel rooms is going the same way as
phone calls from hotels – their exorbitant pricing can’t
compete.”
The findings make it clear that businesses are conscious of both cost
and convenience, and will embrace those technologies that make business
sense and are easy to use.
“We experienced massive e-commerce growth at the turn of the
millennium due to innovation and a surge in Internet usage,” says
Pienaar. “The Mobility 2007 findings illustrate that we are about
to experience significant growth in the mobile market. As such,
it’s really exciting to imagine the impact that mobile
technologies will have on m-commerce in the South African
market.”
Contact
For more information, contact Arthur Goldstuck on 011 782-7003 or
Xolisa Vapi, Head: FNB Corporate Communications, on 011 371 9330 or 082 800 9977
Obtaining the report
The full report will be available shortly at a cost of R9800 (single
site license) excluding VAT from World Wide Worx. To place an order,
either request an order form to be mailed electronically, or send
company name and address, VAT registration number, and name and e-mail
address of person ordering and person who should be billed, to World
Wide Worx by e-mail on info@theworx.biz or by fax on (011) 782 7063.
Please include a purchase order number where required.
On receipt of payment, and until the report is ready, purchasers will
receive a PowerPoint presentation containing the highlights of the
research.
Mobility 2006: Cost is the key to cellphone banking
14 November 2006:- Just over 1 in 10 South Africans with bank accounts have
ever used their cellphones for banking, according to research into cellphone
banking released by World Wide Worx today.
One of the big surprises from the research is that the youth market, which is
usually assumed to be at the cutting edge of all things technology, is the least
likely to have tried cellphone banking. The opposite is true: usage of cellphone
banking tends to increase with age. In fact, almost a quarter of South Africans
with bank accounts who are aged from 46 to 55 have used their cellphones for
banking, versus less than 10% in the youth and young adult markets.
The research, which formed part of the year-long Mobility 2006 research
project, was funded by First National Bank, Virgin Mobile and Verizon Business.
It was found that 87% of those who have tried cellphone banking, have used it to
access balances. The next most common usage is purchasing airtime through the
cellphone. And while a quarter of cellphone bankers have used their handsets to
pay accounts, only 17% of cellphone banking users have made once-off payments
from their cellphones.
“It is clear that mobile commerce is happening, but only for very specific
activities,” says Arthur Goldstuck, MD of World Wide Worx. “There is a strong
relationship between the need for banking access and likelihood of using it. And
once the costs of cellphone usage comes down, we will see a rapid increase in
uptake.”
The research is supported by the experience of First National Bank, which was
the first bank to introduce banking via SMS in 2005.
“Cellphone banking is taking off right now because we are giving people what
they need, rather than focusing on what technology can do,” says Len Pienaar,
CEO of FNB Mobile and Transact Solutions. “While many users do not yet feel
comfortable with transactions, it is clear that there is a great need for
information about their accounts and the purchases of prepaid products, and a
growing need for paying accounts without having to go to a bank. Once more users
are ready to transact via their cellphones, we will be ready for them.”
World Wide Worx found that demand in rural areas was often far higher than in
urban areas, supporting last year’s finding, from Mobility 2005, that need for
access was a far more important determinant of cellphone banking than being
switched on to the possibilities of technology.
The North West (17.5%), Mpumalanga (14%) and Free State (13.3%) are the
regions that are found to have the highest proportions of cellphone bankers.
This did not apply across the board, however, as Eastern Cape and Limpopo shared
with the Western Cape the lowest incidence of cellphone banking.
The issue of high perceived cost remains the largest inhibitor for people who
would consider using their cellphones for transactions, with 44% saying lower
cost of transactions would convince them. Nearly a third are held back by the
apparent difficulty of using cellphone banking. Security is also a concern for
29% of people who might be encouraged to become users if they were given
guarantees. Nearly a quarter of people feel that nothing would convince them to
use cellphone banking for purchases!
“This is also a factor of awareness and education,” says Pienaar. “In the
next few years, as cellphones become a standard way of doing your banking,
people will wonder how they ever managed without it.”
* For further information and comment, please contact Arthur Goldstuck, World
Wide Worx, on (011) 782-7003 or e-mail
arthurg@internet.org.za
|
|
Receive
notifications of World Wide Worx research activities announcements and website
updates
We Value Privacy
|
