Wednesday, 1 April 2015

WhatsApp users to save massively on call costs


By Eric G Ndubi.
Whatsapp, the world’s most-popular instant messaging app has rolled out a free internet calling feature similar to other over-the-top (OTT) players like Viber, line, Google Hangouts and Skype.
The rollout of the feature was first tested in India early last month then tagged as an invitation-only where users had to receive a call from another user to activate a call even if the user had the latest version of WhatsApp installed.
The feature, which can be accessed by users running WhatsApp version 2.11.528 or 2.11.531 from Google Play Store or directly from the WhatsApp website is currently available on android devices only. The company’s CEO announced that the feature will be available on IOS platform in “several weeks” time.
Users can now make calls for as low as five cents per minute and enjoy arguably the same amount of clarity as normal voice calling from regular cellphone service.
“With my daily 40mbs I can make several calls throughout the day without having to buy extra airtime for the same. I’m so thrilled.” Peter Ombegah, a university student said.
WhatsApp which has more than 700 million users globally is set to change the game for local mobile phone companies where 22.3 million Kenyans are now presented with the option of calling via WhatsApp. The current call rates average at sh. 3 per minute giving subscribers the potential to save up to 80% on call costs.
Consumers can make phone calls and send messages using internet connection through mobile applications and computers. They are only required to pay for bandwidth consumed but calls and messages are otherwise free of cost.
Mobile communications giant, Safaricom, however, has said it will devise ways of tapping into the popularity of Whatsapp to make money such as through the introduction of Internet services Bundles.

Regulation
Safaricom doesn’t charge users for access to WhatsApp currently, but with its extension into voice it poses the threat of eroding the traditional revenue sources of Safaricom and other mobile service providers. For instance for the year ended March 2013 revenue from voice calls accounted for the bulk of Safaricom’s total income of sh. 124.3 Billion at sh. 77.6 Billion, a staggering 62.4%.
This threat being posed by WhatsApp to mobile operators in that it threatens to use the operator’s own networks to pull their most profitable businesses out from under them is not being taken lightly by industry players around the globe. MTN South Africa CEO, Ahmad Farroukh last year accused OTTs of wanting a “free ride” on the billions invested by the operators in network infrastructure.
Similarly, at a conference in Johannesburg on Wednesday, Vodafone’s global CEO, Vittorio Colao warned that regulators and policymakers need to ensure that OTT providers are subjected to the same rules as operators to ensure “fairness in the ability to compete”.
The Telecom Regulatory Authority of India has initiated the process to prepare a regulatory framework for OTT players citing that Telecom Service Providers realize revenue solely from increased data usage of the internet-connected customers and do not realize any other revenues yet they rely on their infrastructure.



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