MTN might get nasty

ADSL South Africa (Broadband South Africa), 14 March 2007

MTN customers using MTN’s airwaves to make use of free services such as Skype and MXit must be careful not to run into huge bills.

What seem to be the problem?

‘MTN customers using its airwaves to conduct free phone calls over Skype or to send text messages using MXit may be hit by huge bills if the operator opts to outlaw the services that are clogging its network and depleting its own revenues. The cut-price calls and messages are enormously popular with computer users who go online using MTN’s high speed data cards’ (MTN to charge for Skype, MXit, Stones, Business Day, 8 March 2007). In other words, MTN don’t like the fact that the likes of Skype and MXit are eating away at their revenue and overload their network.

Ravin Maharaj, Media Relations Manager at MTN, added: “Services such as Skype and MXit have congested the network and have affected the quality of the service that we can offer our customers” (MTN to charge for Skype, MXit, Stones, Business Day, 8 March 2007).

What’s Skype?

Be sure to visit our VoIP Service Providers page for more info.

What’s MXit?

An entrepreneur from Cape Town, Herman Heunis, developed the MXit service. This service enables users to send text messages at a fraction of what it normally would cost. In other words, it’s a cheaper alternative to SMS.

Are these services really placing pressure on networks?

Yes, it seems that they are placing strain on networks.

‘Neither service soaks up much bandwidth in isolation, but they have become so popular the combined effect is inflicting network overload’ (MTN to charge for Skype, MXit, Stones, Business Day, 8 March 2007). In other words,the combined effect of the two services results in network overload.

Are these services really eating away at MTN’s profits?

Yes, if claims by MXit is correct, a 116 000 000 messages are sent every day via their service. In other words, the MXit service for one is surely making a dent in MTN’s armour. One can only imagine the damage that’s done by Skype every day.

Don’t get us wrong, we love MXit and Skype, but can also understand why the likes of MTN are starting to cry ‘wolf’.

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