Imagine uncapped-data for Africa!!

Telkom Tower and UNISA in Pretoria

I'm currently reading a book, "The Facebook Effect" by David Kirkpatrick and one of the many enlightening things he describes in the book is how Facebook and other technology companies like it, really started to see exponential growth in terms of users and usage after the telecommunications networks in the US introduced the “all-you-can-eat” data sales concept became. The concept is borrowed from the restaurant industry, where customers would order a buffet, meaning for a set price, the diner could eat as much as they could during that specific visit to the restaurant (of course no doggy-bags allowed).

Lessons from the US about data usage

In the data space, this translated to the network operators and their distribution partners, offering bandwidth at a set fee, usually per month. This offering is also often referred to as uncapped data. During the particular month, the user could surf, upload and download as much data as they wished. The advantage of the uncapped data concept  for the customers is that they could now extend their surfing activities beyond essential content to more recreational content. The uncapped data method of selling bandwidth has the effect of reducing the cost of using the Internet and offers the consumer the freedom to roam wider and do more on the Internet. The advantages for the network operators is that because the user pays in advance, the network could guarantee future revenues. Indeed we can not overestimate the role of broadband has also played in the growth of Internet usage in the developed countries. A combination of both uncapped data and enhanced bandwidth has therefore been a potent recipe for the Facebook phenomenon and other similar Internet offerings.   

  

Uncapped Data for Africa

Imagine therefore the potential that could be unlocked if governments around the world, but specifically in Africa, encouraged telecommunications networks to offer some form of uncapped data pricing mechanism. This could unleash all sorts of creative and commercial opportunities in Africa for individuals and businesses alike. In my view, the uncapped data proposition could truly help to improve the economic well-being of the people of Africa. With uncapped data, the more than 500 million mobile subscribers across Africa, would begin to use their devices for more than just voice and SMS. The world of the Internet and online commerce would become a reality for all. Illiteracy however would remain lurking as the main  barrier and threat towards growth and penetration of Internet usage.

Not all rosy

To be sure, the uncapped data proposition has its downsides for both the consumer and the network operators. The networks would have to invest in more robust infrastructure in order to cope with the possible surge in usage. Happily, Africa is entering the world of broadband, with many of the underseas cables slowly coming into stream. The consumer may begin to dabble in unsavoury content, such as pornography etc. However, the impact of the upside offered by uncapped data, would far outweigh any downsides.

Let’s have “uncapped data for Africa, shall we!!”