Differential data pricing making waves
MTN implementing differential pricing?
MTN recently made headlines with suggestions that they are planning, or according to some reports have already, implemented differential billing on VoIP traffic.
Their data terms and conditions state that “Should it be found that VoIP traffic was carried over the MTN network using these tariffs or technologies, MTN reserves the right to cancel the agreement that you have with MTN, with immediate effect. You will also be charged retrospectively at R21.93 per Megabyte (VAT excluded) for any VoIP traffic transferred by such means.”
When quizzed about this issue MTN clearly said that it “does not currently bill any IP traffic at differential rates i.e. all IP traffic is billed at the same rate in and out of bundle.”
This is however in direct conflict with both the MTN website and with feedback from many MTN clients.
MyADSL has received a great deal of feedback over the last few weeks of communication from MTN clearly stating that VoIP, messaging and P2P services will not be allowed on their current broadband packages and will be charged at R 25-00 per MB. These services include Skype and MXit.
Some people reported that their clients unexpectedly received exorbitant bills for their data usage, and the only logical solution is that they were billed differently for VoIP, messaging or P2P traffic.
Vodacom says data is data
Vodacom does not currently have any differential data pricing and has the view that ‘data is data’, but is also not overly positive regarding the use of VoIP services on their network.
“Vodacom customers making voice calls over Vodacom’s 3G or 3G HSDPA network are charged according to the data package they subscribe to, or the out-of-bundle data tariff. Vodacom does not block voice-over-IP calls over its network, and will advise customers should this position change,” Vodacom said.
“Whilst Vodacom lodged a VoIP tariff some time back, it does not currently provide VoIP services as the technology do not yet lend itself to the quality carrier-grade voice solutions our customers have come to expect from Vodacom. Both in-house and independent tests have confirmed that VoIP solutions today suffer from unpredictable and unacceptable delays and bottlenecks, making it a best-effort service,” Vodacom said.
“However, Vodacom does allow VoIP on the network and deems it to be just another data stream, similar to sending e-mails or browsing the internet. Therefore our standard data rates would apply,” Vodacom concluded.
While Vodacom may justifiably consider a VoIP service like Skype over its HSDPA network as being sub-carrier-grade without any service guarantees, recent testing indicates that it is of surprisingly good quality and actually quite close to the quality of standard mobile phone calls.
Other wireless providers not concerned about VoIP traffic
CellC, Sentech and iBurst seem unconcerned about VoIO or P2P traffic on their network.
CellC said that they are not currently considering differential billing, and are encouraging their subscribers to make use of services like MXit as it can enrich their mobile data experience.
This view is shared by both Sentech and iBurst. Sentech said that they ‘do not have any plans to institute differentiated tariffs based on the type of data, while iBurst said that they encourage users to fully utilize their connection as they see fit and points out that they offer ‘unrestricted VoIP access’.
Telkom bluntly differentiates
Telkom has long made its differential pricing and prioritization of traffic public, and is charging different rates for ‘shaped’ and ‘unshaped’ traffic.
Telkom’s shaped packages, which most ADSL users subscribe to, prioritizes standard web, email and FTP traffic which means that the service quality of other services like VoIP and P2P may deteriorate during busy periods.
Telkom has an unshaped service which is more suitable for VoIP, gaming and P2P services, but it comes at a price. While a standard 3 GB shaped service is priced at R 249-00 per month, a 4 GB unshaped service costs R 679-00.
It must however be said that the quality of VoIP services like Skype over Telkom’s shaped network is still of a very acceptable standard.
Fight may just be beginning
The blocking of certain services on the Internet or differential pricing of different types of data has caused an uproar internationally, and similar battles may be around the corner in South Africa.
It may further create two camps in the local broadband arena, namely providers who block and providers who don’t. Consumers are spoilt for choice when it comes to wireless broadband services, and differential pricing may just be the reason why some consumers move to a provider who doesn’t…
Loading ...