{"id":116229,"date":"2015-01-07T22:09:02","date_gmt":"2015-01-07T20:09:02","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=116229"},"modified":"2015-01-07T22:10:07","modified_gmt":"2015-01-07T20:10:07","slug":"whatsapp-voice-calling-nightmare-for-mobile-operators","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cellular\/116229-whatsapp-voice-calling-nightmare-for-mobile-operators.html","title":{"rendered":"WhatsApp voice calling &#8211; nightmare for mobile operators?"},"content":{"rendered":"<p>In late December 2014 screenshots of WhatsApp\u2019s voice calling emerged, which indicates the company may launch the service soon.<\/p>\n<p>WhatsApp initially planned to launch voice calling in the second quarter of 2014. However, WhatsApp CEO Jan Koum said in October 2014 that the launch would only happen in the first quarter of 2015.<\/p>\n<p>Koum said WhatsApp&#8217;s voice calling service would be a mobile-only service, competing against the\u00a0likes of WeChat, Viber, and Skype.<\/p>\n<p>While mobile messaging-based voice calling has not gained much traction in South Africa yet, WhatsApp\u2019s scale may change this.<\/p>\n<p>WhatsApp (with Mxit, BBM, and other IM services) has seriously dented SMS revenues, and some industry commentators said that the same may happen with voice revenues.<\/p>\n<p>Mike Fairon, MTN South Africa\u2019s GM for products and solutions, said that WhatsApp is more popular than any of the other messaging players.<\/p>\n<p>MTN CEO Sifiso Dabengwa said that if the WhatsApp voice service was a free service, it could be a game changer.<\/p>\n<p>Former FNB CEO Michael Jordaan concurred, saying that WhatsApp\u2019s plan to offer &#8220;free&#8221; phone calls should seriously worry telecommunications CEOs and boards around the world.<\/p>\n<div id=\"attachment_116231\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/01\/WhatsApp-voice-calling.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-116231\" class=\"size-full wp-image-116231\" src=\"http:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/01\/WhatsApp-voice-calling.jpg\" alt=\"WhatsApp voice calling\" width=\"600\" height=\"517\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/01\/WhatsApp-voice-calling.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2015\/01\/WhatsApp-voice-calling-464x400.jpg 464w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-116231\" class=\"wp-caption-text\">WhatsApp voice calling<\/p><\/div>\n<h3 class=\"my-4\">Mobile operators not too worried<\/h3>\n<p>While some industry experts warn of a significant impact on voice revenues, not everyone is worried about WhatsApp voice calling.<\/p>\n<p><strong>Vodacom spokesperson Richard Boorman<\/strong> said that as long as people are using their smartphones, it\u2019s ultimately a positive for them.<\/p>\n<p>\u201cIf anything, this vindicates the massive investment that we\u2019ve been making in our network with the viability of VoIP services so dependent on the quality of the network connection,\u201d said Boorman.<\/p>\n<p>He added that Vodacom was working towards a model which \u201cworks for all parties and supports continued network investment\u201d.<\/p>\n<p><strong>Cell C CEO Jose dos Santos<\/strong> said that he was not concerned about the impact of free WhatsApp voice calls on the company\u2019s voice revenues.<\/p>\n<p>\u201cThe decline in voice revenue has more to do with prices coming down as a result of competition in the market than the introduction of VoIP services,\u201d said dos Santos.<\/p>\n<p>He added that mobile operators need to embrace OTT players and partner with them to provide customers with added value.<\/p>\n<p>\u201cCell C looks forward to launching WhatsApp\u2019s new voice service on our network,\u201d said dos Santos.<\/p>\n<p><strong>Telkom said that<\/strong> it does not anticipate a major impact on business voice revenues as a result of WhatsApp introducing voice calls to its functionality.<\/p>\n<p>\u201cWhile we are unable to accurately predict the impact on voice call revenues overall, it would be safe to say that impact, if any, will be from the consumer end of the market,\u201d said Jacqui O\u2019 Sullivan, Telkom\u2019s Managing Executive for Group Communication.<\/p>\n<p>She said that Skype and Google Talk have previously introduced voice options through their respective platforms, and then already Telkom was gearing for a more effective data play.<\/p>\n<p>\u201cWe don\u2019t necessarily see one product or platform having any more of an impact on voice services than any other just yet,\u201d said O\u2019 Sullivan.<\/p>\n<p><strong>MTN believes that<\/strong> voice services will still have a place in the market despite the introduction of new services.<\/p>\n<p>\u201cWe are therefore not too concerned, Wechat and Viber have been around for a long time,\u201d said Larry Annetts, Chief Marketing Officer at MTN SA.<\/p>\n<h3 class=\"my-4\">Why free WhatsApp voice impact may be limited<\/h3>\n<p>One of the reasons why mobile operators may not be too concerned about free WhatsApp voice calling is the popularity of integrated packages.<\/p>\n<p>Many contract subscribers are on integrated packages, which include voice and data. If they use less minutes and more data it wouldn\u2019t really impact revenues.<\/p>\n<p>Looking at the prepaid market, smartphone penetration is sitting at around 25% and the impact would mainly be limited to this group.<\/p>\n<p>The impact of WhatsApp voice calling on revenue will be the differential between what they pay for calls, and how much the VoIP data would cost them.<\/p>\n<p>Smart prepaid users can pay as little as 8c per minute with some calling packages. They may therefore still purchase some voice products, and purchase more data for WhatsApp calling.<\/p>\n<h3 class=\"my-4\">More on WhatsApp<\/h3>\n<p><a title=\"Big threat to Vodacom, MTN, Cell C here soon\" href=\"http:\/\/mybroadband.co.za\/news\/cellular\/109838-big-threat-to-vodacom-mtn-cell-c-here-soon.html\"><strong>Big threat to Vodacom, MTN, Cell C here soon<\/strong><\/a><\/p>\n<p><a title=\"Free voice calls through Google Hangouts\" href=\"http:\/\/mybroadband.co.za\/news\/smartphones\/109662-free-voice-calls-through-google-hangouts.html\"><strong>Free voice calls through Google Hangouts<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/mybroadband.co.za\/news\/cellular\/98442-voip-warning-you-may-be-charged-r25-per-mb.html\"><strong>VoIP warning \u2013 you may be charged R25 per MB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New WhatsApp voice calling screenshots have emerged, which means the service may be launched soon. Should mobile operators be worried?<\/p>\n","protected":false},"author":23,"featured_media":75147,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[14],"tags":[355,35,16074,42,1167,109,41,2594,28177],"class_list":["post-116229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cellular","tag-cell-c","tag-headline","tag-jose-dos-santos","tag-mtn","tag-richard-boorman","tag-telkom","tag-vodacom","tag-whatsapp","tag-whatsapp-voice-calling"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/116229"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=116229"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/116229\/revisions"}],"predecessor-version":[{"id":116286,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/116229\/revisions\/116286"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/75147"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=116229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=116229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=116229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}