Internet service provider (ISP) MWeb has entered the mobile arena. It will compete with service providers such as Altech Autopage and Nashua Mobile, filling the void left after iTalk was taken over by MTN.
However, the company is limiting its offerings to the higher revenue, but lower volume smartphone market. It is already on-selling Vodacom and will later add MTN voice and data contracts to this niche segment.
Natalie Thayer, GM of MWeb Mobile, says the new division will grow the holding company's subscriber base as it will bring in new customers, and allow it to sell its ISP offerings to those clients.
She explains the cellular deals will initially only be offered to current MWeb customers. However, this is also expected to boost revenue, as the company has a revenue-sharing agreement with Vodacom.
MWeb Mobile, which offers the voice packages through its MTALK product, makes an undisclosed margin on each contract sold, Thayer explains.
The ISP was founded in 1997, and now has 320 000 customers through its MWeb and MWeb Business divisions. These range from home users, small, medium and large business customers, to corporate clients.
MWeb Mobile's product offering includes a variety of voice and data packages, bundled with smartphone devices, including Apple's iPhone, BlackBerry, HTC, Nokia and Samsung.
Thayer says the new division will only focus on the smartphone segment, which she expects to grow as these handsets become more entrenched in society. Initially, this means the offering will be niche and limited to high-end earners, Thayer explains.
A look at contracts on offer on its Web site indicate that, for example, a Talk 240 plan costs R430 a month (including a handset) and will offer 240 anytime minutes. On Vodacom's site, the deal is R345.60 a month (excluding a handset). However, both companies advertise special offers.
Collate contacts
MWeb Mobile says its offering differs from that of other service providers as it converges other applications, such as e-mail and instant messaging, onto one platform. This, says Thayer, allows clients to better manage their contact lists and method of communication.
Thayer explains the division's mobile site and the Web site have been launched, and development is under way to allow for applications and customisation of these two tools. The sites converge all of MWeb's offerings onto one central place, she adds.
The mobile site offers users access to their e-mail, MWeb account, and products and services. In addition, it offers breaking news, sport headlines, financial information, weather, movies and entertainment news.
She says the division has already developed an iPhone e-mail application, and now aims to integrate instant messaging and VOIP on handsets.
As the company has done a deal with Vodacom, clients of the cellular operator's service provider division cannot port to take advantage of the MWeb offering. But, Thayer says, talks are under way with a view to allowing these subscribers to also have access to the converged service.
MWeb also has a hosted BlackBerry exchange, which is targeted at small businesses and consumers, and allows users of this smartphone to share items such as a calendar.
Smart move
Frost & Sullivan senior ICT industry analyst Lindsey Mc Donald says MWeb's entrance into the mobile service provider market is welcome, as it will bring competition into the sector.
She explains that MTN's purchase of iTalk at the beginning of the year meant there were fewer companies from which consumers could choose an offering, which lessened competition in the sector.
Mc Donald says MWeb is targeting the low-volume, but high-revenue segment of the market, which makes sense as SA is a mature market in terms of cellphone penetration.
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