Mobile threat

Chronicle Reporter
MOBILE phone companies are bracing for a massive hit to their revenues after the popular instant chat service, WhatsApp, began testing voice calls.

The Facebook-owned company, which claims 700 million users, announced plans to add voice calls in February last year, and recently started trialing the service in India. No firm date has been set for the launch.

Technically called the Voice Over Internet Protocol (VOIP), the new WhatsApp feature, which allows people to perform voice calls almost for free, poses a major threat to mobile phone companies.

Robert Ndlovu, a telecoms expert, told The Chronicle yesterday: “When WhatsApp finally unveils this calling service, the networks will find themselves confronted by a new threat. It’s going to eat into their voice revenues, certainly, that’s why you see the companies now venturing into none-voice related areas like insurance and banking. It’s going to be tough.

Ndlovu says while WhatsApp voice will be a boon for Zimbabweans, he says the service would be mostly enjoyed by people in urban areas who have faster connectivity. “In most rural areas, the best they can get is 2G, so they might be left out a bit,” he said.

Recently, mobile phone operators reduced their tariffs from 23 cents to 15 cents per minute following an order by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz), but this is not going to save them from the fresh competition.

The reduction was effected by Potraz as a response to an outcry from customers who felt the mobile phone tariffs were very high.

WhatsApp users are able to send text and voice messages and files such as images, audio and video clips.

The latest invention will now allow users the same data connection that the subscriber’s phone is connected to without any extra charges.

Rangarirai Mberi, the corporate communications manager for Econet Wireless, yesterday insisted the new development was not a threat to their business.

“Econet does not see new technology as a threat, but as an opportunity to offer new possibilities for our customers,” he said.

“As communicated previously, we have long recognised the trend of the decreasing revenue percentage contribution of the traditional income streams such as voice and SMS. We then took a strategic decision to invest in new income streams, such as data services and many other overlay services. This strategy is already bearing fruit.”

Mberi said Econet would continue to develop exciting new products and services for the convenience of its customers.

Net-One chief executive officer, Reward Kangai, yesterday professed ignorance of the new WhatApp voice call and said he could not comment.

“I’ve not come across that information, so I can’t comment,” said Kangai.

Blogger Manish Singh said WhatsApp voice calls were a “big deal”, stating: “The voice-calling feature in WhatsApp is a big deal. Sure, it has been around in services like Skype, and Hangouts, and some not as popular IMs like Viber and Line, but none of them have such a large userbase.”

Recent data says 74 percent of Zimbabwe’s population is now using mobile phones with close to 10 million numbers registered with the Potraz.