Vumatel CEO Dietlof Mare recently shared surprising details on data usage by poor households that form part of its low-cost Vuma Key pilot.
Among the poorest households in South Africa use up to 3GB or 4GB of data per day if you give them uncapped Internet for free.
The company has already launched Vuma Reach, aimed at households with incomes between R5,000 and R30,000 per month.ISPs that resell Reach packages offer 20Mbps download speeds for between R375 and R400 on a 28-day prepaid basis.The company first saidAlthough the project suffered some delays, it now appears to be on track for a commercial launch in the future.
He said there was a big opportunity to offer reliable Internet to this market and bridge the digital divide.Mare said one of the ways Vumatel can offer such a low-cost uncapped service is to contend it a “little bit”. Contention refers to customers sharing bandwidth on a link.Mare said Vumatel saw upwards of 30% uptake in Vuma Reach areas, better than the rates in its Core areas.
South African households with an income of less than R5,000 most often live in areas that don’t have reliable fixed broadband.Their low and irregular income also makes them less likely to be approved for a long-term or month-to-month cellular contract that provides data at lower rates than prepaid.
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