#datafree messaging - the killer app for Africa

Like WhatsApp but no data cost

In the early internet dial-up modem days the two killer apps you could be sure everyone online was using were email and search.

In these relatively early days of mobile internet in emerging and developing markets, the killer app above all else is messaging. All mobile users ‘message’, across all demographic and socio-economic groups. Google Search is not far behind as a killer app, but messaging is still number one.

The dominant messaging platform in most emerging markets is WhatsApp (the standout exception being China where WeChat dominates) and its market position is protected from disruption by massive network effect value.

Even when Naspers, largest shareholder in WeChat owner Tencent, launched WeChat in South Africa backed by a multi-million dollar marketing campaign, they could not put a dent in WhatsApp’s popularity and eventually gave up.

WhatsApp is free, but not data free

Whilst WhatsApp is an amazing product, brilliantly executed, the thing is a person must have mobile data to use it.

Over 90% of mobile users in emerging markets are prepaid, or pay-as-you-go, telco subscribers and because data affordability is a significant challenge a great many people regularly have no mobile data for periods of time.

Which means they are cut-off from the all important communication eco-system of WhatsApp.

In our survey to understand the app install problem in Africa it was overwhelmingly clear that when the average mobile consumer has no mobile data the mobile utility they miss the most, by a long way, is messaging.

And it’s simple text message communication that is most important, as opposed to sending attachments like photos and videos. There are myriad scenarios where the ability to send or receive a simple text message is life important.

For example:

• “I am stuck, come and get me”
• “I am sick and can’t come to work today”
• “there is a bus strike, I am running late”
• “where are you?”
• “your interview is at 11 am today”
• “congratulations you won”
• “I am sorry, I love you” etc.

And the irony is as the number one killer app utility, text messaging uses much less data than other mobile internet services and content.

#datafree messaging

Understanding these key dynamics led us to the conclusion there would be enormous potential value in making text messaging free of data cost, usable even when mobile users had no prepaid airtime or data balance.

If there was one thing that might stand a chance of dislodging WhatsApp’s market dominance it would be #datafree messaging. Seems simple and obvious.

So we developed the #datafree Moya Messenger app and launched it in South Africa on 18th July, 2018.

The app is available for download from the www.datafree.co.za website, either as a direct download for no data cost or via a link to the Google Play Store (which only accounts for 30% of active users).

Moya provides a WhatsApp like experience but the secure, encrypted text messaging for one-to-one chat and group chat is free of data cost and works even when a user has no airtime or data balance.

Moya supports sending of media file attachments and voice notes but they are not free of data cost — users need to use their mobile data or WiFi but are warned before sending or receiving attachments they are not #datafree.

Moya is #datafree across all four mobile network operators in South Africa.

From launch Moya experienced viral growth and within six weeks had 82,000 active users. A recent low cost guerrilla marketing activation campaign speaking to school, church and health clinic communities in Soweto township has accelerated user adoption and will be expanded to other major urban areas.

Once the appeal and viability of #datafree messaging to mass market mobile consumers in South Africa is proven the agenda is to take it to the rest of Africa and other emerging market regions.

How does Moya work #datafree?

User registration and text messaging traffic in Moya uses reverse billed, zero-rated IP addresses, whereas data traffic to send media file attachments use separate non zero-rated IP addresses.

Over the past two years mobile network operators in many markets have begun offering reverse billed data services that operate on the same principle as toll-free telephone numbers, i.e. toll-free data where app or content providers pay for data usage instead of mobile subscribers.

How is Moya commercially sustainable?

The commercial model around Moya is to provide rich, programmatic access to businesses and enterprises of all kinds so they can engage at scale with their audiences through messaging, without a cost implication for their users, members and customers.

We see opportunities for organisations to benefit from a #datafree platform, for example financial institutions delivering customer support and document exchange; trade unions and political parties wanting to communicate with their members; government agencies to disseminate information and implement service delivery; NGOs for reaching target communities, and the FMCG sector to reach their audiences.

Telco perspectives on #datafree messaging

Currently mobile telcos in South Africa subsidise the use of WhatsApp through “bundles” that charge discounted fixed prices for use of WhatsApp for defined periods of time, e.g. one day, one week or one month.

Their WhatsApp bundles specify fair use data limits, for example MTN South Africa offers a 1 GB monthly WhatsApp bundle for R30.

As text messages use little data the telco bundles are actually subsidising the data cost of media and voice note file transfers and voice calls made using WhatsApp.

Telcos are unable to distinguish WhatsApp text message data usage from media file transfer and voice call data usage and therefore their WhatsApp bundle data limits necessarily have to include all data usage.

Two days ago MTN South Africa announced they were stopping their free Twitter service after four years as it was generating too much network data traffic to sustain it, largely because of the growth of video content.

In the case of the Moya Messenger proposition, telcos are commercially better off as we pay for the data cost of text messaging and users have to purchase standard telco data bundles to send media file attachments, as opposed to buying telco subsidised WhatsApp bundles.

If you think about it more strategically, there is an argument to say the greater competitive threat for telcos is not from each other but as a group from the likes of Facebook (who own WhatsApp) and Google as mobile users are primarily loyal to their platforms, not to the telcos connecting them. In that context it seems slightly incredible the telcos are actually subsidising that user dynamic.

If telcos individually or collectively decided to have a stake in the concept of #datafree messaging and withdrew their WhatsApp subsidies, they would likely generate higher revenue, have more control over the mix of data traffic on their networks and improve their customer value and loyalty equations.