According to MTN, the average contracted user consumes around 21.9 gigabytes of data every month at a rate that has increased by nearly 44% since 2023.
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By Craig Blignaut
It has become increasingly challenging for service providers to meet consumer demand for accessible data, and this is changing the shape of service delivery and innovation in 2025.
In the first quarter of 2024, one user consumed 411.4 terabytes of data.
According to MTN, the average contracted user consumes around 21.9 gigabytes of data every month at a rate that has increased by nearly 44% since 2023.
Statista found that internet usage in South Africa has increased to almost 80% of the population, with mobile devices taking up 80% of market share. The demand for data, particularly accessible and cost-effective data, has become insatiable, and companies are evolving their services and capabilities to meet this demand.
Over the next six to 12 months, the shape of data and connectivity will change.
The future of data consumption will be shaped by demand, innovation, personalisation, artificial intelligence and competition.
Companies that recognise the importance of automation, speed, personalisation and cost optimisation will set the standard for consumer engagement and data consumption in 2025. Looking ahead, there are four key trends that will set the tone for the year ahead.
Approximately 75% of South African consumers use social media, with 13 million of them spending more than 20 hours a week on these platforms. Streaming services are also on the increase with more than eight million people already subscribed to these services across Netflix, Showmax and YouTube. Added to this, online shopping has gained significant traction with the arrival of international ecommerce giants Shein and Temu and the growing market share of innovators such as Checkers Sixty60.
These figures, from the Marketing All Product Survey, show how invested South Africans have become in the online landscape and the importance of their data being both accessible and fast. Consumers want their information delivered at speed as it allows them to be more productive, more engaged and more connected.
Providing consumers with high-speed data that’s easy to use, access and manage will be a significant competitive advantage. Companies have to adapt to what customers need and want. This translates into creating products that meet these needs instead of complicated, convoluted and onerous restrictions.
Artificial intelligence that minimises the load
As much as users want to be connected to everything, they are equally struggling with information overload. They want solutions that allow them to feel less inundated by messages across email, instant messaging, SMS’ and other communication platforms, and this is where AI can potentially make a difference. It can be used to summarise the chats and notifications across different platforms and provide action points or insights that users can then respond to without having to read all the messages. It can be used to simplify billing, access to services and enhance self-service.
Companies should be paying attention to how AI can be used to simplify data access, reduce costs and enhance user experiences. Those that can differentiate through innovation will very likely gain market share and traction.
Free connectivity as a business differentiator
The tourism sector in South Africa is flourishing. According to the SA Tourism Q4 report 2023/2024, 2.4 million international visitors came to the country, which was an increase of 15.4% on 2023. The figures are slowly gaining ground post the pandemic. Local travel is equally on the rise – at R334.2 billion, it has exceeded 2019 levels. This translates to creating experiences within the hospitality industry that attract visitors and bring them back for more. And this is achieved, according to research, by providing high-quality connectivity.
Visitors want to work, stream, engage, share, create and listen from their devices regardless of location. Whether they are staying for business or pleasure, wi-fi connectivity has become a business differentiator. Guest wi-fi and wi-fi hotspots will continue to evolve over the next year as companies invest in solutions that meet customer demand. This is not only within the hospitality industry either – coffee shops, restaurants, and other areas will soon be as distinguished by the connectivity they provide as by the services they offer.
Data becomes loyalty
The last trend will evolve within the framework of providing wi-fi connectivity to customers and building more agile and affordable data solutions. Companies will start building loyalty programmes within their data platforms allowing customers to earn rewards from their data purchases. These reward programmes can be built around the marketing data collected when users log in to wi-fi networks. Many companies ask for email addresses and relevant information before releasing the free data and, if collected in line with the Protection of Personal Information Act or other regulatory requirements, this information can be used to build loyalty frameworks that increase sales and build customer stickiness.
When wi-fi and data are easy to access at the airport, stadium, parking lot, mall or event, then people are willing to share their information. And they are even more willing to spend money on data or solutions if they are rewarded for their loyalty. The ecosystem created by loyalty programmes has the potential to radically change how consumers feel about data purchases which are traditionally a grudge expense, while also changing their relationship with the service provider.
In the end, there is data
Data will continue its upward demand trajectory for the foreseeable future. It is an essential for consumers and their growing need for always-on connectivity and connections that allow them to live, travel, eat, and entertain. Serving this data on innovative platters that reframe the costs and redefine the benefits for these consumers is what will set the leading service providers apart from competitors.
Craig Blignaut is W-F Product Manager at Vox.
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Craig Blignaut.
Image: Supplied