How reviews help and SA Data Costs

[VIEW IN YOUR BROWSER]( EDITION #3 [hellopeter.com]( We're sharing our consumer insights with you, on the house! [How reviews help consumers]( Last month we asked you, our readers, what topics you would like us to write about in our newsletters. We received hundreds of responses that we will roll out in due course so thank you for your feedback. For this month’s newsletter we picked two topics that were suggested numerous times: - How reviews help consumers make informed purchasing decisions; and - The state of data costs in South Africa. We hope you enjoy the read and keep using our website to make better informed purchasing decisions! There is also a [survey below]( that you are welcome to take if you like. Chat soon, Hellopeter How Reviews Help Consumers There is no doubt that reviews offer a powerful tool for consumers. As the online landscape continues to evolve, both in South Africa and further afield, transparency has become more important than ever before. Not too long ago, consumers were left with little way to determine whether businesses were credible or not. Other than getting information from friends who had their own experiences to share, or trusting what companies said, not much could be done to find out more about businesses. Today, thanks to the growth of consumer review tools such as Hellopeter, consumers have a way to not only share their experiences of local companies, but also let others know what to expect. Due to this, reviews have become a critical part of the decision-making process. These statistics show us just how much weight reviews have when it comes to purchasing decisions: [The link between reviews and decision making] Why do reviews have such weight, though? And why are they so important for consumers making informed purchasing decisions? The Link Between Reviews and Decision Making Essentially, you could think of reviews as legitimate proof. Many studies show that online reviews have the same value as personal recommendations from friends or families. Consider this example: Bob is looking for a new service provider. He has looked online, seen a few websites and read a few testimonials. He heads on over to Hellopeter to see what others say about the company. After reading a few reviews from people who have shared their experiences, he decides that it is not worth taking a risk. Bob goes on to choose the insurer that has gotten better reviews on Hellopeter. Reviews are powerful for decision making, because they: - Help to cut down research time - Provide genuine insight - Make it easier to get impartial feedback from peers - Highlight known problems - Lead to greater brand accountability While reviews help consumers, they also help companies, as well as the overall industry. Transparency and accountability offer a win-win situation for everyone. Whether you have created a few reviews, or you are browsing and comparing for the time being, writing and reading reviews on Hellopeter makes it easier for you to do your bit at building a culture of transparency within South Africa. Most Hellopeter users already utilise reviews to form opinions about brands. Do you? [Take our quick survey]( and let us know. P.S. If you haven't left one already, head on over to Hellopeter right now to[create your first review.]( [A look at data costs in SA] A Look at Data Costs in SA If you have been following the #DataMustFall drama, you may have some idea of the high cost of data in South Africa. Across all four of our major networks, buying a single gig can quickly add up. Currently, data per GB for each major network is charged as follows: [Cost per 1GB of data in SA] - According to a report from [Research ICT Africa]( released recently, these numbers do not stack up well against other developing nations. In this report, South Africa was ranked 16 out of 47 countries. In [another report]( this one done by Tariffic, data prices in SA were shown to be 134% higher than those of other [BRICS]( nations. To give you an example of the difference in costs per gig, India charges R11, Nigeria charges R22, Ghana charges R71, Russia charges R24 and Tanzania charges R98. While Telkom Mobile charges the least at R99 per GB, Vodacom and Cell C charge close to R150 per GB, and MTN charges even more than that at R160 per GB. Are data costs really far too high for consumers? Are there any options we can take to address this issue? What else should be taken into consideration? Let's have a look. The Unbearable Cost of Data in South Africa When looking at other countries, it certainly seems that South Africans have a raw deal when it comes to data costs. High data costs do not always equate to better service, either. A look at the [telecommunications industry reviews]( on Hellopeter frequently illustrates the frustration that consumers have with every single mobile service provider. Some of the possible reasons that data may be higher in South Africa could include the following: - Limited spectrum availability. Currently, South Africa has a limited range of frequencies, which can affect the speed of broadband data transmission. Smaller service providers find it impossible to enter this market. If more spectrum was allocated, and other data providers emerged, this may help to bring down data costs. - Pricey infrastructure. At the same time, infrastructure and running costs are often expensive. Cell towers can easily be installed in urban areas, but in rural areas there is not as much return on investment. If mobile data usage was higher in rural areas, it may lead to lower prices across the board. This, of course, is a typical chicken versus egg scenario. - Variable factors. Data costs are influenced by many factors, from country size to population density, technology, speed, geography, coverage, regulations, fees, spectrum availability and quality. Load shedding and crime may affect costs as much as the factors above. Luckily for consumers, there is hope on the horizon as leading authorities on the matter are reportedly running inquiries that may just help to ensure lower data costs in South Africa for all. Tell us what you think.. [Take our survey]( It only takes a minute [Facebook]( [LinkedIn]( Hellopeter and the author accept no responsibility for the incorrect interpretation or actions of any reader relating to the publication. All actions taken by any reader because of the publication are done on their own accord. [View in your browser]( | [Forward to a friend]( | [Unsubscribe](