South African telecommunications companies are posting positive financial results, driven by increasing data consumption and network expansion. Yet, a stark contradiction exists in that their mobile apps, the primary digital touch-points for self-service, are consistently panned by users, mired in low ratings, functional failures, and poor user experience. This dissonance highlights a critical strategic misstep that prioritise network infrastructure and data sales while neglecting the digital channels that facilitate the customer relationship, and possibly future revenues.
The result is a fragmented user journey and a significant gap between brand promise and digital reality. This is a classic example of failing to provide a “liquid customer experience,” where digital interactions should be as seamless and fluid as the connectivity they provide.
The Low Contribution of Mobile Apps to Revenue
Despite the clear benefits of digital transformation, South African telcos’ mobile apps are currently underperforming assets, not significant revenue drivers. Telcos are making money in spite of their digital channels, not because of them.
1. Necessity over Experience: The core of revenue growth stems from the fundamental necessity of mobile data for connectivity, remote work, and e-commerce. Customers purchase data and connectivity plans out of necessity, not because of a delightful app experience. As Telkom’s recent results show, mobile revenue grows alongside mobile data subscriptions, even as average revenue per user (ARPU) per subscriber declines.
2. The Big Picture: A major portion of revenue comes from mobile services, with mobile voice and data being the largest contributors. While telcos can generate revenue from over-the-top (OTT) social media platforms like WhatsApp and TikTok used over their networks, the apps themselves generate minimal revenue for the telco, mainly through direct bundle purchases. Today, the value for the telcos is in providing the “pipes,” not in the digital platform where the transactions occur.
3. Wasted Investment: The low ratings and frequent functionality complaints suggest that the investment in these digital channels has not yielded a proportional return in customer satisfaction or significant revenue streams. As research shows, poor digital experiences drive customer frustration and cancellation intent. The apps, in their current state, are likely a net cost rather than a value-add, as they necessitate extensive call centre support to fix the issues they create. And call centres don’t come cheap, and their respective high attrition of staff creates an opportunity for an even more underwhelming experience.
Comparative Perspective: Why Telkom Stands Apart in Failure
While all telcos struggle with their digital offerings, Telkom’s problems are uniquely severe because their digital presence acts as a direct extension of a fundamentally unreliable core service.
Telkom: The worst digital experience is a function of the worst foundational service. Telkom consistently records the lowest network quality scores and average download speeds among the major networks. When the core product (connectivity) is poor, the app used to manage it becomes a repository of frustration. This compounds the negative sentiment already prevalent due to low customer satisfaction ratings (68%) and negative media sentiment.
MTN & Vodacom: These giants lead in network quality and 5G performance, creating a better foundational experience. Their apps, while plagued by functional issues, benefit from a “halo effect” where overall network dominance slightly buffers app criticism. They are not better at creating apps, they are simply better at delivering the underlying service that the apps manage.
Cell C: Cell C has shown the most improvement in net sentiment, but its apps still have bugs and slow support times. Their digital experience, while improving, still reflects the broader industry’s struggles.
Snapshot of Poor App Store Reviews (General Sentiment):
“Keeps force closing, can’t even check my balance. Absolute garbage app for a ‘leading’ network.” “Payment failed but money gone from my account. Support chat is useless, just bots and no real help. Frustrating!” “Login issues every single time. Why is it so complicated just to buy a data bundle?” “The app is slow, clunky, and the UI makes no sense. Needs a total redesign.”
A Strategic Imperative: Making Digital Channels Work
The current approach is a waste of money and a missed opportunity. To provide a true liquid customer experience and turn digital channels into assets, South African CSPs must make a radical shift in their strategy.
1. Strategic Focus: From “App as an Afterthought” to “Digital-First”
Invest in Functionality, not just Features: Prioritize reliable performance over a long list of half-baked features. The apps must seamlessly handle core tasks like bundle purchases, balance checks, and support inquiries.
Zero-Touch Experience: Reduce the need for customers to contact support. Implement robust self-service options that actually work, leveraging analytics to identify and fix points of friction in the user journey.
Integrate AI and Data Analytics: Use AI for predictive analytics, automation, and personalization. Offer tailored deals based on usage data and provide smart support through chatbots that seamlessly escalate to human agents when needed.
2. Seamless Omnichannel Support
Channel-Agnostic Service: Ensure a user starting a chat in the app can continue the conversation with a human agent via a different channel without repeating their issue. Emulate highly-rated digital banking experiences, which have successfully integrated AI and human agents.
Proactive Communication: Utilize the app to build trust. Clear, real-time alerts about network outages, personalized usage updates, and honest billing information can significantly reduce negative sentiment and call center traffic.
3. UX/UI and Innovation
Data-Driven User-Centric Design: Ditch the cluttered interfaces. Use analytics and user feedback from app store reviews to dictate the product roadmap, ensuring the UI is intuitive for the average user.
Ecosystem Partnerships: Look beyond just selling data. Following the example of international telcos, explore partnerships to offer integrated digital wallets, content subscriptions, and other value-added services that create a “sticky” ecosystem and unlock new revenue streams.
South African telcos are capitalizing on an inelastic demand for data, but this is a temporary and fragile strategy. By shifting focus from mere data volume to a superior, reliable, and user-centric digital experience, they can turn their apps from a liability into a genuine competitive advantage. The time for a superficial digital strategy is over; the future demands a commitment to truly functional, customer-centric digital channels that justify their investment and drive sustainable growth.
By Sfiso Tshabalala – Ethical Leader | Maverick | Investor | Techpreneur | Author
