Africa Telecoms Outlook 2014: Maximizing digital service opportunities.
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Transcript of Africa Telecoms Outlook 2014: Maximizing digital service opportunities.
This document is offered compliments of BSP Media Group. www.bspmediagroup.com
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Africa Telecoms Outlook 2014:
Maximizing digital service opportunities
Nick Jotischky
Principal Analyst
November 12, 2013
The view from the industry: reasons to be cheerful – consumer appetite is driving growth of smartphone market and digital opportunities
A view of the industry: % of respondents who strongly agree with these statements
Source: Informa Telecoms & Media Africa Industry Survey, 2013 N: 347 respondents
www.informatandm.com
© Informa UK Limited 2013. All rights reserved
32%
25%
42%
19%
37%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
The Africantelecomsmarket ismaturing
I expect thereto be
consolidationamong Africanoperators over
the comingyears
I feel confidentabout the
prospects forthe Africantelecoms
industry overthe next few
years
The provision oftelecoms
services to ruralor remotemarkets inAfrica has
improved overthe past few
years
The provision oftelecoms
services to ruralmarkets in
Africa remainsinadequate
Rapid rises in international connectivity and mobile broadband drive data growth in Africa
12/11/2013 www.informatm.com
©Confidential
3
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2012 2013 2014 2015 2016 2017 2018
Voice
Data
105.16
173.96
277.93
424.66
610.93
805.85
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
2013 2014 2015 2016 2017 2018
Africa, mobile service revenue forecasts, 2012-2018 Africa, mobile broadband subscription forecasts, 2013-2018
Source: Informa Telecoms & Media
Low-cost smartphones have become a key enabler of mobile data access in Africa
12/11/2013 www.informatm.com
©Confidential
4
Africa, smartphone connection forecasts, 2012-2018
Source: Informa Telecoms & Media
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
2012 2013 2014 2015 2016 2017 2018
Smartphoneconnections
Mobile connections
0%
50%
100%
150%
200%
250%
US$100
US$150
US$250
Proportion of device costs to monthly income, selected markets
Source: Affordable Handsets Report, Informa Telecoms & Media
Increased data take-up powers demand for digital services in Africa
12/11/2013 www.informatm.com
©Confidential
5
Media Events per week
Mobile phone Tablet
Video streaming Hours 0.75 2.5
Video downloads Downloads 3 3
Music streaming Hours 0.75 2
Music downloads Downloads 3 4
App downloads Downloads 3 2.5
Games online Hours 1.5 2.5
Games downloads Downloads 2 2.5
Location-based services Hours 0.75 2.5
Browsing Hours 2.5 2.5
VoIP Hours 1.5 2.5
E-commerce Transactions 3 3
Instant messaging Messages 30 75
Social networking Hours 2.5 2.5
Email Messages 25 75
E-publications Downloads 2 2
Nigeria, mobile service usage, consumer survey 2013
Note: Figures are for median average, based on a survey of 619 smartphone users in Nigeria.
Media Events per week
Mobile phone Tablet
Video streaming Hours 0.75 1.5
Video downloads Downloads 2 3
Music streaming Hours 0.75 0.75
Music downloads Downloads 3 2
App downloads Downloads 2 2
Games online Hours 1.5 2.5
Games downloads Downloads 2 2
Location-based services Hours 0.25 0.25
Browsing Hours 1.5 2.5
VoIP Hours 0.75 1.5
E-commerce Transactions 3 3
Instant messaging Messages 150 30
Social networking Hours 2.5 1.5
Email Messages 25 75
E-publications Downloads 1 2
South Africa, mobile service usage, consumer survey 2013
Note: Figures are for median average, based on a survey of 511 smartphone users in South Africa.
The consumer wants greater access to data services - but is the telecoms industry doing all it can to satisfy this demand?
12/11/2013 www.informatm.com
©Confidential
6
44% 47%
11%
19%
36%
42%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Datadevicesare too
expensive
The retailprices of
dataservicesare too
high
There is alack of
demandfrom
consumersfor dataservices
Operatorsare not
providingthe righttypes of
dataservices
Backhaulcapacity oravailability
isinsufficient
or tooexpensive
Theprovision
of servicesto rural or
remoteareas is
inadequate
Regulatoryaction orinaction
The most important barriers to the access to and take-up of data services in Africa
39.1%
27.7%
16.2%
9.2%
7.8% Significantlyincrease
Slightly increase
Remain the same
Slightly decrease
Significantlydecrease
Mobile phone planned expenditure over next 12 months, Nigeria
Note: Figures are based on a survey of 619 smartphone users in Nigeria
Source: Informa Africa Industry Survey, 2013
Consumers have insatiable appetite for data services and high expectations for the quality of the service • How does technology need to evolve to meet these expectations?
• Is the industry able to satisfy consumer demand and are operators set up to be service-centric rather than network-
centric?
• Do operators truly understand the behavior patterns of their customers?