This document provides insights into the mobile internet landscape in Africa based on available data and information. It discusses the growth of mobile subscribers and internet users globally and in Africa. Operators are increasing undersea cable infrastructure and inland networks to enable more Africans to access the mobile internet. Social media like Facebook has high popularity in Africa and is driving mobile data usage and traffic. Mobile advertising networks provide data on the types of devices and operating systems used for the mobile internet across different African countries. The distribution of affordable WAP-enabled devices will be important for increasing mobile internet access on the continent.

1. MOBILE INTERNET IN AFRICA Image: www.wallpaper4u.org INSIGHTS INTO THE MOBILE INTERNET IN AFRICA

3. This presentation’s intention is to provide a collective insight into the mobile internet landscape in Africa based on what information is available

4. The views, analysis and commentary in the presentation are purely the thoughts of the presentation contributors using the information at our disposal to draw conclusions and provide insights

5. All sources where available have been credited

6. Data provided that has no source, or the source of the is unknown will be noted. Above all please enjoy the presentation and the data, insights and analysis that have been provided. Should you have any questions, queries, comments, suggestions and criticism about the presentation please don’t hesitate to make contact. THANK YOU!

7. LETS START GLOBALLY BEFORE WE LOOK LOCALLY Image: wallpapers-zone.info COME UP NEXT…. GLOBAL MOBILE AND DEVICE STATISTICS

9. According to statistics, there are 5 active sim cards for every 6 humans on the planet….. That’s EPIC!

10. As the global population increases, so will the entire audience of mobile users will proportionately increase with the developing world seeing the biggest impact of this increase.

11. With increased undersea cables being laid on the East and West coast of Africa, and Mobile operators and back haul networks installing inland networks Africa is poised to experience a mobile internet boom

13. MOBILE SUBSCRIBERS and TABLET AND SMARTPHONE USERS vs. OTHER MARKETS Chart via: businessinsider.com

14. GLOBAL CONNECTED DEVICES SHIPMENTS Source: http://techcrunch.com/2011/02/10/meeker-mobile-slides/ Matt Murphy / Mary Meeker – Top Mobile Internet Trends Presentation – 02/10/2011

15. GLOBAL 3G STATISTICS Source: http://techcrunch.com/2011/02/10/meeker-mobile-slides/ Matt Murphy / Mary Meeker – Top Mobile Internet Trends Presentation – 02/10/2011 AFRICA’S CHALLENGE INCREASING HIGH SPEED WIRELESS INTERNET SERVICES ACROSS ALL MOBILE MARKETS

16. NOW LETS LOOK LOCALLY COME UP NEXT…. MOBILE INTERNET IN AFRICA

17. MOBILE WEB IN AFRICA According to ITU, “internet user penetration in Africa will reach 9.6% in 2010” In terms of mobile data traffic, one respected forecast estimates that: “Global mobile data traffic will increase 26-fold between 2010 and 2015. Mobile data traffic will grow at a compound annual growth rate (CAGR) of 92 percent from 2010 to 2015.” Within this total, the Middle East and Africa are expected to see the strongest growth of any regions, growing at a compound annual rate of 129%. “The emerging market regions (Central and Eastern Europe, Latin America, and Middle East and Africa) will have the highest growth and will represent an increasing share of total mobile data traffic, from 12 percent at the end of 2010 to 20 percent by 2015.” Source: Analsys Mason Fixed Broadband Worldwide Forecast 2009-2015;

18. INCREASING UNDERSEA CABLE INFRUSTRATURE “PROVIDING CONNECTIVITY FOR AFRICA” THE CHALLENGE ENSURING THE CAPACITY FROM THE UNDERSEA CABLES FINDS ITS WAY TO THE AVERAGE MOBILE INTERNET USER

19. AFRICA IS MASSIVETRUE STORY!!!!! THE TRUE SIZE OF AFRICA Image source: http://tinyurl.com/6cxa3yu

20. COME UP NEXT…. SOME INTERESTING STATISTICS ABOUT TELECOMS IN AFRICA

21. AFRICA AND MIDDLE EASTSUBSCRIBER FORECASTS FACT: MOBILE SUBSCRIBERS IN AFRICA HAVE MULTIPLE SIM CARDS AND ARE NOT SCARED TO USE THEM. Note: Figures refer to year-endSource: Informa Telecoms & Media

22. MOBILE VALUE ADDED SERVICES REVENUE IN AFRICA 2008 - 2014 FACT: MOBILE SUBSCRIBERS IN AFRICA ARE BECOMING MORE AWARE OF WHAT THEIR MOBILE DEVICES CAN DO! AS MORE VALUE ADDED SERVICES (SMS, MMS, WAP ETC) BECOME AVAILABLE, SUBSCRIBERS WILL ENGAGE & INCREASE . Source: Informa Telecoms and Media

23. THE GROWTH OF MOBILE DATA USAGE BY AFRICAN MOBILE YOUTH According the Mobile Youth 2010 Report South Africa has 27 Million mobile youth owners $1.3 Billion will be spent on data usage by 2012

24. COME UP NEXT…. ANALYSIS OF AVAILABLE MOBILE INTERNET DATA

25. THE IMPACT OF OPERA MINI BROWSER IN AFRICA THE STATE OF THE MOBILE WEB REPORTS APRIL 2011

27. 57.9 billion pages were served

30. Since March, page views have gone down 3.1%.

31. Since April 2010, page views have increased 120.2%.SOURCE: OPERA MINI STATE OF THE MOBILE WEB REPORT | WEBSITE: http://www.opera.com/smw/20/04/| DATE: APRIL 2011

32. OPERA MINI AFRICA SNAPSHOT MOBILE DATA USAGEACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA SOURCE: OPERA MINI STATE OF THE MOBILE WEB REPORT | WEBSITE: http://www.opera.com/smw/20/04/| DATE: APRIL 2011

33. OPERA MINI AFRICA SNAPSHOT TOP VIEWED SITES ACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA SOURCE: OPERA MINI STATE OF THE MOBILE WEB REPORT | WEBSITE: http://www.opera.com/smw/20/04/| DATE: APRIL 2011

34. OPERA MINI AFRICA SNAPSHOT TOP WAP HANDSETSACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA SOURCE: OPERA MINI STATE OF THE MOBILE WEB REPORT | WEBSITE: http://www.opera.com/smw/20/04/| DATE: APRIL 2011

35. OPERA MINI AFRICA SNAPSHOT KEY OBSERVATIONS THE MOST POPULAR HANDSETS ACCORDING TO OPERA MINI THE MOBILE WEB SITES THAT MOBILE OPERATORS SHOULD ALIGN WITH TO DRIVE MOBILE DATA USAGE SEARCH SOCIAL MEDIA NEWS AND UTILITY

36. THE IMPACT OF SOCIAL MEDIA ON MOBILE DATA TRAFFIC IN AFRICA Facebook page views in Opera Mini account for more than half of all page views in South Africa, Indonesia, Kenya, Bangladesh, Turkey, Mexico, and the Philippines. Opera Mini “State of the Mobile Web Report – April 2011

37. Page Views

39. People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users.

40. There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobileSOURCE: FACEBOOK | WEBSITE: http://www.facebook.com/press/info.php?statistics

42. 93% POPULARITY IN AFRICA SOURCE: STATSCOUNTER GLOBAL STATS | WEBSITE: http://gs.statcounter.com/#social_media-af-monthly-201005-201105-bar| DATE: MAY 2011

43. Facebook Intern Paul Butler was interested in the locations of friendships, so he decided to create a visualization of Facebook connections around the globe. KEY OBSERVATIONS FOR AFRICA: TRAFFIC CENTERED AROUND MAJOR CITIES MAJOR TRAFFIC COUNTRIES INCLUDED SOUTH AFRICA KENYA, NIGERIA, GHANA AND EGYPT NEXT STEP: INCREASE TRAFFIC TO ZAMBIA, ZIMBABWE, ANGOLA, GABON, SENEGAL Source: Facebook | Website: http://tinyurl.com/facebookdatamap

45. Members of the communities contribute and engage

46. The communities are themed (Music, Sports etc)

47. In platform mobile advertising Engine

49. To drive mobile data revenues, it is advised that mobile operators align their data strategies with popular social networks and platforms

50. As social network memberships increase, mobile data revenues will increase proportionately

51. With social media mobile operators, brands, media owners etc have the ability to actually engage in conversation with their consumers. The mobile web provides that stepping stone to leverage this growing trend.

53. THE IMPACT OF MOBILE ADVERTISING NETWORKS IN AFRICA

54. THE KEY MOBILE ADVERTISING NETWORKS IN AFRICA InMobi is one of the largest mobile advertising networks in the world and is the largest among advertising network companies that are not affiliated with any platform. Headquartered in Bangalore, India, it has offices in North America, United Kingdom, Singapore, South Africa, Kenya, and Japan. AdMob is one of the world's largest mobile advertising networks, offering solutions for discovery, branding and monetization on the mobile web. Mobile devices are a critical media platform and Admob are building the tools to let every business on earth leverage mobile. Admob is owned by Google BuzzCity is a global advertising network. Since inception in 1999, BuzzCity has evolved and grown significantly to one of the largest mobile advertising networks in the world with traffic being generated all over the world

55. AFRICA SUMMARY (APRIL 2011) SOURCE: INMOBI RESEARCH | WEBSITE: http://tinyurl.com/inmobi-april2011| DATE: APRIL 2011

56. NETWORK SA, KE & NG – MAR ‘11 SOURCE: INMOBI RESEARCH | WEBSITE: http://www.inmobi.com/research/| DATE: MARCH 2011

57. CASE STUDY USING INMOBI

59. - 8% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011

60. 7% GROWTH IN SMARTPHONE IMPRESSIONS

62. 36% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011

63. 26% GROWTH IN SMARTPHONE IMPRESSIONS

65. 16% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011

66. 21% GROWTH IN SMARTPHONE IMPRESSIONS

67. ANDROID OS SHOWS THE FASTEST GROWTH IN THE REGION (Huawei / Google phone U8150 sub $100 device)

68. MOBILE WEB – MARCH 2010 1 BILLION Ad Requests in Africa Data provided by 2009 AdMob, Inc. Confidential & Proprietary

69. AFRICA HANDSETS – MARCH 2010 Africa South Africa South Africa

70. AFRICA GROWTH – DECEMBER 2010

71. MOBILE AD NETWORK – Q1 2011 SOURCE: BUZZCITY / VOMO | WEBSITE: http://tinyurl.com/buzzcity-Q12011 | DATE: Q1 2011

72. MOBILE AD NETWORK – Q4 2010 SOURCE: BUZZCITY | WEBSITE: http://www.buzzcity.com/l/BuzzCity-Mobile-Ad-Index-Q4-2010.pdf| DATE: Q4 2010

74. Portal collectively with over 55 million impressions per month, and 4.1 million unique users per month.SOURCE: VODACOM | WEBSITE: http://vodacommobilemedia.com/wp-content/uploads/2011/04/VMM_RateCard_MobileInternet1.pdf

76. Across Africa and all advertising networks, the most popular device lists are dominated by feature phone NOKIA DEVICES

77. Another indicator provided by mobile advertising networks in a size of the WAP market, with increased subscribers comes increased advertising inventory.

78. An interesting observation is declining growth in South Africa with an over saturation of the market. High growth rates are now being seen in the other markets in Africa like Nigeria and Kenya with more available handsets coming into the markets

79. The growth of the Android OS in Kenya on InMobi is proof that smartphones if priced correctly will become more prevalent across Africa

82. The two primary barriers to entry for any mobile subscriber who wanted to access the mobile web will be (1) Cost of handset, and (2) WAP capable device.

83. Mobile partners who partner up with price competitive, high quality mobile handset manufacturers will be able to break those barriers and offer their subscribers devices that allow them to connect to the mobile internet.

85. HOW BIG IS THE IPHONE AUDIENCE IN SA? SOUTH AFRICA’S MOBILE MARKET = 52 MILLION NOW, SOCCER CITY HOLDS 95,000 PEOPLE + = 190,000 Estimate from industry experts TOTAL IPHONE UNIVERSE IN SOUTH AFRICA ACROSS VODACOM AND MTN

86. HOW BIG IS THEBLACKBERRYAUDIENCE IN SA? SOUTH AFRICA’S MOBILE MARKET = 52 MILLION NOW, SOCCER CITY HOLDS 95,000 PEOPLE = 1,5 MIL Estimate from industry experts TOTAL BLACKBERRY UNIVERSE IN SOUTH AFRICA

87. HOW BIG IS THE FEATURE DEVICE AUDIENCE IN SA? SOUTH AFRICA’S MOBILE MARKET = 52 MILLION NOW, SOCCER CITY HOLDS 95,000 PEOPLE = 15 MIL Estimate from industry experts TOTAL ACTIVE WAP ENABLED FEATURE PHONE UNIVERSE IN SOUTH AFRICA

88. IN THE NUMBERS GAME WHICH WAP HANDSETS WILL WIN IN AFRICA? ✔ ✗ ?

89. THE FUTURE COST OF HANDSETS HELLO…

90. “HEY JON, WAKE UP! DON’T FORGET ABOUT ME!” COME UP NEXT…. THE $100 SMARTPHONE IN AFRICA

91. HUAWEI IDEOS – ANDROID SMARTPHONE FOR AFRICA HUAWEI SMARTPHONE ANDROID 2.2 (FROYO) OS FULL TOUCH SCREEN 200,000 HANDSETS SHIPPED 2,000 ACTIVATIONS PER DAY “ANDROID OS IS THE FASTING GROWING OS PLATFORM ON THE INMOBI MOBILE ADVERTISING NETWORK IN KENYA (MARCH 2011)” SUBSIDIZED COST: KS 8,499 or $95.00

92. HUAWEI IDEOS – ANDROID SMARTPHONE FOR AFRICA

93. TIGO GHANA – FACEBOOK PHONE BY MI-FONE PHONE FEATURES INCLUDE: Camera Qwerty keypad Email access Fm radio Memory Card slot Java Big 2inch screen 64 Midi Ringtone / MP3 PACKAGE INCLUDE: 2Ghc airtime and 1GB of data for 30 days. RETAIL PRIZE: Ghc49.99 (± US$ 32)

94. By 2013, mobile phones will overtake PC’s as the most common web access device worldwide (Source: Merrill Lynch)

95. For further information and insights into Mobile Internet in Africa, feel free to make contact: JONATHAN HOEHLER EMAIL: Jonathan@starfishmobile.com TWITTER: @JonHoehler SKYPE: jonhoehler MOBILE: +27 (0) 83 712 2534 BLOG: jonhoehler.posterous.com ANDREW McHENRY EMAIL: andrewmchenry65@gmail.com TWITTER: @andrewmchenry SKYPE: andrewmchenry1 MOBILE: +27 (0) 78 613 7090

96. PRESENTATION COLLABORATORS Jonathan Hoehler With almost 8 years of experience in the mobile telecoms space in Africa with Starfish Mobile International Inc, Jonathan has been exposed to many the possibilities that are present in mobile telecoms in Africa. Having started at Starfish Mobile in early 2004, Jonathan has moved from the mobile content department through to the position of Head of Operations in 2006. In 2008, Jonathan was appointed to the position of Chief Technical officer of Starfish Mobile International. Now in 2011 with the added role of business development at Starfish Mobile, Jonathan is exploring new business and revenue generating opportunities across the African Continent. With in-country experience in Nigeria, Ghana, Uganda, Tanzania, and Congo DRC to name but a few, Jonathan and the Starfish Mobile team are uniquely positioned to execute the opportunities in the continent that range from traditional SMS Mobile Marketing and Content Services through to mobile portals, applications, ecosystems, and advertising. Andrew McHENRY Former Head of Mobile and Content for GARMAP, with the overall responsibility of running the Garmap Mobile and Content departments. Having started in March 2008 we have grown our Garmap for Mobile Navigation install base from only a few thousand to 100K+ in South Africa only. Prior to joining Garmap I was employed for five years working at Leaf International Communication, having spent two years heading up Leaf’s African expansion, selling to mobile operators and partners in sub-Saharan African. Before I took on the African expansion role I was Leaf’s executive account manager on the MTN account looking after the http://www.mtnloaded.co.za portal, at time it was the largest mobile portal in Africa with over one million subscribers. With twenty years experience in the information technology industry, spanning software, hardware and custom application development. Having held positions of sales and marketing manager for Packard Bell NEC South Africa, and spearheaded the launching of NEC Direct. Before joining NEC I was a founding member of Aqua Online with the position marketing manager. With overall experience within the ITC industry including international expertise, having spent nine years in North America and two years in Europe holding various management positions in channel sales, corporate sales, telesales and product management.