Insights into the Mobile Internet in Africa

MOBILE INTERNET IN AFRICA
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INSIGHTS INTO THE MOBILE INTERNET IN AFRICA

PRESENTATION DISCLAIMER
This presentation is a collection of mobile and internet data that I have been exposed to over the past few years
This presentation’s intention is to provide a collective insight into the mobile internet landscape in Africa based on what information is available
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
All sources where available have been credited
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!

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

THOUGHTS
No other technology has had such an impact on humanity like the mobile telephony.
According to statistics, there are 5 active sim cards for every 6 humans on the planet….. That’s EPIC!
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.
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
Key is understanding Africa and its consumers…

HOW BIG IS THE MOBILE AUDIENCE?
Image: peopleareamazing.net/

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

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

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

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

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;

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

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

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

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

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

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

COME UP NEXT…. ANALYSIS OF AVAILABLE MOBILE INTERNET DATA

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

AN OVERVIEW
Opera Mini is a web browser designed primarily for mobile phones, smart phones and personal digital assistants. Until version 4 it used the Java ME platform, requiring the mobile device to be able to run Java ME applications, however from version 5 it is also available as a native Windows Mobile, Symbian OS, Android and iOS application
STATE OF THE OPERA MINI BROWSER – APRIL 2011
107.1 million people used Opera Mini globally in April 2011
57.9 billion pages were served
8.8 petabytes of operator data were compressed for Opera Mini users.
Number of users
April ’11, Opera Mini had over 107.1 million users, a 4.6% increase from March 2011.
Since April 2010, the number of unique users has increased 81.8%.
Pages transcoded
Opera Mini users viewed over 57.9 billion pages in April 2011.
Since March, page views have gone down 3.1%.
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

OPERA MINI AFRICA SNAPSHOT
MOBILE DATA USAGEACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA

TOP VIEWED SITES ACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA

TOP WAP HANDSETSACROSS: NIGERIA, EGYPT, SOUTH AFRICA AND KENYA

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

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

Page Views

FACEBOOK GLOBALMOBILE STATISTICS
There are more than 250 million active users currently accessing Facebook through their mobile devices.
People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users.
There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile
SOURCE: FACEBOOK | WEBSITE: http://www.facebook.com/press/info.php?statistics

WEB EXAMPLE
Example: M-CEL in Mozambique using Facebook

AFRICA INFOGRAPHS

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

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

BRANDED MOBILE WEB SOCIAL NETWORKS
Motribe is a platform enabling users, brands, agencies and publishers across the world to build and manage their own mobile social communities. Motribe HQ is situated in Cape Town, South Africa and was started by the co-founders in August, 2010.
OVER 1,4 MILLIONS USERS
KEY FACTORS ARE LEADING TO MOTRIBES SUCCESS:
Social communities are accessed via the Mobile Internet from almost any WAP enabled handset
Members of the communities contribute and engage
The communities are themed (Music, Sports etc)
In platform mobile advertising Engine
Real time reporting and metrics for instant measurability

CONCLUSIONS
Social media portals are the most popular sites on the mobile web in Africa according to Opera Mini
To drive mobile data revenues, it is advised that mobile operators align their data strategies with popular social networks and platforms
As social network memberships increase, mobile data revenues will increase proportionately
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.
In Africa, Mobile web is going to be that gateway between corporate and consumers with social media providing the medium to build this relationship

65% of Google’s searches in SA take place over the weekend via the mobile web.

THE IMPACT OF MOBILE ADVERTISING NETWORKS IN AFRICA

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

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

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

CASE STUDY USING INMOBI

NETWORK - OBSERVATIONS
SOUTH AFRICA
SMARTPHONES EQUAL 24% OF ALL IMPRESSIONS (MARCH 2011)
- 8% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011
7% GROWTH IN SMARTPHONE IMPRESSIONS
RIM OS SHOWS THE FASTEST GROWTH IN THE REGION
NIGERIA
SMARTPHONES EQUAL 9% OF ALL IMPRESSIONS (MARCH 2011)
36% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011
SYMBIAN OS SHOWS THE FASTEST GROWTH IN THE REGION
KENYA
SMARTPHONES EQUAL 6.7% OF ALL IMPRESSIONS (MARCH 2011)
16% GROWTH IN MOBILE IMPRESSIONS OVER DEC 2010 TO MAR 2011
ANDROID OS SHOWS THE FASTEST GROWTH IN THE REGION
(Huawei / Google phone U8150 sub $100 device)

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

AFRICA HANDSETS – MARCH 2010
Africa
South Africa
South Africa

AFRICA GROWTH – DECEMBER 2010

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

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

OTHER MOBILE ADVERTISING CHANNELS
Through Vodacom Mobile Media as an advertiser you have access to top-ranked social media such as The Grid and the Vlive!
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

CONCLUSIONS
Mobile advertising networks provide the best indicators on what type of mobile devices are being utilized in a particular territory and in particular which ones are using the mobile internet
Across Africa and all advertising networks, the most popular device lists are dominated by feature phone NOKIA DEVICES
Another indicator provided by mobile advertising networks in a size of the WAP market, with increased subscribers comes increased advertising inventory.
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
The growth of the Android OS in Kenya on InMobi is proof that smartphones if priced correctly will become more prevalent across Africa
If utilized correctly, a mobile operator can create additional revenue streams by using mobile advertising. Vodacom SA with Vodacom Mobile Media is the best example of telco in Africa leveraging the opportunity to create revenue.

THE IMPACT OF WAP ENABLEDMOBILE DEVICES IN AFRICA

THOUGHTS
One of the most important facets of the growth of mobile internet in Africa will be the distribution of WAP enabled handsets ranging from basic feature phones through to smart phones.
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.
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.
Key players in the low cost handset manufacturers include:

BLACKBERRY vs IPHONE vs ANDROID
ON THE VODACOM SA NETWORK
Source: Mybroadband | Website: http://tinyurl.com/vodacomsa-mybroadband | Date: April 2011

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

HOW BIG IS THEBLACKBERRYAUDIENCE IN SA?
= 1,5 MIL
TOTAL BLACKBERRY UNIVERSE IN SOUTH AFRICA

HOW BIG IS THE FEATURE DEVICE AUDIENCE IN SA?
= 15 MIL
TOTAL ACTIVE WAP ENABLED FEATURE PHONE UNIVERSE IN SOUTH AFRICA

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

THE FUTURE COST OF HANDSETS
HELLO…

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

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

HUAWEI IDEOS – ANDROID SMARTPHONE FOR AFRICA

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)

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

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

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.

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Insights into the Mobile Internet in Africa

by Jon Hoehler on Jul 21, 2011

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Insights into the Mobile Internet in Africa — Presentation Transcript