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Recommendation for mobile companies to win in mea region
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Recommendation for mobile companies to win in mea region

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This is Based on my research . Hope it Helps in understanding the potential of the MEA region to telecom entities and in this fast paced world , where the next growth going to come from >

This is Based on my research . Hope it Helps in understanding the potential of the MEA region to telecom entities and in this fast paced world , where the next growth going to come from >

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Recommendation for mobile companies to win in mea region Recommendation for mobile companies to win in mea region Presentation Transcript

  • Recommendations for MEA RegionMobile Companies to Win in this FastChanging Times By Syed Sarfaraz Ahmed
  • AGENDA Trends Our Recommendations Recommendation 1 Recommendation 2 Other Thoughts Conclusion
  • TrendsDemand for Enhanced Mobile service to Increase as MEARegion people to be more connectedSouthern and Northern Africa to present Opportunity forservices which offer enhanced utility with Mobile Usage
  • MEA Region people to be more connected and demand for EnhancedMobile service to Increase Due to high Mobile Penetration and Increase inuse of Smartphones Almost Everyone has a Mobile in Middle East and 3 in 5 Africans has Mobile Phones. 8 out of 10 phones in MEA are feature phones. However, GCC Countries have a higher Smartphone penetration than Africa MENA will have the strongest mobile data traffic growth of any region at 104 percent CAGR MENA region will experience the highest CAGR of 90 percent from 2011 to 2016 with 23 petabytes per month of M2M traffic in 2016. Smartphone Sales More than 100 Billion US$ worth Smartphones to be sold in MEA region by 2015. or more than 500million smart phones. By 2016, Mobile Video will constitute 70 % ofSource :www.techcrunch.com, http://www.4-traders.com/INFORMA-PLC-4001140/news/Informa-PLC-Users-still-getting-the-message-with-texts-14354076/, http://dstevenwhite.com/page/2/http://www.iqmetrix.com/article/2012/05/daily-dose-iq-global-smartphone-adoption-2012, Africa Mobile Fact Book mobile Data Traffic2012-L8
  • Opportunity to Promote higher utility for Mobiles in Southern andNorthern Africa due to High Internet usage, Mobile Penetration andGDPC
  • Mobile users can be divided into 3 major Types for MEA Region andMost Current Smartphones do not cater to the African needs. User Types Current African Requirements • Torch light: mobiles are used as an alternative when there is no electricity. • Longer battery life. • SMS: now, text is more frequent than phone call given the cost. • Entertainment: multimedia capabilities. • Radio. • Fast Internet access. • Storage for multimedia. • Sharing facilities: Bluetooth or other form not requiring Internet. • Dual SIM cards. • Warranty: minimum manufacturer warranty for repair.Source : Mobile-and-Africa-whitepaper_FoolproofDec11
  • African Culture is Highly Risk Averse , Male Dominated , Collectivistic and Short Term Oriented Hofstede’s Cultural Dimensions For Africa  High Uncertainty Avoidance Index: “I don’t know how to, so I don’t touch” e.g. I need someone to explain how to use mobile features.  High Masculinity Index: Men make decisions and set trends, e.g. men know which mobile phone is the best.  High Collectivism Index: “What the group says I do. I’m no different.”  Short-term orientation: The need for quick ROI. No long term planning.Source : Mobile-and-Africa-whitepaper_FoolproofDec11
  • AGENDA Introduction Trends Our Recommendations Recommendation 1 Recommendation 2 Other Thoughts Conclusion
  • Our Recommendation Recommendation 1 : Tapping into the $5billion M commerce (2015) Market by developing competitiveness in M-Banking through Partnerships Recommendation 2 : Generating Sustainable Revenue by Increasing Advertising eyeballs through Ad-Sponsored Phones
  • AGENDA Introduction Trends Our Recommendations Recommendation 1 Recommendation 2 Team Thoughts Conclusion
  • Recommendation 1 :Tapping into the $5billion M commerce (2015) Market bydeveloping competitiveness in M-Banking through Partnerships According To a M- Commerce Report by InMobi In Just 3 Months during 2011 , “Africa grew by 21% to reach 4.2 billion monthly impressions. This growth was largely driven by the continued growing trend towards smartphone adoption in these markets.”
  • MEA Region offers potential in M-Commerce due to projected high M-Commerce growth, High Mobile penetration ,Price sensitivity and positive adoption of Mobile Money. By 2016, MEA Region’s M-Commerce Expected to have higher growth @43.2% than SMS growth @12.1% Study by Informa, the value of m-commerce in the Middle East and Africa projected reach $4.9 billion (Dh17.99 billion) by 2015. At least 2 out of 10 Africans has used Mobile Money . Africans are leaders in M-Commerce . Telecom operators will retain customers if they can make phones as safe and reliable a payment mechanism as cash or credit cards.Source : http://gulfnews.com/business/retail/digital-awakening-spurs-m-commerce-1.1022923,http://www.bizreport.com/2011/06/mobile-commerce-in-africa-showing-signs-of-record-growth.html#
  • M-Banking Provides a Win Win Win proposition forOperator, Customer, Bank and Shopkeeper Payments are Reduced cost of Source of credited are Additional Revenue Banking to Low faster to the Shopkeeper for Operators. Income customers Provides More Utility and Comfort for the Mobile user. Saves TimeSourcewww.blog.dwoalla.com,https://www.mckinseyquarterly.com/Financial_Services/Banking/A_new_idea_in_banking_for_the_poor_2703,http://technology.cgap.org/2011/04/28/mobile-money-profitability-long-term-view-existing-voice-base-driving-electronic-transactions/
  • Generating Revenue by tapping into the high Growth M -Commerce Field By partnering with Providers who can ensure the Seven Success Factors.Seven Success factors for mobile money to work Potential Partners YOU SQUARE
  • AGENDA Introduction Trends Our Recommendations Recommendation 1 Recommendation 2 Other Thoughts Conclusion
  • Recommendation 2: Generating Sustainable Revenue by Increasing Advertising eyeballs through Ad-Sponsored Phones Advertiser You Mobile user
  • Success in the m-Advertising field is primarily dependent on access to maximum No. of Mobile Screen’s Mobile Screens Are like Real Estate .Having access to more screens guarantees more revenues. Maximum access to screen space generates higher advertising revenue Similar to reasons why advertisers prefer paying more to advertise on high TRP channels , Google and Sports Estate Zambia (47.09%), Sudan (44.95%), Nigeria (40.65%), Zimbabwe (37.95%), Ethiopia (31.79%) and Kenya(29.2%) are among the global top players in the countries with the highest share of mobile traffic.Sources :- http://www.ventures-africa.com/2012/05/mobile-internet-penetration-in-africa-increase-by-155-59-percent-in-two-years/,mobile trends for the next 10 -Rudy waele , m-trends.org, http://smallbusiness.chron.com/advertising-spot-10675.htmlhttp://prakashkumar.org/advertising-promotions-and-trp-%E2%80%93-in-the-new-world/
  • Success in m-Advertising can be obtained through empoweringAfrica by offering Free Feature Phone/Smartphone and Advertisingat least 1-3 Ads per day per phone Per Day Ads Per Day Ads Per No. Of Ads Ads Per Ads Per Per Mobile(25%Price of Ad per Breakeven for 25% Mobile(Breake Mobile(25% Mobile(Breake Profit)(500damobile(USD) No. Of Mobiles COGS No. of Ads Profit ven) Profit) ven)(500days) ys) 37$PHON Feature Phone E 0.08 100000 3700000 46250000 57812500 462.5 578.125 0.925 1.15625 0.1 100000 3700000 37000000 46250000 370 462.5 0.74 0.925 0.2 100000 3700000 18500000 23125000 185 231.25 0.37 0.4625 SmartPhone 85$phone 0.08 100000 8500000 106250000 132812500 1062.5 1328.125 2.125 2.65625 0.1 100000 8500000 85000000 106250000 850 1062.5 1.7 2.125 0.2 100000 8500000 42500000 53125000 425 531.25 0.85 1.0625 More than 33% profit possible by offering just 4 ads per day per phone Source : Interview , calculations
  • Benefits the Stakeholders involved Mobile Company Mobile user More Phone Users= •Added Revenue for Acision. •Gets a free phone more calls + sms+ •Information •More Connected network use gathering and Data to the world Mining •Gets access to •Access to guaranteed benefits of having Ad spots mobile •No privacy issues Mobile Advertisers •Generate Awareness •Promotions •Govt. programs •Can Sell low cost Government , high turnover Items •People are Empowered •Easy information access to people •More Taxes
  • Apart from Soli , Acision could consider partnering withAdvertising Agencies in the MEA region and low costmobile phone manufacturers Mobile Company
  • AGENDA Introduction Trends Our Recommendations Recommendation 1 Recommendation 2 Other Thoughts Conclusion
  • Other Thoughts
  • Access to greater Forming Partnerships withfunding by Going Big innovation hardware names like Siemens orPublic Ericsson for mutual benefit
  • AGENDA Introduction Trends Our Recommendations Recommendation 1 Recommendation 2 Team Thoughts Conclusion
  • Conclusion : Recommendation 1 : Tapping into the $5billion M commerce (2015) MEA Market by developing competitiveness in M-Banking through Partnerships Recommendation 2 : Generating Sustainable Revenue by Increasing Advertising eyeballs through Ad-Sponsored Phones For further Informations/Queries/Help : Contact : Syed Sarfaraz a.k.a “Fresh” ,Junior Consultant . sarfarazfresh@gmail.com I would be happy to help
  • THANK YOU