This document is offered compliments of
BSP Media Group. www.bspmediagroup.com
All rights reserved.
Africa Telecoms Outlook 2014:
Maximizing digital service opportunities

November 12, 2013

Nick Jotischky
Principal Analys...
The view from the industry: reasons to be cheerful – consumer appetite is
driving growth of smartphone market and digital ...
Rapid rises in international connectivity and mobile broadband drive data
growth in Africa
Africa, mobile service revenue ...
Low-cost smartphones have become a key enabler of mobile data access in Africa
Africa, smartphone connection forecasts, 20...
Increased data take-up powers demand for digital services in Africa
Nigeria, mobile service usage, consumer survey 2013

M...
The consumer wants greater access to data services - but is the telecoms industry
doing all it can to satisfy this demand?...
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Africa Telecoms Outlook 2014: Maximizing digital service opportunities.

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Africa Telecoms Outlook 2014: Maximizing digital service opportunities.

  1. 1. This document is offered compliments of BSP Media Group. www.bspmediagroup.com All rights reserved.
  2. 2. Africa Telecoms Outlook 2014: Maximizing digital service opportunities November 12, 2013 Nick Jotischky Principal Analyst
  3. 3. 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 45% 42% 40% 35% 37% 32% 30% 25% 25% 19% 20% 15% 10% 5% 0% The African telecoms market is maturing I expect there I feel confident The provision of The provision of to be about the telecoms telecoms consolidation prospects for services to rural services to rural among African the African or remote markets in operators over telecoms markets in Africa remains the coming industry over Africa has inadequate years the next few improved over years the past few years Source: Informa Telecoms & Media Africa Industry Survey, 2013 N: 347 respondents www.informatandm.com © Informa UK Limited 2013. All rights reserved
  4. 4. Rapid rises in international connectivity and mobile broadband drive data growth in Africa Africa, mobile service revenue forecasts, 2012-2018 Africa, mobile broadband subscription forecasts, 2013-2018 70,000 900.00 805.85 60,000 800.00 50,000 700.00 610.93 600.00 40,000 Voice 30,000 500.00 424.66 Data 400.00 20,000 277.93 300.00 10,000 173.96 200.00 105.16 0 100.00 2012 2013 2014 2015 2016 2017 2018 0.00 Source: Informa Telecoms & Media www.informatm.com ©Confidential 2013 12/11/2013 2014 2015 2016 2017 2018 3
  5. 5. Low-cost smartphones have become a key enabler of mobile data access in Africa Africa, smartphone connection forecasts, 2012-2018 1,400.00 Proportion of device costs to monthly income, selected markets 250% 1,200.00 200% 1,000.00 150% 800.00 Smartphone connections 600.00 US$100 100% Mobile connections US$150 US$250 400.00 50% 200.00 0% 0.00 2012 2013 2014 2015 2016 2017 2018 Source: Informa Telecoms & Media www.informatm.com ©Confidential Source: Affordable Handsets Report, Informa Telecoms & Media 12/11/2013 4
  6. 6. Increased data take-up powers demand for digital services in Africa Nigeria, mobile service usage, consumer survey 2013 Media Events per Mobile week phone Video streaming Hours Video downloads Downloads Music streaming Hours Music downloads South Africa, mobile service usage, consumer survey 2013 Media Events per Mobile week phone Video streaming Tablet Hours 0.75 2.5 3 3 Video downloads Downloads 0.75 2 Music streaming Hours Downloads 3 4 Music downloads App downloads Downloads 3 2.5 Games online Hours 1.5 Games downloads Downloads Location-based services Tablet 0.75 1.5 2 3 0.75 0.75 Downloads 3 2 App downloads Downloads 2 2 2.5 Games online Hours 1.5 2.5 2 2.5 Games downloads Downloads 2 2 Hours 0.75 2.5 Location-based services Hours 0.25 0.25 Browsing Hours 2.5 2.5 Browsing Hours 1.5 2.5 VoIP Hours 1.5 2.5 VoIP Hours 0.75 1.5 E-commerce Transactions 3 3 E-commerce Transactions 3 3 Instant messaging Messages 30 75 Instant messaging Messages 150 30 Social networking Hours 2.5 2.5 Social networking Hours 2.5 1.5 Email Messages 25 75 Email Messages 25 75 E-publications Downloads 2 2 E-publications Downloads 1 2 Note: Figures are for median average, based on a survey of 619 smartphone users in Nigeria. www.informatm.com ©Confidential Note: Figures are for median average, based on a survey of 511 smartphone users in South Africa. 12/11/2013 5
  7. 7. The consumer wants greater access to data services - but is the telecoms industry doing all it can to satisfy this demand? Mobile phone planned expenditure over next 12 months, Nigeria 7.8% Significantly increase 9.2% 39.1% 16.2% Slightly increase Remain the same Slightly decrease 27.7% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Significantly decrease Note: Figures are based on a survey of 619 smartphone users in Nigeria The most important barriers to the access to and take-up of data services in Africa 47% 44% 42% 36% 34% 19% 11% Data The retail There is a devices prices of lack of are too data demand expensive services from are too consumers high for data services Operators are not providing the right types of data services Backhaul The Regulatory capacity or provision action or availability of services inaction is to rural or insufficient remote or too areas is expensive inadequate 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 networkcentric? • Do operators truly understand the behavior patterns of their customers? www.informatm.com ©Confidential 12/11/2013 6

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