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Mobile Technology An East Africa Perspective (9 Oct. 2012)

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An overview of the state of mobile telecommunications in East Africa

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Page 1: Mobile technology East Africa

Mobile Technology

An East Africa Perspective(9 Oct. 2012)

Page 2: Mobile technology East Africa

Agenda

1. Africa overview2. East Africa overview3. The power of mobile**

Page 4: Mobile technology East Africa

Mobile in Africa

• 90% of all phones in Africa are mobile phones

• 700 million mobile connections (active SIM cards) 65% penetration

• 19% annual growth• 96% are prepaid subscribers• Nokia has 65% est. market share

Statistics from Jon Hoeler & Andrew McHenryhttp://www.slideshare.net/jonhoehler/insights-into-mobile-telecoms-in-africa-by-jonhoehler-andrewmchenryhttp://www.slideshare.net/jonhoehler/insights-into-the-mobile-internet-in-africa-8654168

Page 5: Mobile technology East Africa

Feature phones still prevalent

• Feature phones prevalent over Smartphones

• Introduction of sub $100 entry level Smartphones – Huawei IDEOS led the way, others following suit– Samsung Pocket– Alcatel One Touch

Page 6: Mobile technology East Africa

East Africa Highlights• As of April 2011

Kenya Uganda Tanzania

Mobile Subs. 26.5M 12.8M 23.8M

Mobile Pen. 67.2% 38.4% 56%

Fixed Line Subs. 374,942 327,114 174,678

MNOs Safaricom, Airtel Kenya, Essar, Telecom Kenya

MTN Uganda, Uganda Telecom, Airtel Uganda, World Telecom, Hits Telecom, Orange, i-Telecom, Smile Telecom

Vodacom, Tigo, Bharti Airtel, Zantel, TTCL, Benson, SasaTel

# Mobile phones 19,365,000 9,384,000 17,677,000

Mobile internet users

5.4M 605,000 462,000

Mobile Money Subs.

18.4M 3M 3M

iHub Research, Mobile Technology in East Africa, http://www.ihub.co.ke/blog/2012/05/mobile-technology-in-east-africa/

Page 7: Mobile technology East Africa

Kenya

• As per CCK Q3 2011/2012 (Jan – Mar 2012) statistics:1. 29.2 million mobile subscribers

– 28.9M prepaid (99%)– ~0.25 M postpaid

2. Mobile penetration 74%

Operator # Subscribers as of March 2012

Safaricom 19,074,700

Airtel 4,483,334

Essar Telecom (yU Mobile) 2,554,258

Telkom Kenya 3,099,357

http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

Page 8: Mobile technology East Africa

Kenya

• 18.987 million mobile money transfer subscriptions

• 45,861 mobile money agents• KES 185,361,277,029 in deposits in

the quarter

http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

Page 9: Mobile technology East Africa

Kenya

http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

Page 10: Mobile technology East Africa

Tanzania

• 26,978,436 mobile subscribers up from 25,827,518 as at Dec 2011

Operator # Subscribers

Vodacom ~12.6M

Airtel ~7.1M

Tigo ~5.5M

Zantel ~1.5M

Others (TTCL,Benson,SasaTel)

~0.23M

According to the Tanzania Communications Regulatory Authority (TCRA) Q3 March 2012:http://www.tcra.go.tz/publications/telecomStatsMarch12.pdf

Page 11: Mobile technology East Africa

Tanzania

• 2.5% of Tanzania’s population has access to Internet

• 79.39% access the Internet on mobile phones

• Only 24% of Tanzanians use mobile money

iHub Research - http://www.ihub.co.ke/blog/2012/01/mobile-technology-in-tanzania/

http://www.audiencescapes.org/sites/default/files/Tanzania%20MM%20Tracker%20Qtr%201%20Report_For%20Public_COLOR_1.pdf

Page 12: Mobile technology East Africa

Tanzania

http://www.audiencescapes.org/sites/default/files/Tanzania%20MM%20Tracker%20Qtr%201%20Report_For%20Public_COLOR_1.pdf

Page 13: Mobile technology East Africa

Uganda

Uganda Communications Commission Post & Telecoms Annual Market Review 2010/11http://www.ucc.co.ug/files/downloads/2010%2011%20Annual%20Post%20and%20Telecommunications%20Market%20Review%20141111.pdf

Page 14: Mobile technology East Africa

Uganda

Uganda Communications Commission Post & Telecoms Annual Market Review 2010/11http://www.ucc.co.ug/files/downloads/2010%2011%20Annual%20Post%20and%20Telecommunications%20Market%20Review%20141111.pdf

Page 15: Mobile technology East Africa

Rwanda

• According to Rwanda Utilities Regulation Authority (RURA) June 2012:

1. 44.81% Mobile penetration rate2. ~4.756M mobile subscribers

Operator # Prepaid #Postpaid

MTN ~3.02M 11,732

TIGO ~1.62M 5,482

Airtel Rwanda 110,304 -

http://www.rura.gov.rw/docs/STATISTICS_AND_TARIFF_INFORMATION_%20IN_TELECOM_June_2012.pdf

Page 16: Mobile technology East Africa

Rwanda

Internet subscriptions of June 2012 (RURA)

http://www.rura.gov.rw/docs/STATISTICS_AND_TARIFF_INFORMATION_%20IN_TELECOM_June_2012.pdf

Page 17: Mobile technology East Africa

Ethiopia

• Ethio Telecom sole provider• 17M mobile subscribers ~18M incl

fixed line (current figures)• Targeting 65M and 75% penetration

by 2015• http://www.biztechafrica.com/article/ethio-telecom-tops-18m-subscribers/4181/• http://www.theeastafrican.co.ke/news/Ethiopia+to+overtake+Kenya+in+mobil

e+subscriptions+numbers/-/2558/1400048/-/view/printVersion/-/a378n2z/-/index.html

• http://investeddevelopment.com/blog/2011/11/can-lagging-ethiopia-reach-african-mobile-penetration-standards/

Page 18: Mobile technology East Africa

Usage

iHub Research, Mobile Technology in East Africa, http://www.ihub.co.ke/blog/2012/05/mobile-technology-in-east-africa/

Page 19: Mobile technology East Africa

Power of Mobile

• A communications platform– Voice / SMS– Mobile Internet based communications (e.g. MXit is

bigger in SA than Facebook)– Social networking

• An application Platform– A platform for delivering value to an audience– Mobile apps (both Smartphones and Feature phones

e.g. Binu, Snaptu – acquired by Facebook)

• A trading platform– Mobile money– M-commerce

Page 20: Mobile technology East Africa

Mobile – an application platform

• Deliver value straight to the user– Always on device– Virtually always in pocket or hand or very nearby– Ubiquitous technologies – SMS, USSD

• Innovative uses:– mAgriculture– mHealth– mLearning– mBanking & mTransactions / mMoney– mGovernance

• “The Innovative Use of Mobile Applications in East Africa” - http://sidapublications.citat.se/interface/stream/mabstream.asp?filetype=1&orderlistmainid=2861&printfileid=2861&filex=3830197052040

Page 21: Mobile technology East Africa

Mobile – an application platform

Application to… Use

Agriculture (mAgriculture) Education & AwarenessCommodity prices, market info.Data collectionPest, disease outbreak warning & tracking

Health (mHealth) Education & AwarenessData collection, health recordsMonitoring/medication complianceDisease/epidemic outbreak trackingHealth/administrative systemsAnalysis, diagnosis, consultation

Governance (mGovernance) Civic educationDelivery of public servicesDelivery of information (Education & Awareness)

Page 22: Mobile technology East Africa

Smartphone capabilities on your feature phone

Page 23: Mobile technology East Africa

Note on social networking / media

• Also have the same capacities as mobile:1. Social networks are communications

platforms2. They are also application platforms– Application Programming Interfaces (APIs)– E.g. Facebook app platform

• Social networking platforms are also becoming trading platforms – Facebook credits, Mxit Moola (virtual currency)

Page 24: Mobile technology East Africa

Social + Mobile = ?

• Simply Transformational!• And it’s happening…• Think Arab Spring:– New study quantifies use of social media

in Arab Spring - http://www.washington.edu/news/2011/09/12/new-study-quantifies-use-of-social-media-in-arab-spring/

–Mobile phones, social media and the Arab Spring - http://www.credemus.org/images/stories/reports/mobile-phones-and-the-arab-spring.pdf

Page 25: Mobile technology East Africa

Take-outs

1. Target your audience (esp. youth) where they already are:– Mobile– Social

2. For internet, go mobile web3. Leverage ubiquitous technology –

SMS is the best delivery platform for mass impact

Page 26: Mobile technology East Africa

Will MutuaFounder Afrinnovator (http://afrinnovator.com) Co-author ‘Innovative Africa: The new face of Africa’ (http://book.afrinnovator.com)http://twitter.com/afrinnovatorhttp://facebook.com/[email protected]

Thank you