11. Mobile broadband networks deployment
• Over 80 million mobile broadband users in 3Q13
• Fourteen new mobile networks were launched in sub-Saharan Africa in 1H13, all of which were
mobile broadband networks. Eight were HSPA and six were LTE.
• HSPA is set to dominate the landscape over the next five years, though LTE is set to grow faster,
accounting for more network launches in 2017.
• Challenges include regulation (spectrum issuance) and the cost of backhaul infrastructure.
Millions
Mobile broadband subscriptions forecast – Africa,
2013 - 2018
800
600
LTE
400
1xEV-DO
200
HSPA
0
2013
2014
2015
2016
2017
2018
12. Mobile broadband networks deployment: next steps
LTE yet to be roll out fully, but on the wish list of most operators
Charging premium or not?
•
Yes, when the operator is early entrant and if superior QoS is ensured.
•
No if LTE already launched in markets and/or if 3G coverage is consistent. QoS and
faster speed should be enough to differentiate itself from a competitor and to target
high end users. Besides, high price of devices and lack of subsidy already confines LTE
usage to high end segments in Africa.
Focus on postpaid an option only if device financing option is implemented
•
The postpaid segment is less than 1% of mobile subscription base in Smile markets
and postpaid contracts are not bundled with a device.
•
The number of banked population is low in Smile markets but we’ve seen the rise of
operators/banks partnerships for device financing in a few countries including
Nigeria and Tanzania.
Bundling VAS to price plans
•
So far only Bharti Airtel does it while Smart and Globe just sell data access. Bharti
Airtel offers LTE only content in a bid to encourage take-up of services, offering
exclusive services for its LTE users. For instance, it offers 35 HD movies in
collaboration with Bigflix, a movies-on-demand service, with free access to 10
movies in the first month, followed by INR149 a month for unlimited access.
13. Mobile broadband networks deployment: next steps
Broadband expansion through M&A
• Consolidation is usually a survival option for smaller players. Large players should target small players to benefit
from relevant spectrum. Alternately, small players might partner between each other to benefit from each
other’s assets. In manymarkets, small players (CDMA, WiMAX...) can give access to spectrum, additional
infrastructure and also a high-end fixed wireless voice customer base.
14. Smartphones usage uptake
• High growth enabled by more affordable
data-capable devices, feature phones and
smartphones.
• Across Africa affordability is still an issue for
the average end-user. However, increased
partnerships
between
handsets
manufacturers and operators has been
beneficial for the consumers.
• At he same time, operators promote more
segmented prepaid data plans or
sometimes partner with banks to offer
handsets financing schemes.
Smartphone usage forecast in Africa, 2013 -2018
Millions
• Informa forecasts that the number of
smartphones in Africa will jump from 79
mill. in 2012 to over 112 mill. end-2013.
The number will pass the 400 mill. mark by
2018.
2013
2018
200
150
100
50
0
Egypt
Nigeria
South Africa
Kenya
Rest of Africa
22. Recommendations
Simplicity
•
Consumers need to access services via clear and easy processes
•
Do not neglect USSD functionality, as many of African mobile customers still use basic devices
•
Carrier billing option key to increase the number of app purchases
Segmentation
•
In Africa, the low end segment (i.e most of the population) is used to buy in small quantities, hence
the success of small denomination airtime on prepaid
•
Segmenting per service is also key, as it gives the customer the impression to pay for only what they
need
Strong Customer awareness strategy
•
Customer awareness is key to service uptake. Very often new services are only marketed at launch
and/or not explained enough to the target audience
16/10/12
www.informatandm.com
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