Day 2 Thecla Mbongue - Ovum - Mobile Networks

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© Copyright Ovum 2014. All rights reserved.

Mobile networks, key players of the digital ecosystem in Africa

Innovation Africa Digital Summit, 15th April 2015

Thecla Mbongue, Senior analyst, Africa

2© Copyright Ovum 2014. All rights reserved.

Key players of the digital ecosystem

Digital World

Broadband networks

Customers

Content providers

Governments/ regulators


Key players of the digital ecosystem

Digital World

Broadband networks

Customers

Content providers

Governments/ regulators


Mobile broadband networks

Mobile Broadband as a % of Total Subscriptions

165 million users in Africa in 1Q15

22/04/2015


Broadband Development Index: Regional rankings, 2013

Despite the rapid advances in Africa’s telecoms sector, Africa ranks second-last among world regions in terms of broadband development, according to Ovum’s Broadband Development Index, which tracks the take-up of high-speed fixed and mobile broadband services in 191 countries.

At end-2013, Africa had a BDI score of 217 – ahead of Central and Southern Asia on 215; but North America led with a score of 590.

Broadband Development Index, by region, 2013

Source: Ovum Broadband Development Index


Broadband Development Index: Leading SSA marketsBroadband Development Index, leading SSA markets, 2013 and 2019

Source: Ovum Broadband Development Index

Within sub-Saharan Africa, excluding countries with population of less than 3 million, South Africa has most advanced broadband market, in 2013 and in 2019.

In 2013, SA followed by Zimbabwe, Kenya, Angola and Nigeria (Uganda & Senegal on same score as Nigeria). By 2019, Kenya and Nigeria will have moved up to second and third place.

7© Copyright Ovum 2014. All rights reserved.22/04/2015

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Mobile financial services in Africa

230 million users end-2014, Ovum forecast 600 million users by 2016

Company Brand/service name 2Q14

MTN MTN Mobile Money 18,800,000

Safaricom M-Pesa 12,800,000 Orange Orange Money > 10,000,000 Vodacom M-Pesa 6,600,000 Millicom Tigo Cash 4,706,000 Airtel Africa Airtel Money 4,300,000 FNB eWallet > 3,000,000

Mobile money customers by group in Africa


MFS as an additional means of payment

Bill payments is now part of MFS services and range from utility services to satellite TV bills.

• MFS payment has been available since 2013 on online retail platform Jumia. MFS payment was first enabled inKenya and Nigeria. In April 2014, MFS payment was launched on the Ivorian Jumia platform. In December 2013,Millicom Group and Rocket Internet signed an agreement to partner with MTN to develop its African onlinecompany AIH.


Government adopt MFS for salary payments and tax collection

• In 1Q13, DRC authorities extended salary payments via MFS tomore civil servants. The system was initiated in 4Q12, whenabout 800 police officers and soldiers started being paid viaMFS. The Congolese banking association signed a partnershipwith telecoms operators Vodacom, Airtel and Tigo in order toease the process. The civil servants can still choose to be paidon standard bank accounts.

• In 1Q13, Mauritius Revenue Authority (MRA) partnered withMNO Orange to enable tax payments via MFS Orange Money.Launched in April 2012, Orange Money runs in partnershipwith the State Bank of Mauritius and had 15,000 users as atend February 2013. Until then, transactions included airtimepurchase, funds transfer and payments for phone, water andelectricity bills.

• In August 2012, the Tanzania Revenue Authority (TRA)partnered with Vodacom on collection of the motor vehicleroad license fee using MPESA. As at September 2013, TRA hadcollected TZS4.7 billion (US$2.84 million), TZS2billion of whichwas via MPESA.


Sub-$50 MTN branded smartphones

• In August 2014, MTN Nigeria launched “MTN Sm@rtMini S620” and “MTN Sm@rt S720i”, which are bothAndroid devices being sold respectively NGN8,000 ($49)and NGN10,000. Both devices come with preloadedapplications including BBM, Whatsapp, Music+, Facebook,and also Jumia, the e-commerce platform partly ownedby the MTN Group. MTN sold 58,300 of theses devices asat end-September 2014.

• MTN Nigeria saw its data revenues grow by 16% year onyear in 1H14. According to the operator, the growth isdriven value-added services usage and a strong uptake ondigital platforms. In June 2014, there were 33 million MTNPlay subscribers in Nigeria, having consistently recordedover 10 million downloads daily. According to Ovum, MTNNigeria had over 7.6 million smartphones in use on itsnetwork in 3Q14.

Introduced end-August 2014

58K sold in one month

MTN smartphoneusersup by 33% y-o-y to 7.6m in 3Q14


Digital Africa survey: Enablers of data-service usage

Affordability of data devices is seen as most important enabler of data use now, and will be jointly most important in 2019, with fall in data-service prices.

LTE seen as of low significance now, but will be much more important in 2019.

The most important enablers of data usage and revenue in Africa, now and in five years

Source: Ovum Digital Africa Survey, 2014


Digital Africa survey: Revenue prospects

Mobile-money services seen as most important, now and in five years’ time.

E-commerce services rise to rank second in importance in 2019. Education, health, cloud, and music & video streaming all tipped for growth.

Importance of digital services as a revenue generator, now and in five years

Source: Ovum Digital Africa Survey, 2014


Thank you

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Day 2 Thecla Mbongue - Ovum - Mobile Networks

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