Nigeria mobile consumer

The Nigerian Mobile Internet Consumer

21 Feb 2014 – A Rancard Friday presentation

By Adrian Lee

“In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa”

Paul Kagame

75%Mobile penetration in Nigeria. 63% in Africa – growing from 0.5% in 1998 to 63% in 2013

>30%of Nigerians are online and this number is growing… particularly due to mobile internet

1.38%increase in GDP for every 10% increase in broadband across sub-Saharan African countries

Source: ITU World Telecommunication/ICT Indicators database

Access to mobile internet is increasing

Nigeria is #27 globally in terms of mobile broadband subs.

4

ChinaUSA

JapanIndia

BrazilItaly

KoreaGermany

UKIndonesia

TurkeyRussiaFrance

SpainPoland

Saudi ArabiaAustralia

TaiwanCanadaMexico

ThailandVietnam

South AfricaArgentina

PhilippinesMalaysia

NigeriaSwedenPortugal

AustriaNetherlands

EgyptKenya

FinlandCzech Republic

UAEBulgaria

Hong KongHungary

Romania

377.6m297.2m

139.3m94.6m

88.3m57.0m

52.8m49.7m

48.1m47.6m47.3m

43.8m42.9m

38.2m34.1m

29.3m26.9m

23.4m23.1m

21.8m20.1m19.4m19.2m

17.9m16.9m16.2m

14.3m12.4m11.7m10.7m9.8m9.8m

8.5m8.5m8.4m8.4m8.3m8.2m7.9m7.7m

Source: Informa, World Cellular Data Metrices, Q3 2013

Who is the Nigerian Mobile Internet user?

5Source: http://www.vserv.mobi/wp-content/uploads/2013/11/Mobile-Internet-Consumer-Nigeria.pdf

And Nigerian men really love their mobile internet.


What they downloaded last month


Overview of Nigeria Mobile Landscape

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Country KPI Unit Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

Data as % of Service Revenue % 7,47% 10,84% 10,89% 11,92% 12,77% 14,84% 15,14% 17,96%

Voice as % of Service Revenue % 92,53% 89,16% 89,11% 88,08% 87,23% 85,16% 84,86% 82,04%

Non-SMS data revenue as a % of total data revenue % 56,16% 71,56% 72,17% 80,27% 78,50% 75,86% 76,59% 80,95%

SMS Data as % of Data Revenue % 43,84% 28,44% 27,83% 19,73% 21,50% 24,14% 23,41% 19,05%

Revenue - Data USD m 153,48 227,46 231,12 247,25 272,21 336,86 331,07 385,04

Revenue - Voice USD m 1 901,86 1 870,37 1 890,86 1 826,70 1 859,52 1 933,22 1 856,33 1 759,09

Revenue - Data (Non-SMS) USD m 86,20 162,76 166,81 198,48 213,68 255,56 253,56 311,68

Revenue - Data (SMS) USD m 67,29 64,70 64,31 48,78 58,52 81,31 77,52 73,36

ARPU - Data USD 0,52 0,80 0,78 0,78 0,78 0,98 0,93 1,05

ARPU - Voice USD 7,02 6,36 6,28 5,82 5,74 5,57 5,23 4,85

ARPU - Data (Non-SMS) USD 0,23 0,50 0,48 0,55 0,55 0,75 0,72 0,86

ARPU - Data (SMS) USD 0,28 0,31 0,30 0,23 0,23 0,23 0,21 0,20

SMS Traffic Messages (millions) 2 540,91 2 465,27 2 506,10 2 547,78 2 644,96 2 354,10 2 432,70 2 452,41

MMS Traffic Messages (millions) 79,00 80,36 79,01 81,37 84,15 83,36 81,53 80,45


Over the past 4 quarters ending Q3 ‘13, Nigeria has: - Increased data revenues from $272 to $385 mil (+41%)- Increased data ARPU from $0.78 to $1.05 (+34%)- Saw a decrease in voice revenues from $1,859 to $1759 mil (-

6%)

Overview of Nigeria Mobile Landscape

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Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

07% 08% 08% 08% 09% 09% 11% 12%

93% 92% 92% 92% 91% 91% 89% 88%Non-broadbandMobile broadband

Mobile Broadband % of Total Subscriptions

Data Revenue (messaging and non-messaging)

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 20130

50100150200250300350400450

Revenue - Data (Non-SMS) Revenue - Data (SMS) Revenue - Data

USD

m


Penetration of mobile internet in Nigeria has been steady at +1% monthly.

However, the consumer spend has increased by 41%

in the same period. Consumers are using more

data per person!

Mobile Operators & data play

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MTN Nigeria, 34 mil data devices

Etisalat Nigeria, 7.6 mil data devices

GLO Nigeria, 15 mil data devices

Airtel Nigeria, 11.1 mil data devices


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