AT 17

New look

issue 17 ZAR 29.95 us$ 3.50 uk£ 2.25 Eu€ 2.95 Rest of Africa us$ 2.95

www.africatelecomsonline.com

Thought Leadership with Brett St Clair

VAS vs

APPS Q&A with Paulo Ferreira & Brett Loubser

[ 04 ] guest ed

Bradley Shaw, Managing Editor of Africa Telecoms Magazine.

[ 06 ] news

The latest local and global telecoms news.

Contents

Issue 17

Regulars

24

Thought Leadership

An exclusive interview with Brett St Clair, Head of Mobile for Google, in South Africa

[ 18 ] gadgets

Want the next big thing in portable devices? Our gadget review is here to help you choose.

30

[ 22 ] stats

‘Amplification’ Africa-Style

Africa Telecoms presents statistics and data relating to the African telecoms market.

Mobile phones and not smartphones will dominate the market in the near term

[ 64 ] q&a

With Paulo Ferreira & Brett Loubser from Samsung.

[ 66 ] calendar

Upcoming events, shows and conferences which you can’t afford to miss.

[ 70 ] jobs

A list of the latest telecoms positions from across Africa.

[ 72 ] lastword

Smartlove, are smartphones taking over our lives?

2 AFRICA TELECOMS Issue 17

38

Spotlight on ITU Telecom World 2011 Blaise Judja-Sato takes a look a unique opportunity to network, share visions and bring about change for the ICT community

42 Top of the Apps Bradley Shaw of Africa Telecoms went out to find the best apps available for BlackBerry and Android

52

Africa’s growing hunger for mobile apps

for the mag [ Publisher ] mohammed Khan mkhan@3ipublishing.co.za [ Managing Editor ] Bradley Shaw bshaw@3ipublishing.co.za [ Sales Director ] Sarah theron stheron@3ipublishing.co.za [ Art Director ] Hayley davis hdavis@3ipublishing.co.za [ Sub-Editor ] niki Sampson

The mobile data and apps market is set to explode, thats according to Craige Fleischer at RIM

[ Printing ] tandym Press [ Contributors ] Bradley Shaw, Brett Haggard, Blaise Judja-Sato, James Munn, Einar Lindquist, Alan Knott-Craig, Peter Matthaei and Jiaqi Sun.

54 VAS vs APPS

Africa Telecoms and Africa Telecoms Online are published by: 3i Publishing Unit 9 & 10, Planet Art 2, 32 Jamieson Street, Cape Town 8001 T: +27 21 426 5590 | E: info@3ipublishing.co.za www.3ipublishing.co.za www.africatelecomsonline.com BPA Audited AverAge QuAlified CirCulAtion from nov 10 – JAn 11, 9989 Per edition.

Alan Knott-Craig takes a look at the mobile revolution

Issue 17 AFRICA TELECOMS 3

Editorial guest

Bradley Shaw, Managing Editor of Africa Telecoms Magazine

Appsolutely Operators globally are looking at innovative ways to increase data revenues in their respective markets. This, to a large degree, has seen them embrace with open arms the app market specifically. VAS on the other hand was the starting point for operators to improve their customer experiences on their networks. This led to them offering services like MMS, Push to Talk and even Virtual Phone Lines. Moving forward, what will be the key drivers of either one of these technologies?

My contention here is that user experience and how easily operators can monetize these services will be the key drivers.

With VAS, this is seemingly much easier as the operators themselves offer the VAS and charge for these services.

Most likely, this is done by way of a USSD menu so that the subscriber can choose whether to activate certain VAS offerings supplied by their operator. This makes the billing easy but the user experience is dull at best, if not at times thoroughly tedious.

Moving on to the app environment, the user experience is far superior to what VAS can currently offer. The simple differentiator here is that smartphones make the difference; graphically rich applications running on smartphones simply cannot be beaten by VAS. And, for Africa, it all depends on smartphone penetration.

According to Informa Telecoms & Media, in March 2011, Africa had a smartphone penetration of only 5.1%. This pales in comparison with the global figure of 13%. This number then purportedly grows to 15% for Africa by 2015.

This is a substantial difference, but by no means makes the smartphone the best option for full market penetration.

Facebook, the world’s largest social network with over 30 million users in Africa, has taken the initiative of including an “Every Phone” app in its repertoire. This Java based app has

Changes are afoot Many of you will notice that Africa Telecoms has had a facelift for this, the first issue of our new look. Having been operational and keeping you informed for the past two years, there are some additional changes coming along with the rebrand. Africa Telecoms will be setting up an Advisory Board to guide the magazine and its editorial focus over the next 12

4 AFRICA TELECOMS Issue 17

Facebook, the world’s largest social network with over 30 million users in Africa, has taken the initiative of including an “Every Phone” app in its repertoire. the user experience of a full smartphone app but is capable of running on an entry level device.

With the likes of these Java based apps being available to most of the market place now, does VAS stand a chance? There is no simple answer to this in the short term. Either way there is sure to be a continuous fight for consumer spend, no matter which technology triumphs in the end.

In Corporate news recently Apple has overtaken Exxon as the largest market cap company in the world. In 1985 Steve Jobs was fired from Apple in an era when Microsoft-powered pc’s began to dominate. When Jobs returned in 1997, the troubled Apple was only worth around 2billion USD, and in a mere 24 years Jobs has helped guide the business to a market cap of 337billion USD. This must be one of the greatest performances by any CEO in history. Jobs also announced his retirement from the tech firm to be replaced by.

Back to the App environment, Apple’s biggest rival Google with their Android ecosystem announced their plans to acquire Motorola Mobility for a price of 12,5billion USD. In a move that is expected to help Google protect IP and grow the Android ecosystem, it is also a huge risk for Google as in the long term it could cause problems with other supporters of the ecosystem.

A tweet from @TheRogueAnalyst asks on Twitter: “Is there an official @Google @Motorola hash-tag yet? #Gootorola doesn’t sound too compelling nor does #Motoogle?” AT

months. We have had some esteemed telecoms executives already accept this invitation. The full announcement of this board will come in due course. And if you have any comments on past editions or suggestions for future issues I would be delighted if you contacted me directly. We look forward to an ongoing relationship with all our readers, to whom we say a big “Thank You”.

News

Africa Telecoms brings you all the latest telecoms news from Africa and around the world.

Huawei supports the Red Cross’s ‘Kenyans for Kenya’ humanitarian relief initiative Communications technology solutions provider, Huawei Technologies, donated Ksh9.4 million to the Kenya Red Cross Society to support urgent humanitarian relief efforts for drought victims through the ‘Kenyans for Kenya’ initiative.

“On behalf of the Kenyans for Kenya committee, I would like to thank Huawei for boosting this good cause through their generous contribution of Ksh9.4 million to help feed thousands of Kenyans who are currently in dire need of food and medical attention, as a result of the effects of drought,” said Abbas Gullet, secretary general of the Kenya Red Cross Society, adding: “As you are aware, the Horn of Africa, Kenya included, is facing the worst drought since 1950 and which has been termed the gravest food crisis in the region. Lactating and expectant mothers, children and elderly people in many parts of our country are in dire need of emergency relief.”

Last week, 150 metric tonnes of enriched maize and bean flour was flagged off to help save the lives of Kenyans hardest hit by drought: the third consignment of relief food sent out by the private sector initiative, making it 450MT now sent to ASAL (arid or semi-arid land) areas.

Speaking during the ceremony, Huawei’s CEO in Kenya

Herman He said: “Every Kenyan regardless of their tribe, income or residence, has the right to access sustainable food and should not be wondering where their next meal will come from. Our donation today shows Huawei’s commitment as a member UN’s Global Compact to fulfill our responsibility as a global corporate citizen with local presence, by enabling a higher standard of living for those in our society.” He added: “As Kenyans, we are united by a shared desire for things that are good for us, and our communities to stop further suffering for our sisters, brothers, mothers and fathers.”

Also present at the event was Safaricom CEO Bob Collymore and representatives from the Chinese Embassy, Deputy Ambassador Yan XiuSheng and Economic Counsellor Han Chunlin.

The Kenyans for Kenya campaign, an initiative of The Kenya Red Cross, KCB Foundation, Safaricom Foundation, and the Media Owners plans to raise Ksh1 billion over a period of four weeks. The funds donated will go towards both short term solutions (emergency food relief and water trucking) and medium term solutions (rehabilitating or sinking boreholes and setting up greenhouses to improve food security). AT

Mobility 2011 research project conducted by World Wide Worx, shows that SA mobile Internet usage has risen to 39% 6 AFRICA TELECOMS Issue 17

N

News

moTorolA AnnounCes AvAilAbiliTy of THe Xoom And ATriX in souTH AfriCA Much anticipated news of the launch of Motorola’s latest offerings, the Xoom Tablet and ATRIX, was announced in South Africa recently.

“Motorola XOOM redefines the tablet device category. We want to enhance people’s abilities to have fun and connect with family and friends while staying productive on the go,” says Megan Nicholas, mobile devices lead for Motorola Mobility South Africa. Nicholas goes on to say: “ATRIX is designed to essentially become a user’s primary digital hub to create, edit and interact with documents, media and content. This is done through

the Motorola webtop application and incredible new accessory docks, such as the Lapdock, that provide users with a larger screen, keyboard and trackpad, enabling them to have an enhanced and more interactive computer-like experience with their devices.”

Motorola went on to announce that the Xoom and ATRIX devices will be available on Vodacom, Cell C, 8ta and MTN in South Africa during the course of August. Covering all four of the operators with the launch of these two devices shows that Motorola is surely back as a force in the devices market in Africa. AT

Apple pATenT ‘Hides’ AnTennAs in KeyboArds of new mACbooKs With this image (right) being available on the www.patentlyapple. com website, it is difficult to see how Apple has “hidden” these antennas, as it is now public knowledge. But, as you can see from the picture, these antennas could be hidden under the keyboard of new MacBooks. However, as Apple has previously experienced in the launch problems with the iPhone 4, antenna positioning is all important to prevent dropped calls and potential loss of signal. Both of which were common problems with the iPhone 4. However, with the latest patent approval, Apple is set to launch 3G and 4G enabled MacBooks imminently.

Apple has been never been shy to miss an opportunity to beat its competitors to market with new technology. AT

With 49% mobile penetration in Africa, this equates to nearly 500million people never to have spoken on a mobile phone Issue 17 AFRICA TELECOMS 7

N

News

ZTe esTAblisHes nATionAl seCuriTy neTworK for mAuriTius

GooGle To ACquire moTorolA mobiliTy

Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011, the company announced on Monday, August 15. The transaction was unanimously approved by the boards of directors of both companies.

Although this has been approved by both companies, this is by no means indicates that this deal is completed.

The transaction indeed still needs regulatory approval and considering Google’s recent track record with regulatory discussion there could be some hesitance to giving approval.

What could prove to be vital in this approval is the support of Google’s Android partners LG, HTC, Samsung and Sony Ericsson. However, both companies are confident that the transaction will close toward the end of 2011 or the beginning of 2012.

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing.

Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Larry Page, CEO of Google, said: “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

Sanjay Jha, CEO of Motorola Mobility, added: “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”

Andy Rubin, senior vice president of mobile at Google, said: “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.” AT

Mauritian police have set up a national security network based on ZTE’s GoTa (Global open Trunking architecture) professional digital trunking and location-based services to provide dispatch and emergency services support.

The Mauritius Police national security network covers the whole country and is used for faster response and improved coordination between different government departments.

ZTE announced the project at the National Security World Summit in Mauritius on 20th July 2011.

“After comparing several similar technologies of digital radio communication systems by a consultant, GoTa was finally selected due to its high level of security and privacy, fast response, high reliability, multi-service convergence, and fast deployment,” said Mr D. I. Rampersad, Commissioner of the Mauritius Police Force.

“ZTE’s national security network solution will improve both the efficiency of our administration, and the reaction times and effectiveness of our police and related security departments.”

Mr. Zhang Renjun, senior vice-president of ZTE, said: “In addition to providing good infrastructure, low environmental impact and pleasant living conditions, a modern city should also have an effective emergency response capability and systems to protect against and manage all kinds of natural calamity and public incident. ZTE’s national security solutions are now making that a reality.”

ZTE’s national security solution integrates digital trunking, streaming media, video monitoring and location services. An emergency response and dispatch system has been set up for unified dispatching and fast decision-making. It offers a variety of essential services through a unified platform which greatly promotes efficiency and reduces communication costs.

ZTE’s national security solution is currently being used in more than 40 countries and the subscriber base has exceeded one million. AT

e.tv and MultiChoice awarded mobile TV licences by ICASA in South Africa 8 AFRICA TELECOMS Issue 17

N

News

Patent wars continue, with InterDigtal the latest target This time we have Apple, Nokia, Qualcomm and Google pondering bids for InterDigital.

The auction of the wireless telecommunications specialist, expected to be heavily contested as giant tech companies fight to shore up patent portfolios, will be postponed until after Labour Day in the US. Shares in InterDigital, which has a market value of about $3 billion, leaped as much as 12.2% on the news. Key potential bidder Google has not formally withdrawn from the auction but it is unclear whether the internet leader will bid for the company.

Although with the recent announcement of the Motorola transaction for Google it will be known exactly how deep the company’s pockets are.

“The problem InterDigital has is that Elvis has left the building. He’s got his date,” Deutsche Bank analyst Brian Modoff said.

Modoff also questioned whether any other technology companies need InterDigital enough to pay the high price at which its shares are currently trading.

He noted that Qualcomm already has a good portfolio of patents, and so may not want to pay up for the business.

“The problem is finding somebody else to whom it’s necessary,” Modoff said. “It could get acquired, but not at where the stock is at (now).”

InterDigital’s stock had soared last month on reports that Google was in talks to buy the company. Bidders have been eager to get their hands on the company’s 8,800 patents – including crucial 3G and 4G/LTE patents to strengthen operating software for smartphones.

Some analysts have said that InterDigital has one of the best quality patent portfolios that remains on the market after bankrupt Nortel Networks sold its patents to a consortium led

by Apple and Microsoft Corp last month.

Just over 50% of the current 3G market is already under licence with InterDigital. Its partners include Samsung Electronics Co Ltd, Apple, Research In Motion Ltd and HTC Corp, among others. The company’s 4G portfolio is relatively unlicensed.

InterDigital hired Evercore Partners and Barclays Capital on July 19 to explore strategic alternatives, including a possible sale of the company.

InterDigital declined to comment. The other potential bidders were not immediately available for comment. AT

8ta drops prepaid data rates in South Africa saying, users will basically be paying 5c per MB Issue 17 AFRICA TELECOMS 9

N

News

Keny GeTs firsT mobile Tvv offerin KenyA offerinGG drifTA from dsTv

Multichoice Kenya has launched the DStv Mobile Drifta, a mobile TV decoder that receives DVB-H (Digital Video Broadcasting – Handheld) signals and converts them into Wi-Fi signals for viewing on devices such as laptops, PCs, tablets and smartphones.

The launch follows a long line of technological innovations associated with the popular DStv brand, including DStv Mobile (access to DStv channels via mobile phone), High Definition PVR decoders and integrated customer service tools. Kenya subscribers within the DStv Mobile network coverage areas in Nairobi, Mombasa and other regions will have access to channels on the DStv Mobile DVB-H network.

“When we introduced DStv Mobile on DVB-H allowing for the digital terrestrial broadcast of live television channels to mobile telephones in 2008 it was ground-breaking, and with the launch of the Drifta we are yet again making history,” said Felix Kyengo general manager for Digital Mobile Television, DMTV Kenya.

He added: “A new technology such as mobile television requires significant amounts of investment. However, it is an investment that we are committed to make to ensure that Kenyans have access to the latest media and technology available.”

General manager for MultiChoice Kenya, Stephen Isaboke, said technology continues to transform the way the Kenyan consumers can access news, information and entertainment.

Over the past 15 years, MultiChoice has ensured that Kenyans have access to all the latest television news and entertainment in real time through direct to home digital satellite technology.

Multichoice was the first company to introduce the Personal Video Recorder (PVR) and High Definition (HD) television to Kenya.

DStv Mobile Drifta supports Windows and the iOS devices. In future additional devices such as those running the BlackBerry OS, Symbian 3 and Android applications will also be supported.

“While non-DStv subscribers can also purchase a Drifta and subscribe to one of three bouquets, the Free bouquet, the Mini and the Maxi bouquet, DStv Premium subscribers on the other hand will have access to the Maxi Plus bouquet at absolutely no additional charge after purchasing the Drifta hardware,” said Kyengo. AT

GooGle seArCHes for produCT Internet giant Google will look to train 1,000 Kenyans by hosting a conference dubbed G-Kenya to grow use of its products, joining a host of technology companies using similar strategies to expand their reach in Africa.

This conference will be aimed at product managers, entrepreneurs and web developers to train these professionals on its products and online business skills.

Recently Google has been on a drive in Kenya to search for relevant local Kenyan content to drive internet usage and specifically search traffic through its Google search engine. Recently the firm partnered with the government to digitise the Kenya Gazette and the Hansard – the verbatim parliamentary debates that date back four decades.

“G-Kenya will also train participants in its developer and business technologies, ranging from Mobile/Android, Chrome and HTML5 to Maps & Geo and App Engine,” said Olga Arara-Kimani, the Google Kenya country manager.

“Business is being redefined by access to information, more specifically access to the right information, at the right time.

Local entrepreneurs will play a unique role in creating a dynamic online experience that will help to spur the growth of businesses in Kenya.”

Participants in G-Kenya will further have the chance

South Sudan was formally admitted into the African Union as its 54th member state 10 AFRICA TELECOMS Issue 17

orAsCom TeleCom

N

News

reporTs seCond quArTer losses

‘AmbAssAdors’ for KenyA to explore Google’s open source technologies through a combination of technology talks, breakout sessions and code labs run by engineers and business teams from across the globe Google’s engineering vice-president for Europe, Middle East and Africa, Nelson Mattos, is among the speakers.

Technology firms are increasingly turning to training as a strategy to grow presence and penetration in Africa. Korean firm LG Electronics and China’s Huawei have set up such centres in Kenya to endear students to these products and services in the race to get a larger share of the telecoms infrastructure and gadget markets.

In an recent interview with the Business Daily of Kenya, LG Electronics executive vice president Teddy Hwang said: “There is no business of exporting our gadgets to Kenya without the necessary support services to help customers.

Currently, universities do not have any working samples, not to mention that it is also very hard to find proper training institutions in Africa in this field.”

Asian firms, including LG, Huawei, ZTE and Samsung are aggressively seeking a larger market share of the telecoms markets ahead of Western-based firms such as Nokia, Motorola, and Sony Ericsson. These Western-based firms have historically dominated the African market. AT

Egypt’s Orascom Telecom, parent of the second largest mobile operator Mobinil, reported a net loss of $58.5 million for the second quarter. Despite the rise in short-term revenues, this performance was thwarted by higher taxation in Tunisia.

Despite the Russian acquisition of Orascom by Vimpelcom in March of this year, Orascom has struggled to maintain margins due to ongoing political unrest in North Africa. According to Reuters news agency, Orascom was expected to post profits of US$64 million. Orascom currently has operations in Algeria, Pakistan, Bangladesh, North Korea, Namibia and the Central African Republic.

Orascom’s earnings before interest, taxes, depreciation and amortization grew 8% in the quarter to $476 million, driven by their Algerian subsidiary Djezzy – where subscriber numbers were up 5% from a year earlier – and its south Asian businesses.

Total revenues came in at around $1 billion, 1.6% above industry predictions. It was a rise of 5.5% on the first quarter but down from $1.06 billion a year earlier.

In Egypt, its Mobinil venture with France Telecom boosted subscribers by 17%, but average revenue per user dipped 15% due to “intense” competition, Orascom said. The Egyptian unit has also recently announced it has lost hundreds of thousands of subscribers as a result of the “Mickey” Twitter incident that saw Orascom chief Naguib Sawiris post what Islamists in the country felt was an “insulting” cartoon of Mickey Mouse and Minnie Mouse dressed in conservative Islamic garb.

Orascom went on to note that its demerger of businesses foreseen under the Vimpelcom deal was delayed after the Egyptian authorities requested some accounting documents.

And further to say: “The Company is actively pursuing its dialogue with the authorities, and still expects to receive the required approvals in the coming weeks.” AT

China Mobile already has 7.44 million iPhone users on its network even though it has never sold the device Issue 17 AFRICA TELECOMS 11

N

News

Norton by Symantec launches new mobile product

Now protection for your mobile device and the information on it is available with Norton Mobile Security. If your mobile device is lost, stolen, or has had its SIM card removed, you can remotely disable your mobile device to prevent thieves from using it or accessing your private information.

You can even remotely delete all of your personal information so cybercriminals can’t use it to steal your identity or money.

“We’ve taken the approach to developing a post-PC era Norton that includes introducing new mobile products, expanding our current products with mobile apps and combining our technology with mainstream consumer brands to protect more people in more places. The market reception

has been highly positive and in the coming year we’ll continue creating partnerships and technologies that will bring a trusted name in PC security to mobile and Wi-Fi users all over the world,” comments Con Mallon, director of mobile product management, Symantec Corporation.

Norton Mobile Security lets you remotely disable your phone, erase all of your personal information, and instantly locate your phone, all with a simple text message.

If your phone is lost or stolen, you can locate it fast and not worry about cybercriminals running up your bill or using your private information to steal your identity or hard-earned money. It even automatically locks your phone if its SIM card is removed, so if thieves try to use it with another SIM card they’re out of luck.

Tired of being harassed by unwanted calls and texts? Norton Mobile Security helps protect your privacy – and your sanity – by letting you block calls and texts from specific phone numbers.

“As Android devices become increasingly popular, there is a greater chance they could be targeted by cybercriminals or more commonly, lost or stolen,” says Mallon. “We are delighted to now offer customers the ability to secure their smart phones or tablets from physical and online crime with the powerful protection of Norton security.”

When it comes to viruses and other threats, your phone is just as vulnerable to attack as your computer. Norton Mobile Security detects and eliminates mobile threats before they can infect your phone. It automatically scans all the files and app updates that you download.

And it even gives you the option of automatically scanning SD (Secure Digital) memory cards for threats when you plug them into your phone. Weekly updates help ensure you have the most up-to-date protection. And it only updates when you’re in your home service area, so you won’t have to pay outrageous roaming charges.

“Norton Mobile Security is a breeze to use. It installs with a few simple clicks.

And we include a step-by-step tutorial that shows you how to use all of the features,” says Mallon. AT

Revolutionary mobile app, MobileShopper, will allow consumers to access retail backend systems 12 AFRICA TELECOMS Issue 17

N

News

orACle lAunCHes reCruiTmenT drive for 1,700 new employees ACross emeA Oracle – as a result of continued growth across all lines of business and including positions at all levels from graduates to senior sales staff and pre-sales consultants – is looking to hire 1,700 staff across its Europe, Middle East and Africa division.

In the current economic climate this shows the continued strength of Oracle as a brand and commitment to the EMEA region. Alan Hartwell, vice president technology solutions, Oracle UK, said: “This is an exciting time for Oracle. Hiring 1,700 new colleagues will help to support growth across all lines of our EMEA business and reflects the demand which exists for our end-to-end provision of hardware and software which is designed and engineered to work together.

That approach is proving hugely popular with customers and the resulting growth presents us with an opportunity to create more jobs across the region. We are very proud to work with some of the largest and most innovative companies in the world and need people who are excited by the challenges that brings.” AT

mTn ConTinuinG To invesT in souTH sudAn MTN needs to create an entirely new operation in South Sudan, after the country gained independence earlier this year. MTN is continuing with plans to roll out a new network in South Sudan, even though uncertainty persists.

The country has only just been allocated an international dialling code, says MTN CEO and president Sifiso Dabengwa.

South Sudan became an independent state on 9 July, after a referendum held in January. It was formally admitted into the African Union as its 54th member state, after joining the organisation last month.

Dabengwa explains that, while the operator has base stations in the new country, it will need a new licence and will have to reconfigure its Sudanese network to be a separate operating entity.

MTN will also need to build a new home location register, the engine of the network, says Dabengwa. However, as the company has recently implemented a shared services strategy, South Sudan can be supported from Uganda, which will aid its procurement needs, he explains.

MTN still needs to finalise the issue of whether a new licence fee is payable, says Dabengwa. The company is in talks with the authority over this issue and believes it can be resolved.

However, Dabengwa says the licence issue must be resolved as soon as possible as MTN is continuing to invest in its network. The company does not want to have spent the money only to discover that the licence fee is “way out” of what the business plan can afford. AT

Facebook Messenger app will challenge mobile operator ‘control’ Issue 17 AFRICA TELECOMS 13

N

News

sA mobile inTerneT usAGe

5,000Km informATion superHiGHwAy for CHinA

China Unicom subscribers can look forward to a ten-fold increase in their data rates thanks to a faster information highway across the country. Nokia Siemens Networks is deploying a 5,000km, 40 Gigabits per second, per channel, dense wavelength division multiplexing (DWDM) optical network for the operator. The technology paves the way for upgrades to 100Gbps across seven provinces: Chongqing, Hubei, Anhui, Jiangsu, Fujian, Guangdong and Zhejiang.

The increased uptake of bandwidth-hungry applications requires capacity upgrades in the backbones of China Unicom’s networks to maximize subscriber experience. Nokia Siemens Networks’ DWDM network will prepare the operator to handle future IP traffic growth while reducing the number of sites and keeping control of its costs.

“As one of the largest network operators globally, China Unicom understands the importance of investing in the latest technology,” said Markus Borchert, head of the Greater China region at Nokia Siemens Networks. “Our 40G DWDM system will ensure a longer life cycle for China Unicom’s network by increasing its network capacity to handle data traffic growth. In fact, since CP-QPSK technology is being used for the first time in China, it will act as a new benchmark for enhancing transport performance and end-user experience.”

Nokia Siemens Networks is providing its hiT 7300 DWDM system with industry-leading 40G transponder technology that allows continued use of installed fibre infrastructure. Based on a CP-QPSK modulation format, hiT 7300 DWDM system with dispersion compensating modules free transmission, it enables lower latency and offers a rapid, cost effective transition to 100G technology. Moreover, Nokia Siemens Networks will provide its network management system coupled with services such as network implementation, commissioning and maintenance. AT

The Mobility 2011 research project, conducted by World Wide Worx and backed by First National Bank (FNB), reveals that 39% of urban South Africans and 27% of rural users are now browsing the internet on their phones.

The study excludes “deep rural” users, and represents around 20 million South Africans aged 16 and above. This means that at least six million South Africans now have internet access on their phones.

The big winner in terms of sites and services is MXit, which enjoys the attention of 24% of cellphone users aged 16 and above (29% of urban, 19% of rural users). However, Facebook is catching up fast, reaching 22% of users, and is in fact passing MXit in the urban over-16 market, with 30% reach, versus 13% among rural users.

Twitter will also become a key mobile tool, almost catching up to MXit in the coming year, from a low 6% of cellular users at the end of 2010. The proportion of urban Twitter mobile users is exactly double that of rural users: 8% against 4%.

The most dramatic shift of all, however, is the arrival of e-mail in the rural user-base and its growth among urban users. There has been a substantial shift among the latter,

Arthur Goldstruck for world wide worx

MTN invests $1bn into Nigeria to increase capacity to drive up subscriber numbers 14 AFRICA TELECOMS Issue 17

N

News

soars to 39%

according to World Wide Worx

with urban use rising from 10% in 2009 to 27% at the end of 2010. While the percentage growth among rural users is lower, the fact that it was almost non-existent a year before means the 12% penetration reported for 2010 indicates that mobile e-mail is becoming a mainstream tool across the population.

While cameras, diaries and games continue to dominate the list of features used on phones, FM radio and music players have become part of a mobile “Big Five”.

However, there is a significant difference in the features preferred by urban and rural phone users. Three quarters of urban respondents (75%) use their phone cameras, but little more than half of rural respondents (55%). Music players on the phone get the vote of 53% of urban users, versus 36% of rural users.

Surprisingly, the gap is reversed when it comes to games on the phone: 54% of urban users enjoy these, compared to 65% of rural users.

The Mobility 2011 project comprises two reports, namely the Mobile Consumer in SA 2011 and the Mobile Internet in SA 2011. It is based on face-to-face interviews with a nationally representative sample of South Africans. AT

Absa, Vodacom sign multimillion-rand deal

Absa and Vodacom have signed a multimillion-rand deal, which they say will “accelerate the pace of mobile innovation” and expand the range of banking and mobile services available to customers. This deal will also see Absa having access to a substantially larger potential base of clients. Absa has 12 million customers, while Vodacom has over 43 million and has had an existing relationship in the form of the “Master Airtime Agreement”. This followed the Master Service Agreement signed by UKbased parent companies, Vodafone and Barclays, in July last year.

According to Vodacom CEO Pieter Uys, the collaboration has the potential to help both companies build their positions on the African continent. Vodacom already shares a working relationship with Nedbank, for the M-Pesa mobile payments system.

According to reports, the contract is valued in excess of R800 million. Absa’s chief executive for retail banking, Gavin Opperman, says the deal will help the bank fulfil its objective of working strategically with mobile operators to enhance the propositions delivered to its customers.

Some of the innovations that spring from the partnership include a “tap and go” payment system. This partnership could pave the way for Africa’s first extensive NFC network of pay points. Furthermore machine-to-machine (M2M) solutions in the insurance space and consumer education delivered via mobile devices, bundled mobile and financial service offerings and free unstructured supplementary service data.

“The collaboration with Vodacom provides Absa with the infrastructure to enable cross-selling and the bundling of products to both organisations’ customers,” said Absa in a statement.

The collaboration also allows for the airtime fees on the Cellphone Banking Lite service to be waived for Absa customers.

The first phase of the rollout of the “tap-and-go” payment system has been implemented at a coffee shop at Vodacom World in Midrand, where select Vodacom staff can tap their contactless cards against a machine instead of swiping for payment.

“The project is expected to lead to developments in the near-field communication arena and usher in a new era of convenience for the customer,” says Opperman. “Our plan is for this system to eventually see the cellular handset become an alternative to cash and cards as payment mechanisms.” AT

BPO industry welcomes recent announcement of free telecoms services to new BPO investors in Cape Town, South Africa Issue 17 AFRICA TELECOMS 15

N

News mobile penetration

mobile celluler penetration

200%

source: ITU

97 economies

150% 2 countries 100%

50%

0 2002

2010

97 countries reach 100% mobile penetration

According to ITU StatShot, there are still gaps between the developed and developing world – especially concerning internet use – although the developing world is only a few years behind.

The first decade of the new millennium saw extraordinary progress made in ICT development globally. At the end of 2010 – while more than 2.6 billion people worldwide still lacked access to toilets or other forms of improved sanitation – there were almost 4 billion mobile cellular subscriptions in the developing world.

Mobile cellular penetration in the developing world reached 70% at the end of 2010 – just six years after reaching 70% in the developed world.

In 2002 there were just two countries in the world with mobile cellular penetration over 100%. Eight years later, almost 100 economies had mobile cellular penetration over 100% – and 17 economies had penetration rates above 150%.

Global Internet user penetration reached 30% in 2010; internet user penetration in developed countries reached 30% just nine years earlier, in 2001.

In the year 2000, internet user penetration was under 1% in 72 economies. Ten years later, there were just six economies with internet user penetration under 1%. Internet user penetration in

the developing world as a whole reached 21% in 2010.

Global internet penetration in 2010 (30%) was higher than global fixed (16%) or mobile (12%) telephone penetration in the year 2000.

Mobile cellular and internet user penetration has grown impressively in all regions of the world over the past decade.

Mobile cellular penetration in Africa in 2010 (45.2%) was higher than mobile cellular penetration in the Americas in 2004 (42.8%). Mobile cellular penetration in the Americas had grown to 94.5% by 2010.

Mobile cellular penetration in Asia and the Pacific in 2010 (69.2%) was higher than mobile cellular penetration in Europe eight years earlier (67.0%). Mobile cellular penetration in Europe had grown to 117.7% by 2010.

Internet user penetration in Africa grew over twenty-fold in the decade to 2010, from 0.5% to 10.8%. This gave Africa higher Internet user penetration in 2010 than in the Commonwealth of Independent States (CIS) five years earlier. In CIS, meanwhile, internet penetration grew from 10.2% in 2005 to 34.0% in 2010.

Internet user penetration in Asia and the Pacific grew from 3.3% in 2000 to 22.5% in 2010, bringing it close to internet user penetration in Europe nine years earlier (23.0%). By 2010, internet user penetration in Europe had grown to 67.0%. AT

SA Department of Science & Technology and Nokia announce a partnership addressing education, app development, broadband & support of the Square Kilometre Array bid 16 AFRICA TELECOMS Issue 17

WiMAX Subscriptions Surpass 20 Million Globally

“According to Infonetics Research, worldwide WiMAX subscribers passed the 20 million mark around the mid-point of 2011 and are on track to meet our forecast for around 25 million by the end of this year,” said Richard Webb, Directing Analyst -WiMAX, Microwave & Mobile Devices at Infonetics Research.

“Subscriber growth continues in all regions as WiMAX operators build their customer bases, but we have tracked notably strong growth in the U.S., the Indian sub-continent, and Latin America. With the levels of operator activity and device ecosystem growing, we forecast WiMAX subscribers to surpass 100 million by the end of 2015.”

In the first half of 2011 UQ Communications of Japan doubled its subscriber base, breaking the one million subscriber mark in June. Also in Asia Pacific, new Malaysian WiMAX operator YTL, which just launched WiMAX services in November of 2010, had netted over 300,000 subscribers by June. At an event in July, in which UQ Communications hosted the first public field trial of WiMAX 2, UQ and YTL signed a MoU to develop a pan-Pacific WiMAX hotzone.

“By taking advantage of WiMAX technology’s high speed access and personal Wi-Fi hotspot devices, UQ is growing its subscriber base exponentially and reached 1 million customers in June,” said Akio Nozaka, President of UQ Communications.

“Having successfully completed the world’s first WiMAX 2 field trial in July, UQ Communications would like to cooperate with other WiMAX operators worldwide to expand broadband wireless Internet to deal with today’s rapid growth of data traffic.” AT

GSA confirms 70% jump in 42 Mbps DC-HSPA+ network deployments The Global mobile Suppliers Association, has confirmed how operators are quickly upgrading to HSPA+ systems, and to dual cell HSPA+ technology (DC-HSPA+) in particular, to enhance mobile broadband network performance, capacity and

N

News

N O I L L I M efficiencies, and to improve the user experience. GSA’s latest Global HSPA+ Network Commitments and Deployments report confirms that 39 commercial DC-HSPA+ networks have been launched, an increase of 70% compared to the figure reported three months earlier. At least another 26 DCHSPA+ networks are in deployment or planned.

There are now 410 commercial HSPA operators, confirming that every WCDMA operator worldwide has implemented and commercially launched HSPA on their networks. Since its first commercial launch in February 2009, HSPA+ (HSPA Evolved) has become a mainstream technology. A total of 193 operators have committed to HSPA+ network deployments in 83 countries. 136 HSPA+ systems have been commercially launched in 69 countries, meaning that 1 in 3 HSPA operators have now deployed HSPA+ on their networks.

Alan Hadden, President of the GSA said: “HSPA+ and LTE are complementary 3GPP technologies, and this is demonstrated by the market reality. Analysis of GSA’s data confirms that two-thirds of DC-HSPA+ network operators have also firmly committed to commercial LTE network deployments.” AT

Michael Joseph has resigned as Kenya Tourist Board chairman only eight months into the job citing a World Bank engagement Issue 17 AFRICA TELECOMS 17

Gadgets

Africa Telecoms is always in the know when it comes to the hottest gadgets and devices.

Vodafone Mobile Broadband Modem Rating: HHH Price: R 1 300 Need to know: • • •

Need to know:

• • •

Lab-quality photo prints Scanning and photocopying Wireless and wired networking

>>

It’s really difficult to get excited over a printer, no matter how many bulletpoints we’re given by the manufacturers. Sleek design? Yawn.

Fast print speeds? Meh. Scanning and photocopying functions? Snooze.

That’s not to say these aren’t good features. They’re just not exciting or awe-inspiring. So when this Canon Pixma arrived for testing, we weren’t exactly expecting to be blown away.

Amazingly, it won us over with its sleek design, brought to life by the fancy touch panel on the top of the printer. It’s fast and responsive, never needing a second touch to confirm input. It scans and copies just fine, too. Quite quickly and silently, we’ll add. Then there’s the printing. Yes, it’s fast. It’ll pump out multiple pages in a minute. But it’s the quality of the Pixma’s photos that left us scraping our jaws off the floor. They genuinely are lab quality.

Of course this relies on using proper photo paper (highly recommended) and having decent source photos (so don’t print out something you downloaded off Facebook). This is the best consumer photo printer we’ve ever tested.

18 AFRICA TELECOMS Issue 17

USB 3G modems are a dime a dozen, right? They’re seen in every laptop at a coffee shop where Wi-Fi isn’t free (or available at all). Sales people use them to keep in touch on the road. Home users prefer the simplicity of not having to give money to both an ISP and a landline provider.

In this world of simplicity, newest Vodafone Mobile Broadband modem has a hard life. It has no markings noting it to be any faster than the other sticks out there - it offers theoretical speeds of up to 42Mbit/s, but can realistically only do 30Mbit/s - and is even chunkier than other models. The USB connector sits behind a cap, rather than being retractible, and when plugged in it occupies a fair amount of space.

And then there’s the actual speeds you’ll get. It depends on your mobile operator having support for the high speeds on the cell towers, and you being in a coverage area for those speeds. Chances are it’ll be a densely populated area, further minimising chances of getting a good signal and download speeds. It’s nice to have, but will hardly ever see its potential realised.

>>

Canon Pixma MG6140 Rating: HHHHH Price: R 1 700

Up to 30Mbit/s download speeds USB modem for laptops or desktops Integrated microSD card slot

G

Logitech F540 Headset Rating: HHHH Price: R 1 200 Need to know: • • •

>>

>>

Gadgets

OtterBox Defender Series for BlackBerry PlayBook

Rating: HHHH Price: R 500 Need to know: •

Wireless headset Connects to PS3 or Xbox Voice comms and game sound

Logitech has always been a manufacturer of great gaming accessories, and with the gaming market in its biggest boom yet, business is going well.

Gamers who’ve used the PS3 or Xbox 360 will know that both consoles have great online multiplayer capabilities, but their voice comms options are somewhat limiting. The Xbox has a fragile headset that gets wired into the controller, while the PS3 doesn’t even ship with a solution: users have to buy a compatible Bluetooth headset.

In both cases it’s a matter of wearing an earpiece with a microphone, while making sure your sound system is turned down so you can hear the conversation. Well, Logitech’s F540 combines game audio and voice audio in a single headset. The large drivers deliver great sound quality, and the boom mic is very responsive. Everything works wirelessly, too, with a receiver box that connects to your home theatre system or TV. Put simply, this is great for regular use, or even if you’ve been wanting something to keep the volume down while the family sleeps.

• • •

Hi-impact polycarbonate shell securely snaps around the tablet.

Clear, polycarbonate screen protector is built-in to the shell to protect the screen at all times.

One-piece silicone skin provides an added layer with plugs to cover exposed ports.

Sturdy removable screen cover includes a built-in stand for media viewing or typing and can be used in landscape or portrait view. Additionally, the cover protects the tablet’s front and back camera yet allows for easy accessibility.

This slick black polycarbonate and black silicone case provides great protection for your Playbook. With its clear polycarbonate screen, it is well protected from scratching and other possible mishaps.

The simple to assemble case (and yes it needs assembly) is a few easy clicks too get your Playbook properly protected from most eventualities. Apart from Otterbox stating that the case was not tested for water protection and Africa Telecoms was not prepared to put the Playbook into some water to find out. However, it will certainly give the device some protection from liquids and other mishaps.

Another impressive feature is the cut outs. The case allows full functionality of all possible connections to the device while firmly secured in the cover.

The stand feature of this cover is perfect for media viewing and basic all day usage is great. The angle of the stand is perfect for typing any documents or replying to e-mails.

Overall the build quality of this case is sturdy and a big thumbs up for the overall design and functionality.

H Uncool HH Poor HHH Average HHHH Excellent

HHHHH Awesome Issue 17 AFRICA TELECOMS 19

G

Gadgets

>> Olympus Tough TG310 Rating: HHH Price: R 2 200 Need to know: • • •

Samsung Series 9 notebook Rating: HHHHH Price: R 14 000 Need to know: • • •

Ultra-thin notebook Ideal for travelling business professionals Fast solid-state hard drive

As tech becomes more advanced, it also grows a bit more fragile. Those tiny transistors can only take so much punishment, it seems, and it’s only a matter of time before even the most toughened glass touch screen succumbs to the forces of gravity. Or corner of a paving stone.

We’re not saying that everybody needs to go out and get a bullet and bounce-proof cover for their smartphones and cameras, or avoid using them outdoors. In fact, with Olympus’ TG310, you don’t need to.

This 14-megapixel snapper has been toughened to withstand more than your average knock - despite its seemingly fragile design - and it can be taken for a swim in water up to 3 metres deep.

Even then, it’s not a big, bulky thing that’s unwieldy.

It’ll slip into a pocket as easy as any other compact camera, and the only special care it needs is making sure sand and grit don’t get in the water seals. Oh, it takes pretty decent photos, too. HD video is on offer as well, and it also has great quality.

>>

Samsung’s had Apple in its sights for some time, now, carefully releasing products that are similar to those coming from Cupertino, but with a few key differentiators.

The Series 9 ultraportable is the latest attempt from the Korean giant, taking aim at Apple’s line of super-slim Macbook Air notebooks. It’s got the best of everything: 4GB of RAM, a 128GB solid-state hard drive and a second-generation Intel Core i5 processor. In fact, until Apple recently refreshed the Macbook Air line-up (with exactly the same specs as the Samsung), the series 9 had the better spec sheet.

The stylish Samsung also boasts other features present on the Apple, including a high-resolution 13” display, a backlit keyboard and an aluminium construction. A seven hour battery life and standard weight of 1.3kg also keep it even with the Apple.

This is the best bit of innovation we’ve seen from a PC manufacturer, in recent times, even though it took some ideas that were already around. It breaks the mould for boring Windows machines, and we hope others follow.

20 AFRICA TELECOMS Issue 17

Waterproof to 3 metres Shockproof up to 1.5 metres HD video recording and 14-megapixel photos

G

Gadgets

Need to know: • • •

Displays 3D images Includes 3D glasses 27” display

We’re being bombarded by 3D everything these days. Our movies at the cinema, our phones, our laptops and our TVs. Of course, desktop computers are also privy to display with an extra dimension, and it’s here that the technology makes perhaps a bit more sense.

Samsung’s SyncMaster SA950 is a 27” computer display, with LED backlighting, capable of delivering 3D images.

Much like the tech we see used on TVs, you’ll need to wear a pair of active shutter glasses. The content, though, is what makes this.

3D movies lose some of that depth when viewed from some distance away, but a 27” monitor, used for PC gaming, will rarely be more than 1.5 meters away. This means you’re closer to the action and the resultant 3D effect is more convincing.

And thanks to the way games are made, the 3D technology produces very convincing results. It is important to note, though, that this monitor is only compatible with AMD’s HD3D specification, and not the nVIDIA 3D Vision technology. AMD’s technology is available on Radeon 5000 and 6000-series graphics cards, while the nVIDIA solution is only available for compatible models in its GeForce lineup of graphics processors.

This does make things a bit more complicated - and narrows down the potential market for this fantastic monitor.

LG Optimus Black Rating: HHHH Price: R 4 500 Need to know: • • •

>>

Rating: HHHH Price: R 5 500

>>

Samsung Syncmaster SA950 3D monitor

Android smartphone 700 nits brightness Thin design

Many people might downplay the importance of how bright a phone’s display should be, but after using something in direct sunlight - and not being able to see a thing - their tune might change.

Thankfully there are constant advancements being made to combat the side-effects of that great big ball in the sky. LG’s given its new, brighter display technology a clever name, too: NOVA. Presumably this opens up the possibility of seeing an even brighter SuperNOVA display in the future.

The ultra bright display isn’t the Optimus Black’s only good point, though. It boasts a slimline design, a zippy 1GHz processor and a mostly-standard implementation of the Android (version 2.2) interface. The latter is not a bad thing, though, since the standard Android interface is quite intuitive.

Wireless, Bluetooth and two cameras also make a showing, making this a complete smartphone offering. If there’s just one thing we could change, though, it would be the plastic panels and frame: most of its competitors are metal, and pull off the premium phone image a bit better.

H Uncool HH Poor HHH Average HHHH Excellent

HHHHH Awesome Issue 17 AFRICA TELECOMS 21

Statistics

This month Africa Telecoms focuses on VAS and Apps in Africa

nUmber of users, 2009 - 2014 2,500

Informa Telecoms & Media

VIDEO

MOBILE PAYMENTS/BANKING

Internet

Social Networking

Messaging

IMAGES

Music

LBS

GAMES

Users (millions)

2,000

1,500

1,000

5000

0 2009

2010

2011

percentage of app downloaders who would pay for an app by category

2012

2013

2014

average time spent on various mobile functions, 1/11 Apps Fire 1/11

Nielsen

past 30-day app downloaders

22 AFRICA TELECOMS Issue 17

news

food

maps/navigation/search

productivity

entertainment

0

Games

100

All other - 40 minutes

Web/Web Apps - 10 minutes

Telephony - 27 minutes

Mail App - 7 minutes

Phone / Skype / Messages

Maps / Games / Social Networking / More...

top operators by non-sms data revenues as % of Nielsen total data revenues 3Q10 vodacom SA

worldwide sales of media tablets to end users by os (thousands of units) Gartner (April 2011) OS iOS Market Share (%) Android Market Share (%) MeeGo Market Share (%) WebOS Market Share (%) QNX Market Share (%) Other Operating Systems Market Share (%) Total Market

64 %

Mtn

63 %

bharti airtel rdc

40 %

safaricom

38 %

bharti airtel rdc

35 %

globacom nigeria

35 %

33 %

# of downloads (B)

32 %

mtc namibia

27 %

orange ivory coast

26 %

2012

2015

68,670 63.5

138,497 47.1

2,502 14.2

13,898 19.9

26,382 24.4

113,457 38.6

107 0.6

788 1.1

1,271 1.2

3,057 1

0 0 0 0 234 1.3

2,796 4 3,901 5.6 432 0.6

4,245 3.9 7,134 6.6 510 0.5

8,886 3.0 29,496 10 700 0.2

17,610

69,780

108,211

294,093

Apps

8 bharti airtel rdc

2011 47,964 68.7

cumulative number of downloads, itunes music / video / movie vs. apps, first 10 quarters Apple

10 mtn nigeria

2010 14,766 83.9

iTunes

6 4 2 0

0

1

2

3

4

5

6

7

8

9

10

quarters after launch

FREE VS. PAID

Apple

25 %

apple

75 %

24 %

blackberry

76 % 57 %

android

43 %

15 %

nokia

85 % 32 %

palm

68 %

22 %

windows 0%

78 % Percentage free

100 %

percentage paid

Should you have comments on this page the Africa Telecoms team would appreciate an e-mail to bshaw@3ipublishing.co.za Issue 17 AFRICA TELECOMS 23

tl

Thought Leadership

Brett St Clair Head of Mobile for Google in South Africa

24 AFRICA TELECOMS Issue 17

tl

Thought Leadership

‘Googling’

Africa Getting Africa up to speed with the developed world when it comes to connectivity and Internet penetration is about more than laying cables. Brett Haggard takes a look at how Google’s emerging markets division is driving access, relevance and sustainability into the formerly dark continent.

Issue 17 AFRICA TELECOMS 25

tl

Thought Leadership

“

says Google’s plans revolve around Google is a company that needs little, if three key focus areas, namely improving any introduction.

And I’d venture to say that access, increasing relevance and building But just in case you’ve been living sustainability. under a rock for the past decade, we’re today it’s impossible for talking about the undisputed leader in the anyone to make use of the Internet search space and hand in hand Better access through cheaper with this, the most powerful force in the smartphones Internet for longer than an online advertising space.

Broadly speaking, St Clair says Google’s hour or so without bumping Google has become such an intrinsic first area of focus centres on how it can into, or inadvertently making assist in getting every African online. part of our daily lives that the verb ‘to G/google’ officially describes the use “And as we’ve seen through the use of, a feature or service of the Google search engine to obtain growth in Internet penetration in South that’s powered by Google’s information on the Web, having made its Africa, mobile technology will be a core way into the Oxford English Dictionary driver for Internet adoption in Africa,” St technology. on 15 June 2006.

Clair says.

As it so happens, Google has a fairly significant trump card And I’d venture to say that today it’s impossible for anyone to make use of the Internet for longer than an hour or so without in its Android smartphone operating system.

“We’re working closely with many handset manufacturers to bumping into, or inadvertently making use of, a feature or get low cost, Android-powered smartphones into the market,” service that’s powered by Google’s technology.

Despite its prominence on the Internet and in our daily St Clair explains.

While he admits there’s merit in competing with the likes of lives, Google is a company that’s very aloof when it comes to divulging its plans for the future, detailing any of its business Apple’s iPhone and other top-end smartphones, easily 98% of the market is about affordable, mass-market handsets. activities or interfacing with the press in general.

Android gives manufacturers the ability to design handsets And that’s why, when Africa Telecoms got an opportunity to speak to Brett St Clair, Head of Mobile for Google in in the sub $100 category and get the emerging markets South Africa, about the company’s activities on the African connected to the Internet in a meaningful way.

And daily, St Clair says, Google Mobile has to walk the continent, it was a golden opportunity to find out what makes fine line between remaining brand agnostic and being equally the company tick.

St Clair says that Africa is considered part of a new division committed to all of our handset partners, while at the same time trying to drive and encourage them to design solutions for Google has formed to focus on ‘emerging markets’.

Interestingly enough, because of its more evolved business the entry-level market.

“It’s something Google Mobile has done really well so far,” landscape and the presence of a localized version of YouTube, amongst other things, South Africa falls into a cluster of more he maintains. “And devices such as the super affordable prepaid Huawei Ideos smartphone – in concert with affordable packages developed countries reporting into Israel.

Until ‘emerging market’ countries get to this point, St Clair from Kenya’s Safaricom – are great testimony to this.”

26 AFRICA TELECOMS Issue 17

tl

Thought Leadership

Relevance

While most of this activity is led by the international ‘mobile’ team, St Clair says that Google assists locally by driving awareness at an operator level and supporting handset vendors’ in-country activities with public relations initiatives.

“Outside of that, however, we have to remain agnostic and cannot be seen as supporting one or another partner more than the others,” he says.

Driving prices down and speeds up

Cheaper smartphones are useless without the networks to carry the content Africans so desperately crave and sooner or later any discussion about driving Internet adoption ends up focusing on infrastructure.

“It’s no secret that the Internet across the African continent needs to be cheaper and faster, both in terms of bandwidth and latency,” St Clair says.

And while Google isn’t generally all that involved in putting cabling in the ground or under the sea (although it does some work with cable providers to invest in capacity), it provides a great deal of other infrastructure that improves the overall performance of certain services.

Examples include global caches and local YouTube domains that are installed all across Africa, dramatically reducing international routing costs and improving performance.

“In some countries Google even caches non-YouTube and Google specific traffic and invests in points of presence that reduce international gateway costs,” he says.

“We realize that if we can help to bring down the costs for operators and ISPs, this will also help to bring down the end users’ costs,” he says.

28 AFRICA TELECOMS Issue 17

Cheaper smartphones: check.

Faster, cheaper connectivity: check.

Now what about the content?

St Clair says that the second major pillar in Google’s strategy is to make the web relevant to Africa. And as a starting point, that means translating it into as many African languages as possible.

“There are over 2 100 languages spoken throughout Africa,” he says, “and while we support a number of them right now, we’re working hard to add to that list.”

To this end, St Clair says, Google invests in localization specialists who don’t just focus on the translation of content, but also on ascertaining what kind of content each country’s users will be most receptive to.

“Additionally, we ensure that YouTube’s interface is translated and that local artists and content creators are encouraged to make use of the local YouTube service.

“In some countries, we go beyond this and begin localizing the development of services and technologies across two continents (Europe and Africa),” he adds.

Two great examples of services that result from this model are the tailoring or ‘slimming down’ of Gmail so that it delivers an equally great experience in an Internet café in the middle of rural Ethiopia and a dial-up modem in a more urban environment; and feature phone technology such as enabling services like Gmail, Google Search and Google Trader for use over SMS. St Clair says that these efforts are short-term enablers that have great value in the long term, since they are used as stepping stones to the delivery of richer Internet services.

“It gets users familiar with these services (albeit in a slimmed-down form) in an instant, so that when they get their hands on a smartphone, the learning curve is less steep,” he explains.

The increasing relevance of the web also relies heavily on the intervention and participation of users.

And St Clair says this is one of the reasons Google has launched initiatives like ‘Get African Business Online’ or GABO. “Analysts say that a 1% increase in Internet penetration in an emerging country can result in a rise in export GDP of between 4.3% and 4.7%,” he says.

That’s incredibly relevant to governments. And by having the right mindset, emerging countries need to know they can seriously improve their standing in the worldwide community.

tl

Thought Leadership

“Fifteen years ago, Korea was considered an emerging market country. At that time, however, the government saw the benefit of digitizing and invested accordingly.

“Today, Korea is one of the most connected countries,” he says.

In the African context, St Clair says that governments need to realize that by 2015 Africa will have a larger workforce than any other continent.

“And if African countries are able to digitize in the same way Korea did, there’ll be great opportunity to compete at a global level,” he believes.

For the long haul

Rounding things off, St Clair says that Google’s efforts in sustainability revolve around providing the right educational foundations for momentum to be created.

“So, right now we’re working closely with Tier 1 universities to develop course materials that ensure graduates are familiar with the connected world; and, when it comes to more technical disciplines, that graduate developers are familiar with building solutions for the cloud and mobile ecosystems.

“We would love to see some Google engineers coming out of these institutions in the future,” he says.

When it comes to working with Tier 2 universities, St Clair says Google is bathing campuses in WiFi, providing faculties with devices to experiment with, developing course material on using the Internet, and giving them free access to Google Apps.

“Outside of the university context, we’re putting down technology centres, building communities and hosting competitions such as the Android Developer Challenge.

“We’re also running a trial investment programme in South Africa called Umbono, and providing it works, we’ll

roll it out in the rest of Africa,” he adds.

As in most emerging markets, St Claire says there is a ton of venture capital available.

“The venture capital companies are just ill equipped to vet technology investments and don’t allow for early investors to exit at the appropriate time (and in turn invest in the next batch of startups), thereby creating a healthy flow of deals,” he says.

Umbono solves this by providing startups with between $25 000 and $50 000 of startup capital over a six-month period; office space to grow; and business support in the form of mentorship, formal business training and most importantly, the opportunity to network with players in the venture capital scene who understand how the landscape should operate.

St Clair says that, all in all, Google is trying to approach the African market as comprehensively as possible.

Certainly, from an outsider’s perspective, it’s comforting to know that Google is engaging to this extent and is not just treating Africa as a ripe new market for growing its Adwords and Adsense presence. AT

Issue 17 AFRICA TELECOMS 29

‘Applification’ Africa-Style Mobile phones and not smartphones will dominate the market in the near term.

30 AFRICA TELECOMS Issue 17

By brett haggard Content is king.

If you don’t believe it, ask the hundreds of thousands of satellite television-using Africans living in low-cost houses and other shelters cobbled together with whatever discarded materials they could find.

Because such people have very little to call their own, they are a powerful illustration of how content in the form of television programmes, music and, increasingly, smartphone applications is becoming an essential part of life – even for those living on the breadline.

This is great news for the telecoms sector, since it’s become increasingly clear in the past year or so that the world’s mobile data networks are being driven by application usage as opposed to generic web browsing.

And for evidence of this, all you have to do is consider the

dramatic growth in data consumption on a worldwide basis, since smartphones and ‘applification’ of the Internet took hold a couple of years ago.

Research shows that smartphone users prefer to login to services like Facebook and Twitter using applications, as opposed to using the providers’ web interface.

And the same holds true when it comes to accessing e-mail, reading news and enjoying rich-media such as that on YouTube.

This gets really interesting in Africa, where feature phones and not smartphones dominate the landscape.

That means developing for the more dominant ecosystems – namely Nokia’s soon-to-be-retired Symbian and the wealth of handsets that support applications authored in Java – is the smart thing to do.

Issue 17 AFRICA TELECOMS 31

Java and symbian: Catering to the masses

A great example of this is Samsung’s recently deployed ‘Ch@t’ instant messaging application.

At its core, it is a South African-developed instant messaging application. But, it also incorporates a loyalty based reward scheme.

Points earned in the application can be redeemed in-app for airtime and while it’s open to multiple vendors’ feature phones, Samsung users earn twice the points of non-Samsung users.

Ch@t is one of the few truly cross platform IM solutions currently available today with support for over 500 phone models.

What’s interesting is that Ch@t was initially launched as a Java application that runs on many Samsung mobile devices with Java capabilities. But, despite the fact that support for Blackberry and Android smartphones has been added, Java remains the most adopted platform.

Around 80% of the devices Ch@t is deployed on are Java devices.

Of the remaining 20% of the user base, 15% are Blackberry and 2% are Android. The other 3% is classified as ‘unknown devices’, which it’s safe to assume means they’re on other Java-based handsets.

While it is important to note that the skewing of the platform adoption will undoubtedly be influenced by the type of application Ch@t is (an ultra low-cost instant messaging application for the lower-end, feature phone-centric market), the underlying message comes through loud and clear.

If you want to develop apps for the African market in the short term and are aiming at mass market penetration, feature phones are still where it’s at.

And it seems like this will continue to be the situation in the short term.

However, Samsung believes the shift to smartphones within

“

The two leaders are Apple’s iTunes AppStore and the Android Marketplace, which on a worldwide basis in August (according to Apple itself) were home to just over 425 000 applications and (according Appbrain.com) 250 000 applications respectively.

32 AFRICA TELECOMS Issue 17

the next year will be profound.

Java and Symbian, the two leading application development platforms for feature phones, are going to be the best route for developers to follow in the next year to 18 months.

But, looking at recent announcements around Nokia’s commitment to Windows Phone and the soon-to-follow demise of Symbian as a platform for new handsets , Java is going to be the safer bet.

After all, from next year Symbian developers will have to come to terms with the fact that the existing device base of Symbian phones is all there will ever be.

And this will in all likelihood translate into the demand for Symbian applications declining in the next two years.

Looking at appLiCation stores

The mobile applications landscape is pretty cut and dried.

The two leaders are Apple’s iTunes AppStore and the Android Marketplace, which on a worldwide basis in August (according to Apple itself) were home to just over 425 000 applications and (according Appbrain.com) 250 000 applications respectively.

In August on a worldwide basis, Nokia’s Ovi store (according to Nokia itself) had just over 50 000 applications housed in it, while RIM’s Blackberry World (according to RIM itself) was home to over 38 000 applications.

The newcomer, Microsoft’s Windows Phone Marketplace, was (according to Windowsphoneapplist.com) approaching the 29 000 applications mark at the beginning of August on a worldwide basis.

Nokia: sleeping giant

While none of these figures are very surprising, there are a couple of interesting points to ponder here. For instance, although Nokia’s Ovi store is one of the smaller players, it’s the biggest of the smaller players.

It’s also the one that’s most relevant in an African context, especially if one considers the dominant market penetration for Nokia phones in Africa and the fact that Nokia’s store is the only one that caters to both mobile phone (Symbian Series 40) and smartphone (Symbian Series 60) devices.

Although smartphones dominate Nokia’s application downloads with 43% of the attention, its mobile phone application downloads represent a very healthy 37% share of the attention.

Considering that in real terms, translates into a 2.4 million mobile phone application downloads a month and that this number is up substantially from a year ago when it only represented 12% of the total application download number, the demand for Symbian Series 40 applications is growing.

This gives massive credence to the notion that Africa is all about feature phones and that there’s a ton of potential yet to be capitalized on.

It’s just ironic, though. After all, there will be a slowdown in the number of Symbian Series 40 (and a little further down the line, Series 60 devices) coming to market from next year onwards.

If however, these devices stay in the market and continue to dominate the actual marketshare, it is where the smart money in mobile application development will go.

Throw in a couple of wildcards like Ovi Maps, Ovi Music and the existing operator billing agreements that Nokia has in place around the world, particularly in regions where Microsoft still needs to develop a mobile strategy.

And then step back and look at the big picture.

It’s as clear as the light of day: Microsoft will be an environment you as a mobile developer can simply not afford to ignore over the next two years.

And while it’s doubtful that it will begin contending with Apple and Android during that timeframe, it will almost certainly overtake RIM and begin nipping at the two leading vendors’ heels.

“

Windows Phone: the one to watch

A second interesting thought is to realise that (current and future momentum included) Microsoft and its Windows Phone 7 operating system will be the champion on 2012.

Consider that this operating system is about a year old and how it’s already nipping at the heels of RIM’s far more established Blackberry OS and Blackberry AppWorld, not to mention Nokia’s Ovi Store.

This is due to the fact that Microsoft has the largest formal development community in the world.

And right now, feelings within the company are that it hasn’t even begun scratching the surface of what its mobile ecosystem could look like if it got every one of its developers geared up behind Windows Phone 7.

Now, consider that Nokia – the biggest mobile phone vendor if one looks purely at handset numbers – is betting its whole future on Windows Phone 7 and its newfound alliance with Microsoft.

Add to the mix how dominant a vendor Nokia is in the worldwide market and how much better its penetration is, both in terms of actual handset numbers and the availability of its Ovi store.

34 AFRICA TELECOMS Issue 17

While Apple remains dominant right now, Android will be the number one gorilla on the block by the end of the year

Who’s the boss?

While Apple remains dominant right now, Android will be the number one gorilla on the block by the end of the year, regardless of whether you consider the number of applications available in its store, or the number of downloads it has to cope with daily.

And when it comes to Africa, Android will ultimately be the dominant smartphone platform too.

This is mainly because right now the African market is being flooded with inexpensive Android handsets. And once users have these devices in hand, they’ll experiment with free applications and swiftly move onto paid-for applications.

So what should mobile developers do?

When it comes to mass market, it’s a toss-up between Java and Symbian. On a purely numbers basis – bearing in mind that Symbian runs Java – they should start with Java and move swiftly onto native Symbian applications.

If it’s an application that’s more suited to smartphones, they should aim at Android first, and then focus on Apple, Windows Phone 7 and Blackberry (in that order). Or maybe even move Windows Phone 7 one notch up the list, since it’s shaping up beautifully. The last piece of advice Africa Telecoms is able to give is also somewhat of a disclaimer.

Things change quickly in the mobile space. Sage developers will keep their eye on the market and adapt quickly to changes in the landscape.

A year ago, nobody would have put Blackberry at the bottom of the smartphone list. And the fact that it looks increasingly like it’s going to move into fifth position before the end of 2012 shows you how much changes in a short space of time. AT

36 AFRICA TELECOMS Issue 17

“

“Our app will provide our customers with better performance than traditional webbased means of banking. The market can expect to see a lot more of our existing innovations incorporated into it and a number of new mobile innovations dovetail from the app roadmap”, says Michael Jordaan, CEO of FNB. By brett haggard

SA bank launches world’s first transactional smartphone app South Africa’s First National Bank is blazing the trail when it comes to smartphone banking apps.

Available for iPhone, Android and touch-aware BlackBerries, the app is claimed to be the first transactional smartphone application in the world and gives users a secure and safe way to monitor and interact with their bank account via a user-friendly interface.

In addition to banking services, customers are able to find FNB branches and ATMs using location-based services, as well as access to an immediate FNB branch list directory. Quite innovatively, the app also allows users to make free calls to any FNB contact centre and place cheap outbound calls to other numbers.

The app also has functionality for users to view foreign exchange rates.

“In an increasingly digital world in which smartphones, tablet devices and apps are changing the way we communicate and live, the introduction of the FNB banking app will enable us to widen our offering – allowing us to provide our customers

with convenient banking solutions and great user experience,” says Michael Jordaan, CEO of FNB. “We are glad to say that this app is a home-grown creation and has been developed in-house by FNB Connect, the bank’s internal Internet Service Provider. Our app will provide our customers with better performance than traditional web-based means of banking. The market can expect to see a lot more of our existing innovations incorporated into it and a number of new mobile innovations dovetail from the app roadmap,” adds Jordaan.

FNB says that South Africa currently has an estimated 16% smartphone penetration, which according to information technology research company Gartner will ramp up to 80% by 2014. Global sales of tablet computers and smartphones are predicted to exceed PC, notebooks and netbooks in 2011 and the app market is also predicted to grow by 60%. FNB says that the current functionality in its app is just the start.

Over the coming years, customers can expect the app to allow for the viewing of eBucks balances, eWallet details, share trading, advanced payments and even augmented reality. AT

Issue 17 AFRICA TELECOMS 37

“

The ICT community wants to play its part in bringing about change for good, and the ITU’s role in that is to connect the right people and catalyse that change. World 2011 pledges to be a forum for change.

ITU Secretary -General, Dr H amadoun Tou Secretary-Gen ré and UN eral, Ban Ki-m oon, at the IT 2009 Heads o U Telecom Wo f State with CE rld O Round Table .

Blaise Judja-Sato Executive Director ITU Telecom 38 AFRICA TELECOMS Issue 17

Dr Hamadoun Touré, ITU Secretar y-General, at the Nigeria Day celebrations, arranged by the Nigeria Pavi lion at ITU Telecom World 2009.

All images: ITU / V. Martin

Mr Ban Ki-moon, H.E. Mr Paul Kagame, President of Rwanda; Minister of UN Secretar y-General; and Dr Tarek Kamel, gy, Egypt, visit the Communications and Information Technolo 2009.

Egyptian Pavilion at the ITU Telecom World

A unique opportunity to network, share visions and bring about change

Spotlight on

ITU Telecom World 2011 This year’s forthcoming ITU Telecom World 2011, taking place in Geneva from 24th to 27th October, presents a unique opportunity for the ICT community. ICTs continue to evolve at rapid rates, and this evolution has had a significant impact across the world in recent years. Digital technologies have remapped the globe, transcending physical distance to connect diverse communities and converge previously insulated spheres. Celebrating 40 years of ITU Telecom, this anniversary year will reflect the changing times through shifting its focus to deliver a fully participatory networking event that will engage strategic debate. ITU’s vision is for an international ecosystem of players from public, private, third sector and research to come together to share vision and knowledge, make the decisions that will map the future of the industry and pinpoint how connected technologies can truly help solve real world challenges.

“As the leading UN agency for ICT issues, ITU is uniquely positioned in being able to bring the public and private sectors together for ITU Telecom World 2011, opening doors that would otherwise remain shut, stimulating debates that without it would remain silenced and creating networks of industry peers who together can drive real global change,” said ITU Secretary-General Dr Hamadoun Touré. The global focal point for governments and the private sector in developing networks and services, ITU is bringing together what it sees as the right mix of global ICT leaders to discuss and debate the key issues facing the industry. Pointing to some of today’s key challenges, including climate, population and resource issues, ITU aims to exploit the industry’s potential to define communities and advance societies. World 2011 facilitates and encourages engagement in the right discussions to generate real action and deliver tangible results.

Attending the event will be heads of state and government from established and developing nations, as well as mayors from leading cities around the world. Alongside them will be the CEOs and key influencers from big business, including manufacturers, operators and applications providers, as well as regulators, policy advisers and key media players.

ITU Telecom World 2011 is designed to fully leverage all networking by creating key opportunities that encourage people to connect, reconnect and do business during the event.

Through National Pavilions, a large number of African countries will be represented at ITU Telecom World 2011.

Algeria, Angola, Burundi, Ghana, Kenya, Malawi, Namibia, Nigeria, Rwanda, South Africa, Tanzania and Zambia will

all be present, showcasing how ICT directly impacts their populations, and putting the spotlight on key opportunities for investment in their individual regions. African heads of state, government & international organisations, together with business leaders, mayors of top cities, thought leaders, innovators and researchers will meet at the event to carry out policy-defining discussions on a world stage.

The networking opportunities offered by ITU Telecom World 2011 are numerous and include top-level bilateral meetings, a concierge service to facilitate meetings, online matchmaking and networking tools. ITU is also building structured programmes such as the Digital Cities Conference, a dedicated one day conference focusing on the contribution ICTs can make towards the challenges of urbanisation. There will also be workshops on a wide range of core industry themes such as innovation, the business of spectrum, broadband access and cybersecurity, a technical symposium, roundtables, and social networking events such as lunches and cocktail receptions.

We are very excited about World 2011 and the opportunities it will provide to not only talk and share knowledge, but to make decisions that will result in real action. The ICT community wants to play its part in bringing about change for good, and the ITU’s role in that is to connect the right people and catalyse that change. World 2011 pledges to be a forum for change.

ITU Telecom World is running a series of competitions in the lead up to the event in October. We have launched a global call to would-be innovators, digital thinkers and social entrepreneurs to join the debate on how to drive socioeconomic development through the innovative application of connected technologies. We want to hear from companies both big and small with a CSR story to share, and from individual citizens or NGOs whose connected project has made a real difference to their community.

The competitions will showcase innovative projects that use mobile or connected technologies to transform people’s lives. ITU Telecom World 2011 will provide a platform where the best stories will inspire delegates and catalyse action, and offer entrants the chance to win funding to help realise their ideas to connect the world. AT To learn more about ITU Telecom World, visit the website www.itu.int/world2011.

To find out full details on the competitions, visit the webpage http://world2011.itu.int/get-involved.

Issue 17 AFRICA TELECOMS 39

GettinG Graphic with

Mobile Gaming

by James munn, VP for business DeVeloPment, Qualcomm , south africa

Mobile innovation is at an alltime high. Earlier this year, chip manufacturers announced product roadmaps for the availability of dual- and quadcore chips for next-generation smartphones and tablets – significant steps forward in allowing the mobile industry to deliver even more robust, efficient and seamless user experiences.

40 AFRICA TELECOMS Issue 17

While intense competition might raise our collective blood pressure, there’s no doubt that it has led to increased power, speed and sophistication for mobile devices. In particular, we’re seeing incredible performance gains in the graphics arena, with powerful new forms of GPU technology enabling HD-like visuals on mobile phones. In a field once dominated by voice communication, graphics and multimedia have truly become the prime conduit for transforming consumers’ mobile experiences and expectations.

Case in Point: Mobile GaMinG

Perhaps no mobile feature has benefited more from the historic advancements in graphical innovation than gaming.

Consumers today are voting with

their money – and the numbers speak for themselves. According to Juniper Research, the mobile gaming industry will be worth US$48 billion by 2015.

The smartphone industry’s share of the US portable gaming market jumped from 19 to 34% between 2009 and 2010, and smartphones now account for 8% of overall gaming revenue, up 3% from last year. Among social gamers, mobile has emerged as the dominant platform.

Mobile users now utilise their devices for games at a 61% clip, more than any other feature, including search and music.

And we’re not talking about Tetris and Pac-Man. 1080p video – once a pipe dream in mobile – will soon be a reality for smartphone users. As gaming becomes more globally relevant, it’s becoming clear that the GPU has

emerged as the heart of the mobile experience.

The GPU and Industry Opportunities

The rapid transition from voice to data in the mobile space represents a golden opportunity for the graphics industry, but there are a number of hurdles to clear in order to capitalise. While mobile games rapidly increase in popularity, we still have a long way to go before mobile begins to seriously challenge the console gaming sector in terms of overall revenue.

The solution? We need to bring console graphics straight to mobile devices, providing on-the-go consumers with the same immersive gaming experience they get at home. That means enabling incumbent console systems like Xbox and PlayStation onto smartphones and developing graphics advanced enough to leave consumers saying, “Why relegate myself to gaming on my couch when I can get the same optimal quality on my phone or tablet?”

But it doesn’t end with gaming.

Streaming video content has become an integral part of the mobile experience, and it’s here to stay. GPU advancements in the next several years will make YouTube feeds crisper, bringing consumers desktop quality no matter where they are. It means optimising for Adobe Flash and developing for

HTML5, which will lead to highdefinition playback at or near native frame rates.

As GPU technology becomes powerful enough to support native-like gaming and video, software development must be optimised to ensure that allday battery life is prevalent in all smartphones. Executing this delicate balance is perhaps the most daunting challenge as we continue to enhance GPU technology. Consumers shouldn’t have to choose between late-night gaming with a friend and firing off a few tweets – our batteries should afford us to do both, and soon they will.

Overcoming these optimisation challenges will actually exacerbate one of the more overarching issues our industry faces. It’s well known that as GPUs become more enhanced, dataheavy apps become enticing options for consumers. Unfortunately, these rich apps are beginning to cripple the very carriers that make them possible in the first place. GPU technology will need to meet this problem head on and show that it is indeed possible to retain superior graphics while streamlining the process in order to alleviate network stress.

All of these aforementioned innovations are for naught if the networks are too overloaded to support them. The mobile industry will need to take the initiative to begin aggregating content

and optimising delivery from dataheavy social media apps to ease network constraints and maintain superior user experiences.

Collaboration within the Mobile Ecosystem

Close and productive partnerships have made the mobile industry more than a sum of its parts. With games and video streaming emerging as major selling points to consumers considering making the jump to smartphones, there is serious money to be made via lasting collaboration between OEMs and chipmakers. IE Market Research Corp. recently predicted that the market for mobile gaming, music and TV will hit US$52 billion by 2015 – up from US$32.9 billion in 2009. And the key to making that prediction a reality lies on advancements in GPU capabilities.

The market potential for mobile developers is significant, and unlike console gaming, developers don’t need to wait six or seven years for the next console edition to come out – Android is coming out with new cycles every six months. Collaboration is key. It’s the connective tissue that has driven innovation in mobile for three decades, and fostering it on the GPU side will enhance the mobile community’s global impact as smartphones evolve from luxuries to virtual lifelines. AT

Issue 17 AFRICA TELECOMS 41

advertorial

The growing uptake of smartphones and new social networking approaches to handling voicemail and SMS could help MNOs complete more calls and boost ARPUs, says Einar Lindquist, CEO of Teligent Telecom

People

Moving the Power to the

When does a mobile stop being a phone? It’s arguable that this happened at the end of 2009, when handset manufacturer Ericsson announced that mobile data traffic had for the first time exceeded voice traffic worldwide in terabyte terms.

These figures were based on traffic from an estimated 400 million smartphone users, against the voice calls made by the 4.5 billion mobile subscribers worldwide.

50 AFRICA TELECOMS Issue 17

Although this global picture is considerably different from that in Africa, where around 95% of people don’t have a data connection and mobile data revenues excluding SMS are typically under 2%, smartphone take-up and usage in Africa is still growing fast. In some countries, smartphone sales represent over 50% of all mobiles sold, which means more touchscreen-driven menus and similar high-end features

Smooth operators

spreading into the mass market.

So although mobile data services are yet to take off, the commoditisation of phone technology means there’s already a substantial user base with handsets that are ready to take advantage of these new features.

This in turn gives operators an unexpected opportunity to boost their revenues from their core business of voice and telephony-based messaging services – a welcome bonus in the current climate of intense price competition from operators seeking market share. Let’s take a closer look at how this revenue boost can be achieved.

Getting the message

One of the biggest issues for any operator is to grow the number of calls they can actually charge for, which means cutting the number of uncompleted calls where, for example, a called party’s line is busy or unavailable, or the caller hangs up before the call is answered, or the person being called chooses not to answer. We estimate that up to 70% of all calls on a mobile network are not billable.

While voicemail services can address this, a traditional, static, answering-machine service may not significantly increase call completion rates. However, more flexible, personalised and intelligent voice messaging services that take advantage of the ergonomics of smartphones can drive up the ratio of billable calls. Each percentage point increase in completion rate makes a big difference to the operator’s bottom line.

Users on top

The enhanced capabilities of newer handsets mean that voice handling can be taken out of its ‘key-pad and speaker’ legacy environment, and evolved into a more attractive, more flexible and more interactive messaging service, with an interactive GUI frontend.

How do MNOs go about achieving this? The first stage is by offering smartphone users an ergonomic app for their handsets, giving them an easy way to manipulate their voice calls, availability status and message alert set-ups.

For example, the app would enable users to set up a variety of call-handling scenarios with relevant voice messages, such as “in a meeting”, “out of office”, “do not disturb” and manage their ‘presence’ status from the touchscreen.

This type of functionality is already growing in familiarity thanks in popular apps such as the Skype client, and would help to drive voicemail usage and discourage slamdowns – increasing the number of completed calls on networks, and boosting revenues.

Combined with a flexible, integrated messaging service platform, that can support such extensive personalisation and intelligent routing capabilities, this approach gives users easy management of their phone presence.

As well as increasing the amount of billable traffic on your network, you get subscribers more involved in personalising their messaging services, adding value to their experience.

This makes for stickier services, which in turn means you’ll experience less subscriber churn.

The bottom line

Is it possible to convert these subscriber benefits into figures that illustrate the potential revenue increase? I believe it is. Let’s assume you have a million subscribers, and a call completion rate of 50%. If you can get an extra 5% of your subscribers to start using touchscreen message-management apps and customisable voicemail greetings, this would mean three extra calls completed per week, per subscriber. At 10 cents for a one-minute call, the recurring monthly revenue would be US$60 000.

That’s a healthy revenue boost for simply giving subscribers the ability to manage their messages in a more flexible, intuitive way than traditional voicemail box options.

Traditional voice and messaging services will make the lion’s share of operator revenues for many years to come – and you can start to maximise those revenues and fight off margin erosion now, by taking advantage of the move to smartphones. All you have to do is put the power to make the most of those services in the hands of subscribers. www.teligent.se AT

Issue 17 AFRICA TELECOMS 51

advertorial

This approach to voice traffic would put users in charge of their messaging ecosystems – enabling them to manage voicemails, mailbox preferences, missed call alerts and so on in a simple, intuitive and ergonomic way, instead of having to remember voicemail service option numbers. This in turn would boost revenues by enabling more calls to be completed and boosting SMS message volumes.

52 AFRICA TELECOMS Issue 17

Africa’s

growing hunger for mobile apps

very popular among African users. In 2010 there was a 500% increase in usage of BBM worldwide.

BBM users are highly engaged and very active, with 70% of users sending messages daily. Other favourites include social networking apps like Facebook, Myspace and Twitter, as well as email.

The impact that these apps could have on productivity That’s according to Craige Fleischer, Regional Director for Southern Africa at Research In Motion (RIM), the company and efficiency in a continent with low Internet penetration is behind the BlackBerry® solution. He says that the next phase massive.

“Affordable smartphones, such as the BlackBerry® Curve™ in the development of the continent’s mobile market will see the cellular network operators bring Internet connectivity to 8520 smartphone, coupled with the competitive data packages many small businesses and consumers in Africa who could in emerging markets, are key to supporting the development not afford it in the past or who lived in areas without fixed-line of the SME and informal sectors in Africa, through enhanced connectivity and business tools,” says Fleischer. infrastructure.

Mobile banking is another example of a mobile app that is “Cheaper international bandwidth, operator investment in cellular data technologies, more affordable smartphones and a becoming increasingly popular and which could transform demand for access to the Internet are all contributing to massive African economies by providing viable basic financial services to millions of unbanked populations in urban and rural growth in the mobile data market,” he adds.

Data connectivity is becoming both more affordable and more communities in Africa, he adds.

Fleischer notes that application market places are important widespread, as are access devices in the form of smartphones.

Fleischer says that RIM is working closely with African for bringing easy access to apps to the African market. To that network operators and distributors to bring smartphones with end, RIM has rolled out its BlackBerry App World™ in seven of rich application ecosystems into Africa at affordable prices. the 35 African countries where it operates – with more to follow.

“Africa remains a strategic market for Together with its partners, RIM is rolling RIM and it is our goal to give African out a set of mobile apps and value-added customers access to as many of our apps services that address Africa’s growing Africa remains a strategic and value-added services as we can,” says hunger for online services. market for RIM and it is our Fleischer. “The affordability and the ease “This is opening up new possibilities for consumers and small businesses by giving goal to give African customers of use positions us strongly to drive the smartphone and mobile apps market across them access to instant messaging, mobile access to as many of our apps the continent.” banking, email, media content and many As an example, the full BlackBerry other powerful applications,” says Fleischer. and value-added services as solution offers South African end-users Because data apps are becoming more we can. The affordability unlimited on-device Internet browsing and affordable, RIM is seeing huge growth in and the ease of use positions email access from their smartphones from usage of data services among its African as little as R59.00 a month (on contract customers – consumers, small businesses us strongly to drive the and prepaid). Similarly affordable prepaid and large public sector and private sector smartphone and mobile apps and postpaid options are available in other organisations alike.

BBM™ (BlackBerry® Messenger) is market across the continent. African territories. AT

The mobile data and apps market across Africa is set to explode as more people across the continent gain access to smartphones and as mobile operators roll out high-speed cellular connectivity in more areas.

“

Issue 17 AFRICA TELECOMS 53

By World of AvAtAr’s co-founder & ceo AlAn Knott-crAig And cto Peter MAtthAei 54 AFRICA TELECOMS Issue 17

VAS vs

Not so many moons ago, the only meaningful way to offer a service for cellphone users was through the VAS (Value Added Services) channels that the network operators provided. These include SMS (Short Message Service), USSD (Unstructured Supplementary Service Data), IVR (Interactive Voice Response) and carrier billing (where the user can pay for mobile content from their airtime).

It was a great first step that helped to kick-start the mobile revolution by allowing a wide range of third-party services to make a phone into something more. Something more personal, perhaps, by allowing users to purchase ringtones and wallpapers. Something more useful, perhaps, by letting users look up the numbers for a business simply by sending an SMS.

Something fun, perhaps, by offering an SMS dating service.

In fact, the network operators in South Africa were amongst the first in the world to adopt the VAS model.

It has contributed to the huge growth of the mobile market in South Africa, and in many ways ensured that South Africa was far ahead of places like the USA in the sophistication of the mobile services offered.

But the cellphone industry is moving, literally and figuratively, at the speed of light.

What’s the difference between buying a ringtone via the mobile web using a bankcard or mobile wallet and buying a ringtone via premium-rated SMS? Price. The latter will always be more expensive. Period.

Why? Because the mobile operators will always take too much revenue share. In SA, MTN keeps about 40%, Cell C about 30%, and Vodacom about 20%. The weighted average is 29%.

Issue 17 AFRICA TELECOMS 55

“

The most common tactic to extract more money from consumers is to try to trick people into a subscription service and make it very hard for users to get out of such subscriptions.

Compare that to Visa and MasterCard who take between 1% and 7%.

And the networks will stay the same for a very long time.

Why? Because they are accustomed to operating profit margins of 20% plus. The moment they retain less than 20% they dilute their profit margins, and by definition they become less “profitable”.

And the analysts don’t like that, so in spite of actual profit going up due to higher revenue, the share price will be smacked.

And the CEO of the mobile operator will watch the value of his share options plummet.

Therefore, no CEO (that I can see) will make any changes to the status quo. Even though by dropping their fee to 1% they would become the largest financial institutions in South Africa virtually overnight due to the power of the prepaid distribution channels …

So content supplied via premium-rated SMS and USSD and online-billing-services and IVR (29% mark up) will always be more expensive than content provided by mobile web services (5% markup).

Slowly but surely the shift from the VAS model to apps and mobile web applications is happening.

The VAS model globally was disrupted massively by the arrival of the iPhone and its ecosystem. The iPhone is designed primarily for data access. Voice, SMS and USSD are more like “apps” on the iPhone rather than the core around which the device is built.

It was very clear that Apple did not intend to have their device shackled by the VAS model. Applications are bought using

56 AFRICA TELECOMS Issue 17

credit cards or vouchers (not carrier billing!) through the App Store. Instead of making SMS or MMS (Multimedia Messaging Service) the preferred way of sending communications, the iPhone nudges people towards sending e-mails.

Instead of letting app developers use SMS to communicate back to their users, the iPhone provides push messages. Instead of relying on getting a user’s location from the cellular network (which cost about the same as sending an SMS), the phone has a built-in GPS. The trend is clear: the iPhone wants to move users and service providers away from SMS, MMS, USSD, carrier billing and network-based locations towards data. Firstly, this is great for users and service providers alike, because mobile data is 10 times cheaper than voice and around 2,000 times cheaper than SMS. Secondly, this ensures that service providers can roll out their products globally without having to worry about integrating carrier billing and SMS on hundreds of different carriers, each with a different standard, costing structure and regulations.

Apart from this freeing the service providers from the extortionist fee structures of the carriers, it also saves significant development costs. Plus, being able to launch a service globally (either as a native app or a mobile web application) allows services to achieve much greater scale than was previously possible. Better scalability means lower operating costs, meaning cheaper services for users.

The irony is that while local mobile service providers advertise ridiculously overpriced mobile content subscriptions – often amounting to R15 or R20 per day! – on SABC 1 to

South Africa’s poorest consumers, on my iPhone I can get an incredible range of content and services through my browser or the app store for free.

The carriers argue that value added services follow open market principles and hence if prices are too high, it’s because consumers are willing to pay those high prices. There is merit to that argument, but it’s not the full story.

One of the biggest problems with the VAS model is that there is no easy way for consumers to discover services.

Hence, the VAS model relies heavily on TV and above-the-line advertising, which is expensive and in turn pushes up the prices.

Also, service providers cannot easily differentiate themselves on quality of service. This is partly because consumers find it hard to discover services and partly because the technology is very limiting.

The result is that the only way to grow revenues is either through more, expensive advertising (which drives up prices) or by trying to extract more money from users for the same service. Both ways are heavily used within the VAS industry and both end up being horrible for the consumer.

The most common tactic to extract more money from consumers is to try to trick people into a subscription service and make it very hard for users to get out of such subscriptions.

This makes the VAS industry the only commoditised industry where prices have increased as more competitors entered the market.

Of course, while iPhone gets the credit for its massive disruption of the mobile industry abroad, locally we’ve had a similar disruption in the form of MXit long before the iPhone was a twinkle in Steve Jobs’ eye. The huge success that MXit has experienced in the local market is largely due to the fact that it succeeded in providing users with a (comparatively) rich and diverse experience using data channels instead of VAS channels.

Google’s Android smartphones offer very similar functionality to an iPhone. Android is growing at an incredibly rapid pace due to large numbers of cheap handsets on offer.

Very soon, Android devices that are cheaper than the magic $100 price point will enter the market.

At that point, the line between a “smartphone” and a “dumbphone” will start blurring and then fading. With noncarrier controlled app stores and powerful mobile browsers, most of the pieces will be in place for the retirement of the VAS model.

All that still remains to be found is a ubiquitous low-fee payment method to replace carrier billing for people without credit cards. On that day, the old-school premium-rated services will be history. Game over, insert coin. AT

Issue 17 AFRICA TELECOMS 57

By Jiaqi Sun ReSeaRch analySt South afRica, ict fRoSt & Sullivan

Value-added

SerViceS

are a new source of revenue driven by mobile applications in sub-Saharan Africa

58 AFRICA TELECOMS Issue 17

Due to the declining Average Revenue Per User (ARPU) in the mobile communications market in sub-Saharan Africa (SSA), value-added services (VAS) have become a strategic tool for network operators to retain customers in order to increase their revenue. However, as the rule of “follow the herd� prevails, competitors have started to offer VAS to retain their market shares.

The declining ARPU of mobile services due to the decreasing number of voice minutes and the limited data traffic on networks have led network operators to offer call-related VAS such as voicemails, call-forwarding and call-barring in order to boost the use of voice services. In order to boost data service usage, SMS and MMS are the dominant medium (over 60% of service uptake) in which VAS such as televoting, subscriptions and marketing promotions are delivered.

With the increasing categories of VAS and number of market participants, VAS such as ring-back tones have shifted from being customer-retention tools to ways of attracting new customers and providing new sources of revenue for network operators. VAS such as multimedia (messaging and premium content services) and other VAS (primarily mobile applications) are growing in popularity.

At present, multimedia and limited mobile applications are the mainstream offerings of VAS in SSA. Due to the increasing number of new and innovative VAS, call-related VAS have gradually become a standard part of prepaid and postpaid contracts. Although multimedia VAS are offered to both enterprises and consumers, these services are designed in a way that primarily meets consumers’ needs.

Other new VAS differentiate between consumers and enterprises. For example, mobile payment, mobile TV and cellphone blacklisting are services targeting consumers. In comparison, bulk SMS, tariff analyzers and itemized billings are services targeting enterprises.

Going forward, multimedia VAS (local premium content services), innovative VAS (a combination of various delivery mediums such as SMS to Web or converged services across media/broadcasting and telecommunications industries) and enterprise solutions (telemetry services) are expected to become new revenue sources for network operators in SSA, as they provide existing customers with a new experience.

In the next five to seven years (up to 2016-18), messaging VAS are expected to shift to application-based VAS such as machine-to-machine and social networking applications, as these VAS are more user friendly, practical and interactive than those delivered through the messaging, Unstructured Supplementary Services Data (USSD), Interactive Voice Response (IVR) and Web mediums. However, expensive advanced devices, infrastructure and bandwidth as well as

Issue 17 AFRICA TELECOMS 59

limited network coverage restrain the growth of such high-end VAS. With the challenge of expensive handsets such as smartphones, tablets and other portable devices, network operators may adopt the strategy of bundling devices with VAS in postpaid contracts. The sourcing of low-cost advanced handsets from BRIC countries such as China and Brazil would be essential to drive the uptake of high-end VAS. Distribution networks, local contents and marketing are key success factors for offering VAS such as mobile payment (mobile money transfer and banking services). For example, Safaricom’s M-PESA and M-KESHO services have been successful due to its extensive agent networks, awareness of local brands and large customer base. Its marketing strategy to promote brands in local languages plays an important role in increasing consumer awareness of mobile payment.

Brand marketing is also an important strategy for new market entrants that focus on VAS. In order to improve brand awareness, network operators can embed local-content applications in handsets or print brands on handsets through partnering with handset manufacturers.

Fixed-mobile convergence (FMC) services such as Femtocell targeting enterprise customers are expected to continue to grow by leveraging the increasing ownership of smartphones by corporate consumers. An innovative solution can be developed by seizing the opportunity of Internet Protocol (IP) network migration and the increasing uptake of enterprise mobile services. Femtocell improves on-premise coverage and smartphones increase the mobility of workforces.

The evolving nature of VAS is changing them into an

independent service area of network operators. New and innovative VAS such as mobile payment and telemetry services are expected to become a service division of network operators and a niche opportunity for new entrants. VAS could become an important factor that influences operators’ business models due to the increasing impact of VAS on their revenues.

There are several strategies available for changing business models such as strategic alliances, merger and acquisitions (M&A) and organic growth. In the short term, network operators may partner with technology vendors and content service providers to achieve quick-time-to-market of new services such as multimedia VAS. In the medium term, network operators may merge with media/broadcasting service providers and/or acquire Internet service providers (ISPs) to expand customer bases and enrich service portfolios. In the long term, the internal research and development of new technologies is the most sustainable business model, which can be achieved through the M&A of start-up vendors such as content and application developers.

In order to achieve the main objective of total revenue growth, several sub-objectives can be met: for example, by increasing ARPU, decreasing customer churn rates and increasing customer loyalty. To achieve the sub-objectives, several tactics can be deployed, such as customer loyalty programmes and subscriber data management applications to understand subscriber spending patterns and requirements.

The shift of business models is largely related to the changing competitive environment and service penetration rates; and it is predicted that in future VAS will form an important part of network operators’ annual

“

VAS best practices are those that have been successful in the market and are expected to prevail in the future. Considering the current nascent stage, VAS are expected to remain a small contribution to network operators’ revenues in the next three to five years

60 AFRICA TELECOMS Issue 17

“

One important value proposition of VAS is to enhance customer values by providing customers with higher value-to-price ratios than previous products or alternatives in the market.

business strategies. In the next five to seven years (up to 201618), competitive differentiation, new customers’ recruitments and geographical expansion are expected to become the new sub-objectives driving revenue growth by offering VAS in SSA. VAS best practices are those that have been successful in the market and are expected to prevail in the future. Considering the current nascent stage, VAS are expected to remain a small contribution to network operators’ revenues in the next three to five years (up to 2014-16). Future growth areas of VAS are application-based VAS including social networking, mobile monitoring and tracking, tariff analyzers and mobile payment/ commerce applications.

Going forward, network operators are expected to gradually shift to an operating model similar to ISPs, focusing on service provision while outsourcing the construction and maintenance of infrastructure to third-party specialists. Other best practices include customized solutions per industry verticals, efficiencyenhancing products, and high value-to-price ratios.

Customized solutions for a particular industry enable enterprises to maximize the benefits of solutions and applications to enhance their productivity. For example, the manufacturing industry may require mobile virtual private network (VPN) solutions to monitor the production process remotely.

Efficiency-enhancing products reduce communication costs on enterprise premises: one example is the Closed User Group (CUG), through which team members can communicate via mobile phones while they are on the move.

One important value proposition of VAS is to enhance customer values by providing customers with higher valueto-price ratios than previous products or alternatives in the market. This practice can be achieved by offering a similar market equilibrium price for bundles containing more contents.

62 AFRICA TELECOMS Issue 17

Alternatively, offering a similar bundle per market standards and a lower price also generates higher value-to-price ratios.

High value-to-price ratios provide network operators and other telecommunications service providers with competitive advantages to retain market shares.

Lessons learnt in the past on worst practices should be avoided going forward. For example, tariff reduction is merely a short-term strategy to counter the “follow suit” strategy adopted by competitors in the market. International or strategic network operators should not directly apply their VAS from other markets to Africa without considering local languages, culture and lifestyles. Being the first-mover to deploy new technologies with little understanding of customer future demand and customer affordability is likely to lead to missing return on investment (ROI) targets.

Marketing campaigns are interpreted differently among different customer groups that perceive “value” differently: hence marketing campaigns that convey unclear value proposition can lead to low customer satisfaction and result in a negative brand image, both of which are detrimental to the company’s future development.

The VAS market in SSA is expected to be a new source of revenue for vendors and service providers, and a niche opportunity for new market entrants. Forming partnerships with other market participants in the VAS market appears to be the most effective strategy for operators to increase their revenue in the short-to-medium term. VAS best practices provide telecommunication service providers with a guideline to develop strategies in the market in which they operate and their internal capabilities. However, the key to success is to enhance customer value by providing a new experience of telecommunication services for the user. AT

Q&a

with Samsung’s Paulo Ferreira, Head of Product & Business

Solutions

This issue of Africa Telecoms is focused on VAS, apps and operating systems (OS) for mobile. In your personal opinion which OS currently has the best software and apps? And why do you say that?

PF: Quality of apps is subjective. However, what we’re seeing in the market is the popularity of both the Apple iOS app store and the Android market. The growth of the Android market in particular has been phenomenal and the result of Google’s attraction to developers, locally included. The recent announcement of a paid-for Android market in Africa is further evidence of Google’s commitment to fostering a vibrant and healthy developer ecosystem.

BL: It is a difficult question to answer simply, because the ‘best’ application is the application one would use the most and of course we all have such wonderfully diverse lives these days.

This is a highly competitive environment at present, and perhaps a better way to look at this in the African context is to evaluate which OS is most relevant for Africa. My money is on Android without question. We are delivering Android devices at highly competitive price points, building a platform for relevance in Africa that is unmatched.

Samsung seems to be offering three smartphone OSs at the moment, Android, bada and Windows Phone 7. Are Samsung planning on launching devices with all three operating systems in South Africa?

PF: We currently have devices with all operating systems

locally (for example, WP7 = Omnia 7; Wave = Wave II; Android = Galaxy SII).Our smartphone platform support is admittedly biased toward Android, as this is where the consumer interest and demand is at present.The above choice of platform is part of Samsung’s strategy to offer consumers and business customers a choice of operating system.

The bada OS is proprietary software developed internally. Do you think that it is a serious competitor in a market dominated

by Android? And how does Samsung plan on growing the app ecosystem for bada?

PF: One needs to understand the positioning of bada. Samsung

introduced the platform to ensure that we have smartphone offerings in the lower price points. bada has achieved that successfully for us globally and it’s very much part of our

64 AFRICA TELECOMS Issue 17

strategy moving forward. We’re also engaging with the developer communities to ensure that localized content is available on these devices and that they use the platform as a revenue opportunity moving forward.

At the recent VAS Africa event held in Johannesburg, the contention was made by various delegates that applications are simply next generation VAS offerings not using USSD technologies. This would seem to indicate that apps would take over from VAS. Do you agree and how do you see this development in the future?

PF: The question I would propose is: Who owns the valueadded services? Corporate vertical apps fall within their own space and need to be differentiated here too.

The paid app versus the free app market seems to be changing substantially, with more and more people being prepared to pay for apps. Is this trend happening in Africa?

PF: The positive reaction to the Android paid market in the

continent would suggest this. Paid app stores offer more choice to the consumer (premium apps, for example) and a mechanism for developers to monetize the apps. Important too is the mechanism for payment of these applications and here the OEMs, operators and app stores need to ensure that the billing mechanism makes it attractive for the consumer to download paid content.

Samsung has recently launched SamsungDive. Could you give a brief overview of the app and why you think it is such an important development?

PF: If you’ve ever lost your phone, you’ll know it can be very

frustrating.As smart phones become ever more sophisticated, we can store more personal information on them, and the loss of your phone can be far more than an inconvenience. The SamsungDive service will help your peace of mind by being able to see where you used it, and if you have lost it you can

Photo taken on Samsung Galaxy S2

Q&a

with Brett Loubser, Business Development Manager, Mobile Applications in our bada store: for example, premium SMS billing is now supported, which is significant in our market. We believe that the bada environment will show clear and specific value in the African context.

wipe your personal information.

Samsung recently teamed up with the various universities around South Africa in an attempt to build the app developer community in South Africa.

Would you consider the first couple of months of the programme a success? What has been your best experience in being involved in this programme since its inception?

BL: We are incredibly excited about the opportunity with the educational institutions in SA. As it goes with the application creation environment, a few months is not necessarily going to show huge results. However we have been given visibility of some of the projects underway: watch this space for some exciting developments!

The term “local is lekker” is very South African, however it introduces an interesting question. How much do you think local content in Africa will drive app usage in the future?

And what is Samsung doing to develop local content across Africa?

BL: We believe at Samsung that this is imperative to the longterm success of our application environment. Much of our focus is on building locally relevant applications and building lasting partnerships with the local developer community. Samsung have invested hugely in Africa this year, and we are delivering on our “Built in Africa” plan.

Apple and Android are certainly dominating the app ecosystem at the moment. Do you feel that the Microsoft offering of Windows Phone 7 and Samsung bada have what it takes moving forward to compete on the app developer front and as an ecosystem?

BL: Samsung also currently support WP7, and we believe that the platform certainly shows promise for the future.

Ultimately bada will remain significant within the Samsung environment. We have already started delivering unique value

And why do you feel that Apple and Android are in such a dominating position?

BL: In my opinion, this comes down to user experience and application diversity. Delivering simple usability first, and creating an environment that draws developer engagement is a winning recipe. Android’s amazing growth – superseding the Apple environment in terms of device deployments – also shows the importance of device diversity and affordability.

The Samsung Forum this year was held in Nairobi, Kenya.

It was themed: “Develop technology to building Africa for Africans by Africans”. What does this mean to you?

PF: Samsung believes in the mantra of being a first-class corporate citizen in the African continent. Not only do we sell our innovative products to the African consumer and business customer, but we are also committed to making those products relevant for the local market. With this in mind, Samsung has embarked on ensuring that we take feedback from our customers and incorporate this feedback into our products – by adapting them for the African market. The same applies to software, apps and content, where we’re working with local developer communities and content providers to ensure that it’s locally relevant.

BL: It is such an exciting time for Samsung in Africa. No other organization has the research and development power across this wide a portfolio of product, and the focus in Africa shows this. This year Samsung will be delivering product throughout the range that takes into account the special needs in Africa. Mobile phones with a month of battery standby and fridges with built-in backup batteries are just two examples of the innovation being delivered. Of course this theme will be followed through on the application side too. We have already seen amazing innovation coming from this continent from a mobile development perspective. We aim to nurture this talent and give it the exposure it deserves. Africa is an environment with huge potential. We believe that our initiatives will help Africans access a richer, more interactive mobile experience. AT Issue 17 AFRICA TELECOMS 65

Calendar

Africa Telecoms events calendar September 2011 - June 2012

2011 sept 13-15 ngt africa summit

Jake Mazan: +44 117 921 4000 www.ngtafricasummit.com/

20-21 nigeria com

Lagos, NigeRia Caroline Wiezien: +44 (0) 207 017 5605 www.comworldseries.com

20-21 management world africa 2011 Jamie Rudolph: +1 973-944-5100 TM Forum www.tmforum.org

22 voicesa 2011

Johannesburg, souTh aFRiCa Liane Wadman: +27 21 462 0500 www.voicesa.co.za

66 AFRICA TELECOMS Issue 17

oct nov 2012 05-06

02-03

aitec mozamBique ict congress 2011

aitec east africa ict summit 2011

Maputo, MoZaMBiQue helen Moroney: +44 148 088 0774 aiTeC africa www.aitecafrica.com

11-12 nortH africa com

Tunis, TuNisia Caroline Wiezien +44 (0)20 7017 5605 informa Telecoms & Media www.nafrica.comworldseries.com

Nairobi, KeNYa helen Moroney: +44 148 088 0774 aiTeC africa www.aitecafrica.com

09-10 africa com

Cape Town, souTh aFRiCa Caroline Wiezien: +44 (0) 207 017 5605 www.comworldseries.com

18-19

16-17

ict leaders summit

moBile asia congress

Luanda, aNgoLa Marcella Caciolato: +34 91 700 49 57 www.iirangola.com

hong Kong, ChiNa www.mobileasiacongress.com

24-27

30-01

4g world

afriHealtH

Chicago, iLLiNois Kate Mitchell: 617 259 2320 www.4gworld.com

24-27 itu telecom world Ledia ariza: +41 22 730 52 07 www.itu.int/world2011

Nairobi, KeNYa helen Moroney: +44 148 088 0774 aiTeC africa www.aitecafrica.com

If you would like Africa Telecoms to add an event to the calendar, please contact Mr. Bradley Shaw at bshaw@3ipublishing. co.za

feb

07-09

7tH annual digital Broadcasting switcHover forum 2012 Johannesburg, souTh aFRiCa Rumana Bukht: +44 208 600 3800 C.T.o www.cto.int

27-01

moBile world congress Barcelona, spaiN www.mobileworldcongress.com

mar 07-08

aitec Banking & moBile money comesa 2012 Nairobi, KeNYa helen Moroney: +44 148 088 0774 aiTeC africa www.aitecafrica.com

jun 06-07

aitec Banking & moBile money west africa 2012

accra, ghaNa helen Moroney: +44 148 088 0774 aiTeC africa www.aitecafrica.com

Issue 17 AFRICA TELECOMS 67

Last Word

Bradley Shaw writes exclusively for Africa Telecoms

Smartlove Did you know that smartphone users are more attached to their mobiles than feature phone users? Entertaining statistics from a recent survey of how people relate to their smartphones and feature phones have emerged from research company TeleNav in California.

Leading the pack, iPhone users outstripped their Android and BlackBerry counterparts. In fact, iPhone users would more likely than not go without their significant other, exercise and even shoes for a week rather than be separated from their devices.

Following on from this, 83% of iPhone users stated that other iPhone users would constitute their ideal romantic partners. This compared with 70% of Android users and a measly 48% of BlackBerry users.

I wonder if dating sites have started including a Mobile Device category on sign-up forms to ensure mobile compatibility. Based on this research, they should do so as soon as possible.

From this we can also see that – at least in the USA – BlackBerry is not considered very sexy.

The research went on to show that smartphone users were three times more likely to judge a person by the type of device they had than users of feature phones.

Nearly half of Android users stated that their phone reflected a sense of their overall style compared with 35% of iPhone users and 43% of BlackBerry users. In addition, smartphone users were twice as likely to choose their mobile over their laptop or desktop computer.

Smartphone users were broken down

further into the different operating systems they used. iPhone users, for example, were twice as likely to have spent more than $40 on an app for their current device than Android users.

As more and more Americans jump on the smartphone bandwagon, social behaviour is being affected, with 26% of smartphone users admitting to checking their phones frequently at the dinner table, compared with only 6% of feature phone users. Looking at the smartphone breakdown for dinner table usage, more than a third were Apple users, 21% Android users and 15% BlackBerry users.

The biggest surprise finding of all was that a third of all respondents would be more willing to give up sex for a week than give up their mobile devices. Surely men are now asking themselves if they could really make such a sacrifice for their mobiles? But hold on! TeleNav did add the caveat that 70% of the respondents who said they would give up sex for a week happened to be … women!

As interesting as all this information might be, this research was conducted by asking a mere 514 mobile phone users to complete a questionnaire. The sample is clearly not large enough to elicit meaningful data.

Is this statistical soupçon a depressing commentary on the negative social impact that mobile phones are having on our lives and values; or could it be just another pointless exercise in trivia gathering? In either case, use it to impress and amuse at the next dinner table you grace with your presence – unless of course you are now unwanted and uninvited, an iPhone addict. AT

Would you rather?

Are you willing to give up your mobile phone for a week OR...?

OS Showdown

Smartphone users weigh in on mobile behaviour Believe their phone reflects their 35% 50% 43% sense of style Use their phone to update online 50% 55% 40% social networks Have never paid more than US$1 45% 62% 63% for an app Use their phone to check in to business

23% 19% 5%

Admit to ending a relationship via viocemail, text, email, Facebook or Twitter

10% 18% 15%

Would rather fo a week without seeing their significant other, than giving up their phone

28% 23% 18%

Would rather lose their wallet or purse than their phone

18% 21% 23%

Regularly check their phone at the dinner table

34% 21% 15%

http://blog.telenav.com/marketing-stage/about/pr-summer-travel/report-20110803.html

72 AFRICA TELECOMS Issue 17