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Africa’s Mobile Phone Market Recovery Continues Through Second Quarter

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Smartphone shipments into Africa grew 13.2% year on year in Q2 2021 to total 22.8 million devices, according to the latest insights from International Data Corporation (IDC).

The firm’s Worldwide Quarterly Global Mobile Phone Tracker shows that feature phone shipments increased 11.8% over the same period to total 26.7 million units. With 54.0% share in Q2 2021, feature phones continue to account for the majority of the African mobile phone market due to their relative affordability and durability.

“After a year of unprecedented market conditions, Africa’s smartphone market is showing signs of recovery from the economic damage inflicted by the COVID-19 pandemic,” says Arnold Ponela, a senior research analyst at IDC.

“The region’s largest smartphone markets each contributed to the overall growth in Q2 2021, with Nigeria (+36.7%), Egypt (+24.6%), and South Africa (+10.5%) all recording strong year-on-year increases in shipments.”

Transsion brands (Tecno, Itel, and Infinix) continued to dominate Africa’s smartphone space in Q2 2021, with 47.4% unit share. Samsung and Xiaomi followed in second and third place, with respective unit shares of 19.3% and 9.1%.

The Transsion brands (Tecno and Itel) also dominated the feature phone landscape with a combined share of 76.3%. Nokia placed third with 9.8% share of feature phone shipments in Q2 2021.

“The competitive landscape in Africa changed with Huawei out of the top five for the first time in many years, after shipments declined due to the increased weight of U.S. sanctions on the company,” says Ponela. “Taking advantage of this situation are the Chinese vendors OPPO and Xiaomi, which both saw their share of the market increase during the first half of 2021.”

In terms of price bands, devices priced below $200 accounted for 84.7% of smartphone shipments to Africa in Q2 2021. The share of smartphones priced below $100 increased from 42.0% in Q1 2021 to 45.0% in Q2 2021, while the share of devices priced $100-$200 decreased from 43.3% to 39.6% over the same period.

“Given the challenging macroeconomic conditions and subsequent increase in smartphone uptake in Africa, it’s no surprise that the sub-$100 segment was the clear hero in Q2 2021,” says Ramazan Yavuz, a research manager at IDC.

“The sub-$100 category is also benefiting from the ongoing decline in feature phone share due to vendors and mobile operators transitioning their product portfolios away from feature phones and toward affordable entry-level smartphones.”

Looking ahead, IDC expects Africa’s overall mobile phone market to grow 3.2% quarter on quarter in Q3 2021, with overall shipments to increase slightly through 2021, leading to year-on-year growth of 4.5% for the year as a whole.

“The African smartphone market is expected to recover as vaccines become more widely available, despite virus mutations causing secondary lockdowns,” says Yavuz. “The markets are now better prepared to handle the situation, with the impact of these secondary lockdowns not as severe as they were first time round.”


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Telecom

Subscribers Decry Poor Service Delivery by Telcos, Accuse NCC of Playing the Ostrich

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Telecommunications subscribers have waxed angrily at the Nigerian Communications Commission (NCC) for pretending that everything was fine while subscribers grapple with unreliable internet and call services.

Subscribers Decry Poor Service Delivery by Telcos, Accuse NCC of Playing the Ostrich

They want the regulator could do more by compelling Mobile Network Operators (MNOs), also known as telcos, to improve their service.

Some of the major complaints are connection failures, poor data service, fluctuating network, data roll over challenges, illegal credit deductions and uncompleted calls.

Experts said that the drop in service quality has been attributed to the fact that three out of the four mobile network operators failed to meet the industry standards for network service.

In separate calls; Association of Telephone, CableTv, and Internet Subscribers of Nigeria (ATCIS-Nigeria) and National Association of Telecoms Subscribers of Nigeria (NATCOM) urged the NCC to live up to its responsibility of protecting subscribers.

Sina Bilesanmi, president, ATCIS-Nigeria, accused the NCC of pretending that everything was fine while subscribers groaned.

He said that ATCIS-Nigeria members have not only complained about drop calls and inability to originate calls, but they are also unable to access their airtime balance after recharging.

Bilesanmi argued that now that service quality has nosedived, there was no ground for telcos to justify any demand for a tariff increase.

He said that “ I have been inundated with complaints about low service quality from my members.

“ It is worrisome and the NCC is pretending that all is well. This low service quality is coming at a time when the MNOs are asking for a hike in tariff and our members were beginning to show understanding because, quite frankly, the tariff has remained the same for over a decade.

“The operators should tell us if they have any challenges.”

Elsewhere, Deolu Ogunbanjo, national president, NATCOM, said the service rendered by the MNOs had become  ‘’so bad’ that subscribers now lament openly.

He added that the telcos, on their part,   complained about their constraints to expand capacity.”

He said: “It(service delivery) has been so bad. It was one of the issues raised last Thursday but the telcos complained about their constraint to expand capacity and the need to raise tariff.”

Ogunbanjo said he supported the demand for an increase in tariff because it was overdue.

He, however, said an increase must be marginal in order not to asphyxiate the industry.

 

 


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Meta Disagrees with $220m Fine, Sets for Appeal

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Meta, the parent company of WhatsApp and Facebook, is preparing to appeal a decision by Nigerian regulators to impose a $220 million fine against it for alleged market power abuse and privacy violations.

Meta Disagrees with $220m Fine, Sets for Appeal

The company said that “We disagree with this decision as well as the fine and we are appealing the decision,” a WhatsApp spokesperson said.

The spokesperson did not specify where and when the appeal will be lodged.

It will be recalled that the Federal Competition and Consumer Protection Commission (FCCPC) published the fine last week, capping a three-year investigation.

The inquiry focused on data sharing practices on WhatsApp, the most widely used messaging service in Nigeria.

The commission claimed it found evidence of “multiple and repeated, as well as continuing infringements” of the country’s data protection and competition laws and imposed the fine as a final resolution.

Meta was ordered to “immediately reinstate the rights of Nigerian users to self-determine and control” data sharing, and stop sharing WhatsApp users’ information “with other Facebook companies and third parties” without users’ active consent.

It was also required to pay $35,000 to cover the cost of the commission’s investigation, in addition to the $220 million penalty. Both amounts are to be paid within 60 days from July 18.

Nigeria began looking into WhatsApp, which has an estimated 51 million users in the country, in May 2021.

That was four months after the app updated its global privacy policy on messaging between individuals and businesses, and how users’ data may be shared with Facebook.

Meta began responding to concerns detailed in Nigeria’s report around March this year, pledging to cooperate towards “reaching an amicable resolution,” according to the commission.

A “remedy package” proposed by Meta and sent mid-April proved unsatisfactory to the commission, however, its report said.

It is not clear what this package is — an email for comment to the commission was not responded to. Nigeria still expects Meta to implement it and publish it on WhatsApp’s website within two weeks, in addition to the fines.

Beyond complying with its laws, Nigeria’s aim with the penalties is to get Meta to “cease the exploitation of consumers and their market abuse,” the commission said.

 

 


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WATRA Says Digital Economy Contributes $30Bn Annually to W/African GDP

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The West Africa Telecommunications Regulators Assembly (WATRA) has said that the digital economy currently contributes around $30 billion annually to the region’s Gross Domestic Product (GDP).

WATRA Says Digital Economy Contributes $30Bn Annually to W/African GDP

WATRA also called for lower cost of internet access to enhance the digital economy for the respective countries in the region.

Mr Aliyu Aboki, executive secretary, WATRA, who disclosed this during a virtual press conference at the weekend also said the West African telecommunications market is now valued at $63.17 billion with over 400 million mobile subscribers.

However, Aboki said WATRS is working on initiatives to facilitate infrastructure sharing among West African countries to lower the cost of internet for telecom subscribers across the region.

According to him, infrastructure such as gateways, and data centres are facilities that could be shared by countries in the region.

Admitting that the cost of internet across West African countries is still high, Aboki said a lower cost of internet access would enhance the digital economy for the respective countries in the region and increase the consumption of data by the citizens, which in turn generate more revenue for the telecom operators.

“We are exploring regional initiatives to share infrastructure and reduce cost. For example, we have infrastructures like gateways, data center servers, and so on. These are infrastructures that can be shared and used by different countries without necessarily having everyone building the same infrastructure.

“So, we are collectively looking at these rich regional initiatives that enable us to share infrastructure to bring down the cost of Internet ultimately,” the WATRA scribe said.

 

 


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