Telecom
Huawei set Sights on Africa’s Mid-to-Low Range Device Market
Huawei has launched the mid-range P smart device as part of its new 2018 strategy that emphasises Africa’s mid-to-low range smartphone market.
Likun Zhao, General Manager for Huawei Consumer Business, said the latest smart device (and others to be launched over the next 12 months in the mid-to-low range segment) will bring user experience, camera quality and operating system technology associated with high-end smartphones to a broader group of consumers.
“The P smart consumer target group is mainly younger people who will be attracted to the beautiful design, beautiful photos and cost effectiveness. This year we will bring more mid-tier and low tier smartphones with high technology and better experience. P smart is only a start,” said Zhao.
The P smart has a full view display, dual camera and an Android 8 operating system for the recommended retail price of R3999 in what Zhao says is a first for the industry in the mid- level price range.
According to Zhao the company has decided to broaden its focus to the lower and middle segments, mainly because of its solid performance within the high-end market in 2017.
“Last year we paid more attention to the flagships and the high-end market, but for Africa maybe mid-tier and low-tier is more important for the consumer. Our performance in the high-end market was very good because at the end of last year our market share (for prices exceeding US$600) was 15.5%.
At the beginning of last year it was only 7%, which means we doubled it and that is a good performance. We want to make progress within the high-end, but for the mid-tier we want to enlarge that market by bringing (in) more low-end consumers. At the same time we want to catch up on market share in the mid-tier. For the low-end we will come back and play an important role.”
Zhao, who has been at the helm of Huawei Consumer Business Group in the Sub Saharan Africa region for just over a year, says only South Africa has large volumes for high-end smartphones, while the difference is marginal for the middle and low-end segments for the entire region.
“For the middle level we will select some important countries like Kenya, Zambia, Nigeria and Ghana, but for the low-end we will distribute them across the entire region.”
He adds that while cooperation with African operators is an important part of the strategy, the intention is to establish closer working relationships with retailers.
“For the low-end and middle-end in Africa the retailers play a more important role. That is why we want to enhance that relationship.”
Dominique Friedl, Head of Corporate Sales for South and Sub Saharan Africa at fabless semiconductor company MediaTek agrees that the way Africans use their smartphones has evolved.
“Today, end-users expect innovation and invention from every smartphone, regardless of price. Call it the new premium – the expectation that every device will deliver flagship-quality technology, performance and experiences in an affordable package. Mid-tier smartphones are recognised as the new premium, meaning exciting technology growth is happening here and not at the high-end.”
The GSMA Mobile Economy report for Sub-Saharan Africa, published in July 2017, found that the region accounts for nearly a tenth of the global mobile subscriber base and is expected to grow faster than every other region over the next five years.
Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
WASPAN warned that the implementation before the determination of its appeal could expose telecom value-added service providers to sanctions and disrupt their operations.
Millions of subscribers across the country rely on borrowed airtime to communicate.
Seun Sofoluwe, an Abeokuta, Ogun State resident, said another interruption would have severe consequences for many Nigerians who depend on airtime and data lending services for their daily communication needs.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, underscoring the extent to which some subscribers depend on the facility to remain connected.
Sofoluwe’s concerns echo the experience of Lagos-based employee Farouk Rabiu, who recounted the hardship caused by the six-month suspension of airtime lending services before they were restored.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu had said after the services resumed.
Adding another dimension to the debate, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the earlier disruption showed that airtime credit had evolved far beyond a conventional telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement would expose operators to sanctions, create regulatory uncertainty and disrupt telecom-enabled services, including airtime credit and data advances, used daily by millions of Nigerians.
The FCCPC, however, has defended the resumption of enforcement, insisting the regulations are intended to sanitise the digital lending industry, curb predatory debt recovery practices, protect consumer data and eliminate illegal digital lenders.
The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended while it considers WASPAN’s appeal, a decision that could shape the future of telecom-based digital lending services and determine whether subscribers continue to enjoy uninterrupted access to airtime and data credit.
Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to deploy renewable energy solutions for telecommunications infrastructure in rural and underserved communities, a move expected to reduce operators’ energy costs and improve network availability.
Abraham Oshadami, executive commissioner for Technical Services at the NCC, disclosed this during the signing of a memorandum of understanding (MoU) in Abuja.
According to Oshadami, the NCC-REA Stakeholder Forum and MoU signing ceremony will enable telecom base stations located near mini-grids to access cleaner and more affordable electricity, reducing their reliance on diesel-powered generators.
He said the agreement came at a time when telecom operators are facing rising operational costs due to increased spending on diesel to power network sites amid unreliable electricity supply from the national grid.
The partnership reflects the growing relationship between the power and telecommunications sectors, as both rely on each other to deliver essential services.
Oshadami explained that while telecom infrastructure requires a steady power supply to remain operational, digital connectivity also supports electricity services such as smart metering, electronic payments and remote customer management.
According to him, the collaboration is aimed at improving access to reliable electricity and telecommunications services, particularly in remote communities where inadequate power supply has slowed digital inclusion.
He said both agencies had identified telecom base stations located within one to two kilometres of existing mini-grids, allowing the implementation of the initiative to begin immediately.
“Where mini-grids exist, we are able to identify nearby base stations and connect them to those power sources,” Oshadami said.
He added that future mini-grid projects would be planned with telecommunications infrastructure in mind, ensuring that electricity investments also support the expansion of digital services.
Airtel Nigeria has secured a fresh 10-year renewal of its spectrum licence from the Nigerian Communications Commission (NCC), reinforcing the telecom operator’s long-term commitment to expanding broadband connectivity and improving digital access across the country.
The renewed licence covers Airtel’s spectrum holdings, which are critical to the delivery of voice and high-speed data services, providing regulatory certainty for continued investments in network expansion, capacity upgrades and improved customer experience.
According to the company, the renewal underscores confidence in Nigeria’s telecommunications sector and will support its ongoing efforts to bridge the country’s digital divide by extending quality connectivity to more underserved communities.
Sunil Taldar, chief executive officer, Airtel Africa, said the renewal provides the company with the confidence to continue investing in Nigeria’s digital infrastructure.
He said, “The spectrum renewal reaffirms our long-term commitment to Nigeria, our largest market. It gives us the certainty required to continue investing in network expansion, improve service quality and accelerate digital inclusion for millions of Nigerians.”
Taldar added that Airtel remains focused on expanding broadband access and supporting Nigeria’s digital economy agenda through sustained investments in telecommunications infrastructure.
He further said, “We appreciate the Nigerian Communications Commission and the Federal Government for their continued support in creating an enabling environment for investment. We remain committed to delivering reliable and affordable connectivity while contributing to Nigeria’s socio-economic development.”
Meanwhile, Industry observers said the licence renewal removes regulatory uncertainty and allows Airtel to pursue long-term capital investments, including the expansion of 4G and 5G networks, as demand for mobile data and digital services continues to grow across Nigeria.
The renewal comes as telecom operators continue to invest heavily in broadband infrastructure to meet rising data consumption and support government efforts to achieve Universal digital access.
Furthermore, It also aligns with the NCC’s objective of ensuring efficient spectrum management while encouraging sustained private sector investment in the country’s telecommunications industry.
See Verified 20 Countries Nigerian Passport Holders Can Travel Visa-Free
NPC Opens 131 Births, Deaths Registration Centres in Anambra
Lagos Chamber Opposes 21 Percent Pension Contribution, Warns of Job Losses
Subscribers, Telcos Warn FCCPC over Airtime Lending Enforcement
NCC, REA Partner to Cut Telecom Costs with Renewable Energy
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
Spotify partners Afro Nation Portugal to expand African music experience
Telecom2 days agoGSMA Supports Abuja Declaration on Meaningful Connectivity for Africa, Joins Partners to Launch ATLAS Umoja
Telecom2 days agoAirtel Secures Another 10-year Spectrum Renewal in Nigeria
Telecom2 days agoMTN Nigeria Warns Customers Against Fake ‘One Month Free Data’ Promotion
News2 days agoNigeria, Israel Strengthen Research, Technology Collaboration
Broadcasting2 days agoGlo Sponsored African Voices to Feature Netflix’s “The Polygamist” Stars
E-Business2 days agoHURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria
E-Financial2 days agoMoniepoint as a Key Driver in Expanding Financial Access for Businesses in Nigeria
General News2 days agoAnambra Govt Bans Graduation Ceremonies in Anambra Schools