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Nigeria, Others Boost African Smartphone Market to Post Growth

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A new research from International Data Corporations shows that the African smartphone market saw shipments increase 4.0% quarter on quarter in Q3 2019 to total 22.6 million units.

Nigeria, Others Boost African Smartphone Market to Post Growth

The firm’s latest Quarterly Mobile Phone Tracker shows that Africa’s overall mobile phone market reached 55.8 million units in Q3 2019, with feature phones accounting for 59.4% of this total versus smartphones at 40.6%.

The growth in the smartphone space was spurred by the strong performance of the three biggest markets in Africa – Nigeria, South Africa, and Egypt. This was largely driven by the huge influx of affordable models that have recently been launched in these markets, while the relative stability of the Nigerian naira (NGN) and appreciation of the Egyptian Pound (EGP) also helped stir an increase in consumer demand.

Transsion brands (Tecno, Infinix, and Itel) continued to lead the feature phone space in Q3 2019, with a combined unit share of 64.0%. Nokia was next in line with 10.0% share. In the smartphone space, Transsion (36.2%), Samsung (23.9%), and Huawei (11.4%) led the way in unit terms; however, in value terms, Samsung was the clear leader with 33.2% share, followed by Transsion (22.4%) and Huawei (15.6%).

“Samsung shook the market up this year with the launch of its new A series of devices, which combine excellent value for money with Samsung’s well-established brand equity,” says Taher Abdel-Hameed, a senior research analyst at IDC. “This move spurred a significant increase in Samsung’s shipments across most African countries.

“Samsung recorded remarkable year-on-year growth of 61.4% in the low-end price band ($100-$200) in Q3 2019, and its move into this space has pushed Chinese brands to offer more affordable devices.

“Local African brands have traditionally focused on filling in for the absence of global brands in the entry-level smartphone segment, so these latest developments have put them in a difficult situation, causing their volumes to decline 33.6% year on year in Q3 2019.”

Africa’s smartphone market is also changing from a price band perspective, with the $100-$200 category seeing its share of shipments increase from 31.4% in Q3 2018 to 39.8% in Q3 2019. This growth was largely driven by the launch of new Samsung and Transsion models.

The ultra-low-end band (below $100) has been declining in recent quarters and losing share to the low-end price band as brands move their device portfolios towards larger screen sizes and 4G capabilities.

“2019 will prove to have been a pivotal year for the African smartphone market,” says Ramazan Yavuz, a research manager at IDC. “4G devices are now dominating the market like never before, accounting for 73.0% of shipments.

“Screen sizes are also getting larger, with devices equipped with 6-inch screens and above now accounting for 41.7% of shipments, up from just 9.0% a year ago.”

IDC expects Africa’s overall mobile phone market to total 218.2 million units for 2019 as a whole. Smartphone shipments will total 91.0 million units for the year, up 3.2% on 2018, and the introduction of more affordable devices will help drive progress in this space over the coming years.

Feature phone shipments are expected to remain flat at 127.2 million units for 2019, up just 0.1% year on year, as the transition to smartphone gathers momentum.


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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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