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Nigeria’s Smartphone Uptake Set to Improve in 2018

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Analysts at Counterpoint Research expect the smartphone market in Nigeria to grow in double digits in CY 2018, driven by the entry of new players and changing OEM strategies.

According to analysis firm’s Market Monitor research focused on the Nigerian handset market, the feature phone market grew 15% annually, offsetting the smartphone decline in 2017, due to a recent economic recession.

The research is comprised of shipment estimates based on vendors’ investor relations results, vendor sales, supply chain checks and secondary research.

Research analyst Anshika Jain said the overall Nigerian handset market declined 8% Y-o-Y in 2016, as the economy (highly dependent on oil exports) witnessed a major downfall in GDP due to plummeting oil prices which triggered a recession, affecting buying power.

This adversely affected the purchasing power of the people. “The overall handset market experienced modest growth of 6% p.a. in CY 2017 as the market is slowly moving out of recession. The situation is likely to improve in 2018,” said Jain.

According to Counterpoint Research, the over smartphone market in 2017 contributed to 52% of the total handset volume, declined by 1% YoY.

Samsung led the overall smartphone market with 34% share in terms of shipments volume, it added

“Samsung still retains the top position with more than one-third share in the total smartphone market. While in the feature phone segment, the market is dominated by a single OEM with 76% share. This highlights the dominance of Chinese players in the feature phone market,” The research stated.

According to Jain, the top two OEMs – Samsung and Transsion Holdings (which owns Tecno, Itel, and Infinix) captured two-thirds of the total smartphone market. “Apart from these two, other leading smartphone players include Huawei, Lenovo, Fero, Alcatel, Gionee, and Apple. These brands capture a smaller share of the overall Nigerian smartphone market.”

Tarun Pathak, Associate Director at Counterpoint Research said almost one-third of mobile subscribers currently use smartphones in Nigeria. “Operators like Airtel and MTN will also look forward to partner with OEMs and Microfinance companies to drive smartphone penetration across the country.”

According to the GSMA’s Mobile Economy 2018 report, mobile subscriber penetration in Sub-Saharan Africa will reach 52% in 2025 compared to 44% in 2017 and 48% in 2020. “In terms of mobile penetration of population, Sub-Saharan Africa will have the largest increase between 2017 and 2025 (8 percentage points).”

Some of the challenges faced by the overall African smartphone market, according to Jain, include affordability and costs, low internet penetration, and a weaker economic climate.

She says Africa is one of the largest continents with more than a billion people, but remains highly underpenetrated in terms of mobile connectivity.

“Less than half of the population still doesn’t own a mobile phone and thus offers a great opportunity for every player in the mobile value chain. Due to this offline is the major channel for mobile device sales.

“Due to lack of infrastructure, it is a challenging task to leapfrog into semi-urban and rural markets. Additionally, the economic slowdown has adversely affected the purchasing power because of which people upgraded to low-cost feature phones rather than smartphones.”

“However, as per our estimates, smartphone adoption is likely to grow in Nigeria and other African countries in coming years as smartphone Average Selling Price is declining and more brands are entering into the mobile ecosystem.”


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NCC Holds First Virtual Bi-Annual Meeting with Telcos

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Nigerian Communications Commission (NCC) and senior executives of telecommunication companies on complaints management recently held the regular bi-annual meeting, in compliance with COVID-19 management protocols instituted by the Federal Government.

NCC Holds First Virtual Bi-Annual Meeting with Telcos

Prof Umar Danbatta, EVC, NCC

At the meeting, which focused on consumer relations and complaint management processes, the NCC and the telecom service providers agreed that the compensation policy should be revisited and complied with at all times.

This is to ensure full compliance with the new Complaint Categories and Service Level Agreement (CC/SLA) consented to by the NCC and the service providers in the telecommunication ecosystem.

Additionally, it was decided that the Commission and telecom service providers will hold follow-up discussions on “Fair Usage Policy” on unlimited data bundles/data rollover, in order to provide a clearer explanation and better understanding of the processes and procedures of the policy for the benefit of the consumers.

The Commission hereby wishes to restate that its direction of June 2018 to service providers to commence implementation of data rollover from 26 June 2018, remains in force.

In other words, a subscriber’s unused data must be rolled over to his/her subsequent data subscription.

Therefore, the Commission urges service providers to continue to inform and educate subscribers on the procedures and processes for data rollover.

Service providers also agreed to ensure that senior-level customer relations officers support their respective complaints management teams, to resolve complaints that were not resolved to the satisfaction of the consumers when such complaints were first reported.

The service providers also promised to ensure that complaints are resolved in both the letter and spirit of the recently-reviewed Service Level Agreement (SLA).

With respect to services subscribed to through third parties (such as banks), which are not rendered, the meeting resolved that telecom service providers should explore initiating service level agreement with banks to ensure uniformity and speed in the resolution of complaints relating to billing.

All parties to the meeting equally agreed that telecom service providers will carry out pervasive consumer education and enlightenment campaigns about their products and services to ensure their subscribers have the information they require to make informed decisions and get value for money spent.

The commission wishes to state that it was very pleased with the impressive attendance, participation, and the quality of decisions taken at the bi-annual meeting.

The NCC is, therefore, determined to continue to work closely with the service providers and other stakeholders in the Nigerian telecom sector in order to improve on the quality of service, and by implication, the quality of consumer experience.

The bi-annual meeting, which has held regularly since 2018, focuses on ensuring improvement in Quality of Service (QoS) and Quality of Experience (QoE) in the telecom industry.

It has served as a veritable platform for the Commission and service providers to discuss and agree on measures that will enhance prompt and effective consumer complaint resolution in telecom service provision in Nigeria.

 


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Ericsson Launches Integrated Packet Core Firewall to Boost 5G Core Security

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Ericsson is advancing 5G core network security for communications service providers (CSPs) through the launch of the cloud native Ericsson Packet Core Firewall.

Core network security is a key factor in CSPs’ forward business planning as they pursue innovative new business opportunities powered by 5G and emerging technologies.

Ericsson’s new solution, part of the Ericsson 5G platform, is aimed at enabling CSPs to pursue those opportunities not only through the best packet core network security capabilities, but also in the most cost-effective way for their business.

Powered by A10 Networks’ advanced security technology, the Ericsson Packet Core Firewall solution is already seamlessly integrated with Ericsson Packet Core Gateway in  Ericsson’s dual-mode 5G Core offering. The solution also supports end-to-end network slicing and edge computing.

The cloud native offering is optimized to scale with user plane to the edge of the network to cater for secure core network 5G use cases. By protecting a communications service provider’s core network – including sensitive service provider data and customer data – the all-in-one solution secures 5G service availability.

The solution delivers more than 50 percent total cost of ownership reduction over dedicated user plane security solutions, while maintaining 5G latency. This is enabled through a single CNF (Cloud Native Network Function) solution with simplified maintenance and orchestration.

Folke Anger, Head of Packet Core Solutions, Ericsson, says: “Securing service availability in 5G requires a holistic view beyond dedicated security solutions.

“We are now launching the Ericsson Packet Core Firewall seamlessly integrated into our Packet Core Gateway. This will provide our customers with substantial total cost of ownership improvements while ensuring their 5G services to the edge.”

Patrick Donegan, Founder and Principal Analyst, HardenStance, says: “Telecom operators need to think differently about how they implement security with a 5G Core. Ericsson’s Packet Core Gateway together with Packet Core Firewall integrates user plane and security functions in a single Cloud native Network Function (CNF).

“This allows significant TCO savings and is well optimized for edge use cases. It also enables automated, closed-loop, threat mitigation independent of transport equipment vendor.”

Dhrupad Trivedi, CEO and Board Chair, A10 Networks, says: “Mobile operators are transitioning to more cloud native and distributed architectures to support 5G. This increases the critical need for security and network availability.

“A10 is excited to expand our partnership with Ericsson to enable current and emerging 5G use cases. The Ericsson Packet Core Firewall powered by A10 Networks is ready for cloud native deployments and addresses the evolving business needs for operators.”


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Anambra Indicates Interest to Host NITDA’s South-East Zonal Office

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The Anambra State Government has indicated interest to provide enabling environment for the National Information Technology Development Agency, (NITDA) to situate its South-East Zonal Office in the State.

The State, also among other requests, expressed willingness to host some of NITDA’s events, programmes and establishment of information Technology hub in the State.

The State made the requests during a working visit to NITDA by Mr Theo Manfa, managing director/chief executive officer, Anambra State Information and Communication Technology Agency, (ANSICTA).

Mr Manfa in his address,  expressed that the call for special requests by the state is necessitated by the fact that the state “has long been known as a home of innovation and entrepreneurship, through the various markets like Onitsha and Nnewi and the plethora of locally produced goods they spawned over time.”

He said that innovation and entrepreneurship are important elements to drive the digital economy which the nation is striving to create adding that the state has been watching with keen interest the activities of Federal Ministry of Communications and Digital Economy and NITDA which necessitated the intended partnership.

While itemizing the identified possible areas of collaboration, Mr Manfa said that the state would like to partner NITDA on the newly launched Nigeria Government Enterprise Architecture, (NGEA), training of youths in hardware and software skills, entrenchment of e-Government culture and learning interventions for secondary school students with the aid of Unity Board.

In his remark, Dr Vincent Olatunji, director, e-Government Development and Regulations, who represented Mallam Inuwa Kashifu Abdullahi, director general, National Information Technology Development Agency (NITDA) at the meeting said it is gratifying to know that the state is keenly following the activities of the Agency in its drive to achieving digital economy for the nation.

He commended the state for developing its ICT policy to serve as road map on how the state would execute its IT plans adding that ANSICTA should ensure it drives the policy for the state.

While assuring the state that all its requests are not beyond what the Agency could provide, he enjoined it to formally write to the Agency by itemizing and prioritizing the area of collaborations.

The highlight of the meeting was the presentation of Award of Appreciation for his outstanding achievements in driving the digital economy.


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