E-Business
OTT, Smart Device Penetration Will Shape MEA Consumer Telecoms Scene in 2014-IDC
International Data Corporation (IDC) on Wednesday announced its annual predictions for the Middle East and Africa consumer telecommunications and media services market in 2014.
IDC predicts that changing customer preferences, the growing usage of applications, rising smart device penetration, and the increasing prominence of over-the-top (OTT) services will continue to transform services and business models.
The rise of the Internet economy, supported by improving data services, especially mobile services, is blurring the line between traditional telecommunications services and digital media services.
“As markets continue to evolve, more customers are eschewing core telecommunications services in favor of rich OTT services,” said Paul Black, director of telecommunications and media at IDC Middle East, Africa, and Turkey.
“This is forcing regional operators to reevaluate their business models, data offerings, tariff packages, and even network rollout plans, as well as go-to-market strategies. While traditional services are still offered, operators are expanding their role in the digital value chain by promoting local content generation and application development. Operators are also looking at adjacent markets and exploring new digital services opportunities.”
“For digital media providers and OTT players,” Black continued, “the changing market dynamics provide unique opportunities to establish direct relationships with end users. However, the business models are still evolving, and the ability to pay for these services, despite their growing usage, remains low throughout the Middle East and Africa (MEA). In this scenario, the importance of partnerships between telcos, content providers, OTT players, and digital media companies is growing.”
IDC’s Middle East and Africa Consumer Telecommunications and Media Services Top 10 Predictions for 2014, as presented in a Webinar by Bhanu Chaddha, senior research analyst for telecommunications and media at IDC Middle East, Africa, and Turkey, comprise the following:
The Exponential Increase in Mobile Data Will Force Operators to Rethink Their Network and Data Service Strategies.
Mobile data services have continued to gain prominence in the business models of MEA operators.
Those in the Middle East have remained at the forefront of technological development and invested heavily in building ubiquitous next-generation networks.
Operators in Africa, however, have taken a more cautious approach, with sporadic network evolution centered on highly populous areas and major commercial centers. In 2014, mobile data will remain a cash cow for regional telcos.
However, the growing popularity of data-hungry applications and services, particularly video, will contribute to an exponential increase in data traffic and make network investment economics difficult to justify.
The Progressive Regulatory Environment Will Stimulate Competition. Telecommunications markets in MEA have expanded significantly over the last decade, backed by progressive regulatory environments and conscious efforts by the regulatory authorities to stimulate competition.
The first era of market liberalization was marked by the opening of mobile markets to new operators, followed by progressive reforms to introduce new services (e.g., 3G) and/or the opening up of markets to competitors.
Having done this, regional regulators will strive to improve the market dynamics in 2014, accelerating the development of new services in addition to increasing competition.
Regulators can approach this in three primary ways: by introducing mobile number portability; by opening markets to mobile virtual network operators (MVNOs); and by releasing spectrum for next-generation 3G/LTE networks.
Operator Media Transformation Will Continue; Acquisitions Are on the Cards. Due to the high mobile penetration levels, operators in the markets of the Gulf Cooperation Council (GCC) are looking to add new capabilities and diversify not just into international markets, but also into new business streams (e.g., ICT and digital media services) in which the potential for growth is higher.
As operators gain control of content and content delivery, they are able to boost the uptake of their data services, which means additional revenues.
In 2014, operators will move beyond merely setting up businesses to forming clear strategies to help them play a broader role in the digital economy. One obvious solution for entering into the digital space is the greenfield approach, in which operators build a new business organization.
However, it is time consuming, and, at times, players miss the boat while waiting for the new organization to become operational.
An inorganic alternative is to acquire other stakeholders in the value chain. IDC believes operators will aim to acquire content aggregators and platform developers in order to maximize their share of the communications and media market.
Service Evolution Will Force Operators to Rethink Their Strategies and Recognize the Importance of the Customer Experience. As the usage of smartphones and mobile social media is growing rapidly in the MEA region, marketers are more cognizant of consumers’ locations and preferences.
Many organizations will explore ways to work closely with operators, media companies, and app developers to create targeted marketing practices in the region, which will prove to be a win-win situation for all involved.
Telecommunications services are evolving as social media, multiscreen offerings, mobile applications, and OTT services increasingly influence consumer behavior.
It is imperative for operators to understand consumer behavior and push products and services in line with their expectations.
This will eventually help operators to counter declining service engagement cycles and improve customer experience.
The Focus Will Shift to Designing Smartphones that Balance Price and Performance. IDC expects competition to intensify between traditional smartphone vendors and emerging players, particularly in Africa. Smartphone penetration in the region will continue to rise as consumers demand Internet access everywhere.
Samsung and other established smartphone vendors will battle to maintain their large African market shares as new players (e.g., Techno and Huawei) provide similar smartphone offerings at a lower cost. These new smartphone vendors are already increasing their distribution networks to capture emerging markets with a relatively less affluent population in the MEA region.
Other Asian vendors, including Micromax, Intex, and QMobile, have also made plans to target Africa with their new smartphone models. As the cost of producing smartphones decreases, prices are expected to drop even more in 2014, resulting in a wide range of low-cost devices, some even priced below $50.
Mobile Payments Will Pass Their Growth-Rate Peak in Africa, But the Rate Will Continue to Rise in the Middle East. Mobile money is the most popular form of money transfer and payment in some African countries.
In Kenya, Safaricom’s M-Pesa and MTN’s Mobile Money are revolutionary products that have transformed the lives of many people, especially those living in rural areas. It is imperative to note that one-third of Safaricom’s revenue comes from M-Pesa.
IDC predicts that growth in mobile money transactions such as M-Pesa will slow in Africa due to regulatory inhibitors and the lack of maturity of these services. Recent legislation introduced a 10% excise duty on money transfer services in Kenya.
This excise tax will have a minimal effect on low-end transactions; with high-value transactions affected the most. Innovative products such as M-Shwari, a new banking product for M-PESA customers that enables the user to deposit and borrow money via mobile phone and earn interest on the deposits made, will continue to spur mobile money growth on the African continent.
In the Middle East, mobile money uptake has been slow. The primary reason attributed to this is the widespread availability of banking infrastructure, with banks and ATMs accessible in all areas. However, telecommunications operators are increasing their participation in the mobile money field, with dedicated products focused on remittances and other payments.
txtNation Launches Mobile Operator Billing using Premium SMS
txtNation, the award-winning provider of mobile billing and messaging solutions, has now launched its mobile billing solution using Premium SMS in Kenya, allowing businesses to accept mobile payments in the African country.
This comes as more Kenyans access the internet on their handsets.
Kenya is one of the fastest growing markets in mobile content and mobile commerce activity, with a 97% growth in 2013. With a population of over 40m and a mobile penetration of 78%, this is a strong country to enter.
Recent statistics also show that 77% of internet enabled mobile phone users buy products online.
txtNation can now offer mobile operator billing using Premium SMS across the networks Airtel and Safaricom with customer price points / tariffs available across 30.00 To 50.00 KES.
The new shortcode for Kenya has been added to txtNation platform and is live now, complementing the company’s existing African footprint.
Sampson Enwere, txtNation’s area manager for Africa, said “Africa’s mobile market is the fastest growing in the world and we are delighted to add Kenya to our already strong mobile billing solutions.”
Federal government has said that it has successfully captured 59,786 inmates, representing approximately 74 percent of the total prison population into the National Identity Number (NIN) database.
This figure is based on a total of 80,879 inmates across 256 custodial centres across the country.
Abubakar Umar, spokesman, Nigerian Correctional Service (NCoS), Deputy Controller of Corrections, who made this disclosure in a statement issued on Sunday in Abuja, dismissed recent media reports alleging that the NIN registration had yet to begin in custodial centres.
Umar described such report as misleading, inaccurate, and not representative of the current situation.
According to Umar, the NIN registration exercise within the correctional facilities was ongoing and has achieved substantial progress.
He credited the achievement to collaboration between the NCoS and the National Identity Management Commission (NIMC), which has enabled successful enrollment of majority of inmates into the national identity database.
According to him, “As of June 7, 2025, a total of 59,786 inmates, roughly 74 percent cent of the total inmate population have been captured on the NIMC platform,” Umar said.
“Efforts are ongoing to register the remaining inmates, and necessary mechanisms have been established to ensure the seamless completion of the process.”
He emphasised that the assertion that NIN registration has not started in custodial centres was factually incorrect and overlooks the extensive work already carried out.
The Service reaffirmed its commitment to integrating all inmates into national data systems, including NIN registration, as part of broader efforts to support rehabilitation, reintegration, and digital inclusion for individuals in custody.
Umar also urged media outlets to confirm their information with appropriate authorities before publication to prevent the spread of misinformation that could undermine the Service’s progress and public understanding.
National Identity Management Commission (NIMC) has clarified that all its verification service platforms remain fully functional and accessible to all authorized partners, including security agencies.
Abisoye Coker-Odusote, DG, NIMC
In a statement on Thursday, the Commission firmly denied claims that it had denied the Police Service Commission (PSC) access to its verification server.
Dr. Kayode Adegoke, head of Corporate Communications, NIMC, described the reported “inability of the Police Service Commission to access the NIMC verification server” as misleading and inaccurate.
He suggested that any challenges faced by the PSC may be due to internal issues within the commission itself, not from NIMC’s end.
The statement reads: “To set the record straight, the NIMC granted verification access to all Nigerian Police formations for the verification of the National Identification Number (NIN). The NPF, PSC and other security agencies have been enjoying uninterrupted verification services for over five years.
“NIMC has provided top-notch verification services for recruitment into the Nigeria Police Force, as conducted by the PSC and at no time have there been any complaints or issues regarding NIN Verification by the NPF or PSC.
“The Commission has a robust and harmonious working relationship with the Nigerian Police Force and the Police Service Commission. The Information Communications and Technology (ICT) department of the Nigeria Police Force is actively managing the long-standing verification and integration service between the NIMC and all Nigeria Police formations.Entertainment tourism packages
“NIMC will continue to provide flawless verification services for the purpose of recruitment, security mapping, cybercrime control, and any other security matters.
“The framework by which NIMC provides services to the security agencies was recently restructured for standardization and effective implementation, following consultation with the Office of the National Security Adviser, and NPF has confirmed the verification services have continued to be available. We therefore believe that any service interruption experienced by PSC may be due to internal matters.
“NIMC is committed to providing excellent verification services to the PSC, NPF and all its partners but the terms and conditions inherent must be adhered to for uninterrupted flow of service.”
Nigerian government, through the Office of the National Security Adviser (ONSA) and the National Information Technology Development Agency (NITDA), has announced a strategic collaboration to strengthen cybersecurity and clean up the nation’s cyberspace.
Recognizing that cybercrime knows no borders, Nigeria also reaffirmed its commitment to fostering stronger global partnerships within the cybersecurity ecosystem.
This announcement was made during a press conference before the inaugural National Cybersecurity Conference, which is scheduled to take place in Abuja from July 9th to 11th, 2025.
Sa’ad Abubakar, national cybersecurity coordinator from the Office of National Security Advisor, said fighting cybercrime must take the whole of society and the whole of the government approach.
According to him, “Apart from the deterrent approach whereby government agencies such as Economic and Financial Crimes Commission (EFCC) arrest individuals, take them to court and prosecute them, the youth can be nurtured into better citizens who can showcase their capacity in better ways and be useful to the country.”
Similarly, Kashifu Abdullahi, director-general, NITDA, also stressed the need for collaborative efforts in fighting cybercrimes.
According to him “Then, in addition to that, we also want to build a stronger global collaboration with the global cyber security ecosystem, because when you look at cybercrime in general, it doesn’t respect the borders.
“Someone can commit a crime from Ghana using a Nigerian ID in the US. So you can look at him physically in a different jurisdiction, pretending to be in another jurisdiction, committing the crime in another jurisdiction.
“So without that kind of synergy and working together, it will be difficult to address these challenges. The third one is challenge. The third one is getting an alternative to cybercrime for our kids in Nigeria. We have this as a major challenge.”
Inuwa further highlighted the upcoming conference’s importance, noting that it would tackle key issues through workshops, discussions on emerging threats, cross-border cybersecurity collaboration strategies, and training programmes.
He also announced that the National Cybersecurity Conference 2025 would feature the Cybersecurity Excellence Awards, recognising top contributions in the field.
The DG extended an invitation to global partners to collaborate with Nigeria in building a safer digital future.
The press conference was attended by notable figures, including Ahmad Sa’ad Abubakar, National Coordinator of, the National Cybersecurity Coordination Centre (NCCC); Hanniel Jafar, Representative of the President, of Cyber Security Experts Association of Nigeria (CSEAN); Ankit Shukla, Managing Director, QNA Marketing Management LLC and members of the press and other stakeholders.
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