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OTT, Smart Device Penetration Will Shape MEA Consumer Telecoms Scene in 2014-IDC

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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.”


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AI Slows Down some Experienced Software Developers, Study Finds

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Contrary to popular belief, using cutting-edge artificial intelligence tools slowed down experienced software developers when they were working in codebases familiar to them, rather than supercharging their work, a new study found.

AI research nonprofit METR conducted the in-depth study, on a group of seasoned developers earlier this year while they used Cursor, a popular AI coding assistant, to help them complete tasks in open-source projects they were familiar with.

Before the study, the open-source developers believed using AI would speed them up, estimating it would decrease task completion time by 24%. Even after completing the tasks with AI, the developers believed that they had decreased task times by 20%. But the study found that using AI did the opposite: it increased task completion time by 19%.

The study’s lead authors, Joel Becker and Nate Rush, said they were shocked by the results: prior to the study, Rush had written down that he expected “a 2x speed up, somewhat obviously.”

The findings challenge the belief that AI always makes expensive human engineers much more productive, a factor that has attracted substantial investment into companies selling AI products to aid software development.

AI is also expected to replace entry-level coding positions. Dario Amodei, CEO of Anthropic, recently told Axios that AI could wipe out half of all entry-level white collar jobs in the next one to five years.

Prior literature on productivity improvements has found significant gains: one study found using AI sped up coders by 56%, another study found developers were able to complete 26% more tasks in a given time.

But the new METR study shows that those gains don’t apply to all software development scenarios. In particular, this study showed that experienced developers intimately familiar with the quirks and requirements of large, established open source codebases experienced a slowdown.

Other studies often rely on software development benchmarks for AI, which sometimes misrepresent real-world tasks, the study’s authors said.

The slowdown stemmed from developers needing to spend time going over and correcting what the AI models suggested.

“When we watched the videos, we found that the AIs made some suggestions about their work, and the suggestions were often directionally correct, but not exactly what’s needed,” Becker said.

The authors cautioned that they do not expect the slowdown to apply in other scenarios, such as for junior engineers or engineers working in codebases they aren’t familiar with.

Still, the majority of the study’s participants, as well as the study’s authors, continue to use Cursor today.

The authors believe it is because AI makes the development experience easier, and in turn, more pleasant, akin to editing an essay instead of staring at a blank page.

“Developers have goals other than completing the task as soon as possible,” Becker said. “So they’re going with this less effortful route.”

 


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Firm Uncovers $500K Crypto Heist Through Malicious Packages

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Kaspersky GReAT (Global Research and Analysis Team) experts have discovered open-source packages that download the Quasar backdoor and a stealer designed to exfiltrate cryptocurrency. The malicious packages are intended for the Cursor AI development environment, which is based on Visual Studio Code — a tool used for AI-assisted coding.

The malicious open-source packages are extensions hosted in the Open VSX repository that claim to provide support for the Solidity programming language. However, in practice, they download and execute malicious code on users’ devices.

During an incident response, a blockchain developer from Russia reached out to Kaspersky after installing one of these fake extensions on his computer, which allowed attackers to steal approximately $500,000 worth of crypto assets.

The threat actor behind these packages managed to deceive the developer by making the malicious package rank higher than the legitimate one. The attacker achieved this by artificially inflating the malicious package’s downloads count to 54,000.

After installation, the victim gained no actual functionality from the extension. Instead, malicious ScreenConnect software was installed on the computer, granting threat actors remote access to the infected device.

Using this access, they deployed the open-source Quasar backdoor along with a stealer that collects data from browsers, email clients, and crypto wallets. With these tools, the threat actors were able to obtain the developer’s wallet seed phrases and subsequently steal cryptocurrency from the accounts.

After the malicious extension downloaded by the developer was discovered and removed from the repository, the threat actor republished it and artificially inflated its installation count to a higher number – 2 million, compared to 61,000 for the legitimate package. The extension was removed from the platform following a request from Kaspersky.

“Spotting compromised open-source packages with the naked eye is becoming increasingly difficult. Threat actors are using increasingly creative tactics to deceive potential victims, even developers who have a strong understanding of cybersecurity risks — particularly those working in the blockchain development field.

As we expect adversaries to continue targeting developers, it is recommended that even experienced IT professionals deploy dedicated security solutions to safeguard sensitive data and prevent financial losses,” commented Georgy Kucherin, Security Researcher with Kaspersky’s Global Research and Analysis Team.

The threat actor behind the attack published not only malicious Solidity extensions but also another NPM package, solsafe, which also downloads ScreenConnect. A few months earlier, three additional malicious Visual Studio Code extensions were released — solaibot, among-eth, and blankebesxstnion — all of them have already been removed from the repository.


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NITDA Reaffirms Commitment to 95% Digital Literacy by 2030, as UBEC Pledges Collaboration

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DG NITDA, Kashifu Inuwa CCIE (left), receiving an award for an Ambassador of Basic Education from the ES UBEC, Hajia Aisha Garba (right)
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Kashifu Inuwa CCIE, the Director General of the National Information Technology Development Agency (NITDA), has reaffirmed the Federal Government’s unwavering commitment to achieving 95% digital literacy across Nigeria by the year 2030, with an ambitious milestone of 70% by 2027.

This disclosure was made in total alignment with the present administration’s priority areas of reforming the economy for sustained inclusive growth and accelerating diversification through industrialisation, digitisation, creative arts, manufacturing, and innovation.

Making this known during a collaborative meeting hosted by the Universal Basic Education Commission (UBEC), Inuwa highlighted the government’s strategic prioritisation of human capital development as central to its national transformation agenda.

“We started this journey in 2023 when President Bola Ahmed Tinubu came on board and he made it clear that economic diversification and inclusivity are part of the administration’s agenda,” he noted.

“And the president outlined this in 8 priority areas to achieve the vision, with priority number 7 specifically focused on accelerating industrialisation, digitisation, creative arts, manufacturing, and innovation,” he added.

Recognising the importance of digital fluency in achieving this agenda, he stated that NITDA is committed to investing in the digital empowerment of citizens through the development of the National Digital Literacy Framework (NDLF), a strategic blueprint aligned with international best practices.

He added that to tailor the framework to Nigeria’s specific needs, 6 core competency areas were incorporated to include device and software operations, information and data literacy, communication and collaboration, content creation, safety, and problem solving.

He explained that the framework would address all levels of digital fluency, from basic, intermediate to advanced levels, to make digital skills accessible to every Nigerian, from primary school pupils to working professionals.

According to Inuwa, despite data limitations, NITDA estimates that Nigeria’s digital literacy rate currently stands at 50%, up from 44% in 2021, based on extrapolations from the World Bank’s Better Life Report.

The NITDA DG disclosed that the agency has been working closely with the Nigerian Educational Research and Development Council (NERDC) in developing a curriculum for digital literacy, which can be infused into formal education. Stating that the visit is a continuation of NITDA’s ongoing engagements with key education stakeholders, including the Federal Ministry of Education, the National Universities Commission (NUC), and the Nigerian Educational Research and Development Council (NERDC), all aimed at advancing digital literacy across all levels of learning.

Inuwa also revealed ongoing collaborations with global platforms such as Coursera to train teachers using AI-powered lesson generation tools and provide scalable online training.

It is worth recalling that late last year, NITDA partnered with the Nasarawa State University in collaboration with CISCO in launching the Digital Learning for NSUK (DL4NSUK) initiative to enhance digital literacy in tertiary institutions, and equipping graduates with the skills needed to be digitally proficient and globally competitive.

While stressing that the entire process, from curriculum development to classroom delivery, would require a whole-of-government and whole-of-society approach, Inuwa said, “This is not a journey we can walk alone; we must bring everyone on board, education stakeholders, technology providers, state governments, and international partners.”

In response to the DG’s remarks, UBEC Executive Secretary, Hajiya Aisha Garba, confirmed that the Commission has officially received the digital literacy curriculum developed by NITDA and NERDC and has commenced internal review processes.

She acknowledged the curriculum as robust and forward-looking but stressed the need for simplification to suit early learners and teachers, citing challenges such as curriculum overload, limited teacher capacity, and inadequate infrastructure as key barriers to effective implementation.

She pledged that UBEC, in partnership with the State Universal Basic Education Board (SUBEB), will lead efforts to equip schools with computers and solar-powered infrastructure to support real learning.

“We’re committed to working with NITDA and NERDC to refine the curriculum, train teachers, and ensure effective delivery. Let us align the technical vision with grassroots realities to make a lasting impact,” she concluded.

To formalise the implementation of the meeting’s resolutions, a joint inter-agency committee was established to develop strategic plans that will ensure the effective rollout of the digital literacy initiative, to equip young Nigerians with the essential digital skills required to thrive in an increasingly dynamic and technology-driven global landscape.


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