Orange Partners With Itel to Launch 4G Feature Phone in Africa

France-based multinational operator Orange announced that it will start selling a 4G version of the Sanza feature phone starting in December. Priced around US $28.00, the new Sanza XL will initially arrive in six markets across Africa, as well as in Jordan, expanding to more countries starting in 2020. The launch is a collaboration with Itel Mobile, part of China-based handset maker Transsion Holdings.

Like its predecessor, the Sanza XL is powered by the KaiOS operating system, enabling access to over 200 apps—WhatsApp, YouTube, Facebook and Google Assistant, among others. Its principal advantages include a larger screen (2.8 inches across) and voice recognition, as well as an improved 2-megapixel camera and 4 GB of internal memory.

The six African countries in the December launch are Botswana, Cameroon, Cote d’Ivoire, Egypt, Mali and Senegal. 

We have noted on a number of occasions that it is in the interest of mobile operators to do all they can to get devices into the hands of customers and potential customers in order to maximize the use of their networks services and related offerings. In many cases, this imperative takes the form of discounting smartphones or promoting low-cost smartphones, so that as many users as possible can use mobile data. Because in less-developed economies, there are more users who do not yet use data, the budget smartphone is the main tool in this campaign to expand usage.

However, it should not be forgotten that there are plenty of potential users in developing countries who not only do not use the mobile internet, but do not even have the funds to be able to afford data plans. Moreover, they may have a low comfort level with regard to electronic devices of any kind and may need to be brought along gradually if they are eventually to adopt more advanced technology.

The Sanza handhelds are designed to target these demographics. Essentially, they are feature phones that are capable of accessing certain internet-based services via modified interfaces that do not require a data connection. Originally the Sanza phone was only 3G compatible. Now it is being offered in an upgraded form that is capable to connecting to 4G/LTE signals. Even though 3G is still prevalent in developing markets, lack of ability to receive 4G signals would make the device far less practical in terms of the services it can access.

The new Sanza device being offered by Orange has a voice interface that allows users who are not fully literate or who are not yet comfortable with the keyboard to use the device. Again, this functionality provides a wide-open gateway for users to enter the world of mobile apps. Orange has the size and scope to operate in countries across the Africa and Middle East markets; an extremely inexpensive device that allows the use of apps that are essential to social media today will enable the operator to gain a potentially large contingent of subscribers at the entry level who can in the future be upsold to data services. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.   To learn more about Tarifica, please visit www.tarifica.com

Value-Added Mobile Service Revenues to Reach US $120 Billion by 2024

Revenue opportunities for MNOs that do not come from voice, messaging or mobile data termination are set to increase to US $120 billion by 2024, from US $67 billion this year, according to a new research report. The categories of revenue-generating streams that network operators can rely on to offset declining revenues from voice and messaging termination include mobile identity services, carrier billing and cellular IoT connectivity, according to the report, which also encourages MNOs to optimize LTE networks for data services, prepare for future 5G networks and explore new options to better utilize the networks they have in place.

The research forecast that the surge in average data traffic generated per user per day will go from 49 GB in 2019 to over 157 GB by 2024 and that this increase will be one of the main challenges faced by operators. The growth will be driven by increasing use of video streaming services such as Netflix and Hulu, which will account for 56 percent of total mobile data generated by mobile handsets, up from 40 percent in 2019.

The results of this study tally extremely well with what we have been writing in these pages for the past several years. Now is a paradoxical time for mobile operators—on the one hand, revenues from traditional services are in steep decline, but on the other hand, opportunities abound for the creation of new revenue streams from non-traditional or “value-added” services.

The pursuit of non-traditional businesses, and particularly the identification of new opportunities, should be a major priority for all MNOs, especially the larger ones that have the capacity for multi-pronged business development and diversification. The prediction that revenue from non-traditional sources will nearly double in five years is significant and very encouraging in this regard.

Furthermore, the mobile-data usage rate among consumers is predicted to triple in the same five-year period, and that statistic should also suggest a course of action to MNOs—that is, they should be sure in their pursuit of new opportunities not to neglect core functionalities. Maintaining and improving networks is key, even if data is commoditized and direct revenue from usage is declining. If networks are not optimized, then the promise of the new value-added services cannot be fulfilled.

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Vodafone Germany to Launch Unlimited-Data Business Tariff

Vodafone Germany will launch a new unlimited-data flat-rate tariff for business customers on 26 October, according to a report. The new Vodafone Business Black+ tariff will cost €169.00 (US $189.00) per month net, or €200.00 (US$223.00) per month gross. The price of €200.00 is the same as that of the existing Vodafone Black tariff, which is currently available to private and business customers alike and offers a flat rate for calls and texts plus 30 GB of mobile data.

 

Unlimited data is a great deal for customers but can be a bad one for operators. We have seen large sectors of the mobile market move away from unlimited-data offers due to high costs, considering them unsustainable. In some cases, they have offered it essentially in name only—either throttled to near-unusability after a limit is reached or with other stipulations that limit data consumption in other ways for certain customers. If Vodafone Germany’s new Business Black + truly has unlimited data, then it is a bold move that could grab market share for the operator in the enterprise sector. The pricing is on the high side for a monthly postpaid plan, but with unlimited data rather than an allotment of 30 GB (generous as that is) it represents a major improvement on the comparable consumer plan, which makes it attractive. In general, we do not imagine business mobile customers being as gluttonous about data consumption as consumers are, since massive video and music streaming are the biggest data hogs, and neither is a part of most business use.

In addition, offering the unlimited-data option to business customers may make more financial sense to the operator than offering it to all customers, in that the client base is smaller and therefore the potential cost damage would be limited. On the other hand, if the pricing is right, Business Black + could end up being not a loss leader but a profitable and sustainable option for Vodafone. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Mozilla to Launch Firefox Smartphones in India

Mozilla will start selling the first Firefox OS smartphone models in India in July, according to reports. The devices will be available at retail prices of US $50 or less. The U.S.-based software company launched its smartphones in July 2013 in Latin America and Europe and to date has sold about 1 million units worldwide. Low-cost chips and an open-source operating system help keep the phones’ prices very low.

India is a very promising market for super-low-priced smartphones. While customers’ budgets are still tight there, on average, use of mobile data is rising rapidly, stimulated by operators’ investments in enhanced networks. According to a recent report, Vodafone India has seen a 230 percent increase in 3G adoption in the country’s rural markets. In order to avail themselves of the opportunities offered by 3G networks, rural customers need smartphones, and with its Firefox phones, Mozilla is well positioned to meet their needs.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx