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

Ooredoo Qatar’s Mobile Money Payroll Service Sees Growth

Mobile Ooredoo Qatar announced that its Ooredoo Money Payroll service is experiencing rapid growth. Over 150,000 employees currently use the service, which has been used to pay more than QAR 3 billion (US $817 million) to employees since its launch in 2015. Each month, over QAR 115 million (US $31.3 million) is paid to employees across Qatar, directly into their Ooredoo Money Wallets, via Ooredoo Money Payroll.

Mobile money achieved prominence as a way of providing access to liquidity to unbanked users or those who were underserved by traditional financial institutions. Its core functionality was peer-to-peer payments among individuals. In the last several years, we have seen mobile money expand tremendously beyond its original conception.

For one thing, it has flourished in markets that are more developed than those of sub-Saharan Africa, where it grew fastest. Qatar, a wealthy country, is a good example. Of course, it should be pointed out that in certain Gulf states, mobile money is especially appreciated by foreign workers who remit funds home to family, and this demographic does bear similarities to the underbanked in less developed economies.

Secondly, it has come to be used widely even by those who do have access to banks and other financial services, mainly because it is perceived as convenient and seamless. In some cases, the integration of mobile money with other mobile services from operators has proved an incentive in itself for users to adopt it.

In this case, with Ooredoo Qatar, we are seeing large enterprises adopting mobile money as a means to pay their employees. The operator evidently perceived correctly that this would be a boon to both parties, considering its rapid growth and the sheer volume of payments being made currently. Once users are comfortable with the concept of mobile money, there is apparently no impediment to getting them to accept payroll payments through this means. And for the companies that are issuing the payments, the attendant costs must be low enough in comparison to banks’ systems to make it worthwhile. In Qatar, it is likely that a large percentage of the employees who participate are immigrants or expats who already appreciate the functionalities of Ooredoo’s mobile money platform, Ooredoo Money.

For the operator, mobile money payroll is an excellent, innovative way to expand its reach and increase revenue while shoring up loyalty both from individual users and from large corporations. The size of the corporate partners and the number of payments being issued make this a truly impressive revenue growth opportunity.

On a related note, Ooredoo Qatar is now promoting Ooredoo Money with an offer running through 31 December that gives a free data bundle of 750 MB to any customer who makes an international transfer of QAR 1001.00 (US $272.60) or more. The free data is valid for five days. and above using Ooredoo Money will enjoy 750 MB of free data valid for five days and can also be used in selected countries including India, Bangladesh and the Philippines.

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 

GSMA: Almost Half of Mobile Users Talk and Text Only

Nearly half the world’s mobile phone users still only use their devices to make voice calls and send SMS messages, according to a report from GSMA Intelligence. The Global Mobile Engagement Index classifies users into four categories, from “Aficionados” (most engaged), down through “Pragmatists” and “Networkers” down to “Talkers” (least engaged.)
 
In 2016 the Talkers—those who only use their mobile phones to make voice calls and send SMS—accounted for 47 percent of adult mobile phone owners worldwide. However, the GSMA predicts that this segment will shrink to 29 percent of the total by 2030, as users in the developing world become more engaged with data use and advances in mobile technology make it more available and affordable.
 
The GSMA’s survey, which took in 56 global markets representing 80 percent of the world’s population, shows that the three highest-scoring countries in terms of mobile engagement in 2016 were South Korea, Qatar and the United States.

 
This report from the GSMA is very interesting and valuable as a reminder of where we are in the mobile market, and it suggests some strategies for operators. For all the talk of the mobile data revolution sweeping the globe—including in these pages—the report makes it strikingly clear that uptake of data services has barely broken the 50 percent mark.
 
Of course, that figure is an average that masks a great imbalance between developed and developing markets. However, the report indicates that the dichotomy may not be as stark as some might suppose: For example, it found that even in France and the United States, SMS is still more frequently used than IP messaging such as Apple’s iMessage or OTT solutions such as Skype and WhatsApp.
 
In our view, the GSMA statistic points to two paths ahead for mobile operators: Of course MNOs (and device manufacturers, too) will and should continue to innovate in order to make data services more affordable and available, continue to increase 4G/LTE network coverage, and keep on incentivizing customers to take up data use and then increase their usage. On the other hand, operators should not neglect the “Talkers.” Even though the report predicts that their ranks will shrink to a 29 percent global share by 2030, that is still a large number, and 2030 is still a long way off. Therefore, catering to the needs of the talk-and-text-only user should remain an important priority for MNOs now and in the future.
 
Not only are traditional mobile services far from dead, they are the only services for a large enough cohort of users that operators must tailor plans to them and maintain services for them—including methods for accessing popular content such as Facebook without a data connection—even as they encourage them to upgrade to data.

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 

Vodafone Germany and Recogizer Offer Big-Data Analysis

Vodafone Germany, in cooperation with Recogizer Analytics, a German company, is offering an analysis tool for companies using the Internet of Things. Business customers can evaluate large quantities of data from building technology, machines and sensors, with the goal of increasing the energy efficiency of buildings, reducing machine downtime and improving the reliability of installations. With the Big Data Analysis cluster, Vodafone is offering a complete product range consisting of hardware, a Vodafone Global SIM, data analysis collection, secure data hosting on German servers and intelligent data analysis. The service is based on Vodafone’s LTE grid and, in future, will be based on the operator’s 5G network.     This ambitious offering targeted at business subscribers appears to be an excellent way for a mobile operator to create revenue and innovative opportunities for itself beyond traditional mobile services. The rapidly growing IoT sector is already a promising source of revenue for operators, as we have written in the past; providing an analytic tool for the IoT is a new and creative way to grow within that sector. Not only is Big Data Analysis potentially very useful to companies in the building industry and therefore an opportunity to enhance Vodafone’s brand, but the fact that it runs on Vodafone’s LTE network makes it a source of ongoing revenue, a way of more fully utilizing the operator’s capacity, and a way of increasing Vodafone’s customer base (via the Global SIMs). Partnering with a technology company to develop this complex system looks to be a savvy move, and on the whole, we see Big Data Analytics as a likely win-win situation.

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 

Farmers in Rural New Zealand Are the Biggest Users of Spark’s 4G network

New Zealand operator Spark has found that farmers and the rural sector consistently use the most 4G/LTE data across the entire country. When analyzing data traffic over the last month, Spark’s cell towers in both Waiuku and Te Puke showed the highest volume of use. Farmers and rural residents in these two locations are consistently using over 1 TB of data each week. Other rural sites including Pukekura, Te Awamutu, Pukekohe and Te Kawa also rank extremely high in 4G data usage. This news from New Zealand is a useful reminder that while the assumption tends to be that users in dense urban areas are the most sophisticated and data-hungry, rural users, particularly in countries such as New Zealand that have a thriving agricultural base, can also be major market drivers. The fact that farmers there stand out as the biggest consumers of mobile data also illustrates the point that mobile internet can be especially desirable in regions where fixed line service may be relatively less available and/or less efficient. 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

Moldcell Launches World Cup SMS Contest

Moldovan mobile operator Moldcell has launched an SMS contest called “I Love Football,” being held between 12 June and 13 July 2014 in connection with the FIFA World Cup taking place in Brazil during that period. To enter, customers must send an SMS that includes certain words to a certain number; they will then be sent football-related questions that they can answer to accumulate points. Depending on the number of points, contestants can win a trip to Spain, two Sony C2305 and Sony C2005 smartphones or footballs. In addition, customers who send more than 30 messages to the contest number will receive 5 MB of data and five on-net SMS free of charge, available for 15 days for each sent SMS. Declining use of SMS is a global trend, and operators in many markets are looking for ways to promote the service. A timely contest such as this one, which takes advantage of a passionate interest common to many customers, is a good way to stimulate more frequent use of SMS, at least for the duration of the contest. Whether any new usage patterns will persist after the promotion ends is yet to be seen, of course, but considering the strength of the challenge to SMS from less-expensive OTT messaging services, we think this strategy is well worth trying out.  The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes two 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

Airtel Equips Youth with Knowledge in Mobile Phone Repairs.

Airtel Nigeria has introduced an empowerment initiative directed at equipping young people with practical knowledge in mobile phone repairs. The Basic Mobile Phone Repair Module (BMPRM) is a two-week certificate course that supplies participants with the fundamentals at no cost. The BMPRM will be conducted by experts to enable participants to start small businesses of their own. Once the training is complete, the participants will be set up in positions such as APRP (Adaptive Pattern Recognition Processing) operators, workers at SIM selling outlets.

Airtel Nigeria holds the second-largest market share, 21 percent, behind MTN, with 45 percent, and leading Globacom by just 1 percent. Currently, no operators offer phone repair services. However, in December 2013 Globacom introduced a limited-time opportunity for customers of any operator to bring their mobile phones to a Globacom shop and have their phones repaired free of charge. Even though this mobile repair service was effective only for a short period, Globacom got the attention of Nigerian consumers.

Airtel Chief Executive Officer and Managing Director Segun Ogunsanya said, “This training is part of our plans to start building a crop of SME [Small and Medium Enterprises] businesses that will spin off our core business and also bring Airtel closer to our customers.” That could mean that Airtel hopes to partner with phone repair shops that graduates of the course may establish in the future. Such partnerships could help the operator gain competitive advantage through better customer service. Still, this approach is not likely to come to fruition quickly, since Airtel began with only 40 participants and is now preparing for another 100. Furthermore, it is not clear whether the BMPRM instruction covers smartphones or only feature phones.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Mobile Money Poised to Reach Critical Mass

 Three recent developments signal that mobile money may be on the verge of crossing the size-and-scale threshold where it can provide both increased convenience and security from theft to the unbanked around the world and distinct and significant revenue streams for operators.

First, Bharti Airtel and MTN announced a deal allowing convenient and affordable money transfer between their customers in Ivory Coast and Burkina Faso. This is the first cross-border mobile-to-mobile remittance service in West Africa. MTN spokesman Pieter Verkade stated, “MTN has reached a great level of adoption of Mobile Money in Ivory Coast, and Airtel has done the same in Burkina Faso. With a sizable community of Bukinable  working in Ivory Coast and sending money back to their home country, the partnership will greatly enhance the Mobile Money service for both countries.” Global remittance payments—an area where mobile money has yet to take off—are estimated at US $534 billion per year; if mobile operators can tap into even a moderate proportion of that, it could prove a significant new source of revenue.

Second, French multinational operator Orange announced that its mobile money network had received its 10 millionth customer. Orange rolled out its mobile money service in 2008, and since then it has become available in 13 African and Middle Eastern countries. In 2013, over US $3 billion passed through the service. While it is not the largest mobile money network (MTN has 14.8 million users in 14 countries), this news demonstrates that mobile money is a focus point for large global operators, which have the ability to make it a truly functional payment form, in the way that users of VISA, MasterCard, or American Express have come to expect.

Third, Qatari operator Ooredoo announced that it joined the Groupe Speciale Mobile Association’s (GSMA) Mobile Money Interoperability program. This program focuses on helping operators launch and scale interoperable mobile money services through the sharing of best practices and provides regulatory support. Its members represent 582 million mobile connections across 48 Middle Eastern and African countries and include Bharti Airtel, Etisalat, Millicom, MTN, Orange, STC, Vodafone and Zain.

While none of these items by itself represents a major leap forward for mobile money, collectively they are signs that the platform is picking up the backers and scale needed to reach launch velocity in emerging markets—that is, the point at which it becomes so widespread that the conveniences of having and using mobile money outweigh any difficulties associated with it. There are still many challenges to the adoption and success of mobile money, but it appears to have momentum on its side.

 

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx