An overview of the state of mobile telecommunications in East Africa

1. Mobile Technology
An East Africa Perspective
(9 Oct. 2012)

2. Agenda
1. Africa overview
2. East Africa overview
3. The power of mobile**

3. http://www.youtube.com/watch
?v=0bXjgx4J0C4

4. Mobile in Africa
• 90% of all phones in Africa are mobile
phones
• 700 million mobile connections (active SIM
cards) 65% penetration
• 19% annual growth
• 96% are prepaid subscribers
• Nokia has 65% est. market share
Statistics from Jon Hoeler& Andrew McHenry
http://www.slideshare.net/jonhoehler/insights-into-mobile-telecoms-in-africa-by-jonhoehler-
andrewmchenry
http://www.slideshare.net/jonhoehler/insights-into-the-mobile-internet-in-africa-8654168

5. Feature phones still prevalent
• Feature phones prevalent over
Smartphones
• Introduction of sub $100 entry level
Smartphones – Huawei IDEOS led the
way, others following suit
– Samsung Pocket
– Alcatel One Touch

6. East Africa Highlights
• As of April 2011
Kenya Uganda Tanzania
Mobile Subs. 26.5M 12.8M 23.8M
Mobile Pen. 67.2% 38.4% 56%
Fixed Line Subs. 374,942 327,114 174,678
MNOs Safaricom, Airtel MTN Uganda, Vodacom, Tigo,
Kenya, Essar, Uganda Telecom, BhartiAirtel, Zantel,
Telecom Kenya Airtel Uganda, World TTCL, Benson,
Telecom, Hits SasaTel
Telecom, Orange, i-
Telecom, Smile
Telecom
# Mobile phones 19,365,000 9,384,000 17,677,000
Mobile internet 5.4M 605,000 462,000
users
Mobile Money Subs. 18.4M 3M 3M
iHub Research, Mobile Technology in East Africa,
http://www.ihub.co.ke/blog/2012/05/mobile-technology-in-east-africa/

7. Kenya
• As per CCK Q3 2011/2012 (Jan – Mar 2012) statistics:
1. 29.2 million mobile subscribers
– 28.9M prepaid (99%)
– ~0.25 M postpaid
2. Mobile penetration 74%
Operator # Subscribers as of March 2012
Safaricom 19,074,700
Airtel 4,483,334
Essar Telecom (yU Mobile) 2,554,258
Telkom Kenya 3,099,357
http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

8. Kenya
• 18.987 million mobile money transfer
subscriptions
• 45,861 mobile money agents
• KES 185,361,277,029 in deposits in the
quarter
http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

9. Kenya
http://www.cck.go.ke/resc/downloads/SECTOR_STATISTICS_REPORT_Q3_JUNE_2012.pdf

10. Tanzania
• 26,978,436 mobile subscribers up from
25,827,518 as at Dec 2011
Operator # Subscribers
Vodacom ~12.6M
Airtel ~7.1M
Tigo ~5.5M
Zantel ~1.5M
Others ~0.23M
(TTCL,Benson,SasaTel)
According to the Tanzania Communications Regulatory Authority (TCRA) Q3 March 2012:
http://www.tcra.go.tz/publications/telecomStatsMarch12.pdf

11. Tanzania
• 2.5% of Tanzania‟s population has access
to Internet
• 79.39% access the Internet on mobile
phones
• Only 24% of Tanzanians use mobile
money
iHub Research - http://www.ihub.co.ke/blog/2012/01/mobile-technology-in-tanzania/
http://www.audiencescapes.org/sites/default/files/Tanzania%20MM%20Tracker%20Qtr%201%20Report_For%20Public_COLOR_1.pdf

12. Tanzania
http://www.audiencescapes.org/sites/default/files/Tanzania%20MM%20Tracker%20Qtr%201%20Report_For%20Public_COLOR_1.pdf

13. Uganda
Uganda Communications Commission Post & Telecoms Annual Market Review 2010/11
http://www.ucc.co.ug/files/downloads/2010%2011%20Annual%20Post%20and%20Telecommunications%20Market%20Review%20141

14. Uganda
Uganda Communications Commission Post & Telecoms Annual Market Review 2010/11
http://www.ucc.co.ug/files/downloads/2010%2011%20Annual%20Post%20and%20Telecommunications%20Market%20Review%20141

15. Rwanda
• According to Rwanda Utilities Regulation
Authority (RURA) June 2012:
1. 44.81% Mobile penetration rate
2. ~4.756M mobile subscribers
Operator # Prepaid #Postpaid
MTN ~3.02M 11,732
TIGO ~1.62M 5,482
Airtel Rwanda 110,304 -
http://www.rura.gov.rw/docs/STATISTICS_AND_TARIFF_INFORMATION_%20IN_TELECOM_June_2012.pdf

16. Rwanda
Internet subscriptions of June 2012 (RURA)
http://www.rura.gov.rw/docs/STATISTICS_AND_TARIFF_INFORMATION_%20IN_TELECOM_June_2012.pdf

17. Ethiopia
• Ethio Telecom sole provider
• 17M mobile subscribers ~18M incl fixed
line (current figures)
• Targeting 65M and 75% penetration by
2015
• http://www.biztechafrica.com/article/ethio-telecom-tops-18m-subscribers/4181/
• http://www.theeastafrican.co.ke/news/Ethiopia+to+overtake+Kenya+in+mobile+subscriptio
ns+numbers/-/2558/1400048/-/view/printVersion/-/a378n2z/-/index.html
• http://investeddevelopment.com/blog/2011/11/can-lagging-ethiopia-reach-african-mobile-
penetration-standards/

18. Usage
iHub Research, Mobile Technology in East Africa,
http://www.ihub.co.ke/blog/2012/05/mobile-technology-in-east-africa/

19. Power of Mobile
• A communications platform
– Voice / SMS
– Mobile Internet based communications (e.g. MXit is
bigger in SA than Facebook)
– Social networking
• An application Platform
– A platform for delivering value to an audience
– Mobile apps (both Smartphones and Feature phones
e.g. Binu, Snaptu – acquired by Facebook)
• A trading platform
– Mobile money
– M-commerce

20. Mobile – an application platform
• Deliver value straight to the user
– Always on device
– Virtually always in pocket or hand or very nearby
– Ubiquitous technologies – SMS, USSD
• Innovative uses:
– mAgriculture
– mHealth
– mLearning
– mBanking&mTransactions / mMoney
– mGovernance
• “The Innovative Use of Mobile Applications in East Africa” -
http://sidapublications.citat.se/interface/stream/mabstream.asp?filetype=1&orderlistmainid=2861&
printfileid=2861&filex=3830197052040

21. Mobile – an application platform
Application to… Use
Agriculture (mAgriculture) Education & Awareness
Commodity prices, market info.
Data collection
Pest, disease outbreak warning &
tracking
Health (mHealth) Education& Awareness
Data collection, health records
Monitoring/medication compliance
Disease/epidemic outbreak tracking
Health/administrative systems
Analysis, diagnosis, consultation
Governance (mGovernance) Civic education
Delivery of public services
Delivery of information (Education &
Awareness)

22. Smartphone capabilities on your feature phone

23. Note on social networking / media
• Also have the same capacities as mobile:
1. Social networks are communications
platforms
2. They are also application platforms
– Application Programming Interfaces (APIs)
– E.g. Facebook app platform
• Social networking platforms are also
becoming trading platforms – Facebook
credits, MxitMoola (virtual currency)

24. Social + Mobile = ?
• Simply Transformational!
• And it‟s happening…
• Think Arab Spring:
– New study quantifies use of social media in
Arab Spring - http://www.washington.edu/news/2011/09/12/new-study-
quantifies-use-of-social-media-in-arab-spring/
– Mobile phones, social media and the Arab
Spring - http://www.credemus.org/images/stories/reports/mobile-
phones-and-the-arab-spring.pdf

25. Take-outs
1. Target your audience (esp. youth) where
they already are:
– Mobile
– Social
2. For internet, go mobile web
3. Leverage ubiquitous technology – SMS is
the best delivery platform for mass impact

26. Thank you
Will Mutua
Founder Afrinnovator (http://afrinnovator.com)
Co-author „Innovative Africa: The new face of Africa‟ (http://book.afrinnovator.com)
http://twitter.com/afrinnovator
http://facebook.com/afrinnovator
info@afrinnovator.com