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GSMA Highlights Key Trends Shaping the Future of Mobile

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The GSMA has published its second annual ‘Global Mobile Trends’ report, which provides exclusive data and analysis on the key trends shaping the future of the mobile ecosystem.

Published at Mobile World Congress Americas being held in San Francisco this week, the 2017 edition of this flagship report series compiles data on mobile subscriber growth trends across both developed and emerging markets, plus insight on: device innovation beyond the smartphone; the evolution from 4G to 5G networks; industry financial performance and growth outlook; competition and convergence; and statistics for every region worldwide.

“Our latest Global Mobile Trends report provides a comprehensive view of the opportunities and challenges facing the mobile industry as we move into a new era of ubiquitous connectivity,” said Laxmi Akkaraju Chief Strategy Officer at the GSMA.

“Built on best-in-class GSMA Intelligence data and produced by our in-house team of industry analysts, today’s report maps out how future networks and operator business models are evolving within a rapidly shifting industry landscape.”

Key takeaways from the 2017 edition of the Global Mobile Trends: Connecting the next billion: Five billion people are now connected to mobile networks, representing two-thirds of the world’s population. However, growth is slowing; it took four years to move from 4 billion to 5 billion subscribers and connecting the next billion will take longer still. Meanwhile, smartphone and mobile broadband growth is driving mobile internet usage and engagement, and new form factors are emerging beyond the smartphone.

Rapid 4G growth: Industry excitement around 5G overlooks the fact that 4G still has plenty of headroom for future growth. 4G is forecast to account for two-thirds of global mobile connections by 2025 (up from around a quarter today), driven by increasing 4G adoption over this period in major emerging markets such as Brazil, India and Indonesia.

The pathway to 5G: Early 5G deployments will likely target high-bandwidth applications as an extension to 4G, notably 8K ultra-HD video and VR/AR apps, although the US will focus initially on using 5G as a last-mile technology for home broadband. South Korea and Japan are likely to be among the first 5G markets, showcasing the technology at the Olympics in 2018 and 2020, respectively.

However, on a global basis, it’s expected that 5G networks will be rolled out at a slower rate than 4G and adoption is therefore also likely to be slower.

Transforming the network: A paradigm shift in network architecture is required to support the shift to 5G and Internet of Things that requires the creation of decentralised networks that combine a number of network technologies (e.g. small cells, LPWA), using software-controlled network functions, and running over both licensed and unlicensed spectrum. Edge computing and network slicing will be needed to support major 5G applications. 

Telecoms and media converging: Convergence is now occurring at an industry level, as evidenced by the recent M&A boom that is creating telco-media conglomerates that seek to unlock new opportunities by combining content offerings with core network services; examples include Verizon/AOL/Yahoo and the proposed tie-up between AT&T and Time Warner.

However, investors have yet to price in a growth premium for converged telco-media plays, which continue to be valued significantly below major tech players.

The quintet of Apple, Amazon, Facebook, Google and Netflix have collectively grown enterprise value 3.5x since 2010, with large telecoms operators remaining relatively flat over this period.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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PTECSSAN Calls for call for Implementation of Executive Order on Local Contents

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Abdur-Raheem Adebayo Shittu, Minister of Communication

Private Telecommunication and Communications Senior Staff Association of Nigeria (PTECSSAN) has called for the implementation of the President’s Executive Order on local contents.

 

Oladapo Moses, president of PTECSSAN, made the call in an interview with the News Agency of Nigeria (NAN) in Lagos, alleging increase in number of foreigners working in Nigeria.

 

Moses noted that four months after the executive order was signed by President Muhammadu Buhari, there had been no blue print for its implementation.

 

NAN recalls that President Buhari signed the executive order on February 2 to improve local contents in science, engineering and technology components.

 

The order, among others, prohibits the Ministry of Interior from giving visas to foreign workers whose skills are readily available in Nigeria.

 

Moses claimed that since the order was signed, the number of expatriates whose expertise was available in the country had continued to increased.

 

He said that if the trend was allowed to continue, the plans of the current administration to create 740,000 in the country would fail.

 

He said: “The rate at which Ministries, Departments and Agencies grant expatriate quotas to foreign workers is worrisome.

 

“This is a direct abuse of the laws. Imagine an expatriate working in Nigeria as a Security Manager, Fleet Manager, Account Manager and Human Resource Manager. This is sad.”

 

According to him, telecommunication companies keep Nigerian workers as casual or outsource staff while their foreign counterparts, some of who are less qualified, are treated with full benefits.

 

He said: “This is against the laws as no Nigerian worker understudies the expatriates; rather the reverse is the case.

 

“We have companies with 30 per cent locals and 70 per cent foreigners as staff.”

 

Moses said it was wrong to believe that Nigerians in the telecommunication sector “still needed to learn forever, after over a decade of learning and teaching the supposed teachers”.

 

He said that some multi-nationals hid under redundancy policy to terminate employment of the indigenous workers only to bring in foreigners to take over their positions.

 

Moses added: “The result is that Nigerians lose their jobs to foreign workers.

 

“We urge the MDA’s to immediately work with all labour unions in the information sector to nip this development in the bud.”

 

The union leader lamented that the executive order has not been implemented and advised Nigerian telecommunication workers to wake up and be united to be able to tackle the challenge.

 

 

 

 

 

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Internet of Things Spending to Reach $1.2 Trillion in 2022- IDC

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International Data Corporation (IDC) reports on Internet of Things shows that spending will experience a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach $1.2 trillion in 2022.

 

The forecast is based on the latest research in the burgeoning IoT technology market, which offers business investment opportunities across a spectrum of industries and illuminated through use case implementations.

 

As the diverse IoT market reaches broad-based critical mass, innovative offerings in analytics software, cloud technologies, and business and IT services have expanded rapidly.

 

Carrie MacGillivray, group vice president, Internet of Things and Mobility, said, “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments.

 

“Organizations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”

 

The intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy.

 

The IDC IoT Spending Guide is an industry defining market intelligence tool that details end-user adoption and spending across multiple segmentations.

 

Marcus Torchia, research director, Customer Insights & Analysis, said, “The latest IoT Spending Guide release fully aligns to IDC’s Industry Taxonomy.

 

“We now forecast all 20 standard IDC Industries,”

 

“As a result, we are proactively mapping IoT use cases that have segmentations in shared domains, such as in Smart Cities and Digital Transformation investment areas.

 

“As a part of these improvements, IoT supports spending forecasts for 100 use cases.”

 

Forecast highlights show that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries.

 

From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending.

 

From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security.

 

The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases.

 

 

Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.

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ALTON Seek Policy Breather for Ailing CDMA

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Association of Licensed Telecommunications Operators of Nigeria (ALTON) has called for policy flexibility in favour of Code Division Multiple Access (CDMA) operators.

 

Engr. Gbenga Adebayo, ALTON Chairman, said in Lagos that the federal government should give the operators access to capital and other incentives to survive.

 

“With the declining CDMA operation in Nigeria, there is urgent need to help the operators remain in business in order to allow for the continuity of their operations, which has cheaper tariff than GSM service,” he said.

 

Adebayo called on telecommunications regulators to revisit the interconnect rate model and give preferential treatment to CDMA operators.

 

CDMA is a wireless communication technology that allows multiple people to use a single radio channel at the same time with little interference and very high security.

 

Adebayo said that CDMA operators still existed and had subscribers but were not as prominent as they used to be. “The fact remains that the choice of technology being used now does not favour CDMA operators,’’ he said.

 

The chairman noted that CDMA lines were mostly used in the country in the past.

 

He said that the use of the CDMA lines was reduced as a result of stiff competition with GSM operators.

 

Adebayo said that GSM operators churned out innovative and exciting products for subscribers and lowered call tariffs and SIM cards, causing decline in the number of subscribers on CDMA network.

 

Adebayo said that GSM operators’ subscriber base had continued to rise to the disadvantage of CDMA operators. According to statistics released by the Nigeria Communications Commission for 2018, active mobile telephone lines in Nigeria rose from 149 million in March to 160 million in April.

 

 

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