Telecom
Africa’s Mobile Market Decline for Second Successive Quarter says IDC
Africa’s overall mobile phone market remained flat in Q1 2018 although smartphone shipments declined for the second successive quarter, according to the latest insights from International Data Corporation (IDC).
The global technology research and consulting firm’s recently published Quarterly Mobile Phone Tracker shows that a total of 52.1 million mobile phones were shipped in Q1 2018, down 6.3% quarter on quarter (QoQ) and 3.9% year on year (YoY), with the continent’s two biggest markets – Nigeria and South Africa – underperforming and posting QoQ declines of 6.4% and 27.4%, respectively.
“Nigeria’s modest performance can be attributed to the fact that smartphone adoption continues to be hindered by expensive broadband rates and slow internet connectivity.
“The drop in South Africa is simply down to seasonal factors, with Q1 traditionally being the slowest quarter of the year and unable to match the buoyant sales seen in Q4, traditionally the strongest, when demand is stirred by Black Friday and the Christmas season.
“While South Africa is one of the continent’s most developed markets, a large proportion of the market still centers around low-end to midrange devices priced below $150.
“Affordable smartphones that fall into this price range have seen a lot of growth over the last two years, fueled by local brands like Mobicell, MINT, and Vodacom.
“With disposable income limited for the majority of consumers, most spending on mobile devices takes place in Q4, leading to an inevitable drop-off in Q1,” says Nabila Popal, a senior research manager at IDC.
Looking at smartphones in isolation, shipments declined 4.5% QoQ for the first quarter of the year to total 20.4 million units. This represents a decline of 4.4% YoY, which is actually an improvement on the 13.7% YoY decline seen in Q4 2017.
Transsion brands continued to lead the smartphone category in Q1 2018 with 32.1% share of the market’s shipments, followed by Samsung in second place with 25.4% share.
In the feature phone space, shipments totaled 31.7 million units in Q1 2018, down 7.4% QoQ and 3.6% YoY.
Feature phones continue to account for the majority share (60.8%) of Africa’s overall mobile phone market and their resilience in this region can be attributed to factors such as their affordability and long battery lives.
Telco and Itel continued to dominate Africa’s feature phone market in Q1 2018 with a combined unit share of 57.8%.
“Feature phones remain a viable option throughout the continent as hardening economic conditions have taken their toll on consumer spending,” says Ramazan Yavuz, a research manager at IDC.
“The volatile exchange rates that have inflicted many countries across the region are delaying the penetration of affordable smartphones into wider segments of the consumer base, which is why we continue to see feature phones account for such a large share of the overall market.”
Looking ahead, IDC expects Africa’s overall mobile phone market to grow 0.5% QoQ in Q2 2018, while shipments for 2018 as a whole are forecast to decline 0.6% YoY.
Demand for feature phones is expected to remain strong, although IDC expects vendors to drive smartphone uptake by offering more features in affordable price bands.
“The local brands that are equipped with a strong knowledge of local needs and the flexibility to adjust mobile phone prices locally will strongly appeal to African consumers, and their growth will accelerate the uptake of smartphones in the mid-term,” says Yavuz.
Nigerian Communications Commission (NCC) has issued a 90-day compliance window to telecommunications operators to resolve the long-standing issue of unutilised and unclaimed subscribers’ recharges.
This announcement was made at a high-level virtual stakeholders’ engagement forum held on Tuesday, targeted at refining and enforcing new guidelines that protect consumer rights in Nigeria’s evolving telecom landscape.
Dr. Aminu Maida, executive vice chairman, NCC, whose speech was delivered at the forum by Rimini Makama, executive commissioner, Stakeholder Management, emphasised that the Commission was taking proactive steps to address unused prepaid credit on inactive lines, an issue that impacts millions of subscribers nationwide.
“With the rapid growth of mobile subscriptions and the dominance of prepaid plans, it has become critical to ensure that consumer interests are not eroded through forfeiture of unused credit,” the NCC Boss said.
He stressed the commitment of the Commission to creating a regulatory framework that is fair, enforceable, and aligned with international best practices.
The current Quality of Service Business Rules provide that prepaid lines with no revenue-generating activity for six months be deactivated, and may be recycled after another six months.
The proposed guidance reaffirms the right of subscribers to reclaim their unused credit within 12 months, provided they can verify ownership.
In her remarks, Mrs. Chizua Whyte, head of Legal and Regulatory Services, NCC, presented the Draft Guidance on Unutilised and Unclaimed Recharges, which outlines clear procedures for managing inactive subscriber accounts.
She stated that operators will be required to carry out comprehensive audits of all churned numbers, ensure unused airtime is offered back to subscribers through service alternatives, and strictly avoid monetising forfeited recharges.
Whyte explained that these guidelines are not only aimed at protecting consumers, but also offering regulatory clarity to operators.
She added that the Commission is mandating full compliance within 90 days of the issuance of the final guidance, with non-compliance attracting penalties, including regulatory audits.
The forum attracted wide participation from across the industry, with discussions centred on striking a balance between protecting consumer rights and maintaining operational feasibility.
Participants agreed on the need for greater transparency, stronger consumer education, and consistent notification practices.
The NCC reiterated its commitment to fostering a fair, transparent, and consumer-first regulatory environment.
The 90-day deadline signals a new era of accountability in how telecom operators manage subscriber credits and reinforces the Commission’s role as a guardian of consumer trust in the digital age.
MTN Foundation has opened applications for its 2025 scholarship programme, reaffirming its dedication to strengthening the development of Science, Technology, Engineering, and Mathematics (STEM), encouraging excellence in academic pursuit, deepening diversity and inclusion by empowering blind students in Nigeria.
The programme provides three categories of scholarships annually: the Science and Technology Scholarship (MTN STS), the MTN Scholarship for Blind Students (MTN SBS), and the Top 10 UTME Scholarship.
The STS is open to all 300-level Science and Technology students with a minimum Cumulative Grade Point Average (CGPA) of 3.5 (Second Class Upper or its equivalent); SBS caters to the educational needs of blind students in 200-level with a minimum CGPA of 2.5 or its equivalent.
The top 10 scoring candidates of the UTME, as announced by JAMB, automatically qualify for the MTN Foundation Top 10 UTME scholarship.
As part of its ongoing investment in education, the MTN Foundation has awarded 14,728 scholarships in the past 15 years, worth over NGN3 billion.
The scholars are provided platforms to acquire relevant skills and practical knowledge to thrive in today’s evolving job market.
Speaking on the impact of the scholarship program, Executive Director of the MTN Foundation, Odunayo Sanya, said: “Education is the backbone of national development, and at MTN Foundation, we are committed to ensuring that no bright mind is left behind due to financial constraints.
“This scholarship is not just about funding education; it is about investing in Nigeria’s future leaders, innovators, and problem-solvers.”
Since 2024, the MTN Foundation has increased the scholarship award amount from NGN200,000 to NGN300,000 annually for three years until graduation, provided the scholars maintain the minimum grade point requirement.
The scholarship program is richly embedded with Mentorship, Internship and digital certification opportunities.
The application process is straightforward and conducted online, making it accessible for students nationwide.
Eligible candidates are encouraged to visit mtn.ng/scholarships/ and apply before the application deadline on April 25, 2025.
For more information, visit mtn.ng/foundation.
The second edition of Payments Forum Nigeria (PAFON 2.0) is gathering momentum as organisers have unveiled a strong line of speakers.
Featuring keynote presentation, fireside chat, panel discussion, networking opportunities, PAFON 2.0 is scheduled to hold this week – Thursday, April 10, 2025 at the Function Room 1, Oriental Hotel, Lekki Road, Lagos from 9am-12(noon).
The event themed: “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, aims at enabling knowledge sharing on key industry insights, issues, amongst key stakeholders, with the objective of ensuring a collaborative and proactive approach to push for policies that enable growth, tackling/mitigating fraud and limiting occurrences and losses in the payment industry.
Keynote:
Ebehijie Momoh (Mrs), managing director and chief executive officer, AfriGoPay Financial Services Ltd, will deliver the keynote address.
Special Guests:
Uche Uzoebo (Mrs), managing director and chief executive officer, Shared Agent Network Expansion Facilities (SANEF) Limited and Mrs. Chika Nwosu, managing director and chief executive officer of PalmPay (Nigeria), are the special guest of honour.
PAFON 2.0 Special Appearances: Olusoji Solomon Adeyemo, Azure Application and AI Specialist, Microsoft UK., Ibirogba Oluwagunwa, chairman, Lagos State Chapter, Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), and Olusegun Gabriel Afolabi, co-founder & chief innovations architect, Face Technologies UK Ltd., will make special appearances at the event.
There will be a fireside chat featuring, Chukwuemeka Enoch Mbaebie, the convener, Lagos Blockchain Week, amongst other speakers, with Chidera Amuta, Marketing Manager, Vendocredit, as the host.
According to Mr. Chike Onwuegbuchi, co-convener of Payments Forum Nigeria, “this year’s theme, ‘Bridging the Customer Experience Gap for Financial Inclusion Using AI’, underscores the urgent need to safeguard digital transactions against emerging threats while ensuring seamless financial inclusion and innovation”.
Industry players such as Bankers, Fintech startups, mobile money operators, blockchain experts, Cybersecurity, etc., are among the expected attendees.
PAFON 2.0 participation is free, but pre-registration can be done here or use this link: https://docs.google.com/forms/d/1dE3ZHpSZcaZOL14oiI7s6OYbIeRTqNET7oH-NOm83Bc/edit
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