Telecom
Nigeria’s Smartphone Uptake Set to Improve in 2018
Analysts at Counterpoint Research expect the smartphone market in Nigeria to grow in double digits in CY 2018, driven by the entry of new players and changing OEM strategies.
According to analysis firm’s Market Monitor research focused on the Nigerian handset market, the feature phone market grew 15% annually, offsetting the smartphone decline in 2017, due to a recent economic recession.
The research is comprised of shipment estimates based on vendors’ investor relations results, vendor sales, supply chain checks and secondary research.
Research analyst Anshika Jain said the overall Nigerian handset market declined 8% Y-o-Y in 2016, as the economy (highly dependent on oil exports) witnessed a major downfall in GDP due to plummeting oil prices which triggered a recession, affecting buying power.
This adversely affected the purchasing power of the people. “The overall handset market experienced modest growth of 6% p.a. in CY 2017 as the market is slowly moving out of recession. The situation is likely to improve in 2018,” said Jain.
According to Counterpoint Research, the over smartphone market in 2017 contributed to 52% of the total handset volume, declined by 1% YoY.
Samsung led the overall smartphone market with 34% share in terms of shipments volume, it added
“Samsung still retains the top position with more than one-third share in the total smartphone market. While in the feature phone segment, the market is dominated by a single OEM with 76% share. This highlights the dominance of Chinese players in the feature phone market,” The research stated.
According to Jain, the top two OEMs – Samsung and Transsion Holdings (which owns Tecno, Itel, and Infinix) captured two-thirds of the total smartphone market. “Apart from these two, other leading smartphone players include Huawei, Lenovo, Fero, Alcatel, Gionee, and Apple. These brands capture a smaller share of the overall Nigerian smartphone market.”
Tarun Pathak, Associate Director at Counterpoint Research said almost one-third of mobile subscribers currently use smartphones in Nigeria. “Operators like Airtel and MTN will also look forward to partner with OEMs and Microfinance companies to drive smartphone penetration across the country.”
According to the GSMA’s Mobile Economy 2018 report, mobile subscriber penetration in Sub-Saharan Africa will reach 52% in 2025 compared to 44% in 2017 and 48% in 2020. “In terms of mobile penetration of population, Sub-Saharan Africa will have the largest increase between 2017 and 2025 (8 percentage points).”
Some of the challenges faced by the overall African smartphone market, according to Jain, include affordability and costs, low internet penetration, and a weaker economic climate.
She says Africa is one of the largest continents with more than a billion people, but remains highly underpenetrated in terms of mobile connectivity.
“Less than half of the population still doesn’t own a mobile phone and thus offers a great opportunity for every player in the mobile value chain. Due to this offline is the major channel for mobile device sales.
“Due to lack of infrastructure, it is a challenging task to leapfrog into semi-urban and rural markets. Additionally, the economic slowdown has adversely affected the purchasing power because of which people upgraded to low-cost feature phones rather than smartphones.”
“However, as per our estimates, smartphone adoption is likely to grow in Nigeria and other African countries in coming years as smartphone Average Selling Price is declining and more brands are entering into the mobile ecosystem.”
Nigeria’s technology company, Globacom, has extended warm felicitations to Nigerians on the occasion of the 2024 Christmas celebrations.
In a goodwill message released in Lagos, Globacom urged Nigerians to embrace the spirit of love and kindness during the festive season, especially in the face of prevailing economic challenges.
The company emphasized the importance of practicing the teachings of Jesus Christ, particularly the virtues of obedience to God and loving one’s neighbor as well.
“Christ taught many virtues including obedience to God and loving one’s neighbour as oneself”, the company said, adding, “Now is the apt time to practise these teachings by sharing with the needy”.
Globacom also encouraged Nigerians to extend the conviviality of Christmas beyond the festive season by fostering love, peace, and harmony, as demonstrated by God through the birth of Jesus Christ.
Assuring its customers of uninterrupted services throughout the Yuletide period and beyond, Globacom urged them to take advantage of its innovative products and services to stay connected and share the memories of the season with loved ones.
Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered Deposit Money Banks and Mobile Network Operators to settle the long-standing N250bn USSD debt dispute before January 2, 2025.
The CBN and NCC also directed banks to pay the pre-Application Programming Interfaces (API) debt before July 2, 2025.
They also ordered that post-API debts be settled before December 31, 2024.
The directive was issued in a joint cirular titled, “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators.”
The circular dated December 20, 2024, was signed by Oladimeji Taiwo, acting director of the Payments System Management Department, CBN, and Chizua Whyte, head of Legal and Regulatory Services, NCC.
The regulators said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement.
“Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024.
“Similarly, 85 per cent of future invoices must be liquidated within one month of service.”
According to the regulators, the transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment conditions cobtained in the circular.
CBN and the NCC said they would provide further guidance on public enlightenment initiatives related to the transition.
The regulators also directed MNOs to implement the “10-seconds rule” for USSD invoicing.
This implies that any session lasting less than ten seconds will not be billable.
The regulators added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”
Nigerian Communications Commission (NCC) has unveiled a draft regulatory framework aimed at addressing fraud, spam, and other challenges in the Application-to-Person messaging sector.
The telecom regulator made this announcement in a statement.
The proposed framework, which was introduced during a virtual Stakeholders’ Forum, is said to be a key step towards enhancing the sector’s integrity and ensuring a fair, transparent environment for all parties involved.
The draft framework, presented by Aminu Maida, executive vice chairman, NCC, who was represented by Chizua Whyte, NCC’s acting head of legal and regulatory services, seeks to regulate the A2P messaging space.
The A2P messaging, used for notifications such as bank alerts, promotional campaigns, and government updates, has become a vital communication tool in Nigeria.
However, the sector faces significant challenges, including consumer protection concerns, fraud, and data privacy issues, as well as an unequal distribution of value within the ecosystem.
“The international A2P messaging space in Nigeria faces gaps that have led to issues such as fraud, spam, and data privacy concerns. These challenges threaten the sustainable growth of this communication tool,” the NCC said.
The proposed framework aims to address these challenges by protecting consumers, promoting fair competition, and holding service providers accountable.
“This forum marks a pivotal step towards addressing these challenges. We are here to engage with all stakeholders—operators, aggregators, businesses, service providers, and consumers—to refine the framework and ensure it meets the needs of the entire ecosystem.”
The NCC stressed the importance of inclusivity and collaboration in creating an effective regulatory environment.
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