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Telecom

Smartphone Shipments Expected to Return to Growth in 2019- According to IDC

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The worldwide smartphone shipment is expected to decline by 3% in 2018 before returning to low single-digit growth in 2019 and through 2022; this is according to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker,

While the on-going U.S.-China trade war has the industry on edge, IDC still believes that continued developments from emerging markets, mixed with potential around 5G and new product form factors, will bring the smartphone market back to positive growth.

Smartphone shipments are expected to drop to 1.42 billion units in 2018, down from 1.47 billion in 2017.

However, IDC expects year-over-year shipment growth of 2.6% in 2019. Over the long-term, smartphone shipments are forecast to reach 1.57 billion units in 2022.

From a geographic perspective, the China market, which represented 30% of total smartphone shipments in 2017, is finally showing signs of recovery.

While the world’s largest market is still forecast to be down 8.8% in 2018 (worse than the 2017 downturn), IDC anticipates a flat 2019, then back to positive territory through 2022.

The U.S. is also forecast to return to positive growth in 2019 (up 2.1% year over year) after experiencing a decline in 2018.

The slow revival of China was one of the reasons for low growth in Q3 2018 and this slowdown will persist into Q1 2019 as the market is expected to drop by 3% in Q4 2018.

Furthermore, the recently lifted U.S. ban on ZTE had an impact on shipments in Q3 2018 and created a sizable gap that is yet to be filled heading into 2019.

Sangeetika Srivastava, senior research analyst with IDC’s Worldwide Mobile Device Trackers said,”With many of the large global companies focusing on high-end product launches, hoping to draw in consumers looking to upgrade based on specifications and premium devices, we can expect head-to-head competition within this segment during the holiday quarter and into 2019 to be exceptionally high.”

Though 2018 has fallen below expectations so far, the worldwide smartphone market is set to pick up on the shift toward larger screens and ultra-high-end devices.

All the big players have further built out their portfolios with bigger screens and higher-end smartphones, including Apple’s new launch in September.

In Q3 2018, the 6-inch to less than 7-inch screen size band became the most prominent band for the first time with more than four times year-over-year growth.

IDC believes that larger-screen smartphones (5.5 inches and above) will lead the charge with volumes of 947.1 million in 2018, accounting for 66.7% of all smartphones, up from 623.3 million units and 42.5% share in 2017.

By 2022, shipments of these larger-screen smartphones will move up to 1.38 billion units or 87.7% of overall shipment volume.

Melissa Chau, associate research director with IDC’s Worldwide Mobile Device Trackers, said “What we consider a so-called normal size smartphone has shifted dramatically in a few short years and while we are stretching the limits with bezel-less devices, the next big switch to flexible screens will test our imaginations even further.

“While this category of device is still nascent and won’t see major adoption in the year ahead, it’s exciting to see changes to the standard monoblock we are all so used to carrying.”

Platform highlights shows that Android’s smartphone share will remain stable at 85% throughout the forecast.

Volumes are expected to grow at a five-year compound annual growth rate (CAGR) of 1.7% with shipments approaching 1.36 billion in 2022.

Android is still the choice of the masses with no shift expected. Android average selling prices (ASPs) are estimated to grow by 9.6% in 2018 to US$258, up from US$235 in 2017.

IDC expects this upward trajectory to continue through the forecast, but at a softened rate from 2019 and beyond.

Not only are market players pushing upgraded specs and materials to offset decreasing replacement rates, but they are also serving the evolving consumer needs for better performance.

iOS smartphones are forecast to drop by 2.5% in 2018 to 210.4 million. The launch of expensive and bigger screen iOS smartphones in Q3 2018 helped Apple to raise its ASP, simultaneously making it somewhat difficult to increase shipments in the current market slump.

IDC is forecasting iPhone shipments to grow at a five-year CAGR of 0.1%, reaching volumes of 217.3 million in 2022. Despite the challenges, there is no ambiguity that Apple will continue to lead the global premium market segment.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

Telcos Threaten to Disconnect Banks over Misinformation on New USSD Charges

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Telecommunication companies have threatened to withdraw their Unstructured Supplementary Services Data (USSD), services from banks over what they called misinformation.

Telcos Threaten to Disconnect Banks over Misinformation on New USSD Charges

MTN Nigeria, Airtel, Globacom and 9Mobile- the  telcos disclosed that the banks’ notice to their customers on the new billing system and airtime deductions for USSD services was misleading.

Also, Association of Licensed Telecom Operators of Nigeria (ALTON) also denied that the directive was from the Nigerian Communications Commission (NCC).

USSD is done via shortcodes on mobile phones and allows bank customers to make transactions in places with limited or no internet service.

Recall that banks earlier this week claimed that NCC has directed them to begin charging them from their airtime rather than from customers’ accounts.

The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.

“Under this new billing structure, each USSD session will attract a charge of ?6.98 per 120 seconds, which will be billed by your mobile network operator.

“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.

“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”

Reacting, ALTON, umbrella body of telecom operators in Nigeria, said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.

Hence they threatened to withdraw network support to the banks’ USSD services.

Engr Gbenga Adebayo, chairman of ALTON  told Vanguard: ” I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests. In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, CBN witnessed by the telcos and the banks. The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.

“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.

” As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.

“Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed,” he added.

 


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MTN Nigeria Plans N900Bn in Service Upgrade

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MTN Nigeria has announced plans to embark on a massive capital expenditure (CAPEX) drive in 2025, committing nearly N900 billion to significantly enhance network service quality across Nigeria.

MTN Nigeria Plans N900Bn in Service Upgrade

Dr. Karl Toriola, CEO, MTN Nigeria,

The substantial investment, more than double the combined CAPEX of approximately N440 billion spent in 2023 and 2024, underscored MTN’s aggressive strategy to address persistent service quality issues and meet growing customer and regulatory expectations.

Dr. Karl Toriola, CEO, MTN Nigeria, detailed this unprecedented financial commitment during a recent interview on Arise TV, emphasizing that improving service quality is the company’s paramount message for the year.

He highlighted a clear understanding and expectation from both the Nigerian Communications Commission (NCC) and security agencies for improved network quality.

A primary focus of this increased CAPEX will be on putting additional capacity in a city like Lagos, particularly in Abuja, where you have a lot of buildings coming up, you need additional sites because there are coverage issues.

Beyond these critical urban centers, the investment aims to bolster network resilience and ensure power stability for its infrastructure nationwide.

This includes proactively addressing site outages by ensuring timely payment for operational necessities such as diesel for generators, a persistent challenge in the Nigerian operating environment.

Toriola outlined a comprehensive upgrade process, which involves placing orders formally, opening letters of credit, and then the equipment gets shipped in and installed.

He added that MTN will be acquiring new sites and laying fiber to the base station to create better stability” where necessary.

While the immediate CAPEX is geared towards improving existing service quality and capacity, this investment aligns with MTN’s broader goals of enhancing financial inclusion in underserved rural areas, suggesting a long-term vision for network expansion and service improvement that extends beyond metropolitan areas.

Subscribers can anticipate tangible improvements in service quality, with a significant improvement in quality of service expected by the end of the second quarter or early in the third quarter of 2025, according to Toriola.

“This year is all going to be about capital expenditure on an aggressive basis to fix quality of service issues (and) meet both the regulators’ and the public’s expectations,” he affirmed, reiterating MTN’s steadfast focus on customer experience through substantial capital investment.

 


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Telecom Regulators in Africa Chart New Course for a Data-driven Future

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Telecom regulators and industry leaders from across the Middle East and Africa gathered in Cairo last week to chart a data-driven future for the region.

In a region where digital transformation is accelerating at unprecedented speed, connectivity intelligence firm, Ookla and Egypt’s National Telecom Regulatory Authority (NTRA) joined forces to organise the Telecommunications Regulatory Summit

Themed ‘Harnessing Data and Technology for Superior QoS’, the summit focused on how data, particularly crowdsourced insights, can transform regulatory strategies across the region.

The summit attracted stakeholders from over 30 countries, including delegates from the International Telecommunication Union (ITU) and World Broadband Association (WBBA), who engaged in high-level discussions on optimising network performance and accelerating digital inclusion.

Karim Yaici, lead industry analyst for the Middle East and Africa at Ookla, said the event set the tone for the growing value of data-driven decision-making.

“Access to and the use of crowdsourced data contribute to making more informed decisions, fostering transparency and ensuring that citizens in the MEA region benefit from high-quality, accessible and affordable connectivity,” he said.

The experts underlined that crowdsourced data is becoming a critical complement to traditional regulatory methods.

They agreed that it helps identify service gaps, prioritise infrastructure investments, and drive innovation.

With broadband speeds now closely tied to GDP growth and productivity, accurate performance data is seen as key to socio-economic advancement.

Dr. Hossam Abdel-Mawla, vice-president of technical affairs and quality of service at NTRA, stressed that the summit was pivotal in fostering regional collaboration.

“By actively sharing best practices and exploring innovative data-driven strategies, we are shaping a future where telecom regulations ensure digital inclusion and economic growth across the region,” he said.

In a key session, Ahmed Nabawy, director of client services at Ookla, presented findings on 5G performance in Egypt and Tunisia.

He demonstrated how Ookla’s unified data platform, powered by AI, enables operators to analyse 5G-capable device density and prioritise high-impact rollout areas.

The summit also explored the shift from conventional network quality metrics to more user-centric Quality of Experience models. These advanced analytics tools promise to enhance transparency, improve accountability, and ultimately deliver better connectivity experiences for all.

 


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