Telecom
Smartphones Shipment Volumes Decline by 0.5% in 2017, but Growth Expected to Return in 2018 – IDC
International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker report, shows that, worldwide Smartphone shipments declined by 0.5% in 2017, the first year-over-year decline the market has experienced since the introduction of what we now know as smartphones.
Smartphone companies shipped a total of 1.46 billion devices in 2017 with nearly all of that volume running either the Android or iOS platforms.
Looking forward, IDC expects shipment volumes to return to low single-digit growth in 2018 and the overall market to experience a compound annual growth rate (CAGR) of 2.8% over the 2017-2022 forecast period with volumes forecast to reach 1.68 billion units in 2022.
Ryan Reith, program vice president with IDC’s Worldwide Quarterly Mobile Device Trackers, said “2017 turned out to be the year we all knew would eventually come – when smartphone volumes finally experienced a contraction.”
“That fact that China alone declined almost 5% in 2017 was a huge factor for why global volumes fell, but EMEA also declined 3.5%, and the U.S. market was flat.
“In our opinion, areas for growth have not changed. Developing markets still have plenty of room for build out, led by first-time buyers.
“And the premium space will continue to represent roughly 20% of the market. However, competition will continue to tighten and consolidation is inevitable.”
Design innovation continues to be a focal point of the industry, yet technology advances are becoming less about tangible hardware aesthetics and more about components and software.
This shift makes differentiation a challenge, especially as the entire industry is sprinting towards bigger screens and smaller bezels.
IDC expects 2018 to be the year when phablets outship regular smartphones, essentially ending the race for bigger screens.
Big differences in quality and display type still exist, but the average consumer will continue to struggle to understand these differences.
So, what’s next? 5G momentum is in full swing and device OEMs, component suppliers, telcos, and services companies are all looking to capitalize.
IDC expects commercial 5G smartphones to hit the market in 2019, ramping up to account for roughly 18% of worldwide shipments by 2022.
Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, said“ To keep up with the increasing demand for the new AI, AR/VR, contextually aware, and 5G functionalities headed to the market, we expect growth to come from improvements in overall core functions in the near term,”
“Improvements in speed, power, battery life, and general performance will be critical in driving growth at a worldwide level as the smartphone evolves into a true all-in-one tool.
“Although these types of improvements seem to arrive each year, delivering it more affordably will carry even greater significance to consumers as many highly competitive emerging markets remain crucial in driving growth throughout the forecast period.”
Platform Highlights shows that android Volumes were essentially flat in 2017, with OEMs shipping a total of 1.24 billion handsets running Google’s OS.
After years of vendors customizing Android’s OS to put their UI spin on things, we are finally hitting a point where everyone is pivoting back to stock Android.
This is an initiative that Google has been pushing for quite some time as the standardization on software can bring faster updates, minimize consumer confusion, and potentially allow Google to gain back some control of the platform.
The biggest change for Android devices in 2017 was that average selling prices (ASPs) grew for the first time since 2010.
This is largely due to the low-end players migrating their portfolios upstream toward mid-tier pricing.
Consumers have gone along with this trend, although many low-end buyers have grown increasingly frustrated with the poor battery and performance issues experienced on the device after just months of use.
iOS: Coming off of the first year-over-year decline in iPhone shipments in 2016, Apple returned to growth in 2017 albeit only 0.2%.
Apple shipped 215.8 million iPhones in 2017 with 64% of those coming from ‘Plus’-size iPhones (including the X).
The shift to bigger, more expensive devices has allowed Apple to continue to grow its ASPs while simlutaneously facing the challenges of growing its shipment volumes.
IDC expects iPhone shipments to grow 3.7% to 223.8 million units in 2018 and reaching 242.4 million in 2022.
Overall iPhone volumes are expected to grow at a five-year CAGR of 2.4%. Apple will continue to experience challenges breaking into some of the remaining high-growth developing markets, but there is no question they are far from being pushed out of the premium market segment.
Apple continues to build out its device upgrade program, a move IDC believes could be a catalyst to support growth over the next five years.
Telecom
MTN Nigeria Achieves Historic CMS Certification
MTN Nigeria has achieved a major milestone by becoming the first Nigerian organisation, the first company in the telecommunications industry, and the first within MTN Group to earn the Compliance Management System (CMS) certification from the International Accreditation Service (IAS).
This globally recognised certification affirms MTN Nigeria’s commitment to maintaining world-class compliance standards across its diverse operations.
It covers all management activities related to telecommunications, digital services, mobile voice and data, innovative digital platforms, wholesale distribution, fixed and mobile broadband connectivity, and advanced technology solutions for corporate and institutional clients across the nation.
Commenting on the achievement, MTN Nigeria’s Chief Risk & Compliance Officer, Obiageli Ugboma, said, “Achieving this feat is a testament to our robust compliance framework and proactive approach to managing risks in an ever-changing digital landscape.
“It reinforces our promise to connect Nigerians with secure, reliable, and innovative solutions.”
The International Accreditation Service (IAS) is a globally recognised accreditation body. It accredits a wide range of organisations, including governmental entities, commercial businesses, and professional associations, based on recognised national and international standards.
This ensures that IAS accreditations are both domestically and globally accepted, highlighting their credibility and relevance.
The ISO 37301:2021 Compliance Management System (CMS) standard is the benchmark for effective compliance management.
The certification solidifies stakeholder trust and provides organisations with a framework for establishing, implementing, evaluating, and continually improving a compliance management system that ensures adherence to laws, regulations, and ethical standards.
By achieving this certification, MTN Nigeria demonstrates its commitment to fostering a culture of integrity, mitigating risks, and enhancing corporate governance and operational efficiency.
This achievement positions MTN Nigeria as a leader in compliance management and sets a benchmark for excellence within the telecommunications industry and beyond.
Telecom
Sub-Saharan Africa Lost $1.56Bn to Internet Shutdown in 2024 – Report
Sub-Saharan African countries lost $1.56 billion to government-induced shutdowns in 2024, according to a new report by Top10vpn, an international VPN review website.
This is 19 per cent of the total $7.69 billion that was lost to Internet shutdowns worldwide and a 10 per cent decline from $1.74 billion reported in 2023.
According to the report, there were a total of 28 Internet shutdowns across 28 countries. Thirteen of these were African countries — Sudan, Ethiopia, Kenya, Algeria, Guinea, Mauritania, Senegal, Mozambique, Chad, Mauritius, Tanzania, Papua New Guinea, and Equatorial Guinea.
It revealed that Nigeria stood out as one of the few sub-Saharan African countries to avoid internet shutdowns in 2024.
Experts said the absence of an internet shutdown suggests that people in that country have continuous and unrestricted access to the internet, allowing them to communicate, access information, and participate in online activities without disruption imposed by the government.
Sudan is the African country that lost the most — $1.12 billion — to Internet shutdowns. Total Internet shutdowns in the country lasted for more than 12,707 hours or over 529 days.
The Internet shutdown in Sudan is mainly due to a prolonged conflict in the country, which has claimed 13,000 and displaced more than 10 million people.
Other African countries like Kenya and Ethiopia shut down the Internet because of protests.
Both countries lost $75 million and $211 million to Internet shutdowns, respectively.
Major platforms such as X, TikTok, Signal, Facebook, Instagram, and WhatsApp were restricted, affecting approximately 111.2 million internet users in the country.
“In late February 2024, authorities in Myanmar once again started blocking access to X. As this was a new restriction. This is also the second year we have included blocks of newer social media platforms, such as TikTok and Telegram,” it said.
Globally, Asia led in terms of internet shutdowns in 2024, losing $4.64 billion over 48,807 hours of disruptions affecting 331.3 million people. Sub-Saharan Africa followed with $1.5 billion in losses spread over 32,938 hours and impacting 111.2 million internet users.
While the global economic impact of internet shutdowns decreased by 16 percent compared to 2024, the duration of shutdowns increased by 12 per cent in the same period.
The report emphasised the damaging effects of internet shutdowns, both in terms of economic and human costs, and highlighted concerns about citizens resorting to unsafe VPNs to circumvent imposed restrictions.
Telecom
USSD Dispute: FG May Blacklist 18 Banks Allegedly Owing Telcos N250Bn
Indications have emerged that federal government may this week list names of 18 banks owing almost N250 billion naira to Nigerian telecom operators on Unstructured Supplementary Service Data (USSD), and have remained adamant towards settling it for several years.
Nigerian Communications Commission (NCC) has reportedly been given the nod to publish the names and approve that telcos withdraw services to them if after two weeks they fail to settle the debts, according to Vangaurd.
Recall that the issue of banks’ multi billionnaira USSD debt to telcos has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
But now, the telcos claim the debt has risen above N250 billion and accused the banks of not complying with the repayment plan.
The recent development, cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria (CBN) which resolved that the banks pay part of the money by December 31, last year and defray the remaining gradually.
However, Vanguard gathered authoritatively that only four banks complied with the directive, while 18 others are still adamant.
Similarly, when the matter brewed heavily a few years ago, the National Assembly, Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, waded in and also generated such a gentleman’s agreement, which gave the banks leverage to defray the debts gradually.
However, that did not also happen as the banks allegedly reneged.
A few weeks ago Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), accused the banks of deliberately frustrating any move to resolve the issue and threatened that the only option, since the banks have consistently failed to honour the agreements, would be to withdraw the support that gives the USSD platform life.
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