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Telecom

Study Shows Consumers Willing to Pay for App That Respects Privacy

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Eugene Juwah, EVC, NCC
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Ever since the iPhone came out in 2007, the going rate for many of the most popular apps has been exactly $0.00. Invariably, consumers pay nothing.

But of course, nothing is free. Instead, consumers pay with their data, that’s sold to marketers, or with screenspace, which is forked over to make room for ads.

It’s a trade consumers are happy to make, according to a report by Scott Savage and Donald Waldman reported by Reuters.

A new study from the economists at the University of Colorado shows that the average consumer would prefer to pay small fees for their apps, in exchange for keeping their information private and their screens uncluttered.

In their study, Scott J. Savage and Donald M. Waldman surveyed 1,700 smartphone users, presenting them with a set of apps they could purchase.

One of the apps was a real, free app, currently available in the iTunes and Google Play stores. Five other apps were also suggested, and were said to have exactly the same functionality as the free app.

But these five came with varying levels of privacy and advertising protections (some protected location data, others address book contents, and so on), and all had a price tag.

What Savage and Waldman found is that consumers were willing to spend a bit more to keep their data to themselves, and just how much depended on which data were at stake.

For example, on average, consumers were willing to spend $2.28 for an app that would not read their browser history; $4.05 for an app that would not have access to their contacts; $1.19 for an app that did not track their location; $1.75 for an app that did not obtain their phone’s ID number; $3.58 to prevent an app from having access to the contents of their text messages; and $2.12 for an app that had no advertising.

Because the “average” app (as determined from a sample of more than 15,000 Android apps) has both advertising and access to a person’s location and their phone’s ID, Savage and Waldman say that paid versions of such apps could rake in somewhere around $5 per download. That’s way, way more than the pocket change that most free apps bring in per download.

What’s more, Savage and Waldman use that $5 figure and to do some back-of-the-envelope figuring: Given that the average consumer in their study has 23 apps, and given how many smartphone users there are in the U.S., they calculated the total amount that consumers would spend, if only the apps were there for them to buy: $16 billion. And that’s the conservative, lower-bound estimate. Will that make it worth it for app developers to offer a paid alternative?

There are many reasons why the math might not work out so neatly in reality. Will customers search both the free and paid app categories? Will they be aware of the paid option? Will download rates suffer, if companies more overtly signal how they are using consumer data in an effort to push paid versions? But if those hurdles can be overcome, both developers and consumers stand to benefit.

Culled from Reuters


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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.

Telecom

Celebrating African Creativity: Made by Africa, Loved by the World’ Returns for Its Fifth Year

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The “Made by Africa, Loved by the World” campaign is back for its fifth year, celebrating African creativity and global influence. This year’s theme, “Where Culture Meets Connection,” highlights how social media fosters conversations around cultural moments worldwide.

The campaign features three cinematic films premiering on the Meta Africa page, showcasing the groundbreaking work and personal stories of six dynamic African creatives.

These artists, from Nigeria, Kenya, Ghana, and South Africa, represent diverse disciplines, including rap, animation, dance, photography, fashion, and videography.

Here are some of the featured talents:

  • Ladipoe (Nigeria) – A BET-nominated rapper known for blending global hip-hop with African rhythms.
  • Fatboy Animations (Kenya) – An animation studio founded by Michael Muthiga, recognized by Forbes for its original African storytelling.
  • Lisa Quama (Ghana) – A dancer who gained fame after appearing in Beyoncé’s “Already” music video.
  • Gilbert Asante (Ghana) – A photographer and creative director featured in GQ and Glam Africa.
  • David Tlale (South Africa) – A fashion designer whose bold designs have been showcased at major fashion events, including the Met Gala.
  • Ofentse Mwase (South Africa) – A filmmaker with over 24 international awards for his unique visual storytelling.

Kezia Anim-Addo, Communications Director for Africa, Middle East & Turkey, emphasized that the campaign not only celebrates individual success stories but also showcases how culture and social media drive meaningful connections and inspiration.


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Telecom

Telcos Warn of Nationwide Telecom Blackout over Diesel Shortage

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Mr Tony Emoekpere, president, ATCON
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Association of Telecommunications Companies of Nigeria (ATCON), has raised the alarm over a diesel supply crisis caused by an ongoing strike by the National Union of Petroleum and Natural Gas Workers (NUPENG).

Telcos Warn of Nationwide Telecom Blackout over Diesel Shortage

Mr Tony Emoekpere, president, ATCON in a statement said that the fuel supply disruption is critically affecting telecom base stations, pushing them to the brink of a shutdown and threatening millions of mobile and internet users in the region.

“This strike, which stems from the persistent harassment of tanker and petroleum product drivers by police officers in Lagos State, has effectively halted all truck loading operations and fuel movements,” Emoekpere stated.

He explained that diesel supply to telecom infrastructure has been severely impacted, leaving critical sites with dangerously low fuel levels.

According to him, if urgent measures are not taken, the situation could escalate into a full-blown network blackout, disrupting essential services, including mobile and internet access, business operations, emergency response systems, and daily communications.

ATCON has called on the governors of Lagos and Ogun states to intervene immediately by facilitating the release of diesel from depots to telecom operators to prevent further deterioration of the situation.

“This is not just a telecom issue—it is a national emergency that could cripple economic activities and compromise public safety,” Emoekpere stressed.

The association also appealed to security agencies and petroleum unions to resolve the crisis swiftly to safeguard Nigeria’s connectivity and economic stability.

ATCON emphasised that a prolonged disruption in fuel supply to telecom infrastructure could have far-reaching consequences for both businesses and individuals who rely on stable communication networks for daily operations.

 

 

 


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Nigerians Spend N5.3 Trillion on Telecom Services

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In 2023, Nigerians spent a total of about ₦5.3 trillion on telecommunications services, which includes calls, data, SMS, and other telecom services, according to the Leadership.

Nigerians Spend N5.3 Trillion on Telecom Services

Specifically for voice calls, Nigerians made approximately 408.5 billion minutes of local calls, generating around ₦3.28 trillion from outgoing calls and ₦3.23 trillion from incoming calls, totaling about ₦6.51 trillion in call-related revenue according to projections based on 2023 call volumes and tariff data.

However, the ₦5.3 trillion figure represents the overall telecom sector revenue, with voice calls being a major component but also including data and other services.

For individual spending, MTN subscribers spent an average of ₦2,508 monthly on voice calls in 2023, showing a 14.4% increase from 2022, while Airtel customers spent about ₦1,694 monthly on voice calls.

Total telecom spending (calls, data, SMS, etc.): ₦5.3 trillion in 2023

Estimated revenue from voice calls alone: around ₦6.5 trillion based on call minutes and tariffs

Average monthly spending on calls per subscriber: ₦1,694 to ₦2,508 depending on the network

 

 

 


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