1. This document is offered compliments of
BSP Media Group. www.bspmediagroup.com
All rights reserved.

2. Africa Telecoms Outlook 2014:
Maximizing digital service opportunities
November 12, 2013
Nick Jotischky
Principal Analyst

3. The view from the industry: reasons to be cheerful – consumer appetite is
driving growth of smartphone market and digital opportunities
A view of the industry: % of respondents who strongly agree with these statements
45%
42%
40%
35%
37%
32%
30%
25%
25%
19%
20%
15%
10%
5%
0%
The African
telecoms
market is
maturing
I expect there I feel confident The provision of The provision of
to be
about the
telecoms
telecoms
consolidation prospects for services to rural services to rural
among African
the African
or remote
markets in
operators over
telecoms
markets in
Africa remains
the coming
industry over
Africa has
inadequate
years
the next few improved over
years
the past few
years
Source: Informa Telecoms & Media Africa Industry Survey, 2013
N: 347 respondents
www.informatandm.com
© Informa UK Limited 2013. All rights reserved

4. Rapid rises in international connectivity and mobile broadband drive data
growth in Africa
Africa, mobile service revenue forecasts, 2012-2018
Africa, mobile broadband subscription forecasts, 2013-2018
70,000
900.00
805.85
60,000
800.00
50,000
700.00
610.93
600.00
40,000
Voice
30,000
500.00
424.66
Data
400.00
20,000
277.93
300.00
10,000
173.96
200.00
105.16
0
100.00
2012
2013
2014
2015
2016
2017
2018
0.00
Source: Informa Telecoms & Media
www.informatm.com
©Confidential
2013
12/11/2013
2014
2015
2016
2017
2018
3

5. Low-cost smartphones have become a key enabler of mobile data access in Africa
Africa, smartphone connection forecasts, 2012-2018
1,400.00
Proportion of device costs to monthly income, selected markets
250%
1,200.00
200%
1,000.00
150%
800.00
Smartphone
connections
600.00
US$100
100%
Mobile connections
US$150
US$250
400.00
50%
200.00
0%
0.00
2012 2013 2014 2015 2016 2017 2018
Source: Informa
Telecoms & Media
www.informatm.com
©Confidential
Source: Affordable Handsets Report, Informa Telecoms & Media
12/11/2013
4

6. Increased data take-up powers demand for digital services in Africa
Nigeria, mobile service usage, consumer survey 2013
Media
Events per Mobile
week
phone
Video streaming
Hours
Video downloads
Downloads
Music streaming
Hours
Music downloads
South Africa, mobile service usage, consumer survey 2013
Media
Events per Mobile
week
phone
Video streaming
Tablet
Hours
0.75
2.5
3
3
Video downloads
Downloads
0.75
2
Music streaming
Hours
Downloads
3
4
Music downloads
App downloads
Downloads
3
2.5
Games online
Hours
1.5
Games downloads
Downloads
Location-based
services
Tablet
0.75
1.5
2
3
0.75
0.75
Downloads
3
2
App downloads
Downloads
2
2
2.5
Games online
Hours
1.5
2.5
2
2.5
Games downloads
Downloads
2
2
Hours
0.75
2.5
Location-based
services
Hours
0.25
0.25
Browsing
Hours
2.5
2.5
Browsing
Hours
1.5
2.5
VoIP
Hours
1.5
2.5
VoIP
Hours
0.75
1.5
E-commerce
Transactions
3
3
E-commerce
Transactions
3
3
Instant messaging
Messages
30
75
Instant messaging
Messages
150
30
Social networking
Hours
2.5
2.5
Social networking
Hours
2.5
1.5
Email
Messages
25
75
Email
Messages
25
75
E-publications
Downloads
2
2
E-publications
Downloads
1
2
Note: Figures are for median average, based on a survey of 619 smartphone
users in Nigeria.
www.informatm.com
©Confidential
Note: Figures are for median average, based on a survey of 511 smartphone
users in South Africa.
12/11/2013
5

7. The consumer wants greater access to data services - but is the telecoms industry
doing all it can to satisfy this demand?
Mobile phone planned expenditure over next 12 months,
Nigeria
7.8%
Significantly
increase
9.2%
39.1%
16.2%
Slightly increase
Remain the same
Slightly decrease
27.7%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Significantly
decrease
Note: Figures are based on a survey of 619 smartphone users in Nigeria
The most important barriers to the access to and take-up of data
services in Africa
47%
44%
42%
36%
34%
19%
11%
Data
The retail There is a
devices prices of
lack of
are too
data
demand
expensive services
from
are too consumers
high
for data
services
Operators
are not
providing
the right
types of
data
services
Backhaul
The
Regulatory
capacity or provision action or
availability of services inaction
is
to rural or
insufficient remote
or too
areas is
expensive inadequate
Source: Informa Africa Industry Survey, 2013
Consumers have insatiable appetite for data services and high expectations for the quality of the service
• How does technology need to evolve to meet these expectations?
• Is the industry able to satisfy consumer demand and are operators set up to be service-centric rather than networkcentric?
• Do operators truly understand the behavior patterns of their customers?
www.informatm.com
©Confidential
12/11/2013
6