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The Impact

p of Mobile Services in Nigeria:


g
How Mobile Technologies Are Transforming
Economic and Social Activities

Abuja, Nigeria
March 16, 2010
Mobile Services in Nigeria

Table of Contents

ƒ Executive Summary

ƒ The transformational role of mobile services


ƒ Evolution of the industry worldwide
ƒ Development of Nigeria’s Mobile Market
ƒ Relevance of mobile industry in overall Nigerian economy
ƒ Overview of mobile applications in social and economic activities across emerging
markets

ƒ Nigerian end users


users’ perception on the impact of mobile services
ƒ The value of mobile services in daily lives
ƒ Financial impact on individuals
ƒ Common uses of mobile services
ƒ Impact on rural population
ƒ Example of local social initiatives

ƒ Pyramid Perspective

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Mobile Services in Nigeria Executive Summary
Mobile communications are having a positive impact in Nigeria by attracting investment
and developing various commercial activities…

Pyramid analyzed mobile adoption trends, examples of mobile applications as well as the
perspectives of key players and 1,500 Nigerian end users. The top five conclusions of our study are as
follows:

1. Mobile services have ample reach in Nigeria and will continue to post rapid growth.
ƒ Mobile subscriptions surpassed 72.6m at YE2009 resulting in a penetration rate of 50% of
the
h population.
l i
ƒ Pyramid projects subscriptions will surpass 128m by 2014, creating a substantial user base
for the development of the mobile applications market.

2. The mobile industry is having a positive economic impact by generating substantial


investment in infrastructure and employing a significant number of Nigerians.
ƒ During the past decade, approximately $16bn has been invested in projects related to
mobile services.
services
ƒ There are as many as 3m jobs directly and indirectly related to mobile services in the
country.

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Mobile Services in Nigeria Executive Summary
…Nigerian end users agree that mobile services have favorably influenced every aspect of
their lives

3. Nigerian end users agree that mobile services have positively influenced every aspect of
their lives,
lives enabling them to connect with different people,
people access information,
information create
business opportunities, lower transaction costs and enhancing social interaction.

4. Around the world, Pyramid has identified numerous examples of initiatives using public and
private
i ffunding
di that
h lleverage mobile
bil services
i in
i social
i l programs, iimprove the
h operation
i off
various vertical industries and foster connectivity in remote areas.

5. The future development


p of the mobile market in Nigeria
g will be driven by
y collaboration
among industry players, the local government and international organizations. End users in
Nigeria value mobile services greatly and are frequent users of this platform, yet the availability
of specific mobile data-based applications is still limited. Developing a set of tools and
information systems
y will require
q close collaboration among g local and international entities;;
telecom vendors and operators can play a key role in importing successful initiatives to Nigeria.

4
Mobile Services in Nigeria

Table of Contents

ƒ Executive Summary

ƒ The transformational role of mobile services


ƒ Evolution of the industry worldwide
ƒ Development of Nigeria’s Mobile Market
ƒ Relevance of mobile industry in overall Nigerian economy
ƒ Overview of mobile applications in social and economic activities across emerging
markets

ƒ Nigerian end users


users’ perception on the impact of mobile services
ƒ The value of mobile services in daily lives
ƒ Financial impact on individuals
ƒ Common uses of mobile services
ƒ Impact on rural population
ƒ Example of local social initiatives

ƒ Pyramid Perspective

5
Mobile Services in Nigeria Transformational Role of Mobile Services

The evolution of the mobile services market around the world is driven by advances in the
areas of access networks, devices and applications

Wider Availability of High Speed Networks Versatile and Affordable Devices

Key Aspects:
•Intense competition among vendors brings device
prices downwards
•Improvement in key features (size, definition, battery
life, camera, etc)
Key Aspects:
•Wider availability of embedded modules (WiMax, 3G)
•Declining prices for connectivity services
•Operators
Operators promoting bundled services MOBILE
Variety of Applications
•Evolution towards 3G and beyond MARKET
•Shared access and coverage of rural population
•Governments and NGOs supporting programs to
connect schools,
h l medical
di l centers, etc Key Aspects:
•Development of User-Generated Content (UGC)
•Virtual communities and cloud computing
•Changing
g gppatterns in entertainment drive advertising
g
investment towards mobile platforms

Source: Pyramid Research

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Mobile Services in Nigeria Transformational Role of Mobile Services

The global telecom market continues to grow at rapid pace, particularly in the area of
mobile services with subscriptions
p surpassing
p g 4.5bn in 2009 and veryy important
p potential
p
going forward in the area of mobile broadband (ie. Internet) services

Global access lines by type, 2008


2008--2014 Subscription CAGR, 2009-
2009-2014

10
9
8
Accesss lines (bn)

Pay-TV 1%
7
VoIP 20%
6
5 Fixed circuit-switched voice -3%

4 Mobile broadband 30%


3 Mobile voice/messaging 6%
2 Fixed broadband 11%
1
0
2008 2009 2010 2011 2012 2013 2014

Source Pyramid Research,


Research 4Q09 Mobile and Fixed Forecasts

7
Mobile Services in Nigeria Transformational Role of Mobile Services

Pyramid forecasts that over 55% of mobile subscriptions in the world will be using 3G+
in the next three years

Mobile subscriptions by technological generation, Global, 2005


2005--2014

Source Pyramid Research,


Research 4Q09 Mobile Forecasts

8
Mobile Services in Nigeria Transformational Role of Mobile Services

In Nigeria, the mobile industry has developed over the past decade driven by a successful
liberalization program and the overall potential of the market

Milestones in licensing and concessions awarded by the NCC

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
b
•New telecom •February: •June: •Telecommun •October/  •November: •February: •January: •September: •May:
policy was  Digital  First national  ications Act  November: Two national  NCC  A national  Gateway  NCC awarded 
enacted. mobile  long‐distance  2003 was  Three  long‐distance  introduced   carrier  Telecoms  licenses in 
licenses   license was  enacted. national  operator  unified  license was  Integrated  the 2.3GHz 
were  offered to   long‐distance  licenses  access   awarded to  Services’  band  to four 
•December:
awarded to
awarded to  MTS First
MTS First  operator 
t b
became   li
licenses. P t C bl & national 
Prest Cable &  ti l operators, 
t
Auctions for 
MTN, Mtel  Wireless. licenses  operative. These were  Satellite TV  long‐distance  but 
GSM 
and Econet  became   granted to 13  Systems  license  discussions 
licenses.
Wireless  operative. companies in  became   are still 
•September:
(later  total,  operative. ongoing to 
Fourth GSM  •March:
Vmobile,  license and
license and  including  g finalize the 
Celtel and  •December: NCC issued
NCC issued 
national  All operators  MTN, Zain,  3G UMTS  •October: issue
now Zain). Multi‐Links  
carrier  had  licenses to  Etisalat 
license   introduced   and  MTN, Zain,  launched 
awarded to  per‐second  Starcomms.  GloMobile  services
GloMobile. g
billing. The earliest  and Alheri
operative 
ti Engineering
date for the 
•November:
licenses was 
Nitel’s  •July:
July 2006.
national  NCC awarded 
carrier and  fixed‐
i t
international  
ti l •July: wireless 
gateway   Transcorp  licenses
license  buys 75% 
became  stake in Nitel
operative.
Source: NCC,
NCC Pyramid Research

9
Mobile Services in Nigeria Transformational Role of Mobile Services

Pyramid estimates that the Nigerian mobile services market has grown from 422,000 in
2001 to roughly 73m at the end of 2009

•In terms of the mobile Evolution of mobile subscriptions Nigeria, 2001-


2001-2009
penetration, growth in Nigeria’s
mobile market has been Mobile subscriptions Subscription penetration

exponential, from just 0.33% of the 80 50%


population in 2001 to 48.7% in
45%
2009. 70

ubscriptions (millions)

Penettration of populaation
40%
60
•Intense competition, the 35%
50
proliferation of prepaid plans, low- 30%
cost handsets and the rapid 40 25%
expansion of mobile networks to
20%
different parts of the country are 30

Mobile su
the main drivers of growth in 15%
20
mobile subscriptions. 10%
10
5%
•The expansion of coverage to 0 0%
underserved areas by the smaller 2001 2002 2003 2004 2005 2006 2007 2008 2009
CDMA operators has also led to
increased competition, bringing •Going forward, due to intense competition and constant innovation
overall communication prices from mobile service providers, a greater number of people will see
down
down. value
l iin anddbbe iin a position
iti tto use mobile
bil services.
i P
Pyramid
id projects
j t
that Nigeria’s mobile subscriptions will surpass 128m by 2014, creating
a substantial user base for the development of the mobile applications
market.
Source Pyramid Research,
Research 4Q09 Mobile Forecasts

10
Mobile Services in Nigeria Transformational Role of Mobile Services

The availability of prepaid services has been a key driver of the expansion of Nigeria’s
mobile market; data services are only beginning to take off

Mobile market indicators, Nigeria, 2001-


2001-2009

2001 2002 2003 2004 2005 2006 2007 2008 2009


Subscription 
penetration of  0.3% 1.2% 2.4% 7.2% 13.8% 20.9% 28.2% 43.1% 48.7%
population
User penetration of 
0.3% 1.1% 2.2% 6.5% 12.0% 17.4% 23.3% 34.5% 37.8%
population 
Prepaid subscriptions as 
Prepaid subscriptions as
99.9% 99.8% 99.6% 99.6% 99.5% 99.5% 99.5% 99.2% 99.1%
percentage of total 

ARPS (US$) $48.21 $47.56 $41.55 $29.94 $17.80 $13.65 $12.12 $11.26 $7.66

Data ARPS as 
0.5% 0.7% 0.9% 1.1% 2.0% 3.0% 3.5% 5.7% 8.3%
percentage of total ARPS
Monthly minutes of use 
223 162 136 119 89 70 53 51 46
((MOU))

Annual churn rate 2.0% 8.7% 18.5% 18.6% 26.8% 27.9% 48.4% 44.0% 41.8%

Source Pyramid Research,


Research 4Q09 Mobile Forecasts

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Mobile Services in Nigeria Transformational Role of Mobile Services

In US-dollar based revenue terms, the Nigerian mobile services market expanded at one of
the fastest rates in Africa for the past decade and is the second largest in the region

Size of the mobile market, nominal GDP per capita and mobile service revenue
CAGR, 2001-
2001-2009, Select African markets

80%
Nigeria
1-2009

Algeria
70% $6,235
$3,101
Mobille service reve nue CAGR 2001

60%
Ghana Senegal
50% $1,093 $716

40% Cameroon South Africa


$826 Tunisia $9,993
30% Kenya $1,395
$1,072
20% Cote d'Ivoire
$1,165
$ , Egypt Morocco
10% $4,742 $3,048

0%
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000
GDP per capita
it (US$)

Source Pyramid Research,


Research 4Q09 Mobile Forecasts

12
Mobile Services in Nigeria Transformational Role of Mobile Services

The explosion of the mobile industry in Nigeria has resulted in a series of positive effects
across the economy ranging from investment in networks to the creation of employment

Mobile services have multiple positive effects in an economy, most notably in emerging markets. Their
economic benefits extend beyond
y the investment that network operators
p allocate to license fees,, taxes
and network equipment and include the following factors:

ƒ End user spend money on mobile telecom services and devices allows a new industry to
flourish

ƒ Telecom operator spending on marketing, distribution, maintenance, training, support and


network enhancements create important benefits for all involved in the value chain

ƒ Mobile operators create employment, both direct and indirectly, and invest in the
development of the labor force.

ƒ Mobile services have a wide economic impact in a country, since they enable end users to
conduct their daily business in a more effective manner, reducing the time and cost of
transactions, improving access to markets, commoditizing information and generally allowing
businesses to operate more efficiently.

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Mobile Services in Nigeria Transformational Role of Mobile Services

According to Pyramid’s estimates, the annual revenue from mobile services represents
between 2% and 7% of African countries’ Nominal GDP; in Nigeria this ratio is close to 4%

Ratio of mobile services revenue to total GDP,, select countries,, 2009

Ghana
DRC
Senegal
Cote d'Ivoire
Nigeria
Cameroon
Tanzania
South Africa
Kenya
Botswana
Algeria

0% 1% 2% 3% 4% 5% 6% 7%

Mobile services revenue as percentage of GDP

Source Pyramid Research,


Research 4Q09 Mobile Forecasts

14
Mobile Services in Nigeria Transformational Role of Mobile Services

Mobile operators also contribute to the economy by directly and indirectly creating jobs to
provide and distribute their services; in Nigeria, we estimate there are as many as 3m
jobs related to this industry

ƒ There are several groups of jobs, which


can be divided into two subgroups, that Employment
p y related to mobile sector In Nigeria,
g , 2009
gravitate around mobile services:

ƒ The top category of indirect employment


encompasses equipment sales,
infrastructure deployment, advertising,
marketing and public relations as well as
security — workers involved in the
protection of base stations. Reportedly, in
2008 Zain employed as many as 8,000
8 000
security guards.

ƒ At the base of the pyramid, there are


mobile service resellers
resellers, recharge card
distributors, retailers, phone booth
operators as well as street vendors. The
so-called mini call centers consist of
simply one or a few mobile phones and
airtime bought in bulk from the operator.
Call center operators allow other people
to use the phone for a fee and quite
often will take a message, also for a fee.
Source: NCC,
NCC Pyramid Research

15
Mobile Services in Nigeria Transformational Role of Mobile Services

In addition, the sale of airtime and SIM cards has driven various forms of entrepreneurship

Distribution on the streets and MTN and Glo points of sale, Nigeria

S
Source: P
Pyramid
id Research,
R h NCC

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Mobile Services in Nigeria Transformational Role of Mobile Services

In terms of capital investments, mobile operators in Nigeria have worked on infrastructure


deployments, network rollouts, upgrades and expansions; the investment related to
mobile services, for the past decade, adds up to approximately US$16bn

Private investment by telecom operators in Nigeria, 2001-


2001-2008

ƒ Pyramid Research estimates that capital investments in mobile networks and operations have accounted
for 80% of total telecommunications foreign capital investments (a total of more than $12bn by the
middle of 2008) since the Nigerian government successfully liberalized the industry in 2001.

ƒ As of March 2010, the NCC reported $18bn in telecom sector CAPEX, $16bn of which is invested by
mobile operators.
Source: Pyramid Research,
Research NCC

17
Mobile Services in Nigeria Transformational Role of Mobile Services

Mobile networks in Nigeria are in constant evolution; operators such as MTN, Zain and Glo,
have undergone a technological migration from 2G to 2.5G and are working towards 3G

Breakdown by Mobile Technology, Nigeria


Nigeria,, 2003-
2003-2014

100%
90%
80%
Total Terminals

70%
60%
3G+
50%
2.5G
40%
2G
% of T

30%
20%
10%
0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Note: For the purposes of this exhibit, the following categories apply:
•2G = GSM, TDMA, and CDMA One technologies
•2 5G = GPRS
•2.5G GPRS, EDGE
EDGE, and CDMA 1X 1X, technologies
•3G+ r= CDMA 200, UMTS, HSPA, Mobile WiMAX, and LTE technologies

Source: Pyramid Research,


Research 4Q09 Mobile Forecasts

18
Mobile Services in Nigeria Transformational Role of Mobile Services

Additional areas where mobile services can have an important impact include rural connectivity
projects, education, health, finance, agriculture, transport and entertainment applications

Vertical Nigeria International

Rural Connectivity Millennium Village Pampaida- India: Gramjioti Pilot


extend telephony services to Program- provide mobile
hard to reach rural areas broadband connectivity to
villages and towns around
Chennai in India

R
Rural
l Connectivity
C ti it Rural Telephony Program-
Program Uganda: Village Phone
Phone- train
train and support local and support local villagers to
villagers to provide mobile provide mobile based pay-
based pay-phone services phone services

Education Ladybird Mobile Reading South Africa: Dr. Math-


Program- support classroom leverage the MXit mobile
activities through mobile social platform to provide
based educational exercises tutoring services

Health My Question, My Answer- SMS Uganda: Text to Change- SMS


and phone operator based based interactive quiz and
educational and counseling educational tool covering the
program covering the HIV/AIDS topic
HIV/AIDS topic

19
Mobile Services in Nigeria Transformational Role of Mobile Services

Additional areas where mobile services can have an important impact include rural connectivity
projects, education, health, finance, agriculture, transport and entertainment applications

Vertical Nigeria International

Finance Moneybox Africa- mobile Kenya: Safaricom M-Pesa- SMS


commerce application to based mobile payment and
virtually store and move money transfer platform
money, make payments and
enable other mobile based
financial transactions

A i lt
Agriculture Cassava Growers Project-
Project Uganda: Grameen Market
disseminates market Information- disseminates
information in conjunction market information through
with information points and SMS, supported by Community
trade agents Knowledge Workers

Transport Hot FM Abuja Traffic United States: OnStar- GSM


Monitoring- Collects traffic based in-vehicle security and
information sent by listeners information service
through SMS and mobile calls.

Entertainment DSTV and MTN Mobile TV South Africa: Mxit: WAP based
Service- broadcasts content instant messaging and social
over a mobile network networking program

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Mobile Services in Nigeria

Table of Contents

ƒ Executive Summary

ƒ The transformational role of mobile services


ƒ Evolution of the industry worldwide
ƒ Development of Nigeria’s Mobile Market
ƒ Relevance of mobile industry in overall Nigerian economy
ƒ Overview of mobile applications in social and economic activities across emerging
markets

ƒ Nigerian end users’ perception on the impact of mobile services


ƒ The value of mobile services in daily lives
ƒ Financial impact on individuals
ƒ Common uses of mobile services
ƒ Impact on rural population
ƒ Example of local social initiatives

ƒ Pyramid Perspective

21
Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

During 2009, Pyramid conducted a survey of over 1,500 mobile end users in Nigeria to
analyze the impact of mobile services in their daily lives

ƒ The sample group of our survey is representative of


Nigerian society, including a combination of female
and male participants. The research was designed
t iinclude
to l d mobile
bil users living
li i ini diff
differentt parts
t off
the country, with 70% of interviewees living in
urban areas and 30% living in rural areas in the
following regions and cities: Lagos, Abuja, Kano,
Akure,, Kaduna,, Ibadan,, Jos,, Aba and Enugu.
g In
terms of age groups, we focused the study on the
16-69-year-old population.

ƒ Pyramid developed a questionnaire comprising


mostly closed-end questions. The main topics
covered in our interviews were as follows:
ƒ Determinants of mobile ownership ƒ Perceived changes in patterns and benefits of
ƒ Drivers of usage economic activity among mobile phone users
ƒ Purpose and pattern of mobile phone usage, ƒ Perceived changes in work practices and
including: networks of social contacts among mobile
ƒ Work-related activities phone users
ƒ Entertainment and access to
i f
information
ti ƒ Data
D t was collected
ll t d via
i a combination
bi ti off phone-based
h b d and
d
ƒ Access to health, education, financial face-to-face interviews in households and high-traffic
and logistics/transportation pedestrian areas.
information and services
S
Source: P
Pyramid
id Research
R h

22
Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

60% of interviewees agreed that mobile services have positively influenced every aspect
of their lives including 35% who claim that a mobile phone has “dramatically improved all
aspects of their lives”

Q. What option
p best describes the impact
p of mobile services in your
y
daily life? Nigeria, 2009

100%
Having a mobile phone has
90% negatively impacted my life

80% Neutral
70%
Respondents

60% Having a mobile phone has made


some of my daily tasks easier
50%
Having a mobile phone has
40% improved
p most aspects
p of my
y life
R

30%
Having a mobile phone has
20% dramatically improved all aspects
of my life
10%
0%
Male Female

Source: Pyramid Research survey of 1,500


1 500 mobile service users in Nigeria
Nigeria, 2009

23
Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

Furthermore, more than 80% of our sample has seen financial gains from using mobile
services through
g a combination of saving
g on communications expenses
p and generating
g g
additional income by way of staying connected

Q. Have you
Q y seen a positive
p financial impact
p on your
y life from the use
of mobile services? Nigeria, 2009

100%
No financial benefit
90%

80%

70% Benefited from savings in


telecom and other areas
Respondents

60%

50%
Benefited from additional
40% income

30%
Benefited both from
20% savings and additional
income
10%

0%
Metropolitan South East North

Source: Pyramid Research survey of 1,500


1 500 mobile service users in Nigeria
Nigeria, 2009

24
Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

End users from different age groups point out the positive financial impact of using a
mobile phone ranges from increased opportunities to find jobs to savings in transportation
and better access to information
Q. What type of financial benefits do you derive from mobile phone use? Nigeria, 2009
Age 46-69 Age 36-45
Age 26-35 Age 16-25
Job opportunity

Lower cost than alternative comms

Lower travel or entertainment expenses


p

Make and receive payments

Better access to financial information

Time savings in travel

Better access to market information

Better ability to find jobs

Communicate with clients

Increased ability to sell

0% 10% 20% 30% 40% 50%


Mobile phone users deriving benefit
Source: Pyramid Research survey of 1,500 mobile service users in Nigeria, 2009

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Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

Nigerians also rely on mobile services to conduct activities related to education, health
and entertainment activities

Q. For which of the following activities


do you leverage your mobile phone? Most commonly mentioned uses by
category:
Nigeria,
g , 2009
Age 46-69 Age 36-45
Job opportunity Age 26-35 Age 16-25
EDUCATION
•Communicating with teachers and
Financial services colleagues
g
•Downloading information to mobile phone

Education
EMERGENCY/HEALTH

Transportation & logistics •Calling friends, family and emergency


services
•Communicating with
Emergency or other health services doctor/nurse/hospital

Entertainment & information ENTERTAINMENT


•Listening to music/radio
Work-related
Work related •Playing games
•Taking/sending pictures
0% 20% 40% 60% 80% 100%
Mobile phone users engaging in activity
Source: Pyramid Research survey of 1,500 mobile service users in Nigeria, 2009

26
Mobile Services in Nigeria Nigerian End Users’ Perception of Mobile Services

In the area of work related activities, mobile services are leveraged by individuals living in
both rural and urban areas

Q. For which of the following activities do you leverage your mobile phone?
Nigeria, 2009

Rural
Mobile as modem for PC Internet access Urban

Personall organiser
i ((calendar,
l d alarms,
l contacts))

Email access

Save time and increase productivity

Accessing information

Improve customer service, relationships

Increase ability to sell by speaking to potential clients

Speaking to colleagues

0% 10% 20% 30% 40% 50%


Respondents reporting usage

Source: Pyramid Research survey of 1,500 mobile service users in Nigeria, 2009

27
Mobile Services in Nigeria Example of Social Initiatives

In fact, for individuals based out of remote areas, mobile services are often the sole media
of communication and a source of added income

Rural Telephony Project startup package and a Key Aspects of the Rural Telephony Project in
phone lady on the outskirts of Suleja
Suleja,, a city of Nigeria
105,000 inhabitants north of Abuja
The program is a cooperation between the Growing
Businesses Foundation (GBF), a Nigerian NGO, MTN
Foundation (MTNF), which is the CSR arm of MTN
Nigeria,
g , the International Finance Corporation
p ((IFC))
and a group of small communal microfinance
institutions (MFIs).
A startup package, provided by MTNF, includes loans
that range between N14,200 and N21,400 ($95 and
$140) depending on optional material in the package
$140), package,
payable over a six-month period, and carry a 15%
annual interest rate.
The startup packages include a Nokia phone, an MTN
SIM card,, an optional
p antenna to boost the wireless
signal, a solar charger, subsidized MTN airtime,
promotional material. The promotional material is
comprised of a table, an umbrella, chairs, banners
showcasing call rates, a hat and a T-shirt.
To date,
date the program has benefited 1,500
1 500 Phone Ladies
in rural and semirural Nigeria. These beneficiaries
operate in 21 of the country’s 36 states.

S
Source: Pyramid
P id Research,
R h 2009

28
Mobile Services in Nigeria Example of Social Initiatives

Existing connectivity projects in Nigeria illustrate the complex organizational structure


behind social initiatives

Rural telephony program partners and their role, 2004-


2004-June 2009

Source: GBF,
GBF Pyramid Research

29
Mobile Services in Nigeria

Table of Contents
ƒ Executive Summary

ƒ The transformational role of mobile services


ƒ Evolution of the industry worldwide
ƒ Development of Nigeria’s Mobile Market
ƒ Relevance of mobile industry in overall Nigerian economy
ƒ Overview
O i off mobile
bil applications
li ti iin social
i l and
d economic
i activities
ti iti across emerging
i
markets

ƒ Nigerian end users


users’ perception on the impact of mobile services
ƒ The value of mobile services in daily lives
ƒ Financial impact on individuals
ƒ Common uses of mobile services
ƒ Impact on rural population
ƒ Example of local social initiatives

ƒ Pyramid Perspective

30
Mobile Services in Nigeria Pyramid Perspective

Going forward, Nigerian end users expect to see a wider variety of data-based applications
in the market; in the agriculture sector, for instance, we identified interest in a
combination of information and transactional services

Q. W
What
at new
ew mobile
ob le appl
applications
cat o s would you like
l e to use in the
t e future?
utu e?
Nigeria’s rural users

Moneyy transfers over mobile phone


p

Education-related applications from


government
Abilit tto pay ffor ttransportation
Ability t ti ffees
with my mobile phone

Agriculture-related information

Local information (weather, news)

0% 10% 20% 30% 40%

Percentage of rural respondents reporting use

Source: Pyramid Research survey of 1,500 mobile service users in Nigeria, 2009

31
Mobile Services in Nigeria Pyramid Perspective

Overall, the future development of the mobile market in Nigeria will be driven by
collaboration among industry players, the local government and international organizations

Key Strategic Aspects to Develop Social Initiatives Leveraging Mobile Technologies


•Developing a set of tools and information
•Learn from initiatives established in
systems will require close collaboration
other countries
Organize among local and international entities
•Attract internationals players •Telecom vendors and operators can play a
(Multilateral organizations, NGOs, Local Players to Launch key role in importing successful initiatives
private app developers) Programs / Facilitate to Nigeria
S
•Secure the
h collaboration
ll b i off local
l l Industry data •Government agencies may facilitate
industry players (incentives, funds, databases of critical info (weather,
grants) agriculture, education) to start the
program
Government
Manage program
involvement in the
towards
promotion of the
Nigerian mobile market self-sustainability

•Set clear goals for participants

Monitor , operate and •Ensure applications are available to a


•Secure addition of new partners to
large share of users
each initiative enhance the
•Promote enhancements
•Develop VAS application + VAS

Source: Pyramid Research

32
Mobile Services in Nigeria
THANK YOU.

Gabriela Baez
Managing Director
Email: gbaez@pyr.com

Badii Kechiche
Sr. Analyst
Email: bkechiche@pyr.com
bkechiche@pyr com

PYRAMID RESEARCH UK
Tel: +44-20-7560 4471
Fax: +44-20-7560 4485

PYRAMID RESEARCH US
Tel.: + 1 617 871 1900
Fax: + 1 617 871 1933

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