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Africa’s Smartphone Market Grows in Q3 2020, but Feature Phone Shipments Decline

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Africa’s overall mobile phone market shipments declined 6.0% year on year (YoY) in Q3 2020, according to the latest insights from global technology research and consulting firm International Data Corporation (IDC).

The firm’s newly published Quarterly Global Mobile Phone Tracker shows that the decline stemmed mainly from feature phones, with shipments of these devices declining 11.2% YoY in Q3 2020 to total 29.4 million units.

By contrast, smartphone shipments were up 1.6% YoY, with 22.9 million smartphones shipped to the region during the quarter. The growth of the smartphone market was caused by the release of pent-up demand after countries eased their COVID-19 lockdown restrictions and by a shift in vendor strategies to offer more entry-level flagship models.

Rising unemployment rates and economic uncertainty caused by the COVID-19 pandemic continue to shift consumer buying patterns toward affordable and feature-rich products. Africa’s largest smartphone markets recorded mixed performances – Egypt and Nigeria both posted YoY growth in Q3 2020, while South Africa suffered a YoY decline. Smartphone shipments to Nigeria grew due to a shift from vendors to entry-level and mid-range devices.

Similarly, the Egyptian smartphone market grew as vendors offered devices with more competitive prices, larger screens, and improved features. Despite, experiencing a 13.4% YoY decline in shipments, South Africa continued to lead the way in Africa’s smartphone market, with shipments to the country totaling 3.3 million units.

“While South Africa’s smartphone market experienced a YoY decline, shipments actually increased 17.8% QoQ as lockdown restrictions were lifted and the channels replenished their inventories for Q4 promotions,” says Arnold Ponela, a research analyst at IDC. “South Africa is struggling with economic hardships, but smartphones have become an essential consumer item, making it a resilient market in a downturn.”

Transsion brands (Tecno, Itel, and Infinix) continued to dominate Africa’s smartphone space in Q3 2020, with 42.2% unit share. Samsung and Huawei followed in second and third place, with respective unit shares of 19.9% and 8.7%. The Transsion brands (Tecno and Itel) also dominated the feature phone landscape with a combined share of 76.6%. Nokia came in third with 8.0% share of feature phone shipments.

In terms of price bands, devices priced below $200 accounted for 89.3% of smartphone shipments to Africa in Q3 2020. The share of smartphones priced below $100 declined slightly from 53.8% in Q2 2020 to 53.0% in Q3 2020, while the share of devices priced $100-$200 increased from 34.7% to 36.3% over the same period.

“Demand for entry-level smartphones was driven by e-learning requirements since smartphones are the only device offering internet access for most households in Africa,” says Ramazan Yavuz, a senior research manager at IDC. “The mid-range segment ($200<$500) declined YoY, as consumers held back on upgrading to more expensive smartphones due to economic uncertainties.”

Looking ahead, IDC expects the recovery in shipments seen in Q3 to continue through Q4 2020 during the festive months, with overall shipments expected to grow 4.6% quarter on quarter.

The prospects for 2021 will depend on improvements in the overall economy, which will be largely dictated by the availability of a COVID-19 vaccine. Aside from this factor, all market indicators are pointing towards supply-chain constraints fully easing out during the second half of 2021, with demand returning to normal as economic recovery starts.

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Broadband Commission Seeks Action to Accelerate Connectivity and Progress on SDGs

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The Broadband Commission for Sustainable Development called for a joint global effort to achieve universal and meaningful connectivity by 2030 at its annual Fall Meeting held today at UN Headquarters in New York.  

According to the Commission, the collaborative effort must ensure that people around the world are not only connected, but that they also have the skills and knowledge to use that connectivity.  

The Broadband Commission—a high level public-private partnership fostering digital cooperation and developing actionable recommendations for achieving universal connectivity—stressed that accelerating universal and meaningful connectivity through partnership and cooperation is essential to achieve the UN Sustainable Development Goals (SDGs) by 2030.   

“We need to build a digital future that is inclusive, affordable, sustainable, safe and people-centered,” said Commission Co-Chair Carlos Slim. “There should be no digital deserts in the world, and there should be no one excluded from connectivity. People have the right to enjoy a safe, productive and affordable online experience. Broadband should enhance the quality of life of everyone.”  

At the meeting, the Commission called for innovative investment models to bring together private and public stakeholders to deliver meaningful access and content to those most in need.

“As technology advances and 2.6 billion people remain unconnected, it’s crucial to prioritize universal and affordable broadband access, coupled with investments in digital skills, and the elements that truly define meaningful connectivity, such as inclusive and localized digital content, accessible hardware, cybersecurity measures, and policies that ensure digital inclusion for all,” said Hon. Paula Ingabire, Rwanda’s Minister of Information Communication Technology and Innovation representing Rwandan President Paul Kagame, Co-Chair of the Commission.  

The Commission’s meeting comes amid the recent ITU announcement that 2.6 billion people across the world still lack access to the Internet in 2023. The reduction from the estimated 2.7 billion people offline in 2022 leaves about one-third of the global population unconnected.  

This year’s Annual Meeting also took place ahead of SDG Digital, an event convened by the International Telecommunication Union (ITU) and United Nations Development Programme (UNDP) to highlight how digital solutions can support the UN’s 2030 Agenda for Sustainable Development.  

“Tech is racing ahead and billions of people are being left behind,” said ITU Secretary-General Doreen Bogdan-Martin, a Co-Vice Chair of the Commission. “Our task is to invest in affordable broadband, digital skills, and everything that makes connectivity meaningful.”  ​

​At the meeting, the Broadband Commission launched “State of Broadband Report: 2023 Digital Connectivity – A Transformative O​pportunity.” The latest edition of the annual report reviews the progress of seven Global Advocacy Targets and highlights the opportunities that would come from broadband that is universally available, equitable and affordable.  

This year’s report notes that market trends for consumption and supply are shifting despite gains in connectivity. Those trends may not be strong enough to guarantee that the objective of universal and meaningful connectivity will be met by 2030.  

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Airtel Nigeria Refutes Report Saying It Awarded Nationwide Solar Contract to WATT Corporation

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Leading telecommunication service provider, Airtel Nigeria, has distanced itself from a recent media report that the company awarded a contract to WATT Renewable Corporation (WATT) to deliver over 32MW installed capacity of solar PV and storage across 600 cell sites across Nigeria.

Director of Corporate Communications and CSR, Airtel Nigeria, Femi Adeniran, said in a statement that the involvement of Airtel Nigeria with WATT was limited to only 30 sites as a proof of concept of WATT’s Energy-as-a-Service offering. Of the 30 sites commissioned, 18 are currently up and running.

“The report in the press about Airtel Nigeria awarding this nationwide contract to WATT Renewable Corporation is inaccurate,” Adeniran said.

He added that, “Airtel Nigeria is indeed committed to its sustainability goals and continues to pursue its Net Zero objectives across its operations. As we progress in our path towards achieving these, we will keep the public updated.”

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NCC Orders MNO, ISPs on Network Security, Consumer Safety Compliance

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The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) and Internet Service Providers (ISP) in the country to comply with regulatory frameworks emplaced by the Commission towards ensuring security and safety of their networks for telecom consumers.

The Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Commission, Prof. Umar Danbatta, gave the charge at the 2023 annual Nigeria DigitalSense Forum, focused on Internet Governance for Development, which took place in Lagos recently.

Addressing stakeholders at the event, Danbatta said one of the regulatory framework put in place by the Commission is the Internet Code of Practice (ICP for telecom industry, which is essentially to protect the right of Internet users to an open Internet and provide clear guidelines to Internet Access Service Providers on the use of traffic management practices.

He said the Internet Code also outlines the obligations of Internet Access Service Providers in relation to the protection of consumers’ personal data as well as lists the obligations of Internet Access Service Providers in the handling of offensive and potentially-harmful content, and the protection of minors and vulnerable audiences online; among others.

Through upholding the tenets of Internet Governance Code, Danbatta said the Commission, in collaboration with other stakeholders can make networks safe and get telecom consumers protected online.

Speaking to the theme of the event: “5G: Data Governance, Safety and Security in Nigeria”, Danbatta said building robust legal and regulatory frameworks is a crucial requirement for effective data governance in Nigeria and that the ICP provides the framework in this regard.

The EVC, however, underscored the need for telecom licensees, especially the MNOs and ISPs, to adhere strictly to industry frameworks that seek to enthrone effective governance in Internet delivery services.

Represented by the NCC’s Head, New Media and Information Security, Dr. Chidi Diugwu, the EVC said with the emergence of new technologies such as the Fifth Generation (5G), currently being deployed in Nigeria, the need has come to pay greater attention to the issue privacy, data integrity and online trust across telecom networks.

“As we embrace the transformative potential of newer technologies such as 5G, we must prioritize safety concerns because the amount and speed of data generated using 5G technology is unprecedented. As such, we need to always prioritise consumer privacy, transparency, and ethical data use; and this can be achieved by cultivating trust and handling data responsibly, and by doing so, we can unlock the full potential of 5G technology and promote innovation in Nigeria,” he said.

While emphasizing that the Nigerian Communications Act (NCA) 2003 requests NCC’s licensees to prevent their network facilities or services from being used in for the commission of any offence under any law in operation in Nigeria, Danbatta said “In this regard, licensees are required to collaborate with the Commission by complying with their legal and regulatory obligations towards ensuring effective Internet governance in Nigeria.”

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