Mobile entertainment services are set to remain the top priority for African operators in 2010, according to research firm JBB Research, in its top 10 predictions for the African wireless market this year.
“In 2009, many African carriers experienced a decline of their total ARPU [average revenue per user] due to increased pricing wars,” says Julien Blin, CEO of JBB Research. He expects this trend to continue, meaning African carriers will maintain their focus on mobile data services, to offset the decline.
Local content will play a key role in attracting new customers and driving mobile entertainment adoption, adds JBB Research. “While voice services are set to remain the key purchasing factor, in 2010, African carriers and mobile application developers will partner to provide more local content.”
This will also be a critical year for Africa's mobile advertising space, says Blin, with the 2010 Fifa Soccer World Cup set to be a key driver. “As mobile Web and mobile payment continue to gain traction in Africa, 2010 should see the emergence of innovative mobile advertising concepts in Africa,” he notes.
These include concepts that go beyond traditional SMS-based campaigns, according to JBB Research. WAP banner ads, MMS-based promotions and ad-funded content embedded with features such as mobile location-based services, mobile coupons, widgets, and social networking will all start to gain traction in 2010, it predicts.
Flash cash
Related to this will be the emergence of improved billing mechanisms and content delivery, states Blin. “In 2010, more African carriers will start forging strategic partnerships with third party companies specialising in billing mechanism and content delivery,” he says.
“By doing so, carriers will be able to do a better job at differentiating their mobile content products and services, and delivery mechanisms, instead of simply differentiating themselves on pricing and voice quality.”
Mobile payment services are also set to become more affordable and capable, predicts JBB Research, with more African carriers offering payment services which work across various operators and countries, and allow customers to make international money transfers.
Evolving networks
According to Blin, the scheduled roll-out of the first long-term evolution (LTE) networks in Africa in 2010 is set to improve user experience and drive mobile entertainment content and service adoption.
“As African carriers continue to upgrade their networks to 4G technologies, users will be able to enjoy a better user experience while using mobile entertainment services, as those services will run on faster networks like LTE or WiMax,” he explains.
African carriers in countries including SA and Libya are scheduled to start rolling out their LTE networks in 2010, the firm says. It adds, however, that various 4G strategies are likely to emerge.
“While LTE is set to be the flavour of choice for many carriers at the world level, this might be a different story in Africa,” argues Blin. “Some African carriers will decide to focus primarily on WiMax or LTE, while others will choose a dual approach, he explains.
Finally, JBB Research expects feature phones to become more affordable and capable in 2010, with better picture and video recording and uploading, Bluetooth capabilities, and full browsing technologies. “This should help further drive mobile Web adoption in Africa,” notes Blin.
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