The East African Mobile Market bob.burgoyne@tnsglobal.com

The East African Mobile Market

bob.burgoyne@tnsglobal.comwww.discovermobilelife.com

2

TNS GTI 2011 Study

Contents

Overview

Mobile Ad Channels

Apps

Mobile What??

3

Overview

4

TNS GTI 2011 Study

Kenyans expect more for less – and quickly!

Despite having higher GDP / capita, Kenyans expect to pay less for their next phone as compared to Tanzanians.

However, they also replace their handsets more quickly and do a lot with them.

In summary, in Kenya, upgrades happen quicker and although the price point is lower, phones have better capabilities (higher smartphone penetration).

$53

$58

$45

Mean price paid

5

TNS GTI 2011 Study

Chinese Invasion?

Nokia still dominates the mobile handset market in East Africa, but, while the brand remains aspirational there are quite a few fakes around.

In Uganda, ZTE now has significant share, demonstrating that value for money Chinese brands are increasingly making inroads in East Africa.

...also connecting people

Kenya Tanzania Uganda

66 73 65

Nokia % share

6

TNS GTI 2011 Study

Despite the hype, tablets aren’t widely desired

vs.

Only 1% own a tablet

…and only 5% plan on getting one

7

TNS GTI 2011 Study

Currently SMS is a channel that touches everyone…. With mobile web and applications for niche

audiences

Around 90% uses SMS

Less than 25% use mobile web

<10% use apps

8

TNS GTI 2011 Study

Time of day matters

We looked at what time of day consumers tend to use their phones for different things and interesting differences emerged. For example, in Kenya, commuting time see peak mobile music usage – due to the traffic!

9

TNS GTI 2011 Study

0

5

10

15

20

25

30

35

Internet

Kenyans consume more music in the mornings than in Uganda – probably due to traffic jams on way to work…

Most popular usage occasions (amongst users of each feature)

% c

hoos

ing

occa

sion

(40)

(35)

(30)

(25)

(20)

(15)

(10)

(5)

0

Uganda

Kenya

A30a: Time of day analysisBases: All music users

10

TNS GTI 2011 Study

Mobile web is still social and search

abcde

For mobile web users, the obsessions with Social Networking

continues – 84% us in Kenya.

Search is the other key activity

hijkl

11

Apps

12

TNS GTI 2011 Study

What are smartphone users up to?

Kenya smartphone users are very social (81% have an SN app), regularly accessing Facebook via dedicated apps or via mobile web.

They are also music-lovers (86% have a music app), downloading and using music based apps regularly.

13

TNS GTI 2011 Study

Source of applications

Sharing from PC or phone is prevalent in East Africa – twice as popular as actually downloading from an official source!

14

TNS GTI 2011 Study

East Africans like to share….

KENYA TANZANIA

Another Mobile phone (Bluetooth)

Another Mobile phone (Sideload)

Sideload from PC

Device apps store (online)

Network provide apps store

Internet apps supplier

Text messaging service

61

49

36

33

30

27

25

36

33

15

16

10

8

12

Source of application downloads - %

B4: Source of application downloads

15

TNS GTI 2011 Study

What Kenyans want from applications?

Local Search

News

Business

Finance

16

Mobile what...?

17

TNS GTI 2011 Study

Share of messages sent by channel

Mobile is also the primary communications channel – fixed internet is old news (or was never news)

I5: Split of work messages / I6: Split of personal messagesBases: All who send work messages COUNTRY. All who send personal messages COUNTRY

Mobile

PC

Global

52%

48%

86%

14%

91%

9%

88%

12%

18

TNS GTI 2011 Study

Mobile everything

Due to income constraints in East Africa, the mobile has become the lead device for numerous activities.

In contrast to the global picture, consumers prefer mobile for social networking, finance and downloading content.

For Social networking 50% of Kenyans prefer mobile. Only 27% prefer PC / laptop

19

TNS GTI 2011 Study

World beating mobile finance

Mobile finance has taken off hugely in Kenya, following the groundbreaking lead of Mpesa. In Tanzania too, the sector is growing, but in Uganda, usage is still limited.

Used for bill payment, receiving wages and paying for services, mobile financial services are genuinely replacing banking services for a proportion of the population.

20

TNS GTI 2011 Study

KENYA TANZANIA UGANDA

46 5231

Banks = obsolete?

A high proportion of consumers in East Africa in fact believe that mobile finance can eventually replace traditional banks.

Convenience / ease of use is the main driver of this opinion, while those who are not so sure believe that banks win out on security.

% believing mobile finance can replace banks

bob.burgoyne@tnsglobal.comwww.discovermobilelife.com