PRESENTED BY ROBERT GONYE

ZIMBABWE IN 2008

ZIMBABWE IN 2008

⁺ A year in Zimbabwe characterized by:

⁺ Hyperinflation where the black-market and use of foreign currency were in play.

⁺ This led to the increase in price for basic commodities and further elevated prices for luxuries

⁺ Imbalance of the demand and supply systems which affected industries , the Telecommunications being the major although it was not apparent the major although it was not apparent

⁺ Lack of access to proper mobile devices because they were expensive. Less people have mobile phones and as a result mobiles were a luxury.

IMPLICATIONS OF THIS SITUATION

+ Excess Demand over Supply

+ Slowing down of Economic Development ( Affected

Education, Infrastructure, Telecommunications, Health

Industry

+ Impractical Trends

+ Due to the hyper –inflation mobile phones were seen as a

luxury.

+ The need to communicate and connect was present but was

out of the reach of many due to the outrageous price one had

to incur to acquire a mobile device.

+ This lead to the SECOND HAND TREND , where even so people

would pay huge amounts of money for popular brands

IMPLICATIONS FOR THE MOBILE INDUSTRY

would pay huge amounts of money for popular brands

+ We as Gtel identified this NEED NEED NEED NEED and hence their existence to

provide af fordable mobile devices for the low –medium

income bracket

+ Although there was a definite need for mobile phones as

communication needs were growing, We faced a lot of

challenges such as;

+ Brand Acceptance (First local phone brand in Zimbabwe)Brand Acceptance (First local phone brand in Zimbabwe)Brand Acceptance (First local phone brand in Zimbabwe)Brand Acceptance (First local phone brand in Zimbabwe)

CHALLENGES FACED

+ Poor Perception towards DualPoor Perception towards DualPoor Perception towards DualPoor Perception towards Dual---- Sim phones Sim phones Sim phones Sim phones

TRENDS IN CELLPHONE USE

+ Since then the use of Mobile electronic devices has

grown.

+ From the basic feature phones to Smartphones,

ebook readers, tablet computers

+ Global internet usage through mobile devices has+ Global internet usage through mobile devices has

almost doubled in Zimbabwe since 2008

+ Our predictions are that by 2014, mobile Internet

will overtake desktop Internet usage.

SHIFT IN MOBILE PHONE TRENDS + The Ongoing move from

Basic Phones (Calling& SMS) to

More Advanced Smartphones has to a huge

extent Led to :

+ Possible Elimination of Desktop computers

+ A more connected society (in touch with global current

affairsaffairs

+ Improved Telecommunications Systems

+ A huge demand/ need for Broadband

+ Elimination of Communication Barriers ( Skype, Video

calling,

+ Potential of more advanced communication platforms

SMARTPHONE TRENDS

SMARTPHONE TRENDS+ OUR product offering over the past years has

changed significantly mainly based on ever-

changing mobile trends.

+ From the very basic feature phones to the more

advanced Smartphones.

+ Gtel now offers a wide product offering,

+ Amazingly since the introduction of Smartphones at

least 85% of our total sales over the past 12

+ Amazingly since the introduction of Smartphones at

least 85% of our total sales over the past 12

months are from our Smartphone offering. We are

at the heart penetration and we are making it

affordable to the lower earning individuals

Feature Phones Phones Phones Phones Smartphones

SMARTPHONE TRENDS

Feature Phones Phones Phones Phones

+ Basic functions–

Calling/SMS’s

+ Basic Internet

Smartphones

+ Enhanced Functions- Calling

/ SMS’s/ Video Calling /

+ Social Networking-

Facebook/Twitter/Instagram/

+ Documents To Go- Microsoft

Word access

+ Gtel now offers a wide product offering as with;

+ On-going mobile trends

+ Globalisation

+ Improved Information Technologies

+ The needs of users have also evolved with time. Amazingly since

the introduction of Smartphones at least 85%of our total sales

over the past 12 months are from our Smartphone offering.

SMARTPHONE TRENDS

+ Currently we are at the heart penetration and we are making it

affordable to the lower earning individuals

MOBILE/INTERNET TRENDS IN ZIMBABWE

+ More than 50% of all internet accessed is accessed on a

mobile device.

+ We have the highest rate of internet access on a mobile

device than in any other country in the world. This is largely

based on the fact that there is lack of PC penetration owning

influenced by the high levels of unemployment, therefore influenced by the high levels of unemployment, therefore

not everyone has PC internet access at the work place or at

home.

+ A huge percentage of individual’s disposable income is spent

on mobile phones especially Smartphones.

�The shift in Smartphone trends also results in some challenges

for Network operators and ISP’s.

�Telecoms Operators are increasingly relying on wireless Data

Services as one of the primary source of revenue

CHALLENGES FACED BY THE TELECOMS CHALLENGES FACED BY THE TELECOMS CHALLENGES FACED BY THE TELECOMS CHALLENGES FACED BY THE TELECOMS

INDUSTRY INDUSTRY INDUSTRY INDUSTRY

Services as one of the primary source of revenue

�The effectiveness of currently available device management

solutions pose a major challenge

�New top end Smartphones& unbranded devices gaining

popularity are non-OTA compatible

�DM/OTA failure, device not identified in network are regular

issues that plague Telecom Operators.

�Request for Email Configuration, Streaming Settings, Device

Tethering etc .are on the rise

THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR

CHALLENGES CHALLENGES CHALLENGES CHALLENGES

Tethering etc .are on the rise

�Multiple vendors for multiple solutions model posses a customer

support nightmare

�Almost daily introduction of new devices in the market add to

the chaos

�Absence of multil ingual tools present a regional language barrier

for catering to the low end market

THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR THE MOST PRESSING OPERATOR

CHALLENGES CHALLENGES CHALLENGES CHALLENGES

EVOLUTION OF DATA CONSUMPTION

+ The definition of Internet, broadband for our clients is not necessarily

googling and searching their most important need is Facebook and

Whatsapp.

+ We have come up with pre-loaded content for our Smartphone users

that we believed would enhance the user experience such as weather

and news updates

+ However, to our amazement the main challenge we faced is the cost of

internet as most clients come and ask us to remove these applications

because they consume a lot of their (airtime) data.

+ Thus we have identified that the need to go on internet is definitely

there but it’s not affordable.

ON GOING LOCAL TRENDS 2013

+ Mobility- People expect to be able to work, learn, and

study whenever and wherever they want.

+ Mobile devices contribute to this trend, where increased

availability of the Internet feeds and the expectation of

access.

ON GOING LOCAL TRENDS 2013

+ Convenience - Eliminate any communication hassles

+ Connectivity- Everyone will want to be connected on the go,

anywhere , anytime

MOBILE &DATA CONSUMPTION TRENDS

+ This paradigm shift in how people, particularly younger

people, connect and interact with the Internet is fuelled by

the

+ Development of an increasing variety of Internet-capable

mobile devices,mobile devices,

+ Expansion of networks that support connectivity, and

+ Increasing focus by web content providers on creating

flexible web content that is accessible via mobile devices.

IMPLICATION FOR USERS

+ The shift to Smartphones from the more basic feature

phones has seen a change and users incurring a higher

data usage cost / consumption

+ This is because Smartphone's run several applications

which help in synchronizing the phone to make it Smart

as it is intended to be.

DATA CONSUMPTION & BROADBAND PRICES

There are different Apps available on the different Smartphone markets,

however most being social apps like Facebook, Instagram, Twitter, etc.

DATA CONSUMPTION & BROADBAND ANALYSIS

Based on our observations and analysis , Broadband usage in Zimbabwe has

increased significantly from the end of 2012 to present date.

The price for fixed broadband across the world ranges from just over $5 per

month to the unbelievably high $1,700 per month.

DATA CONSUMPTION & BROADBAND PRICES

+ The least expensive broadband is to be found in Sri- Lanka, at just $5.5 per

month

+ Cuba has by far the most expensive broadband at $1,753 / month .

+ Second most expensive is Swaziland at $875 per month

SOME BROADBAND USES

+ Broadband has several uses that have contributed to the

improvement of human life as well as the development of many

countries which include but are not limited to ;

+ Economic Development

+ Public Safety

+ Healthcare

+ Education

+ Communications

+ Telecommuniting

BROADBAND USAGE DRAW-BACKS Internet Service Providers obviously have their own basis for

coming up with the tariffs but currently in Zimbabwe

1.AVAILABILITY is only a small part of the problem.

Most people reporting an ability to subscribe to broadband,

but 2. COST, 3. KNOWLEDGE, and 4. A LOW PERCEPTION of but 2. COST, 3. KNOWLEDGE, and 4. A LOW PERCEPTION of

need holding them back.

+ The three main factors that we have identified as being the limiting

causes as to why Zimbabwe still lags behind in terms of internet

broadband yet the need is there are ;

+ Cost

+ Speed

LIMITING FACTORS FOR EXTENSIVE

BROADBAND USE IN ZIMBABWE

+ Speed

+ Knowledge / Low perception of Need

+ Most of our Smartphone users, do not know the real meaning of

broadband and terms like 2G/3G/4G however internet speed is definitely

important to them.

+ Also from our research we saw that Internet broadband usage has to do

with literacy, which in Zimbabwe is quite high. At present Zimbabwe ranks

LIMITING FACTORS

with literacy, which in Zimbabwe is quite high. At present Zimbabwe ranks

as one of the countries with the highest literacy rates together with Tunisia

and Botswana

+ Literacy rates, - Being amongst the countries with high literacy rates

in Africa , ISP’s can stand to benefit hugely from this . (Extensive e-

learning= increased broadband usage)

+ Education to a certain extent can be seen as one of the biggest

broadband usage influencer as Educated people see the need to be

OTHER BROADBAND INFLUENCES

online….’worldreader books for all’

+ Big Operators look at how many people want to be on the

internet, YET everybody wants to be on the internet but are

mainly limited by the cost.

+ Thus if they re-evaluate they will be amazed on the increase

BIGGEST MISCONCEPTION

in usage and ultimately the increase in revenue

As Gtel we believe that by the end of 2013, 90% of our total sales will

be Smartphones and 10% feature phones.

We are currently working on a Smartphone that has a long life battery

and will still maintain a low cost as we don’t see a reason why people

cannot be connected all the time.

BROADBAND USAGE INFLUENCES

cannot be connected all the time.

+ Because of the literacy rate in Zimbabwe, there is a possible niche

uptake with 80% of the current mobile users shifting towards the use

Smartphones.

+ This will result in the increase in the need for Broadband and the

only barrier to entry being the cost. if potential users become more

BROADBAND USAGE INFLUENCES

knowledgeable and have their perception changed towards Internet.

+ Increased Smartphone penetration

+ Increased Broadband Usage

+ Increased Revenue for ISP’s (Economy’s GDP)

+ Improved ICT systems

+ Increased Growth ( Economy Growth/ Education growth –

eLearning)

THE RESULTS =

eLearning)

+ Improved connectivity and Business Solutions

+ Increased Opportunities i.e. (employment opportunities)

+ Implementation of world-class cutting edge- systems

THANK YOU