19 Feb 2014

Eugene Nyagahene, CEO, Tele10: “Mobile telcos are losing revenue to apps like Skype, Viber and WhatsApp”

Eugene Nyagahene 127
Eugene Nyagahene,

The Com World Series team caught up with Eugene Nyagahene, CEO of Tele10 to discuss burning issues on Profitability, Data and LTE Networks ahead of East Africa Com taking place on the 20-21st of May in Nairobi, Kenya. 

Com World Series: How is your company positioned in the regional market and how do you expect it to evolve over the next couple of years?

Eugene Nyagahene: Satellite broadcasting has been dominating the TV and pay-tv industry for the last 20 years. With digital migration around the corner, the game is about to change: DVB-T2 platforms are mushrooming, 4G/LTE networks and fiber being installed everywhere on the continent. Time has come for game-changers to tap into these new opportunities. Our company will be focused on investing in OTT but more than the network itself, our main investments will be directed to local content production oriented towards mobile viewers requiring a special format for people on the move.

Com World Series: What is most affecting profitability for operators in the region and how are you working to improve it?

Eugene Nyagahene: ARPU for all operators is declining. Facing tough competition from DTT platforms, satellite operators are reducing prices. Mobile telcos are also loosing revenue to apps like Skype, Viber, Whats App etc... Of course premium content such as live sports and movies will still drive sales for satellite operators. But for DTT and OTT, It's clear that the way forward is to bundle internet offer with local content video. Our company is working on it.

Com World Series: How is the demand for data impacting your business and how are you taking advantage of it?

Eugene Nyagahene: So far, the demand for data was for emails, social media and YouTube. The appetite for video content on the move is eroding the fixed screen viewership, especially for the teenagers. Our strategy is to give them more local video content in a structured way that appears as a new TV channel, with possibility to interact.

Com World Series: What is still needed in terms of networks and infrastructure across the region?

Eugene Nyagahene: 3G networks cannot handle the video content needs. More investments in LTE/4G networks and cable are needed. New players such as Korea Telecom are already investing in 4G networks in EAC. This will probably call a positive reaction from the dominant players such as MTN, Airtel etc...

Com World Series: How is LTE changing the market and what is your company’s strategy in regards to this technology?

Eugene Nyagahene: It's just the beginning for LTE networks. Most 3G networks will have to upgrade or disappear. At least in big cities. Our strategy is clear: content will be the king. And we will keep investing in it to improve the quality and the quantity.

Com World Series: What do you hope to get out of participating in East Africa Com?

Eugene Nyagahene: Sharing experience with all the big players in EAC was made possible by East Africa Com. With one stone, we hit many birds. Thanks to East Africa com.

295x140-EastAfricaCom_2014Find out more at East Africa Com - Eugene Nyagahenea will be speaking on Day 2 at 12:10 on “Partnerships in deploying innovative, cost-effective VAS". Register Here