African Network Operators Find Strategies to Fight High Cost of Internet Bandwidth

By Charlie Baker, director of product management, PeerApp

A walk through the AfricaCom exhibit hall is testament to the speed with which Africa is becoming a connected continent. Product vendors and operators alike show the rapid rollouts of fibre, 3G and 4G mobile broadband, and satellite services. 

However, the most challenging and costly component of Internet access in Africa is not “in” Africa at all.  It is the cost of bandwidth connections (known as “transit”) that connect African network providers to major content sources in Europe, North America and Asia.  Transit prices vary considerably by country and region, but within Africa it’s not uncommon for an operator to pay in excess of US $100 per megabit per second (Mbps) per month for this connection. To put this in a global context, operators in the U.S. and UK typically pay less than US $2 per Mbps, according to TeleGeography, a telecoms research firm. 

Source: TeleGeography and PeerApp estimates, 2013

High transit pricing puts operators in a difficult position; they must charge prohibitively high access tariffs, or limit bandwidth to subscribers, or some combination of the two.

Operators have found PeerApp’s UltraBand transparent cache to be an effective solution to substantially reduce Internet transit costs while actually improving service quality for their subscribers.  UltraBand resides within the operator’s network. It identifies, stores, and delivers the most popular Internet content (for example, YouTube videos or software updates) being downloaded and viewed by subscribers. In this way, the content is delivered at the speed of the operator’s network without using valuable transit, rather than retrieving it each and every time from a distant content source.

PeerApp’s UltraBand is the leading transparent caching solution globally with a growing number of deployments in Africa, including MTN Group, Telma and dozens of small and large operators across the continent.  It’s no surprise that UltraBand has been selected a finalist in the “Best Cost Efficiency Initiative for Africa” award category.

To learn more about PeerApp and the UltraBand transparent caching platform, visit us at AfricaCom Stand A2.

Register for a free exhibition pass here

Clickatell Offers Greater Mobility to Nigeria’s Unbanked

 

Guaranty Trust (GT) Bank, one of Nigeria’s foremost financial institutions has partnered with Clickatell to offer virtual airtime top up (VTU) – a value-added service that taps into the country’s drive for a cash-less society.

Africa is Largely Unbanked

The unbanked population in Nigeria is high, with an estimated 79% of people without access to financial services.  Reducing these numbers is a huge challenge for the Central Bank of Nigeria (CBN).

According to Kofi Annan, former United Nations Secretary-General,

“The stark reality is that most poor people in the world still lack access to sustainable financial services, whether it is savings, credit or insurance. The great challenge before us is to address the constraints that exclude people from full participation in the financial sector.”

The unavailability of banking services is believed to be one of the major factors preventing the poor from exiting the cycle of poverty, as it forces them to manage their finances on a cash-only basis and restricts their access to equitable sources of credit. This makes them particularly vulnerable to loan sharks, increasing their descent into financial despair.

Nigeria is Embracing a Cash-Less Society

High on Nigeria’s financial inclusion agenda is the move towards a cash-less society, because according to the CBN, the cost of cash and associated risk of a cash-driven economy to Nigeria’s financial system is high and increasing. This cash-less policy is designed to promote:

·         Financial intermediation, financial inclusion

·         Minimise revenue leakages

·         Create internally generated revenue and reduce incidences of robbery

Despite the high unbanked population, the popularity of mobile feature phones is increasing at a considerable rate, with pre-paid services the order of the day.

Nigerian Mobile Phone Users Latest Stats:

·         Nigeria's active mobile subscriptions are over 100million

·         Up to six in every 10 Nigerians are unaware that they have the ability to manage their mobile telecommunications account via their bank account

GT Bank and Clickatell are Revolutionising Banking with VTU

Leading the way is GT Bank, who through Clickatell, now offers VTU via their Mobile Money, Mobile Banking and Internet Banking services. Pre-paid Airtime is a cornerstone of any mobile solution and is seen as a critical success factor to mobile banking and mobile money’s success in Nigeria.  VTU is a convenient service for clients wishing to purchase airtime anytime, day or night, for themselves or others.  VTU also attracts all promotional discounts offered by the Mobile Networks to the consumers. In the next exciting phase of the partnership, GT Bank, in collaboration with Clickatell, will offer an even broader array of VTU prepaid products including Pre-paid data, Pre-paid fixed lines and Pre-paid BlackBerry bundles. To see GT Banks’s current offering click here

By offering GT Bank customers access to VTU, Clickatell operates as the bridge between the bank and the consumer  enabling  them to access banking services in a virtual space that is secure and easily accessible anywhere, anytime. This is particularly vital in a country where the threat of robbery is incredibly high near ATMs and bank branches.

Samson Isa – Director of Clickatell West Africa says, “I think VTU will be a great mobile prepaid product distribution technology that will revolutionise the telecoms distribution space because of its ease of usage, security and availability.”

Isa continues, “GT Bank’s approach is revolutionary in the Nigerian market, as they utilise user-friendly apps to drive mobile banking. I think they should be commended for driving this forward-looking technology, and making a success of it.”

 Clickatell are proud sponsors of AfricaCom 2013. Come and meet them by registering for your free ticket to AfricaCom Here

RAD Data Communications: Partnering with African Carriers to Roll Out High Speed Ethernet Services and Transition Their Legacy Networks to NGNs

Two related, if not complementary trends characterize African telecoms today.

The first is the rapid deployment of fiber infrastructure. With the linking of Africa’s coastal, urban and commercial hubs to the undersea fiber cables, carriers are taking advantage of all that new fiber to roll out advanced Metro Ethernet networks, over which they can offer their enterprise customers the latest SLA-assured Ethernet services. Furthermore, fiber connectivity is now reaching much further into the interior, encouraged by government sponsored initiatives to bring modern communications solutions to larger segments of the population.

The second trend is legacy service migration. In most cases this means moving up from slower speeds to high-speed DSL copper circuits as well as fiber, and supporting both TDM and newer Ethernet services. However, in this use case, the transport layer is still based on SDH and solutions must be found to hand the traffic off to Ethernet and SDH backbones.

Innovative Broadband Solutions Reduce CapEx and OpEx
The African market has one of the world’s highest operator-to-subscriber ratios. Fierce competition forces carriers to meet intense cost pressures and adjust their business models to fit the profile of their potential customers. As they shift their focus from building their market presence to improving profitability, the carriers’ need for innovative broadband access solutions that enable significant CapEx and OpEx savings is greater than ever.

 “RAD is uniquely positioned to partner with African carriers because its Service Assured Access solutions, which we will premier at Africa Com, uniquely address this need,” states Noam Dor, RAD Sales Director for Africa.

Designed for providers of business services, as well as for wholesale providers, mobile operators and cloud access providers, Service Assured Access features a comprehensive service lifecycle toolkit that can be implemented in a variety of deployment mode scenarios over various bearer circuits: fiber, DSL and PDH. Service Assured Access significantly increases carrier revenue while lowering all aspects of operational costs in the access network.

Multiple Deployment Scenarios to Maximize Flexibility

Service Assured Access can do this because it is easily adapted to different deployment scenarios. “Network build outs typically take place at a varied pace,” Dor explains.” Carriers can implement RAD’s Service Assured Access solution to fit their specific rollout plans, existing infrastructure, migration plans, and CapEx/OpEx objectives,” he adds. “In this way, they can build a complete Carrier Ethernet access network, including smart demarcation and Ethernet service pre-aggregation, or just a part of the network to facilitate, for example, inter-carrier ENNI handoff, even when the edge or aggregation layer is provided by another vendor,” he adds. “In addition, they can use RAD’s MiNID Carrier Ethernet NID on an SFP sleeve to easily upgrade their existing Ethernet switches and normalize their network to Carrier Ethernet.”

Choose a Migration Path that Best Suits Your Needs
“RAD lowers total cost of ownership by streamlining implementation and better utilizing existing infrastructure,” Dor concludes. “Service Assured Access extends the operator’s planning horizons and lets them choose the migration path that best suits their needs by upgrading network elements as needed, avoiding forced investments in complete overhauls.”

African Carriers that have already implemented RAD’s Service Assured Access solution include Camtel, which uses RAD’s Carrier Ethernet Demarcation Devices to facilitate the delivery of business services in Cameroon’s major cities, and Main One in Nigeria, which has implemented nationwide Carrier Ethernet services.

RAD’s Global Presence

RAD’s installed base exceeds 12,000,000 units and encompasses more than 150 carriers and operators in 165 around the world, including 50 in Africa.

With a presence in Africa that dates back over two decades, RAD’s products have been deployed by virtually all of the continent’s major carriers, service providers and mobile operators, as well as the private sector, banks, oil exploration and petroleum companies, public power and water utilities, transportation systems, universities, and governmental and military networks.

RAD Data Communications is a member of the $1.2 billion RAD Group of companies, a world leader in networking and internetworking product solutions.

RAD Contact:

Ilan Seidner, Director of Marketing Communications

Tel: +972-3-6458107

Fax: +972-3-6498250

E-mail: ilan_s@rad.com

 Visit RAD Data Communications at AfricaCom 2013. Come and meet them at stand F07 by registering for your free ticket to AfricaCom Here

Leigh Smith, MD of World Telecoms Lab talks VoIP to the Africa Com team…

Leigh Smith
MD of WTL

We caught up with Leigh Smith ahead of the AfricaCom Conference and Exhibition, taking place at the CTICC in Cape Town, South Africa 12-14 November to find out a bit more 2^nd generation VoIP, his experiences and focus at the event.

AfricaCom:  What is WTL up to in Africa?

As fibre continues to creep inland, many African start-ups are starting to use VoIP over leased fibre lines to offer voice connectivity.

We are not discussing VoIP as in the consumer technology of Skype, Viber etc whereby an app is downloaded.   Rather the use of a VoIP by carriers and service providers for their customers’ long-distance voice calls made in the traditional fashion with customers having their own dedicated traditional phone number.

Carriers in Africa have been slow to adopt VoIP technology in this way because they have had concerns about reliability, QoS and costs.

It’s true that the technology to interconnect a VoIP link onto a terrestrial network has been expensive. (Also many of the incumbent voice operators have a justifiable fear of the effects of VoIP on their voice revenues.  A distrust and negative attitude which has unfortunately affected VoIP adoption in parts of Africa which have most to gain from its adoption.)

The switches used for transferring VoIP traffic onto a terrestrial network were adapted from traditional voice switches by the large vendors – Ericsson, ZTE, Huawei etc - and consequently are huge, expensive and require a lot of maintenance which of course affects the bottom line.  Moreover they do not use the optimum compression techniques for VoIP.

WTL (World Telecom Labs) specializes in VoIP.  We recognized that there was a huge market in Africa for a smaller more cost-effective switch…

AfricaCom:  Tell me more about the WTL VoIP offering and its benefits to operators in Africa

Our suite of 2^nd generation VoIP switch -  HyperPVx - have been designed from the ground up to enable operators in Africa to cost-effectively set-up and manage a VoIP network. 

The research to develop them was part funded by the European Space Agency and the product is now patented by the US Patent Office.

In a nutshell, our 2^nd generation VoIP switches - HyperPVx - save operators significant amounts of money in terms of CAPEX - which of course is initial purchase and set-up  - as well as OPEX by increasing capacity, freeing up capacity in congested networks and enabling operators to cost-effectively add new capacity.

Since launching eight months ago WTL’s 2^nd generation switches are now being used by 20 operators in 14 countries across Africa.  Unfortunately most of them don’t want to be publicly named because of an (understandable but frustrating for us!) unwillingness to tell competitors about how great our switches are!

Also many also prefer to hide the fact that they are using cost-efficient compressed VoIP as this can still carry an unjustified stigma of low quality from inferior non-WTL solutions.

Our customers at the moment are the early adopters; the most innovative players who have already seen the benefits of VoIP and rolled out services using it.

AfricaCom: Do you have any specific customers you can tell us about?

Xplorium Inc. is a carriers’ carrier specializing in long distance, backhaul of international traffic for mobile operators in Africa & Middle East.

It has deployed the HyperPVx on its link from the Ivory Coast to Paris. The result was an immediate reduction in the long distance bandwidth required between the two locations. The new WTL-based solution needed only 30% of the capacity used by standard VoIP and this translated straight into big monthly Opex savings. The network quickly ran at the planned capacity of 480 simultaneous calls with high audio quality even though each call used less than 7K bps (standard VoIP calls of similar quality will often use more than 30K bps).

Karim Charif, Technical Director, Xplorium Inc. says  "WTL is an innovative company which has really considered the needs of operators using VoIP. Its switches have been specifically designed to reduce the costs of deploying and maintaining a VoIP network, whilst maintaining the quality of the voice calls.

We have been able to significantly reduce our costs both in terms of CAPEX, OPEX and indeed by being able to increase capacity through WTL's specialist compression techniques".

AfricaCom: How is VoIP changing the market and why is it important for WTL to be a leader in the field? 

VoIP is a classic disruptive technology for service providers because it enables new entrants to enter with lower cost, innovative services. The new players are able to deploy smaller more efficient, more flexible 2^nd generation VoIP switching. So, existing operators need to review their networks and installed equipment to avoid being caught flat footed by these rivals

AfricaCom: What strategies are you putting in place to help operators maximise revenues from VoIP services?

We are pushing a number of strategies for OpEx reduction.

a)    our patented NOP which reduces the amount of long-distance IP bandwidth required to run a VoIP service.

b)    Our 2^nd generation VoIP switches are a more integrated product than others on the market meaning we reduce the amount of different equipment needed therefore decreasing support bills, rack space, power and so on. For example, with WTL, the SoftSwitch, SBC, Signalling Gateway and Media Gateway Controller (MGC) can all be delivered as a single small device.

AfricaCom: What are your expectations from taking part in AfricaCom this year?

This is the 5th time that WTL has attended the show.  We have been around for 15 years specializing in VoIP systems since the earliest days of this technology but have maintained a low profile with sales coming through customer recommendations.

We are a niche vendor – at the moment – and are successful because our products are innovative and solve cost and efficiency problems for our customers.

We would be happy to meet with any operators who have already rolled out VoIP networks and are looking for additional efficiencies – and those who are considering what role VoIP could and should play within their businesses.

Please visit www.wtl.be for more information, email sales@wtl.be to book an appointment at the show or come to our stand, P74a. 

 Visit World Telecoms Lab at AfricaCom 2013. Come and meet them at stand P74a by registering for your free ticket to AfricaCom Here

Shortlist announced for 2013 AfricaCom Awards!

AfricaCom 2013 – Awards shortlist announced – See who’s making waves in the African Digi-sphere….

We are delighted to announce the AfricaCom Awards 2013 shortlist following a really exciting and popular campaign this year. Our expert panel of judges have done a fantastic job of reviewing the record number of entries received from all across Africa. Their professional and impartial views have resulted in a shortlist that we are proud to be offering this mark of quality and merit to.

Congratulations to all those shortlisted, we can’t wait to see you on the big night, November 13th at Granger’s Bay, Cape Town for a spectacular awards evening. Best of luck!

The short-listed nominees are:

Africa Com Awards 2013 – Official Shortlist

Best Network Improvement

Seacom – SEACOM’s African Ring

Orange – Internet for All

Tigo Tanzania – Network Improvement

SkyVision – Project Mauritius

Huawei Technologies – Huawei FMC Solution

Best Quality User Experience

Orange – My Orange

Deloitte Digital – Data Visualisation

Orange – My Orange Facebook

Orange – Internet Everywhere

Roamtech Solutions Ltd – Music Service

Ericsson – Ericsson Multiscreen Self-care

Citrix – T3100 Adaptive Traffic Manager

Best Cost Efficiency Solution for Africa

World Telecoms Lab – WTL’s 2nd Generation VoIP

Liquid Telecom – Liquid Telecom – the longest fibre links in Africa

Conduct Telecommunications – Open access, dark fibre infrastructure in the last mile

Astellia and Econet Wireless – Revenue Assurance

PeerApp – UltraBand transparent caching platform

TKM Maestro Limited

Rural Telecoms Award

Orange – Mobile Agricultural Info (Labaroun Kassoua)

Econet Solar International – HPS Home Power Station

Helios Towers Africa – Shared Telecoms Infrastructure

Safaricom limited – VUMA online

Vodacom Business Nigeria- Machine-to-Machine (M2M) Solutions

SkyVision – Project Rodrigues

Best Connectivity Solution for Africa

Orange – ACE Cable

Poynting Antennas (Pty) Ltd – Subterranean Cellular Base Station

Conduct Telecommunications – Open access, dark fibre infrastructure in the last mile

Bluwan – Bluwan’s BroadFusion access solution and the Access in Africa project

Liquid Telecom – Liquid’s fibre network

Seacom – Remote Peering

Best Marketing Campaign

OgilvyOne Africa – Marketing Campaign for Airtel Nigeria – Padi Na Good Thing O! – Half Dollar

Orange – Orange African Cup of Nations 2013

Liquid Telecom – ‘I Am’

MTN – Welcome to the World

Best Mobile Marketing Campaign

Orange – E-Recharge & Win -Botswana

OgilvyOne Africa – Mobile Marketing Campaign for Airtel Kenya – FREE Your Smartphone

Mobitainment – The Excella’nt Competition

Best Digital Music Initiative

OgilvyOne Africa – Online marketing campaign for Airtel FRNDZ Unlimited Offer

Mahindra Comviva – Digital Music Library

Spice VAS Africa Pte Ltd – MOD360

Roamtech Solutions Ltd – Bonyeza 699

Best Mobile Money Service

Mahindra Comviva – Ecocash

Orange Niger – Mobile Ticketing

Safaricom Limited – M-Shwari

Orange – Orange Money Visa Service

ORANGE – Orange Money International Transfer

Mer Group Telecom Division – Mobile FinaGate

Best App for Africa

Prezence – Bid or Buy

SatPack Travel- Africa: Live App

Orange – My Orange

Opera Software – Opera Mini

Prezence – Real Time Wine

ydangle apps (Pty) Ltd – Flick

Most Innovative Service 

Intersec – Loyalty Management Suite 5.0

Arabsat – Satellite communication services

TXT Ghana Ltd – Job 1917

Deloitte Digital – Data Visualiser

ORANGE – My Orange Facebook

Safaricom Limited – Cashless Payment Solution

MTN Swaziland – MTN XtraTime

Orange – Mobile Yellow Pages (User Generated Content Directory)

PCCW Global - PCCW Global: Delivering IPX in Africa

Best Pan African Initiative 

Tata Communications – Africa Connectivity and Collaboration Expansion

Orange – International Airtime Hub

Orange – Orange Regional Money Transfer

SkyVision – SkyVision South Africa

Seacom – SEACOM’s IP Network

PCCW Global -Landlocked But Not Locked Out

Industry Personality of the Year

Safaricom Limited – Betty Mwangi-Thuo

WIOCC – Chris Wood

Liquid Telecom – Nic Rudnick

Changing Lives Award

Orange – Mobile Agricultural Info (Labaroun Kassouwa)

Open Idea – Medigraf: Remote Medical Diagnostics

Orange – EDUCI

MTN Swaziland – MTN Schools’ Connectivity Project

YooMee Africa AG – Broadband internet access for students and faculty, University of Douala, Cameroon

About AfricaCom Awards

Now in their 6th year, the Africa Com Awards are recognised as the premier accolade for anyone operating in Africa’s digital market.  www.africacomawards.com

For more information on how to enter or any other aspect please contact Louisa Rogers, Marketing Director on Louisa.rogers@informa.com or +44 (0) 207 017 5157

About AfricaCom 2013

AfricaCom is Africa’s largest communications conference & exhibition.  Now in its 16th year, the conference features 350+ exhibitors and an astounding 8,000 senior decision-makers representing the entire communications ecosystem across Africa and beyond. The conference programme covers the most strategic issues affecting companies in Africa’s digital market – services, efficiency, profitability, customer experience, partnerships, policy and more – and features 6 co-located events: LTE, Digital Music, Mobile Money, AfricaCast, AfricApps, Cloud/Big Data. To register: www.comworldseries.com/africa

For further information or to request an interview with any of the shortlisted nominees, please contact:

Elize Engle or Kaz Henderson at Wired Communications

elize@wiredcommunications.co.za Kaz@wiredcommunications.co.za

Tel: +27 21 461 6764

The Driving Force Behind Mobile Operator Profitability in Africa

By Brydon Pilkington, Regional Manager, Middle East and Africa, InfoVista

It’s no secret that Africa represents perhaps the largest growth opportunity in the world for the telecommunications industry. Every day, mobile operators are building bigger, better and stronger networks to keep up with the growing demand for voice and data services from the African population. It is an exciting time, but it is also very easy to get caught up in that excitement and buzzwords like “LTE” and lose sight of what must go into these networks if they are to stand the test of time. It’s not just about what they can do today, but what they’ll be able to do tomorrow, the next and the day after that.

Mobile operators have to consider the technologies of tomorrow when building today for the simple reason that they can’t afford to undertake massive overhaul projects every few years. They have to build in a certain level of flexibility, so their networks can evolve and grow along with the technologies and data services that their subscribers will come to expect. Simply put, they need better network planning, service assurance and optimization, so they are ready for the future.

Forrester Research recently announced the Mobile Mind Shift Index (MMSI). The idea here is that as mobile users gain access to new devices and applications and see what is possible, they will start to expect and then demand these services be readily available at their convenience. They will also judge communications service providers based on their ability to meet these demands, and take their business elsewhere if their current mobile operators cannot offer the quality of service (QoS) they desire. The MMSI measures the change in mobile users’ expectations in this regard. Additionally, earlier this year, IDC predicted that 2013 would be the year of the smartphone and mobile app in Africa. As they have indeed begun to overtake feature phones, measurement tools like the MMSI and the IDC research offer us a glimpse of both the opportunities in Africa and how easily they can pass you by if you’re not careful.

Perhaps the most critical factor in the successful expansion of the African telecommunications market and in driving the profitability of mobile operators is the ability to ensure unparalleled end-to-end QoS. At InfoVista, we have seen firsthand how efficient service assurance, network planning and optimization have enabled this. By making full use of the latest network technologies, while also preparing for the integration of tomorrow’s network innovations, they are better equipped to meet the growing expectations and demand from their subscribers. At the same time, mobile operators are able to minimize CAPEX and OPEX through this improved efficiency, in turn maximizing ROI and further enhancing their profitability.

Ultimately, it all comes down to being able to continually develop and offer high-quality services that retain customers and attract new business. Network planning and optimization, particularly in Africa, where eyes are constantly looking toward the future, should be approached like a game of chess — always thinking 10 moves ahead.

Visit InfoVista at AfricaCom 2013. Come and meet them at stand C04 by registering for your free ticket to AfricaCom Here

The digital television, free and pay TV, to help the African audiovisual creation

By Hervé BOTREL, VP Product Department at Neotion 

Local creation and broadcasting of content is a key issue of African cultural independence and therefore of its growth.

The typical value chain of the audiovisual sector is as follows:

In Africa – North and Sub-Saharan regions -  this chain shows problems in many of its links. Only content creation ideas are running well. Their making, however, faces several obstacles that limit their realization.

On the one hand, copyright is not respected as confirmed by Ousmane William Baye, Art Director and Producer Senegalese, who said at the African Film Festival held in Angers last April: "In Africa, authors do not exist, televisions do not buy movies and theaters close. " and he adds," Our industry is a subsidized one ". On the same subject, the Malian filmmaker Souleymane Cissé adds "Our films are neither distributed nor viewed in Africa. The televisions do not buy our movies. In fact, we cannot even pretend to any rights in our country. "

To live from their art, filmmakers contract directly with foreign companies in countries where they are successful - such as in France where some of the African filmmakers are affiliated to the SACD (Society of Dramatic Authors and Composers), feeding a vicious circle from which African cinema struggling to emerge.

Another issue is with the distribution. Because of the lack of distribution networks, the financing of movies is often complicated. According to Claire Diao from Clapnoir (www.clapnoir.org) "without any sustainable business model, the production of a film remains an issue” Ousmane William Baye adds that "the only way to overcome the crisis of cinema in Africa, is to think television."

Indeed the audience is still very limited to festivals that represent the bulk of the distribution of local content. But television channels have a bad habit of charging writers and producers prior to distribute their works. Contributing thus a few to the investments required to grow the African audio-visual sector.

How then being released from the current deadlock and how the technology can positively contribute to the takeoff of the African cinema to, is the purpose of this paper.

Let’s have a look to what works, particularly in Europe and namely in France. Beyond the term "cultural exception" promoted by France and recently excluded from the trade negotiations between the US and the Europe, there is an economic reality.

Firstly, the Culture is one of the few sectors that, despite the crisis, are doing well in Europe. Recent statistics indicate that the cultural and creative industries - from theater to architecture, music and design - represent 4.5% of EU GDP and 3.8% of its jobs (source FICDC September 2013).

This was made possible namely thanks to the obligations imposed to the broadcasters at contributing to the audiovisual creation rather than only "plunder" movies and series coming from the USA to feed their schedulers. Quotas were established fostering the local creation, and financial resources were provided. Not by the government but by the economic actors themselves impulse by laws.

In practice, this funding comes from the TV channels which still capture a significant share of the overall advertising investments ( 42% of the worldwide advertising market, value stabilized for years despite the advent of the Internet - source: Zenithopyimedia data) and divert their revenues in taxes destined to contribute to the audiovisual creation.

However the model works if and only if the number of TV channels is significant for keeping such contribution effort at an affordable level for each of them.

The digitization of the networks is in that respect a favorable factor which increases the network’s capacity and allows broadcasting more television channels. This should be positive for the local contents.

Pay TV influences positively the audiovisual creation too. Firstly because they trigger an air call for the local economy thanks to the improved delivery capabilities of TV channels looking for contents. Secondly, because they generate significant and steady income that could allow in return funds for local investment if regulations and decisions taken by the local governments are set specifically.

The equipment also has some role to play. Indeed, operators are facing significant operating expenses that they wish to reduce. This without compromising the security applied to protect their content, giving them access to premium ones and ensuring the sustainability of their revenues.

The booming of digital TV sets sales, offers operators a unique opportunity to grow the number of their subscribers. Indeed when those TVs are fitted with CI CAM Plus compliant with recognized standard – CI Plus – and deployed across Europe by almost all the Pay-TV operators, their service package are ready to be received easily. And they do not need any more STB which beyond their high cost, are generating substantial logistics investments for their deployment and maintenance.

The CI Plus CAM offers many advantages including, affordable cost of purchase and maintenance, shaped as small as a smartcard, easy to install and to operate and supporting the latest secured technology provided by conditional access companies.

To conclude, we think at NEOTION, that giving access to television to the largest population requires secured and value added content. This content shall offer a mix of international and local programs. And finally the operating costs for broadcasters and operators must remain limited to propose affordable and easy to access offers to the greatest number of people. The CI Plus CAM solutions developed by NEOTION suits perfectly with these objectives.

Visit Neotion at Africa Cast 2013. Come and meet them by registering for your free ticket to AfricaCom Here

Consumers are willing to spend more money...

Proud Exhibitor of AfricaCom
| Visit us at Stand P85

The demand for smartphones in Africa has been rising significantly, so it’s important for African service providers to keep these potentially valuable customers happy, if they wish to increase revenues. Because satisfied smartphone consumers in Africa, and around the world, will spend more money – it’s really that simple.  Eighty-eight percent of smartphone users around the world claim to be willing to pay up to 30 percent more to their service providers, if they are happy with the service, according to a smartphone consumer survey conducted by industry analyst firm Coleman Parkes in June 2013 that included Africa.

“This type of research helps quantify the link between customer loyalty (measured by the Net Promoter Score) and profitable growth,” said Fred Reichheld, founder of Bain & Company’s Loyalty Practice and creator of the Net Promoter Score system of management. “The results provide a clear message to the industry: improve customer service if you want to grow.”

Negative Backlash

Unfortunately, today’s reality is that many service providers rank very low in terms of customer satisfaction and brand loyalty, especially when compared with other industries. Most telecommunications consumers are unwilling to tell their friends that their service provider is great or that they should also become subscribers. This level of dissatisfaction obviously hurts service providers’ bottom line and creates a high level of churn.

And consumers worldwide aren’t keeping their negative experiences to themselves, according to the Coleman Parkes survey. Three-quarters (73 percent) of consumers have complained about their service provider on social media at least six times in the past year.

Consumers mostly used their own Facebook page to complain (45 percent), followed by Twitter (26 percent) and service providers’ Facebook pages (25 percent). But all is not lost… half of all consumers (49 percent) said that because they aren’t satisfied with their current experience, a positive service provider recommendation by friends and family would cause them to switch providers.

Don’t Call It a Comeback

Turning consumers’ frowns upside down will necessarily start with correctly identifying the issues that are most important to consumers. What do consumers consider the top issues that will make them feel more loyal to their service providers?

The survey, which included 2,000 smartphone users, revealed a few interesting facts. The most important factor relates to technical issues, such as network quality, coverage and equipment properly functioning. These are often challenging issues in Africa, especially in the rural areas.

The big “mystery” of billing issues was a very close second place – this includes how clear the bill is, and how big of a surprise consumers will receive at the end of the month. Users hate surprises and many of them have experienced errors in charging and have other reasons for disputes. This of course negatively impacts trust in the service provider, which will be difficult to regain.

The multi-channel factor was also highly ranked, meaning the availability of customer service and consistency across multiple channels. People today prefer to use online channels rather than calling the contact center, but many consumers still resort to calling because they can’t find what they need online, or experience inconsistent treatment online.

This leads to frustrated telecommunications consumers tying up one of service providers’ most expensive customer service resources – call center agents.

The Payoff?

Obviously turning detractors (those who publish negative comments about a brand) into promoters is good for business, but service providers might not understand just how good it is. According to the Coleman Parkes smartphone survey, promoters are three times more loyal than detractors.

Promoters are “very likely” to buy additional services (wireline, cable, broadband, etc.) from their service provider, unlike detractors. Eighty-six percent of promoters commented positively about their service provider to friends and family 9.5 times on average over the last 12 months.

The Solution

Amdocs Proactive Care and Mobile Self Service tools are highly effective loyalty improvers. An earlier survey from last February showed how much customers value proactive measures and self-service, with 84 percent of consumers saying they would be more likely to recommend their service provider if the provider were able to identify and preemptively resolve potential issues affecting them. And 83 percent said they would be more likely to recommend their provider if they were offered easy-to-use and consistent self service via their mobile device.

Greater Understanding

We’ve long known that customer satisfaction is important. But surveys such as the recent one from Coleman Parkes are helping us to understand exactly how important it is.

Written by: Ronit Doran, Marketing Director, Amdocs Customer Management

Visit amdocs at AfricaCom 2013 - Stand P85. Get your Free Ticket to AfricaCom Here