The Nigerian Mobile Internet Consumer
21 Feb 2014 – A Rancard Friday presentation
By Adrian Lee
“In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa”
Paul Kagame
75%Mobile penetration in Nigeria. 63% in Africa – growing from 0.5% in 1998 to 63% in 2013
>30%of Nigerians are online and this number is growing… particularly due to mobile internet
1.38%increase in GDP for every 10% increase in broadband across sub-Saharan African countries
Source: ITU World Telecommunication/ICT Indicators database
Access to mobile internet is increasing
Nigeria is #27 globally in terms of mobile broadband subs.
4
ChinaUSA
JapanIndia
BrazilItaly
KoreaGermany
UKIndonesia
TurkeyRussiaFrance
SpainPoland
Saudi ArabiaAustralia
TaiwanCanadaMexico
ThailandVietnam
South AfricaArgentina
PhilippinesMalaysia
NigeriaSwedenPortugal
AustriaNetherlands
EgyptKenya
FinlandCzech Republic
UAEBulgaria
Hong KongHungary
Romania
377.6m297.2m
139.3m94.6m
88.3m57.0m
52.8m49.7m
48.1m47.6m47.3m
43.8m42.9m
38.2m34.1m
29.3m26.9m
23.4m23.1m
21.8m20.1m19.4m19.2m
17.9m16.9m16.2m
14.3m12.4m11.7m10.7m9.8m9.8m
8.5m8.5m8.4m8.4m8.3m8.2m7.9m7.7m
Source: Informa, World Cellular Data Metrices, Q3 2013
Who is the Nigerian Mobile Internet user?
5Source: http://www.vserv.mobi/wp-content/uploads/2013/11/Mobile-Internet-Consumer-Nigeria.pdf
And Nigerian men really love their mobile internet.
6Source: http://www.vserv.mobi/wp-content/uploads/2013/11/Mobile-Internet-Consumer-Nigeria.pdf
What they downloaded last month
7Source: http://www.vserv.mobi/wp-content/uploads/2013/11/Mobile-Internet-Consumer-Nigeria.pdf
Overview of Nigeria Mobile Landscape
8
Country KPI Unit Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Data as % of Service Revenue % 7,47% 10,84% 10,89% 11,92% 12,77% 14,84% 15,14% 17,96%
Voice as % of Service Revenue % 92,53% 89,16% 89,11% 88,08% 87,23% 85,16% 84,86% 82,04%
Non-SMS data revenue as a % of total data revenue % 56,16% 71,56% 72,17% 80,27% 78,50% 75,86% 76,59% 80,95%
SMS Data as % of Data Revenue % 43,84% 28,44% 27,83% 19,73% 21,50% 24,14% 23,41% 19,05%
Revenue - Data USD m 153,48 227,46 231,12 247,25 272,21 336,86 331,07 385,04
Revenue - Voice USD m 1 901,86 1 870,37 1 890,86 1 826,70 1 859,52 1 933,22 1 856,33 1 759,09
Revenue - Data (Non-SMS) USD m 86,20 162,76 166,81 198,48 213,68 255,56 253,56 311,68
Revenue - Data (SMS) USD m 67,29 64,70 64,31 48,78 58,52 81,31 77,52 73,36
ARPU - Data USD 0,52 0,80 0,78 0,78 0,78 0,98 0,93 1,05
ARPU - Voice USD 7,02 6,36 6,28 5,82 5,74 5,57 5,23 4,85
ARPU - Data (Non-SMS) USD 0,23 0,50 0,48 0,55 0,55 0,75 0,72 0,86
ARPU - Data (SMS) USD 0,28 0,31 0,30 0,23 0,23 0,23 0,21 0,20
SMS Traffic Messages (millions) 2 540,91 2 465,27 2 506,10 2 547,78 2 644,96 2 354,10 2 432,70 2 452,41
MMS Traffic Messages (millions) 79,00 80,36 79,01 81,37 84,15 83,36 81,53 80,45
Source: Informa, World Cellular Data Metrices, Q3 2013
Over the past 4 quarters ending Q3 ‘13, Nigeria has: - Increased data revenues from $272 to $385 mil (+41%)- Increased data ARPU from $0.78 to $1.05 (+34%)- Saw a decrease in voice revenues from $1,859 to $1759 mil (-
6%)
Overview of Nigeria Mobile Landscape
9
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
07% 08% 08% 08% 09% 09% 11% 12%
93% 92% 92% 92% 91% 91% 89% 88%Non-broadbandMobile broadband
Mobile Broadband % of Total Subscriptions
Data Revenue (messaging and non-messaging)
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 20130
50100150200250300350400450
Revenue - Data (Non-SMS) Revenue - Data (SMS) Revenue - Data
USD
m
Source: Informa, World Cellular Data Metrices, Q3 2013
Penetration of mobile internet in Nigeria has been steady at +1% monthly.
However, the consumer spend has increased by 41%
in the same period. Consumers are using more
data per person!
Mobile Operators & data play
10
MTN Nigeria, 34 mil data devices
Etisalat Nigeria, 7.6 mil data devices
GLO Nigeria, 15 mil data devices
Airtel Nigeria, 11.1 mil data devices
Source: Informa, World Cellular Data Metrices, Q3 2013
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