Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...

Page created by Christina Reese
 
CONTINUE READING
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa

                Connected Consumer Survey
                2020: 5G, data consumption
                and monetisation in Africa

                Karim Yaici
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa                                                                                 2

About this report

This report focuses on aspects of Analysys Mason’s Connected                                           G E O G RAPHICAL C O V ERAG E
Consumer Survey that relate to the behaviour, preferences and
                                                                                  Africa:
plans of smartphone users in Africa. In particular, it focuses on
                                                                                  ▪ Egypt
respondents’ usage of mobile data and 5G.
                                                                                  ▪ Kenya
The survey was conducted in association with On Device                            ▪ Nigeria
Research between August and September 2020. The survey                            ▪ South Africa
groups were chosen to be representative of the mobile-internet-
using population in the region. We set quotas on age, gender and
geographical spread to that effect. There were a minimum of
1000 respondents per country, and 4000 in the region.

            K E Y Q U E S T I O N S A N S W ERE D I N T HI S R E P O RT                            W HO S H O UL D R E A D T HI S R E P O RT

 ▪ What are the mobile data usage patterns among respondents, and how             ▪ Operator-based strategy executives and marketing managers who are
   does data pricing affect these patterns?                                         interested in understanding data usage and spending trends, the level
 ▪ What impact do 4G and 5G have on mobile users’ spending and                      of awareness and adoption of 5G and how it impacts customer
   customer satisfaction metrics?                                                   satisfaction metrics.
 ▪ What is the level of awareness of 5G technology among respondents,             ▪ Market intelligence and research executives in service providers that are
   and to what extent are customers willing for pay for new 5G use cases?           responsible for understanding end-user trends and supporting business
                                                                                    units in identifying and addressing new opportunities.
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa

The adoption of 4G and the interest in 5G have both increased in Africa since 2019;
respondents would consider paying extra for 5G to improve their experience
The self-reported adoption of 4G among mobile data users in                                         Figure 3: Self-reported network technology, Africa, 2020 2
Africa ranges from 66% in Nigeria to 79% in Egypt.
The penetration of 4G in Africa (excluding Egypt) increased by 25
percentage points (pp) between 2019 and 2020 thanks to 4G
coverage improvements and the increasing affordability of
handsets and data plans.
Vodacom and MTN launched mobile 5G in South Africa in May
and July 2020, respectively. The relatively high percentage of
users that reported using 5G during our survey can be attributed
to the sample composition, which is skewed towards high-value
customers.1 Safaricom, Glo and MTN (in Nigeria) and Telkom
(South Africa) are preparing their infrastructure for 5G and plan to
launch the service in 2021.
                                                                                                    Figure 4: Interest in, and willingness to pay for, 5G use cases,
83% of all respondents are either familiar with 5G or have heard                                    Africa, 20202
about it but do not know what it is (up from 66% in 2019,
excluding Egypt). 35% are willing to pay extra for new 5G services.
This high level of interest in 5G may be due to the strong bias in
the panel towards high-value, tech-savvy users.
Respondents are most interested in using 5G for superfast
downloads, UHD video and as a fixed broadband (FBB) substitute.
This highlights consumers’ desire for faster speeds. Operators
should therefore continue to invest in their existing 4G network
infrastructure and should lobby the regulators for additional
spectrum to improve performance.
1   We estimate that there were fewer than 10 000 mobile 5G subscribers in South Africa at the end of 2020.
2   Please refer to the methodology and panel information section for the sample size and relevant survey questions.
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa

              Contents                             Executive summary

                                                    Analysis

                                                   Methodology and panel information

                                                   About the author and Analysys Mason
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa                                                                                    16

About the author

                       Karim Yaici (Senior Analyst) leads Analysys Mason’s The Middle East and Africa regional research programme. His primary areas of
                       specialisation include operators’ digital strategies, new telecoms opportunities such as IoT, and consumer trends in growth markets. Prior to
                       joining Analysys Mason, Karim was an associate analyst at Ovum, where he authored reports on mobile accessories and mobile applications.
                       Prior to that, he worked as a research engineer at the Institute for Communication Systems and Vodafone in the UK. Karim holds an MSc in
                       Information Systems Management from the University of Southampton and a PhD in human–computer interaction from the University of Surrey.
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa - Analysys ...
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa                                                                        17

Analysys Mason’s consulting and research are uniquely positioned

Analysys Mason’s consulting services and research portfolio                       Consulting
                                                                                  We deliver tangible benefits to clients across the telecoms
                                                                                  industry:
                                                                                    ▪ communications and digital service providers, vendors,
                                                                                      financial and strategic investors, private equity and
                                                                                      infrastructure funds, governments, regulators, broadcasters
                                                                                      and service and content providers
                                                                                  Our sector specialists understand the distinct local challenges
                                                                                  facing clients, in addition to the wider effects of global forces.
                                                                                  We are future-focused and help clients understand the challenges
                                                                                  and opportunities new technology brings.

                                                                                  Research
                                                                                  Our dedicated team of analysts track and forecast the different
                                                                                  services accessed by consumers and enterprises.
                                                                                  We offer detailed insight into the software, infrastructure and
                                                                                  technology delivering those services.
                                                                                  Clients benefit from regular and timely intelligence, and direct
                                                                                  access to analysts.
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa   18

Research from Analysys Mason
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa   19

Consulting from Analysys Mason
Connected Consumer Survey 2020: 5G, data consumption and monetisation in Africa

                 PUBLISHED BY ANALYSYS MASON LIMITED IN MARCH 2021
                 Bush House • North West Wing • Aldwych • London • WC2B 4PJ • UK
                 Tel: +44 (0)20 7395 9000 • Email: research@analysysmason.com • www.analysysmason.com/research • Registered in England and Wales No. 5177472
                 © Analysys Mason Limited 2021. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic,
                 mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher.
                 Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any
                 client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only.
                 Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the
                 normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark.
                 Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for
                 loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.
You can also read