The Role and Impact of Smartphones in Sub Saharan Africa
Smart phone Outlook in Sub Saharan Africa: 2010 marks the beginning of change
Broadband penetration remains dismally low in Sub Saharan Africa. According to Frost & Sullivan, broadband penetration in Sub Saharan Africa was less than 4%. DSL access has stalled before it could actually take off and while fibre deployment is growing, albeit slowly, widespread access is not expected to take off in another 10 years.
In comes wireless access. Most countries in Africa have mobile network geographic coverage of over 70% and licenses for alternative technologies such as CDMA and WiMAX have become more affordable and readily available in the region. Major mobile operators in the region such as MTN, Safaricom and Orange have invested in WiMAX as an alternative to drive wireless broadband access, while fixed line operators are using CDMA to expand their existing copper infrastructure. Wireless access is therefore well positioned to be the next growth driver for broadband access in Sub Saharan Africa.
However, despite expansive wireless network deployments in the region, the cost of devices, especially smart phones, to facilitate access to broadband services have been prohibitively expensive. Until recently, the average selling price for a smart phone – or high tier phone – was on average $250-$350. This created high cost barriers for African users – both consumer and business including the middle and high end users. Of the 168 million mobile handsets shipped to Sub Saharan Africa in 2009, only 9% (15.1 million) were smart phones.
In August 2010, Chinese manufacturer ZTE released its Racer model smart phone which began retailing at $100. In the US, Dell released a $99 smart phone. Huawei also launched its IDEOS smart phone in South Africa – its point of entry into the rest of Africa- at $100-$150. This is a welcome development for the Sub Saharan African market in addressing price issues. In addition to facilitating affordable internet access, cheaper smart phones
Broadband penetration remains dismally low in Sub Saharan Africa. According to Frost & Sullivan, broadband penetration in Sub Saharan Africa was less than 4%. DSL access has stalled before it could actually take off and while fibre deployment is growing, albeit slowly, widespread access is not expected to take off in another 10 years.
In comes wireless access. Most countries in Africa have mobile network geographic coverage of over 70% and licenses for alternative technologies such as CDMA and WiMAX have become more affordable and readily available in the region. Major mobile operators in the region such as MTN, Safaricom and Orange have invested in WiMAX as an alternative to drive wireless broadband access, while fixed line operators are using CDMA to expand their existing copper infrastructure. Wireless access is therefore well positioned to be the next growth driver for broadband access in Sub Saharan Africa.
However, despite expansive wireless network deployments in the region, the cost of devices, especially smart phones, to facilitate access to broadband services have been prohibitively expensive. Until recently, the average selling price for a smart phone – or high tier phone – was on average $250-$350. This created high cost barriers for African users – both consumer and business including the middle and high end users. Of the 168 million mobile handsets shipped to Sub Saharan Africa in 2009, only 9% (15.1 million) were smart phones.
In August 2010, Chinese manufacturer ZTE released its Racer model smart phone which began retailing at $100. In the US, Dell released a $99 smart phone. Huawei also launched its IDEOS smart phone in South Africa – its point of entry into the rest of Africa- at $100-$150. This is a welcome development for the Sub Saharan African market in addressing price issues. In addition to facilitating affordable internet access, cheaper smart phones