Scramble For East African Mobile Market

Competition is heating up in the East African mobile sector.  A number of telecommunication service providers are fighting for market share. Also, manufacturers of mobile handsets want to maximize sales.

 The Two Sides of the Scramble

On one hand, there is the hardware market that is primarily made up of individuals who are interested in purchasing phones. This segment of the market is very lucrative because East Africans love new technology.

When it comes to providing the service that makes the phone to run, the whole affair has been a European ballgame for a very long period of time with companies such as Orange and Vodafone dominating the East African market. However, Asian telecoms such as Bharti Airtel are apparently making inroads in this territory.  

The Hardware Market

East African mobile handset market has for a long time been dominated by mobile giants such as Nokia and Samsung. That was before the entry of Techno that apparently changed the rules of the game. On the side of hardware, the major players are Nokia, Samsung, Tecno, LG and Alcatel.

Tecno is fiercely expanding its market share as a result of its aggressive strategies. To gain a competitive advantage, this firm has set up plants in Africa. It is a Chinese firm that produces mobile phones strictly for Africa.

For a long time, Nokia was the champion when it came to sales of feature phones. The company that is doing very well in the smart phone business is Samsung. Apparently, a good percentage of East Africans love Samsung phones because they are quite innovative.

Competition in the Telecoms Sector

Vodafone (A UK telecoms firm) has a strong footing in the region controlling a huge chunk of the Kenyan telecommunication sector and is the company behind the award winning mobile money transfer service called M-Pesa. The French telecommunication company-Orange has not been left behind. South African based MTN is also making inroads in this region of the world.

Indian and Chinese telecommunications companies have of late been focusing on east Africa due to the raw potential of the mobile market of east Africa.

Global economic crunch slowed down the investments of European telecom companies in the region. On the other hand, Asian service providers can easily lower communication costs, which are making their market share to expand rapidly.

These Scramble Benefits Consumers

The ultimate winner when it comes to this cutthroat competition that is characterizing the East African mobile phone market is the consumer on the ground. As the various market players fight to have the biggest market share in this region of the world, a price war will definitely ensue. At the end of the day, due to prevailing price cuts, consumers end up getting affordable products.

It takes innovation and creativity to thrive in any competitive market. These qualities are what many manufacturers are embracing and the resultant products are therefore items that will best address the needs and tastes of East Africans.

East African mobile phone market has regulatory and political risks. However, it remains indisputably profitable that is why it is the focus of some of the biggest companies in the world.

Chinese Handset Manufacturer Giving Samsung and Nokia A Run for Their Money in East Africa

Tecno is the new name in mobile phone circles in East Africa. The company behind this brand is based in Hong Kong and for a long time it has been producing products for the Asian market. That was before company executives saw the potential of Africa and they did not waste time to take advantage of this window of opportunity.

As a matter of fact, Tecno now only does business in the African continent with a plant already set in Addis Ababa, Ethiopia and plans are underway to establish other plants in Nairobi and Lagos.

Why Samsung and Other Major Players Face Stiff Competition from Tecno

The regional resources of Tecno make it to be in a position to compete with the major players when it comes to the regional market. This company has heavily invested in East Africa and because of the capital available it is easy to carry out effective research and development. This company also has bloated marketing budgets making it possible for Tecno products to be advertised on TV, radio and newspapers just like Samsung, LG and even Nokia phones.

Tecno Has Just Entered the Lucrative Smartphone Market

For quite some time, Tecno was associated with the grey market due to its array of cheap feature phones. However, the overall strategy of the company has changed and presently high quality smart phones are being produced.

Tecno smart phones are just as good as the ones produced by competitors such as Samsung. This is because they have sleek design, great hardware, enhanced internal storage and automatic software updates.

What Makes Tecno Smart Phones to Be Cheap yet Possessing High Quality

A number of phone manufacturers have to deal with intricate aspects of design and production which makes it to take more than a year before a new model is released to the market. In an effort to compensate the time, effort and resources that have been invested in the production process, a product is priced on the higher side of the scale.

However, for the case of Tecno, most aspects of production and design are not dealt with as a result of Qualcomm partnership.  Under this agreement, Tecno enterprise is saved from the expensive costs of research and development. Also, because Qualcomm chips are being used in the production process, there will be no product architecture and engineering costs will be greatly minimized. Therefore, a new phone make can be released to the public in a matter of days. Also, the savings that have been made are pushed down to the consumer in terms of reduced prices.

The partnership between Qualcomm and Tecno has facilitated the production of affordable phones that are very functional and have the desired aesthetic effects.

All phones come with a number of pre-installed applications and a powerful processor that enables seamless multitasking.

East Africa has proven to be one of the most lucrative markets for Tecno. This Hong Kong based firm is producing devices that have customized to properly satisfy the needs of East Africans.

Popularity of Tecno Phones in East Africa

With every passing day, Tecno phones are becoming more popular in East Africa. There are very ubiquitous items as a result of their low price point and their apparent above average functionality. The East African market is largely price sensitive. Many people are looking at how they can save the most while being able to enjoy modern day conveniences such as smart phones.

Mid Range and Low End Smart phones from Tecno

This company is presently focused on producing products for the average consumer. Smart phones that retail for less than $100 yet have a host of powerful features are becoming the fad in East Africa. It all started with the IDEOS Huawei phone that was targeted to the market segment wishing to enjoy smart phones at highly affordable prices.

The story of IDEOs in East Africa is an interesting one. It started as a popular brand however with subsequent releases it became unpopular due to a failure on the side of the company to innovate. As new Smartphone users got used to IDEOS phone, they began to realize the benefits and functionality of smart phones and they subsequently desired something better and were ready to pay for a superior product. IDEOS team failed to realize this and they continued to produce basic products that could no longer serve the needs of those who were already exposed to smart phones but were ideal for people who have never used smart phones before.

Tecno Will Not Suffer the Fate of IDEOS as a Result of Innovation

Innovation is the aspect behind all highly successful brands in the world. With every new techno release, someone can see the raw innovation behind the product. This company has invested heavily in establishing the needs of the market and subsequently developing products that can best address such desires.

Techno Phones Have Been Built For Africa

The requirements of the East African consumer are usually taken into account when making a Tecno phone. The dynamics in this region of the world are not the same as those that characterize day to day life in the west.  East Africa has unique challenges that have to be considered during the process of making a phone.

Popular Techno Makes So Far

The most popular make ever to be released from the Tecno stable into the East African market has to be the Tecno N3. It received good reviews and many units were sold. This pushed the morale of the Tecno team to new levels, they were encouraged to break the limitations of imagination and subsequently produce Tecno Phantom F7 that is just as good as the Galaxy S 111 but retails at half the price of the Galaxy. The F7 is selling not only in East Africa but also in other regions of Africa. It has been very popular in Kenya, Uganda, Ethiopia and Nigeria.

Unlike IDEOS, it seems Tecno is here to stay. These Qualcomm powered phones will not disappoint. They are built using state of the art technologies and they also have impressive exteriors.

SIM Card Registration in East Africa

Mid 2012 was the regional deadline for all SIM cards to be registered. This deadline has been revised time and again by member states of the EAC as a result of laxity on the side of telecom companies.

SIM Card registration in East Africa has been a major issue of late. This can partly be attributed to the desire to curb crimes. Network operators are charged with registering SIM cards.

In most East African countries, SIM cards that have not been registered are usually deactivated by the network operators. The process of SIM card registration has been overhauled time and again.

More data to be captured during registration

Owners of mobile phones in East Africa will be required to submit more data during the registration process for the purpose of facilitating more accuracy on the side of the network operators.

Unregistered SIM cards are usually deactivated

 Due to the desire to prevent fraudulent acts, the government usually deactivates all the SIM cards that have not been properly registered with the authorities.

Transformational Impact of Mobile Phone Technology in East Africa

Mobile phone technology has transformed East Africa in leaps and bounds. Sectors that have been positively affected include Agriculture, trade, health, financial services, government, education and ICT sector.  The development landscape of East Africa is slowly being transformed by mobile phones. New sectors of the economy that were underperforming have been given a new lease of life. What is needed at the present moment is a radical increase in these innovations so as to achieve more economic and social developments.

Innovative Mobile Phone Solutions Are Driving Entrepreneurship

Over the last few years, many startups have arisen in East Africa due to the need to enable the facilitation of new mobile technologies. One of such firms is Tangazo letu that facilitates Lipa na M-Pesa that is an initiative of leading Kenyan mobile phone company (Safaricom), in an effort to facilitate mobile commerce.

Job Creation

The mobile phone sector has employed many people directly and indirectly. There are professionals who have been employed directly by the leading networks for the purpose of facilitating day to day operation of such companies. Such professionals include technicians, accountants, programmers, drivers and managers among others. Also, indirect employment is the case in this sector. There are those who been employed by agencies that are in charge of facilitating mobile money services of mobile service providers.

Changing lives

Mobile phone technology has changed many lives in East Africa. It has facilitated vital communications that has ended up saving lives. Mobile money transfer services have saved many East Africans the inconvenience of having to deal with physical money.

People who are overseas can be able to send money to their relatives purely because of mobile money. Therefore, those who have been lucky to find employment in US, UK and other developed countries can be able to support their relatives on a day to day basis due to this technological development.

Ready access to information

With a mobile phone that is connected to the internet, different kinds of information can be accessed with the click of a button. The fact that this technology avails useful information to millions of East Africans on a daily basis indicates its transformational nature in this region of the world. People need relevant facts so that they can be able to make day to day decisions in the best manner possible.

Agricultural Impacts

The agricultural sector has benefited in a number of ways from mobile technology. Kilimo Salama program that is powered by a mobile payment gateway in Kenya has enabled farmers to subscribe to crop insurance.

Trade Facilitation

Mobile payment systems have facilitated trade in a number of ways. They have accelerated the pace of mobile commerce in East Africa because people can easily buy and sell from their mobile phones. On the other hand, merchants can receive cash from buyers in a safe manner.

Why Smart Phones Are Very Common In East Africa

Smart phones are very common in this part of the world where people love to keep up with the trends. Major phone companies around the world including Samsung and Nokia have already set tent in the region as a result of the potential of the market. It is presently a battle between the traditional western firms and the Chinese entrants who are willing to cut prices to a great extent.

Rising Incomes

People are earning better wages compared to the case, 10 years ago. The middle class is rising as the number of East African millionaires being created everyday increases. These super consumers demand the finer things of life including the best makes of smart phones.

A manufacturer cannot afford to assume this segment of the market judging by the rising incomes of citizens.

Quick adoption of new technology

East Africans usually adopt new technologies easily. This can partly be attributed to the high literacy levels across the region. It is a matter of fact that the educated segment of the East African region has been increasing since these countries acquired independence almost 50 years ago.

Advertisements and increased marketing budgets of telecoms and manufacturers

Leading manufacturers have bloated marketing budgets. They are constantly bombarding the East African population with messages about how smart phones can make their lives better.

Huge billboards advertising different phone makes are popular across the region. Strategic Television, Newspaper and Radio advertising spots have been taken by telecoms and the leading manufacturers.

Global trends

The effect of global trends is undeniable. What is trending in the west will definitely be popular in other regions of the world. The big brands of USA are adored in places like Kenya, Uganda and Tanzania. The internet has made the world to be a global village and subsequently resulted to information shared across the world at the speed of light.

The moment a new I phone make is being launched; East Africans will already be informed of it and those who have some money to spare will want to acquire it within the shortest time possible.

Africa cannot separate itself from the modern day realities of the world. Smart phones are presently the fad and within the next few years, tablets will be the in thing. Both these kinds of mobile devices are presently being owned by East Africans and they are stocked in many outlets across the region.

Affordable Smartphone handsets

The hugest segment of most countries is made up of people who earn modest incomes. East Africa is no exception. These are the people who want to enjoy luxuries at highly affordable rates. So as to target this segment, leading market players have manufactured smart phones that are retailing for as low as $100 such as IDEOS Huawei and Yolo. Firms from eastern countries such as India and China have introduced products that are cheap and have all the desired functionalities.

In east Africa, smart phones sell like hotcakes. Therefore, they are very common. They can be obtained from outlets found in urban centers and the countryside.

Rural East Africa Not Being Left behind the Smartphone Craze

Smartphone craze is not the preserve of Nairobi, Kampala and Dares salaam a.k.a the big East African cities. Also, inhabitants of rural East Africa are embracing this revolution.  It is common to find people in the most remote of places having smart phones. This can partly be attributed to the availability of affordable smart phones. Some are retailing for as low as $80.

East African Youth

Youths are in the forefront in adopting this new technology. They seem to be attracted to the inherent functionality. To them, having a Smartphone is one of those achievements that cannot be taken for granted.

Professionals in Rural Areas

Professionals in rural areas such as teachers and doctors find functional phones like smart phones to be quite handy since they help them to perform their day to day activities in an easy and convenient manner.

Social Media Capabilities Attracting Many Dwellers

East Africans in urban and rural areas are serious social media fanatics. That is why; Smartphone adoption has been very rapid across the region. These phones have the ability to facilitate seamless connection to the internet. Some of them have social media applications which make people to connect to the internet in a matter of seconds and subsequently to be able to chat right from the user interface of the phone.

Which Phones Are Popular With These Groups of People

Huawei Smartphone had a cult like following in both East African towns and rural centers. This was because of its low price point and also its functionality. It came with a good deal of internal memory, great battery life and was powered by the popular android operating system by Google.

However, of late, it has been upset by other brands including Nokia and Samsung which presently have very good makes that can be obtained at very reasonable prices.

Social and Economic Impacts of This Adoption

Adoption of smart phones in rural east Africa has both social and economic impacts.

First and foremost, the lives of people have been greatly improved. This is because of the power of information. Once someone can easily source much needed data it becomes very easy to make an informed decision.

Seamless access to the internet means that someone can get information he requires at any time of the day.

On the economic side of the spectrum, a farmer/businessman can easily obtain a market for his products or services. Therefore he will be saved from having to deal with unscrupulous brokers. OLX is a popular web based marketplace in Kenya that can be accessed via a mobile phone and has helped many East Africans to be able to sell their goods for cash and obtain desirable items at pocket friendly rates.

Cheap Smart Phones Edging Out Feature Phones in the Rural Market

 There was a time when most rural dwellers in East Africa had feature phones. However, with affordable smart phones, trends are changing in these parts of the world.

Smartphone craze is spreading quickly all over the world. This technology is the new standard in technology. It has been embraced by East Africans from different walks of life.