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What’s Really Going on in Mobile & Why Africa Is Ahead of the Game
Bill Wolfe
Chief Strategy Officer, Clickatell
November 13, 2013
Evolution of Mobile Services
CONFIDENTIAL 2
Mobile
Service
Evolution
Moneti -
zation Models
(MNOs,
Aggregators,
Enablers)
Voice
Communication
(Synchronous)
Mobile Phones for
synchronous voice
telephony; initial
growth of SMS in
EU
Dates
Mobile Phones
become ubiquitous;
exponential growth
of SMS; First clunky
smart phones
1990 - 2000 2000 - 2007
Milestones 2002: US
SMS
Interconnect
Per minute billing;
per message billing
by operators;
almost no VAS
2008 - 2012
Ubiquity of Mobile
& SMS Messaging
(Asynchronous)
Packages and
Bundles; SMS
packages; VAS
bundles; per msg.
billing for A2P SMS
“BYOD”
Proliferation of
Smart Phones &
Tablets
Smart phones have
exponential growth;
apps &cloud” are
born; rise of OTT
msg.; “ BYOD
becomes standard
Flat fee App billing
becomes standard;
commoditization of
SMS messaging
progresses
2013 - ???
“Bring Your Own
App” Proliferation of
Apps & more devices
Apps will become
ubiquitous; SMS no
longer only means
of ubiquity; rise of
app enablers; HW:
“Internet of things”
Per msg. billing is
dead; freemium+,
flat fee models,
analytics and geo-
based advertising
The Mobile Web is Dead – Mobile Solutions are Alive and
Well
CONFIDENTIAL 3
The web was not designed for mobile
• Keyboards, large screens, mice
Mobile –
virtual keyboard interaction
tiny screens
mice???
• Rich media design, Flash, multiple nested pages
Mobile –
simple solutions
A web based paradigm actually slows users engagement for mobile
Why is the Jump Start Direct to Mobile Important
CONFIDENTIAL 4
• Broadband is actually a drag on mobile enablement
• Rich “keyboard and screen” designs do not adapt well to mobile
• Wrong screen size
• Multiple incarnations required, making creation and maintenance more
expensive
• Broadband is expensive
• Network cost for operators and users
• Device cost for users
• Mobile is the user preference (operators too)
• Key monitizable values are enhanced with mobile, diminished in broadband
• Geo location
• Transaction on demand
• Only mobile appeals across the economic spectrum and is consumable by
everyone
• Built in transaction capabilities
Mobile is a Long Tail Technology
CONFIDENTIAL 5
Communication
Transactions
Appliffication
Tools
Value Exchange
Notify
Identity
CRM Push Notifications
Communities
Payments
SMS
Authentication
Loyalty
Multiple overlapping phases
• Simple services
• Early network engagement
• Inexpensive smartphones – removing the
device barrier
• WiFi plus traditional mobile – users adapt
• Applification – end users, business win
GT Bank VTU Solution (Nigeria)
An immersive mobile experience.
The first of its kind in Nigeria.
VTU (virtual top-up) is the most popular product/service used on the Mobile
banking App.
It is convenient, trusted and pinless and can be loaded onto any Nigerian
cellphone account specified by the App user.
Exponential sales growth since the launch.
VTU provides an additional revenue stream that contributes funds toward
the cost of developing and maintaining the App.
VTU is not just a product, but also a reward and promotional mechanism.
Using the App is a cost effective solution for the client
Conclusions
CONFIDENTIAL 7
• World-wide we are exiting the phase of fixed Internet and moving into the stage
of mobile Internet
• Smart Phones will dominate, BYOD
• Desktop to pocket – always on to always engaged
• Geolocation search and presence are increasingly important
• We are moving from web centricity to app centricity – mobile has inherent
components today
• Multiple delivery options, off line apps generate desire for on line engagement
• Stored value for many services – Airtime, VTU
• Low cost devices make the desirable obtainable
• Mobile has moved from a singular delivery vehicle to cornucopia of user
available options
• User acceptance and preferences – dual use of devices
• Geographies tend to center around a particular solution
• The long tail of mobile deliver means carriers can engage early and drive
experience
• Free wins!!
Why Africa Is Ahead of the Game
CONFIDENTIAL 8
• MNOs, Business & End Users understand and trust how an immersive mobile
experience works
• GT Bank
• The region will not go through the confusion of transitioning from
web/broadband centricity to mobile
• Focus on service, not just device
• Current engagement will drive more desire, with more options
• Hybrid Mobile/WiFi
• Low cost devices removes the barrier
• Transaction on demand is not new for consumers
• Unprecedented room to grow both horizontally and vertically
• 253M subs today growing to 346M subs by 2017 *
• Penetration is still at only 31% *
• Prepaid data utilization continues to grow
• Emerging applification experience & low cost smart devices * GSMA report as cited in China Post November 13, 2013
CONFIDENTIAL 9
Questions?
& Thank You