Zero Rating presentation - Research ICT Africa

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Nov 10, 2015 - Africa supply side assessment of Zero ra ng. 1 ... State of African prepaid market. Increasing mobile ...
Africa supply side assessment of Zero ra4ng

Chenai Chair Research ICT Africa 10 November 2015 Zero Rating research show case

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State of African prepaid market Increasing mobile market and data consumers Introduc3on of lower end smart phones into the market Declining revenue from tradi3onal services Operators facing threat from OTT players-fear of becoming dumb pipe New business models observed-zero ra3ng, social media bundles and blended bundles

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Example of zero rated services in South Africa

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Examples of Social media bundles

MTC Namibia

MTN Nigeria

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Example Blended Bundles

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Countries offering of new pricing models

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So how much for the chatter?

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RIA African Mobile Pricing index Q3 2015

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1 GB Prepaid basket data (USD)

Rwanda Mozambique Tunisia Tanzania Madagascar Niger Senegal Burkina Faso Kenya Ghana o Tome and Principe Ethiopia Benin Algeria Malawi Uganda Liberia South Africa Mali Namibia Nigeria Togo Chad Cote d'Ivoire Zambia Cameroon Gabon Sierra Leone Sudan Angola Lesotho Bostwana Zimbabwe Swaziland

4.4 4.4 5.2

Tanzania Kenya Rwanda Mozambique 8.0 Ghana 8.1 Tunisia 8.4 Sudan 8.4 Mauritius 8.4 Malawi 9.0 South Africa 9.1 Niger 9.1 Togo 9.8 Senegal 10.1 Burkina Faso 10.2 Nigeria 10.6 Sao Tome and Principe 11.6 Uganda 12.0 Ethiopia 12.3 Benin 12.6 Algeria 13.2 Liberia 16.7 Mali 16.9 Namibia 16.9 Cameroon 16.9 Madagascar 18.0 Lesotho 20.2 Zambia 23.6 Gabon 24.0 Chad 24.4 Cote d'Ivoire 24.4 Angola 27.3 Sierra Leone 30.9 Bostwana 35.0 Zimbabwe 37.7 Swaziland

Cheapest 1GB price from operator with dominance in country

3.8 4.3 4.4 4.4 4.5 5.2 5.8 7.3 8.1 8.2 8.4 8.4 8.4 8.4 9.1 9.1 9.3 9.8 10.1 10.2 12.0 12.6 13.2 13.5 14.6 14.9 16.5 16.9 16.9 16.9

22.6 24.0

28.3 30.0

Cheapest operator 1GB price in country

37.7

Bundles Value Index

Q3 Highest scoring country on Africa Bundled Value index

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Operators with highest scoring index on Bundled Value Index

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Bundled Value Index

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Zero rating and the biggest markets in Africa

South Africa-Cell C, smaller operator zero rates Freebasics and Whatsapp -MTN South Africa zero rates twiJer Kenya-Airtel zero rates freebasics, Safaricom zero rates Wikipedia Nigeria-no zero rated products found.MTN Nigeria partner with opera mini and naij.com to for “1 million days of free internet”

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So what?

Zero rating- whose threat or whose opportunity? Who benefits and loses from zero rated services-consumers, ISPs, operators or government?

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Going Forward Competing and potentially conflicting public interest considerations should be weighed before any intervention done Economic regulation (and certainly consumer welfare considerations) need to be part of that of balancing public interests and should be undertaken only when the practice was an abuse of dominance and anti-competitive Outcomes of such competition regulation, or forbearance, of zero-rated services should be considered in relation to potential unintended outcomes in new dynamic and multi-sided markets and in relation to innovation and content diversity, particularly by extending the barriers to entry by domestic start ups and in regulatory responsiveness to (artificial) scarcity claims. Future research- demand side understanding of uptake and perception of user 15

Thank You.

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