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Wednesday, 04 January 2012

Telecoms: Smart money is on Smart phones

By Gemma Ware

Nokia, Research in Motion and Huawei are competing for bigger stakes in the African handset market while mobile operators offer inexpensive package services to tap into an increasingly connected young population.

The age of the $100 smartphone is in full swing. Now, low-priced handsets are challenging those of the top global brands for the biggest share of Africa's booming telecoms markets. In September, Huawei, one of China's leading telecoms manufacturers, threw $1m into an aggressive marketing campaign to launch its IDEOS smartphone, priced at less than $100. It will have an uphill battle to win the favour of a Nigerian middle class obsessed with the latest and most expensive BlackBerrys, Samsungs and iPhones. Nigerians do not want to be second best. Liza de Wet, marketing director for East and Southern Africa at Huawei, says the company needs to build up its 'brand equity' on the continent and that it will start spending more on direct marketing to target consumers in Africa.

...But the techies should not get carried away. Despite all the attractiveness that an iPhone or BlackBerry brings to elites in Nairobi or Lagos, the vast majority of African subscribers still cannot afford smartphones. In Kenya, one of Africa's most connected countries, around 6% have access to them, according to research agency TNS. New services such as Movirtu, which lets users access their mobile data via the cloud on compatible handsets, will help push internet take-up among poorly-?connected rural populations.

To read the full article please go to: http://www.theafricareport.com/index.php/news-analysis/telecoms-smart-money-is-on-smart-phones-50178508.html#jacommentid:11524