An Ericsson survey in Uganda has revealed that up to 10% of mobile network operators revenue in the country comes from mobile content downloads. While the main operators in the country are heavily investing in 3G capabilities, most of the device owners can’t afford 3G phones. So the majority of content downloads are initiated via SMS – and the vast majority of users feel they are getting good value for money.
The study was produced by the Commonwealth Telecommunication Organisation (CTO), and found that almost all of the mobile telecoms companies in Uganda are pushing towards 100% growth in mobile content downloads. Three of the five big telecom players in Uganda, MTN Uganda, UTL and Zain, are investing heavily in mobile Internet networks, to move mobile content to the rural customers who represent the majority of the Ugandan population. The spread of 3G networks will be a major challenge, according to the report, because of the tiny number of users who can actually afford a 3G handsets.
From the report:
”In Uganda, airtime transfer is ranking number one followed by download of games, news and sports. Interestingly, users from each country (Uganda and India) show a great deal of satisfaction with the services they use most and believe they represent good value for money. The popularity of airtime transfer, which was only introduced to Uganda in 2006, supports the view that users make use of m-content services that meet their most important livelihood needs.”
What we think?
Mobile content downloads are a very different beast all together in developing African markets than they are here. What can seem like a frivolous expenditure in Europe and the US can be an integral tool in these markets. Particularly in Uganda, it seems. Recently, mobile content was used to great effect there to spread educational information about better farming practices.
