This archive report was first published on 22 August 2019.
Published on August 22, 2019, a report by Bain and Company predicted that recurring mobile revenues in Sub-Saharan Africa would drop by 5% due to changing consumer behavior.
South Africa's voice revenues declined by 10% between 2013 and 2018 as customers shifted to data applications. In Nigeria and South Africa, regular SIM swaps are common as customers seek better network and value.
As saturation reduces the effectiveness of low-cost offerings, Telcos must switch from product-based strategies to customer-centric solutions that leverage customer experiences.
Investing in Network and Devices ¶
Network quality is the most important criterion for customers choosing a mobile operator in Sub-Saharan Africa. A survey in Nigeria found that 25% of customers have secondary SIM cards due to better network coverage.
Operators should invest in targeted, demand-based network improvements and consider offering low-cost devices or phones with a subsidy plan for a certain lock-in period.
However, operators must balance network and device investments to maximize return on investment.
Understanding Customer Needs ¶
Mature mobile markets like Sub-Saharan Africa require operators to maximize customer spending to claim additional value.
Operators should simplify postpaid offerings, customize prepaid plans, and offer unbeatable customer experiences. This includes using machine learning and analytics to offer highly customized offerings that resonate with customers' willingness to pay.
Seamless customer service is also crucial, with digitized services that give users the freedom to find and act on information when needed.
Choosing Between Being an Operator or an Innovator ¶
Companies can decide to focus on providing connectivity services and infrastructure or channel innovative efforts to capture customers through a customer-centric lifestyle platform.
For instance, Safaricom's Mpesa generates 28% of the company's revenues, demonstrating the potential of creating an ecosystem through end-to-end apps that drive transaction and subscription fees as well as data consumption.
