Research Report Mobile Internet Survey in the Middle East and Africa 2013: Internet access trends and analysis March 2013 Karim Yaici and Roz Roseboro
2 Contents [1] Slide no. 5. Executive summary 6. Almost 90% of mobile Internet users we surveyed in the Middle East and Africa use their handsets as the primary means of accessing the Internet 7. Entertainment usage is prevalent almost half of our respondents accessed video on their mobile phones 8. Access to Wi-Fi on mobile phones and tablets in MENA is encouraging the consumption of online services 9. About this report 10. Recommendations 11. Recommendations 12. Mobile devices and Internet access 13. Overview of surveyed countries 14. Almost 70% of surveyed mobile Internet users in MENA use smartphones, while feature phones dominate in SSA countries 15. Slightly more than half of respondents have a Nokia feature phone or smartphone, while other vendors shares vary by country 16. Most respondents in MEA use a mobile device as their primary means of accessing the Internet 17. High cost and poor quality of experience are the main reasons for not using mobile Internet services 18. Survey respondents in MEA use fixed broadband at home and in public spaces to complement their usage of mobile Internet services Slide no. 19. Mobile Internet usage trends, drivers and inhibitors 20. More than half of respondents in MEA have used their mobile phones to access entertainment services such as video, games and music 21. Respondents with a smartphone are twice as likely as feature phone users to watch video on a daily basis on their handset 22. Respondents who mainly use mobile to access the Internet want faster data speeds, cheaper tariffs, higher data caps and more relevant apps 23. Wi-Fi and tablet usage 24. More than 80% of respondents in Egypt, Saudi Arabia and UAE who have access to Wi-Fi use it regularly on their mobile phone 25. More than half of respondents who regularly use Wi-Fi on their handset do so in order to reduce cost; a third do it to increase the access speed 26. More than three quarters of respondents with a tablet in UAE use Wi-Fi exclusively to access the Internet 27. Tablet ownership is more prevalent in the relatively affluent countries, which have high fixed and mobile broadband penetration rates 28. High prices are the main obstacle to tablet adoption, according to two-thirds of surveyed mobile Internet users 29. Half of respondents who do not own a tablet intend to purchase one, of which two thirds plan to do so within the next 6 months 30. Survey methodology and country details 31. Methodology: Mobile Internet Survey in the Middle East and Africa, 2013
3 Contents [2] Slide no. 32. Market summary and panel details: Egypt 33. Market summary and panel details: Saudi Arabia 34. Market summary and panel details: United Arab Emirates 35. Market summary and panel details: Kenya 36. Market summary and panel details: Nigeria 37. Market summary and panel details: South Africa 38. About the authors and Analysys Mason 39. About the authors 40. About Analysys Mason 41. Research from Analysys Mason 42. Consulting from Analysys Mason
4 List of figures Figure 1: Selected findings from the Mobile Internet Survey in the Middle East and Africa 2013 Figure 2: Top-five online services used by respondents on their mobile phone within the past 3 months, by region Figure 3: Tablet owners method of connecting to the Internet, by country Figure 4: Survey demographics for the countries covered in this report Figure 5: Economic and telecoms metrics for the countries and regions covered in this report, 2012 Figure 6: Smartphone ownership and GDP per capita in 2012, by country Figure 7: Operating system of smartphones used by respondents, by country Figure 8: Manufacturer of feature phones used by respondents, by country Figure 9: Use of a mobile phone as the primary means of accessing the Internet versus fixed broadband penetration, by country Figure 10: Reasons for not using a mobile phone as the primary means of accessing the Internet, by country Figure 11: Location used when connecting to the Internet from non-handset devices, by country Figure 12: Top-five online services used by respondents on their mobile phone within the past 3 months, Egypt, Saudi Arabia and UAE Figure 13: Top-five online services used by respondents on their mobile phone within the past 3 months, Kenya, Nigeria and South Africa Figure 14: Reported usage of video on mobile phone within past 3 months, per type of handset and country Figure 15: Reported propensity to watch videos on mobile phone at least once a day, per type of handset and by country Figure 16: Drivers that would encourage mobile Internet users to use the service more, by region Figure 17: Reported frequency of Wi-Fi usage on mobile phones, Egypt, Saudi Arabia and UAE Figure 18: Primary reason for using Wi-Fi on mobile phones for regular and occasional users, Egypt, Saudi Arabia and UAE Figure 19: Tablet connectivity to the Internet for respondents who own a tablet, by country Figure 20: Ownership of a tablet PC by survey panellists in Egypt, Saudi Arabia and UAE Figure 21: Ownership of a tablet PC by survey panellists in Kenya, Nigeria and South Africa Figure 22: Reasons for not owning tablet, by region Figure 23: Intention to purchase a tablet, by country Figure 24: Survey respondents demographic data: Egypt Figure 25: Survey respondents demographic data: Saudi Arabia Figure 26: Survey respondents demographic data: UAE Figure 27: Survey respondents demographic data: Kenya Figure 28: Survey respondents demographic data: Nigeria Figure 29: Survey respondents demographic data: South Africa
5 Executive summary Recommendations Mobile devices and Internet access Mobile Internet usage trends and drivers Wi-Fi and tablet usage Survey methodology and country details About the authors and Analysys Mason
6 Almost 90% of mobile Internet users we surveyed in the Middle East and Africa use their handsets as the primary means of accessing the Internet The mobile Internet market in the Middle East and Africa (MEA) offers major growth opportunities in terms of subscribers, devices and revenue. Low PC penetration and limited access to fixed broadband have resulted in mobile devices being the main and in many cases, the only means of connecting to the Internet. This report presents results from our survey of mobile Internet users in six countries: Egypt, Saudi Arabia and the United Arab Emirates (UAE) in the Middle East and North Africa (MENA); and Kenya, Nigeria and South Africa in Sub-Saharan Africa (SSA). The survey confirms the central role of mobile phones for accessing the Internet among consumers in MEA. Most (87%) of survey respondents indicated that they use their handset as the main means of connecting to the Internet. In SSA, 26% of respondents who access Internet services from a mobile device use a smartphone, compared with 69% in MENA, indicating that users in the latter countries have relatively higher levels of disposable income. The prevalence of mobile over fixed for Internet access in all of the surveyed countries demonstrates the high and rapid take-up of mobile Internet services, and the important role that mobile services play in extending online access to previously unserved or underserved groups. Figure 1: Selected findings from the Mobile Internet Survey in the Middle East and Africa 2013 [Source: Analysys Mason, 2013] 1 mobile Internet users in 1 Various questions; n = 4250, all mobile Internet users. MEA countries. of respondents use their mobile handset as their primary means of connecting to the Internet. of respondents own a smartphone. of respondents have a Nokia feature phone or smartphone. of respondents in Egypt, Saudi Arabia and UAE use Wi-Fi on their mobile phones several times a week. of respondents who own a tablet only use Wi-Fi to connect to the Internet.
Mobile phone as primary Internet access device (percentage of respondents) Mobile Internet Survey in the Middle East and Africa 2013: Internet access trends and analysis 16 Most respondents in MEA use a mobile device as their primary means of accessing the Internet Most (87%) respondents use their mobile phone as the main channel to connect to the Internet. The low levels of PC penetration and fixed Internet in MEA have contributed to this trend, as has the ongoing deployment of mobile data services by MNOs across the region. However, this average masks a large variation between MENA and SSA countries, ranging from 72% in UAE to 95% in Nigeria. This difference can be attributed to several factors, including: the relative scarcity of fixed Internet access in some countries compared with Saudi Arabia and UAE the low penetration of PCs in SSA compared with MENA countries (particularly those that are members of the GCC). The prevalent use of mobile to access the Internet has created an opportunity for mobile operators to play a significant role in managing and influencing consumers Internet experience. For most of the population in MEA, mobile was probably their first experience with the Internet, which highlights the role that mobile has played in extending Internet reach. Figure 9: Use of a mobile phone as the primary means of accessing the Internet versus fixed broadband penetration, by country [Source: Analysys Mason, 2013] 1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Nigeria Kenya South Africa Egypt Saudi Arabia UAE 0% 0% 25% 50% 75% 100% Fixed broadband penetration (percentage of households) 1 Question: Do you use your mobile phone as the primary means to connect to the Internet? ; n = 4250 (n = 750 for each country except UAE, where n =500).
38 Executive summary Recommendations Mobile devices and Internet access Mobile Internet usage trends, drivers and inhibitors Wi-Fi and tablet usage Survey methodology and country details About the authors and Analysys Mason
39 About the authors Karim Yaici (Analyst) works on Analysys Mason s The Middle East and Africa regional research programme. His primary areas of specialisation include mobile operators VAS strategies in developing markets, and the adoption of IP Multimedia Subsystem (IMS) services and mobile devices. Prior to joining Analysys Mason, Karim was an associate analyst at Informa Telecoms & Media, where he authored reports on mobile accessories and mobile applications. Prior to that, he worked as a research engineer in the Centre for Communication Systems Research (CCSR) and Vodafone. Karim holds an MSc in Information Systems Management from the University of Southampton and a PhD in human computer interaction from the University of Surrey. Roz Roseboro (Principal Analyst) is the lead analyst for Analysys Mason s The Middle East and Africa regional research programme. Her primary areas of specialisation are market drivers in growth markets and understanding the opportunities for operators and vendors in these markets. She also specialises in professional services needed to deliver infrastructure services and in network equipment manufacturers. Roz has nearly 20 years experience in market research, marketing and product management. She spent five years at RHK, where she ran the Switching and Routing programme, and later the Business Communication Services programme. She spent 9 years at Motorola, working in IT product development and radio and mobile phone product management. Roz holds a BA in English from the University of Massachusetts, Amherst and an MBA in Marketing, Management and International Business from the J.L. Kellogg Graduate School of Management at Northwestern University.
40 About Analysys Mason Knowing what s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Our focus is exclusively on TMT. We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit www.analysysmason.com/consulting. Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www.analysysmason.com/research.
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