1. The East African Mobile Market bob.burgoyne@tnsglobal.com www.discovermobilelife.com

2. 2 TNS GTI 2011 Study Contents Overview Mobile Ad Channels Apps Mobile What??

3. 3 Overview

4. 4 TNS GTI 2011 Study Kenyans expect more for less – and quickly! Despite having higher GDP / capita, Kenyans expect to pay less for their next phone as compared to Tanzanians. However, they also replace their handsets more quickly and do a lot with them. In summary, in Kenya, upgrades happen quicker and although the price point is lower, phones have better capabilities (higher smartphone penetration). $53 $58 $45 Mean price paid

5. 5 TNS GTI 2011 Study Chinese Invasion? Nokia still dominates the mobile handset market in East Africa, but, while the brand remains aspirational there are quite a few fakes around. In Uganda, ZTE now has significant share, demonstrating that value for money Chinese brands are increasingly making inroads in East Africa....also connecting people Nokia % share

6. 6 TNS GTI 2011 Study Despite the hype, tablets aren’t widely desired vs. Only 1% own a tablet …and only 5% plan on getting one

7. 7 TNS GTI 2011 Study Currently SMS is a channel that touches everyone …. With mobile web and applications for niche audiences Around 90% uses SMS Less than 25% use mobile web <10% use apps

8. 8 TNS GTI 2011 Study Time of day matters We looked at what time of day consumers tend to use their phones for different things and interesting differences emerged. For example, in Kenya, commuting time see peak mobile music usage – due to the traffic!

9. 9 TNS GTI 2011 Study Kenyans consume more music in the mornings than in Uganda – probably due to traffic jams on way to work… Most popular usage occasions (amongst users of each feature) % choosing occasion Uganda Kenya A30a: Time of day analysis Bases: All music users

10. 10 TNS GTI 2011 Study Mobile web is still social and search abcde For mobile web users, the obsessions with Social Networking continues – 84% us in Kenya. Search is the other key activity hijkl

11. 11 Apps

12. 12 TNS GTI 2011 Study What are smartphone users up to? Kenya smartphone users are very social (81% have an SN app), regularly accessing Facebook via dedicated apps or via mobile web. They are also music-lovers (86% have a music app), downloading and using music based apps regularly.

13. 13 TNS GTI 2011 Study Source of applications Sharing from PC or phone is prevalent in East Africa – twice as popular as actually downloading from an official source!

14. 14 TNS GTI 2011 Study East Africans like to share…. KENYA TANZANIA Source of application downloads - % B4: Source of application downloads

15. 15 TNS GTI 2011 Study What Kenyans want from applications? Local Search News Business Finance

16. 16 Mobile what...?

17. 17 TNS GTI 2011 Study Share of messages sent by channel Mobile is also the primary communications channel – fixed internet is old news (or was never news) I5: Split of work messages / I6: Split of personal messages Bases: All who send work messages COUNTRY. All who send personal messages COUNTRY Mobile PC Global 52% 48% 86% 14% 91% 9% 88% 12%

18. 18 TNS GTI 2011 Study Mobile everything Due to income constraints in East Africa, the mobile has become the lead device for numerous activities. In contrast to the global picture, consumers prefer mobile for social networking, finance and downloading content. For Social networking 50% of Kenyans prefer mobile. Only 27% prefer PC / laptop

19. 19 TNS GTI 2011 Study World beating mobile finance Mobile finance has taken off hugely in Kenya, following the groundbreaking lead of Mpesa. In Tanzania too, the sector is growing, but in Uganda, usage is still limited. Used for bill payment, receiving wages and paying for services, mobile financial services are genuinely replacing banking services for a proportion of the population.

20. 20 TNS GTI 2011 Study Banks = obsolete? A high proportion of consumers in East Africa in fact believe that mobile finance can eventually replace traditional banks. Convenience / ease of use is the main driver of this opinion, while those who are not so sure believe that banks win out on security. % believing mobile finance can replace banks

21. bob.burgoyne@tnsglobal.com www.discovermobilelife.com