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Making Nigeria's mobile apps market viable

Published by Guardian on Sun, 22 Jul 2012


MOBILE technology has become an important instrument for economic and business growth, helping to access, adapt, produce and apply information to managing not just the business itself, but also in the development of human capacities.The mobile technology has also been linked to increase in job creation globally because of the various opportunities that came with it.Undoubtedly, the explosion in mobile phone usage in Nigeria has placed the country as the fastest growing market in Africa, displacing South Africa and making it a major bloc in the world.The latest subscriber statistics from the Nigerian Communications Commission (NCC) buttressed this point. The NCC data as at May this year, revealed that Nigeria currently has 101.8 million active subscriptions, with the GSM operators pulling the largest share of 97.5 million, while the Code Division Multiple Access (CDMA) has 3.7 million subscribers.NCC went further to put the country's connected lines at 134.4 million, which comprised figures from the three major arms, including the fixed wired/wireless subscriptions.Various forecasts have shown the robustness of the Nigerian market and potential, which are yet to be tapped. Consequently, this has increased the influx of various phone manufacturers andbrdands into the country.Indeed, the last decade has witnessed a remarkable transition in the global mobile phone market. The extensive proliferation of devices and mobile applications has turned the heads of every successful business player in the world, in its direction.Analysts have predicted that this decade will indeed be best remembered as the dawn of a new era in the field of mobile phones and applications development, adding that while telecommunications was a neatly defined word few years ago, so much has happened in terms of interdisciplinary shifts that when we now speak of a mobile sector, we do not speak only of telecoms but also of other elements of its application in life, business, entertainment, and even governance.Arguably, some analysts were of the opinion that it wasn't until the launch of Apple Appstore that the mobile applications industry started to blossom in earnest.Already, it has been predicted that the total global mobile app market will be worth $25 billion by 2015 (up from about $6.8 billion in 2010), according to projections from MarketsandMarkets. Obviously, App Store holds nearly 20.5 per cent of this market share, while the global market is forecast to record a CAGR (compound annual growth rate) of 29.6 per cent from 2009 to 2014.According to this projection, advancements in network technologies, reduction of mobile data usage costs, growing adoption of smartphones as well as a continuous increase in application usability are some of the critical factors that will contribute to this growth.Delivering a paper titled: 'Harnessing the potential of Internet and Applications on Mobile Devices', at a Mobile Web conference, the immediate past president of the Association of Telecommunications Companies of Nigeria (ATCON), Titi Omo-Ettu, said the country has started seeing the mobile phone, in particular, as a device for change, a tool for closing the digital divide, an ultimate closer of the gap between the rich and the poor, and between the rural and the urban.Omo-Ettu said building the rapidly expanding mobile system to generate more business makes good sense, adding that millions of SIM cards exist in the market and are supposed to be doing quite a lot beyond voice. 'Content creation is key and I am particularly concerned about how much of this can be locally targeted and locally produced.'Indeed, a huge market for mobile apps exists in Nigeria and Africa, this is basically because Africa has been underdeveloped for so long, and mobile technology in general embodies the possibility of bridging the digital divide and making information, entertainment and productivity tools easily accessible to the man on the street.Moreover, the immense work Mobile Network Operators' (MNO) in Nigeria have done in terms of providing coverage across the continent cannot be over-emphasised. Besides, telecoms infrastructure is perhaps the most robust communication network infrastructure available in Nigeria.Expectedly, an app developer in Nigeria, Bayo Puddicombe, who recently developed an application, Pledge 51, which currently features on the Nokia Store, opined that strong demand for applications exists in Nigeria.He, however, expressed discontent that the bulk of the supply is coming from foreign markets and developers.'This also means there is an opportunity for mobile developers to create relevant content which will be useful to local users within the African context. Coming to Nigeria, it is said that one out of every five Africans is a Nigerian. We are also the 7th largest country in the world by population count.'This country has generated a lot of interest from several international players due to sheer volume of traffic generated from people who access the Internet using their mobile devices. For instance, Nigeria is rated as the fourth largest market for the Opera Mini (mobile phone) browser in the world today. What we have found is that for a number of people in Nigeria, the mobile phone is the primary means of accessing information via the Internet. This represents a huge market for local applications and tools.'Omo-Ettu, an engineer, believed that if Nigeria must benefit immensely from the apps market, there was need for improved infrastructure, capacity building among others.'Something tells me that our youth may just be getting an opportunity which need necessarily not come from government and which already manifests itself embedded in prevailing mobile systems. If capacity can be developed in this way, then the possibilities are endless but prevarication or worse still, inaction will be precarious.'If capacity development can be achieved then it is to the advantage of the country as a whole in relation to point on local content and services. To facilitate a thriving mobile ecosystem is an essential element of this. Having the resources of the Internet at your fingertips at a reasonable cost is fantastic for all members of society, especially if a local industry has contributed significantly to the information they are consuming.'According to the president of Institute of Software Practitioners of Nigeria (ISPON), Mr. Chris Uwaje, the most significant challenges are primarily due to infrastructure deficits in several key areas such as power, communications, and electronic payments among others. These, according to him, add significantly to the cost of developing applications and also reduce the opportunities for revenue generation, adding that most indigenous developers are optimistic that there will be considerable improvements in several of these areas in no distant time.'If well harnessed, this can be transformed into a huge industry with significant potential for growth. When critically analysed, the major resources required to develop mobile applications are your mind, a half decent computer and maybe Internet access. Then once you have succeeded in developing a mobile apps product and made it available online, you open yourself to not just a local market, but a global one', Uwaje noted.Experts still believe that though, there are a number of indigenous developers doing great things in the field of applications development, Nigeria is not close to hitting critical mass just yet. 'It is in our best interest to encourage more young people to consider this opportunity. This is probably one of the many answers to the unemployment challenges amongst youths facing our nation today', Uwaje stated.At the June 2012 edition of the CcHUB's 'Developers Parapo' sponsored by Samsung for Nigerian web and mobile app developers, the Head, Content and Services, Samsung South Africa, Mr. Thabiet Allie urged Nigerian young mobile application developers to explore the vast marketing opportunities in the country.Allie specifically urged the young developers to combine marketing and business skills with their technology or coding background.'The essence of app developing business is recognising a niche market and matching it with a solution,' he said.Speaking at the launch of the MTN Enterprise Applications in Lagos, Chief Enterprise Solution Officer, MTN, Babatunde Osho, said the launch was another indication of the company's commitment towards developing a vibrant community of local developers, by providing a platform for ideas generation and more importantly, assisting local developers' monetise their skills.Osho posited that applications have now emerged as a fundamental driver of enabling lifestyle and productivity, as consumers want to access relevant content from PCs, laptops, mobile phones and even in-car systems.Some of the apps showcased at the launch were: The MTN Transport and Logistics App that enables organisations with large fleet, monitor, track and manage their vehicles, drivers and deliveries remotely from their phone or handheld device. The MTN Field Force Automation App, which allows field sales teams take customer orders remotely and initiate deliveries without having to return to the office.But if the industry must progress, Omo-Ettu believed that there must be collaboration and healthy competition in the country, stressing that the role of institutions, such as NCC, NITDA in the development of the mobile web and applications is a key one and their active support would have a considerable multiplier effect on the speed of the expansion of the ecosystem.
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