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Global Mobile Internet Userbase to Reach Two Billion

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Mobile internet in Nigeria

More than two billion people globally will use mobile devices to connect to the Internet in 2016, with countries like India, China and Indonesia leading the way, research firm India Data Corporation said.

According to www.economictimes.indiatimes.com, overall, an estimated 3.2 billion people representing 44 per cent of the world’s population will have access to the Internet in 2016.

“Growth in Internet access is taking place around the world, but some countries are seeing particularly rapid growth. China, India and Indonesia lead the way and will account for almost half of the gains in access globally over the course of the next five years,” the portal quoted IDC as saying in a statement.

The combination of lower-cost devices and inexpensive wireless networks are making accessibility easier in countries with populations that could not previously afford them, it said.

According to Internet and Mobile Association of India, India was expected to reach 402 million by December 2015, registering a growth of 49 per cent over 2014. About 306 million of these are expected to access Internet from their mobile devices.

IDC said the global mobile Internet userbase is forecast to grow at two per cent annually through 2020 unless significant new methods of Internet access are introduced.

Efforts by Google, SpaceX, and Facebook among others to make the Internet available to the remaining four billion people via high altitude planes, balloons, and satellites are underway.

However, it remains unclear how successful these endeavours will be and when they will be operational at scale, IDC said.

“Over the next five years, global growth in the number of people accessing the Internet exclusively through mobile devices will grow by more than 25 per cent per year while the amount of time we spend on them continues to grow. This change in the way we access the Internet is fueling explosive growth in mobile commerce and mobile advertising,” Program Director of Strategic Advisory Service, Scott Strawn said.

More than two billion use email and read news online and more people than ever before are making purchases online, the statement added.

Internet start-ups in India are joining the front line against Facebook Inc. founder Mark Zuckerberg and his plan to roll out free Internet to the country’s masses.

The government has ordered Facebook’s Free Basics plan on hold while it decides what to do.

The program, launched in more than 35 developing countries around the world, offers pared-down web services on mobile phones, along with access to the company’s social network and messaging services, without charge.

But critics say the program, launched 10 months ago in collaboration with Reliance Communications, violates principles of net neutrality, the concept that all websites on the internet are treated equally. It would put small content providers and start-ups that don’t participate in it at a disadvantage, they say.

“India is a test case for a company like Facebook and what happens here will affect the roll out of this service in other smaller countries where perhaps there is not so much awareness at present,” said Mishi Choudhary, a New York-based lawyer who works on technology and Internet advocacy issues.

Also at stake is Facebook’s ambition to expand in its largest market outside the United States. Only 252 million out of India’s 1.3 billion people have Internet access, making it a growth marke ..

In a letter seen by Reuters, the heads of nine start-up including Paytm, backed by China’s Alibaba Group, and dining app Zomato, have written to the watchdog Telecom Regulatory Authority of India urging it to ensure Internet access was allowed without differential pricing.

The executives said in the letter, dated Tuesday, that differential pricing for Internet access would lead to a “few players like Facebook with its Free Basics platform acting as gate-keepers”.

“There is no reason to create a digital divide by offering a walled garden of limited services in the name of providing access to the poor,” they wrote.

According to Facebook CEO, Mark Zuckerberg “We know that for every 10 people connected to the Internet, roughly one is lifted out of poverty,” he wrote in The Times of India newspaper this week. “We know that for India to make progress, more than 1 billion people need to be connected to the Internet.

“What reason is there for denying people free access to vital services for communication, education, healthcare, employment, farming and women’s rights?”

A company spokesman said the aim of Facebook’s Free Basics initiative was to give people a taste of what the internet can offer. And Facebook has issued a series of full-page newspaper advertisements and set up billboard banners in an unusual and aggressive campaign to counter the protests.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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