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Subscriber Teledensity Nosedives in First Quarter

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  • Subscriber Teledensity Nosedives in First Quarter

Subscriber teledensity in the telecoms sector has dropped from 110.80 per cent in January to 108.91 per cent in March 2017, according to the first quarter statistics on subscriber teledensity released by the Nigerian Communications Commission (NCC), the telecoms industry regulator.

Nigeria had recorded a steady growth in subscriber teledensity since the inception of Global System for Mobile Communications (GSM) in 2001; but in February this year, the teledensity growth rate started dwindling.

Following the steady growth rate in subscriber teledensity, the figure had reached its peak in January this year, rising to 110.80 per cent. However, a recent statistics obtained from the NCC website showed that it dropped to 110.09 per cent and 108.91 per cent in February and March respectively.

Teledensity in technical parlance is measured as the total number of active telephone connections per one hundred inhabitants living within an area and is expressed as a percentage figure.

THISDAY investigations revealed that the drop in teledensity, also affected subscribers number, which also dropped across networks from 155 million in January to 154 million in February and further dropped to 152 million in March 2017.

Worried about the development, industry stakeholders have blamed the situation on recession that is currently plaguing the Nigerian economy.

The Chief Executive Officer of Pinnet Informatics, Mr. Lanre Ajayi, said the purchasing power of Nigerians has been badly affected by the recession, which he said hampered subscribers’ ability to make regular calls. According to him, the reduction in calls, might have resulted in a reduction in congestion on the networks, which subsequently led to improved quality of service, since the network became less busy with fewer calls from subscribers.

He therefore said subscribers had decided to let go their multiple lines, since the network has improved, a situation, he said must have led to the drop in the number of subscribers and teledensity.

Other stakeholders spoken to also blamed the drop in teledensity and subscriber number, on recession. According to them, subscribers do no longer have the financial capacity to recharge their multiple lines, and decided to stick to a single network operator with a single SIM as against multiple SIMs they used before now.

But the Executive Vice Chairman, NCC, Prof. Umar Garba Danbatta, said the drop also affected mobile Internet subscription across networks, but blamed it on subscribers’ migration from 3G to 4G LTE technology service that is currently being offered by telecoms subscribers.

Danbatta who spoke at a media interactive session in Lagos on Tuesday, said most subscribers were dumping 3G network for 4G LTE network, which has faster speed of connectivity and cheaper data charges, apart from clearer voice quality.

According to the statistics obtained from NCC’s website, as at September 2012, teledensity was 76.69%, and as at October 2012, the figure rose to 78.21%, while in November and December 2012, the teledensity rose to 78.82% and 80.85% respectively.

In October, November and December 2013, the teledensity rose to 87.06%, 88.39% and 91.15% respectively.

Similarly, the teledensity rose to 96.87%, 97.60% and 99.39% respectively in October, November and December 2014.

In January, February and March 2015, teledensity according to the statistics, rose to 100.59%, 101.85%, and 102.81% respectively.

It was also revealed that in October, November and December 2016, teledensity hit 109.65%, 109.96% and 110.38% respectively, just as it increased in January 2017 to 110.80%, but it started experiencing a downward drive from Febrauary and March this year.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Technology

Zoom Hit a Record High Quarterly Revenue of $882.5 Million, Almost a 370% Increase YoY

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Zoom’s revenues skyrocketed last year as global demand for online meeting solutions soared amid the COVID-19 lockdown. Although the popular video conferencing platform generated impressive revenue through its fiscal year 2021, the year’s final quarter set a new record.

According to data presented by Buy Shares, Zoom hit a record high quarterly revenue of $882.5 million in Q4 FY 2021, almost a 370% increase year-over-year.

Annual Revenue Soared by 700% in Two Years

Unlike many other sectors, the video conferencing platforms witnessed explosive growth amid the COVID-19 crisis, as millions of people started working from home. However, Zoom emerged as the most preferred platform for holding virtual meetings. As countries across the globe imposed lockdowns, family members also turned to Zoom as a way of keeping in touch with each other. Museums, theatres, and schools chose the platform to maintain normal operations.

With the ban on social gatherings, Zoom also became a cultural phenomenon through hosting parties, concerts, church services, and art shows. The surge in the number of users led to a 700% revenue growth in two years.

In the fiscal year 2019, Zoom generated $330.5 million in revenue, revealed the company’s earnings report. Over the next twelve months, this figure jumped by more than 88% to $626.6 million. The two-digit increase was driven by a strong Q4 FY 2020, matching the period between January and March 2020, when the pandemic already struck. Zoom’s quarterly revenue jumped by 78% YoY in this three-month period and hit $188 million.

The strong increasing trend continued in the following months, with revenue rising to $328.1 million in the second quarter of the calendar year 2020. Statistics show this figure more than doubled in the next three-month period and hit $663.5 million.

However, the fourth quarter of the fiscal year 2021, matching the period between January and March 2021, delivered the highest quarterly revenue in Zoom`s history, causing annual revenues to rise above the expectations to $2.65bn.

Almost 70% of that value, or $1.83bn, was generated in the Americas as the largest Zoom market. Users from the EMEA region, as the second-largest market, generated $486 million in revenue. Asia followed with $332.8 million, respectively.

Market Cap Soared by 357% Year-Over-Year

While the Zoom stock price has increased steadily throughout 2020, a positive announcement regarding the efficiency of a COVID-19 vaccine in November last year resulted in the price falling by more than 30% by the end of the year.

Since then, the share price has been fluctuating and in recent months saw even more of a downturn, reaching $328.95 last week.

In December 2020, the combined value of Zoom shares stood at $115.5bn, revealed the MacroTrends data. Over the last four months, this figure dropped to $96.6bn, still a 357% increase year-over-year.

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West Africa Launches New Payments Digitization Agenda

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In Senegal, 8 out of 10 workers are paid in cash. Most are temporary workers and excluded from health insurance. A survey revealed that 77% of temporary workers would be willing to receive their wages digitally if this gave them access to health insurance. These are some of the major findings of the publication that the Senegalese government has launched today, with support from the Better Than Cash Alliance (United Nations), the World Bank and the National Agency of Statistics and Demography of Senegal. Combining digital payments with health insurance benefits offers an excellent opportunity for social inclusion, formalization, and financial innovation.

Digital payments stimulate domestic production and consumption. If 50% of temporary workers in Senegal received payments digitally, 45 billion CFA francs would be added to GDP per year (around $80 million USD). Paying workers digitally, speeds up the financial inclusion for the population, boosts business competitiveness and increases financial system liquidity. To tap into this potential, the SME Development Agency (ADEPME) plans to bolster its SME support fund with $20 million USD (around 11 billion CFA francs) from the World Bank. This will be used to strengthen SME digitization initiatives and support digital payment projects for workers.

High-level leadership speaks out in support of digital payments for workers

Senegalese President Macky Sall and H.M. Queen Máxima of the Netherlands, who serves as UN Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), have launched an appeal to fellow leaders, the private sector and civil society, inviting them to: “use this report to ensure digital payments are at the center of a sustainable and fair economic recovery. We look forward to jointly providing leadership on this agenda to achieve an inclusive and digitally enabled recovery,” the two leaders added.

To set an example, the President of Burkina Faso, Roch Marc Christian Kaboré, also decreed, in late 2020, the digitization of payments for workers in the administration of Burkina Faso. When the COVID crisis emerged, the West African Economic and Monetary Union (WAEMU) and the Central Bank of West African States (BCEAO) took decisions aimed at reducing the circulation of cash in the 8 countries. These actions have had tangible impacts which are beginning to change the lives of workers and companies.

Digitizing payments and advancing universal health care coverage

While receiving a salary is often linked to health care contributions, globally at least 61% of workers operate in the informal sector without adequate coverage, according to the International Labour Organization (ILO). Indeed, in some countries, there is not always a legal obligation for employers to contribute to any kind of coverage for their informal/self-employed workers, which affects women more than men.

To meet this challenge of inclusion, the National Agency for Universal Health Coverage in Senegal has launched an ambitious digital payments platform. It has partnered with fintechs and private companies to link access to universal health coverage and digital payments – specifically targeting women. Flagship national enterprises such as the agricultural giant SODAGRI or SMEs such as QUALIOCEAN and Kossam SDE are setting an example by providing temporary workers with universal health coverage. More than 200,000 workers will now have access to quality, government-subsidized health care.

While 81% of national companies have fewer than 20 employees, on average hundreds or even thousands of temporary workers are employed in their supply chains. Employees are generally banked, but 93% of employees on temporary contracts are paid in cash. The latter are systematically excluded from the formal health system.

The successful transition towards digital payments

Three obstacles have limited the growth of payment digitization in Africa: the size of the informal sector, sometimes up to 90% of the economy; the historically low financial inclusion rate; and most importantly, 21% of African workers receive a wage keeping them below the poverty line.

This has all changed dramatically. Financial inclusion has surged since 2010 with the arrival of electronic money issuers and fintech.

The country’s largest employer, Compagnie Sucrière Sénégalaise, has successfully digitized payment for around 8,000 workers via a partnership with local fintech. “We wanted to digitize payments without using the banking system, which isn’t suited to some populations,” noted Claude Fizaine, the company’s Secretary General, in an interview with an African media outlet. “For employers, the benefits of digitizing payments include avoiding the constraints of managing large amounts of cash, and all the risks that distribution can involve. It also makes it possible to offer employees tools tailored to their financial and family situations, which can only have a positive impact on their personal and professional lives,” he added.

WAEMU’s innovations should continue to inspire the rest of Africa. Since 2012, it has been the continent’s engine for economic growth and stability. The examples of Senegal and its neighbours reinforce the ILO’s global agenda that could well make digital payments for workers a new global standard for promoting decent work.

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E-commerce

Kwik Delivery Releases Prestashop Plugin; Becomes Most Integrated Delivery Platform With e-commerce Frameworks In Africa

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The ‘oars’ are definitely not resting at Kwik Delivery at this time! Just weeks after the release of its plugins for Shopify and Magento, Kwik Delivery announces the release of its plugin for Prestashop. This new plugin is a milestone as Kwik Delivery is now fully integrated with the “Big Four” of e-commerce frameworks: Magento, WooCommerce, Shopify and now Prestashop.

Delivery plugins are a critical technology brick in the growth of African e-commerce by allowing thousands of merchants to offer reliable, secure and efficient last-mile delivery services to their customers. By installing the plugin, businesses no longer need to worry about on-time deliveries after-sales as Kwik handles it for them. Kwik delivers within 2 hours in Lagos and 1 hour in Abuja after pickup and will soon expand its service to new cities.

“These are key milestones for us in enabling the growth of e-commerce in Nigeria,” commented Romain POIROT-LELLIG, Founder & CEO of Kwik Delivery. “We are working to ease the logistics hassles faced by both businesses and their customers after-sales. Just providing the network to make this possible is not enough. The added value brought by Kwik Delivery starts from the fulfillment systems of merchants, all the way to the doorsteps of buyers.”

The Prestashop plugin is free and easy to install and use. The plugin allows buyers to get real-time shipping rates between merchants’ addresses and the buyers’ delivery addresses. Buyers can directly place orders to be delivered by Kwik Delivery at the checkout of Prestashop stores.

Since its launch in 2019, Kwik Delivery has introduced the concept of “just-in-time” last-mile deliveries in Nigeria and has pioneered an approach of deep integration with e-commerce frameworks that proves to be indispensable to the growth of Africa’s e-commerce, fostering trade across Africa. Kwik Delivery is the trading name of Africa Delivery Technologies SAS and the mobile app is available on iOS and Android.

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