South African user generated content services will hit $476 million in revenue by 2013
Content generated by African mobile users is set to increase, fueled by cheaper connectivity, a growing tech-savvy subscriber base and enterprise solutions on low-end phones.
South African user generated content (UCG) services will experience the highest market growth in Africa, hitting US$476 million by 2013, up from $195 million in 2008. According to JBB Research, a market research and consulting company, 29 percent of South Africans are using UGC services on a daily basis and the number will double in three years.
The 70-page report titled "The State of the South African Mobile UGC services Market: Gearing up For the 2010 World Cup In South Africa," analyzes the key players, future drivers and main issues and inhibitors in the South African mobile UGC market as well as the effects of connectivity and the FIFA World Cup next year on the mobile scene in South Africa.
The report profiles a variety of telecom, mobile phone and wireless application service providers (WASPS) in South Africa.
"Mobile UGC services like MXit and The Grid have become the perfect communication platform for many South Africans especially teenagers and young adults," said Julien Blin, principal analyst and CEO of JBB Research. "The young South Africans have a thirst for understanding technologies and are very community oriented, and they have become a driving force for the South African mobile UGC services market today."
MXit, for example is an instant messaging software application that also has an e-commerce store for books and music. It works on GPRS/3G mobile phones and allows, for example, musicians to upload their music. Users can preview music for free and pay for downloads.
There is a bright future for UGC in Africa, with a considerable amount of activity on the various social-networking platforms such as Facebook and Twitter, said Charles Amega-Selorm, a research associate with Ghana Internet Research.
The FIFA World Cup is expected to anchor the emergence of a new generation of mobile UGC services and users though the situation is unlikely to have a big effect in countries outside South Africa.
Many African countries face hurdles such as a small penetration of 3G handsets and services, a lack of robust content filtering capabilities, and a large proportion of low-income customers. Other issues include illiteracy, a myriad of official languages, and the lack of robust mobile entertainment platforms.
The challenge of 3G capable handsets is compounded by the high cost of spectrum, heavy investment required and the fact that 3G capabilities are limited to high-end phones.
"Nokia has ensured that capabilities and applications that were privy to the high-end phones are now being transferred to the low-end phones; more entry phones are now GPRS enabled which means one can access the Internet," said Dorothy Ooko, Nokia communications manager in charge of Eastern and Southern Africa.
George Mudhune, LG marketing manager in Kenya, feels that consumers in the lower segments, who can not afford high-end phones, have slowed the rate of 3G penetration and investment.
http://www.infoworld.com/d/mobilize/africas-mobile-user-generated-content-set-increase-500
