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The Connected Consumer Survey 2015: the Middle East and North Africa

The Connected Consumer Survey 2015: the Middle East and North Africa

In this report, we offer an insight into the of role of LTE to improve data monetisation prospects for operators in the Middle East and North Africa, as well as OTT service and digital economy usage trends and the most critical levers for customer retention. We also provide recommendations for operators as to how to address the OTT challenge, reduce churn and exploit opportunities in the digital economy.

Executive summary
LTE may help operators to further monetise data, but they will also need to make their tariffs more appealing to consumers
Mobile Internet users have high expectations of operators in terms of performance and pricing, and they own multiple SIMs and devices
Operators have opportunities to defend against the competitive threats of digital economy players, but they will need to foster services innovation
Data monetisation
LTE helps mobile operators to match consumer demands and expectations, but the path to monetisation is not easy
% of respondents said that they use Wi-Fi regularly on mobile – the main reasons cited were speed and cost reduction
Respondents who mainly use mobile to access the Internet want
faster data speeds, access to Wi-Fi, cheaper tariffs and more relevant apps
% of respondents claim to have 4G LTE, and they have higher data allowances than those on 3G, but some consumers are confused
LTE speed helps boost data usage, but operators should provide a clear migration path to meet the needs of both low- and high-end users
High data pricing remains an obstacle to unlocking the revenue potential of upgrading 3G handsets and prepaid customers to 4G in MENA
Mobile customer retention
Operators face challenges to their relationship with their customers which increases churn risk, but there are also opportunities to capitalise on them
Multiple-SIM and multi-device usage may contribute to fragmentation of the customer relationship – a third of mobile Internet users are affected
Half of respondents have been with their provider for at least 2 years
Network performance and price directly and indirectly influence consumers’ choice of provider and their next mobile tariff/contract
% of respondents intend to change their handset within 6months – handset sales channels potentially affect consumers’ choice of operator
OTT communications and the digital economy
The challenge that OTT players are posing is encouraging operators to take an interest in the digital economy and improve their preparedness
Most surveyed mobile Internet respondents use at least one type of OTT service for messaging, voice or video calling
Operator messaging usage looks increasingly vulnerable as IP messaging services will become more mass market propositions in MENA
Operators will be the dominant force in the voice market, but take-up of
VoIP services will weaken their position in countries with immigrants
Operator-led mobile services are mostly used for airtime top-ups, but operators are aiming to enable features that bring value to users
Mobile payment for goods is low as operators struggle to offer a genuine alternative to banks, and are less trusted than digital companies in MENA
Mobile health has great potential in MENA countries, but monetisation remains a challenge, while education is an emerging growth sector
Panel information and methodology
Panel information: Morocco and Qatar
Panel information: Saudi Arabia and the UAE
About the authors and Analysys Mason
About the authors
About Analysys Mason
Research from Analysys Mason
Consulting from Analysys Mason
List of figures
Figure 1: Countries covered individually in this report
Figure 2: Propensity of respondents to pay extra for 4G LTE services with a new phone contract
Figure 3: Length of time before planning to acquire a new phone, per country and per operator
Figure 4: Reported frequency of Wi-Fi usage on mobile phones
Figure 5: Primary reason for using Wi-Fi on mobile phones
Figure 6: Drivers that would encourage mobile Internet users to use the service more
Figure 7: Reported knowledge and usage of 4G LTE, by country
Figure 8: Data allowances for 3G and 4G subscriptions, MENA
Figure 9: Mobile Internet data usage by country
Figure 10: Mobile Internet data usage for 3G and 4G subscriptions, MENA
Figure 11: Propensity of respondents to pay extra for 4G LTE services with a new phone contract
Figure 12: Device ownership, by country
Figure 13: Number of SIMs per respondent, by country
Figure 14: Length of time with current provider, by country
Figure 15: Reasons given by respondents for leaving their previous operator
Figure 16: Selection criteria for current service provider as reported by
respondents, by country
Figure 17: Length of time with current phone, by country
Figure 18: Length of time before planning to acquire a new phone, by country and operator
Figure 19: Spend on mobile devices, by country
Figure 20: Monthly spend on mobile services, by country
Figure 21: Evolution of the role of telecoms operators towards becoming digital economy player
Figure 22: OTT communication usage on handsets, by app type and country
Figure 23: Penetration of selected VoIP and OTT messaging, by app and country
Figure 24: Preferred methods of messaging, by country
Figure 25: Mobile handset messaging traffic by type, Middle East and North Africa, 2010–2018
Figure 26: Use of Skype, Qatar and the UAE
Figure 27: Mobile voice traffic by service type, Middle East and North Africa, 2010–2018
Figure 28: Use of mobile money transfer services, by country
Figure 29: Adoption of selected mobile money services, by age group
Figure 30: Frequency of use of smartphone to purchase a physical item, by country
Figure 31: Willingness to share personal data in exchange for a benefit, by organisation type
Figure 32: Penetration of health and fitness apps, by country

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