Mobile

Just over a year ago I was frustrated. We had just moved back to Kenya and I was trying to outfit our house with a few necessities. Just finding sellers of the items we were looking for was a pain, as there were no options for classifieds services online that had much to offer.

Being a builder and a problem solver I wanted to better understand what was going on here. Why, in 2010 did I have to go to one of 7 large shopping centers across town, in Nairobi’s terrible traffic, in order to look at a notice board to find products? With this in mind, I sat down and penned a strategy paper that I thought could address the problem.

(Below is the overview, the full document is to long to post)

The Overview

No organization or entity in Kenya has come up with a good classifieds network. There is little, to no, traction in the online space and the offline arena is a fractured market where each group protects their fiefdom and doesn’t share their ad content. This is seen in the popularity and reach of the classifieds at major shopping centers like Sarit Centre, Yaya and Village Market, but also in the newspapers and mailing lists.

There is also no good option for digital classifieds, even though there have been multiple attempts, including Nation Media Group’s N-Soko, Craigslist Kenya and eBay’s Kijiji as well as many small operations by Kenyan developers.

This fractured landscape, as well as a missing digital nexus point for classifieds in Kenya, creates a large and open opportunity. Real money is ready to be made, as there are many frustrated buyers and sellers who need an outlet.

In order to succeed at making real money with classifieds listings in Kenya, one needs to have a strategy for both the analog and the digital sides. It’s not enough to make a great classifieds website – as N-Soko and Craigslist are showing us. Neither is it good enough to have just offline newspaper ads or shopping center message boards.

The document went on for another 5 pages outlining a solution that I thought married up what was needed: a way to mix Kenya’s analog community habits and the efficiencies of a digital solution.

Our Solution

A couple months later I was discussing this with David Kobia, my colleague at Ushahidi, talking about how there are wide open opportunities like this in Kenya where there is a clear void that no one is filling. It’s not hard, it just takes focus on a simple platform that’s both web and mobile enabled, along with a way to bring in the analog side.

Fast forward a couple of weeks and David built a little site for this purpose over the weekend, called Pigia.me. A place for us to experiment with, and we did. We spent some time gathering classifieds from the shopping centers and the newspaper. We did some Facebook ads. It worked, we quickly got up to over 3,500 listings and traffic was increasing. Total investment 3 days coding and $300 in ads.

But we didn’t have the time. Ushahidi keeps us way to busy, as does the iHub.

Enter Dealfish

About 3 months ago Dealfish, the big classifieds site owned by MIH in South Africa, launched in Kenya. Simultaneously it launched in Nigeria, Tanzania, Uganda and Ghana (English). And in Francophone Cameroon, Ivory Coast, Senegal, and the DRC. They scooped up well-known tech entrepreneur and blogger Moses Kemibaro from Dotsavvy to run East Africa’s operations, while Neil Schwartzman overseas all Sub-Saharan Africa for Dealfish and Stefan Magdalinski presides over Dealfish as well as Mocality and Kalahari for all but South Africa.

They’re now at approximately 12,000 listings (in Kenya), serving the major urban areas and have about 6000 “answers” per month (which is what they call it when a buyer tries to contact a seller). The top areas are auto, home and jobs – like most classified sites.

Until critical mass is reached, classifieds are something that you have to put a lot of energy towards on a constant and consistent basis. Thus Dealfish has chosen Kenya and Nigeria as their first focus-countries, where they have dedicated personnel.

MIH has deep pockets, and they’ve decided that there is a future in investing in digital arena in the Africa outside of South Africa. They came on strong with online ads by Google, Facebook, Inmobi, Admob and Buzzcity. Inmobi has given them the best return, with Google ads in second place. However, it’s the Dealfish team notes that the Inmobi traffic doesn’t have nearly the same intent to buy or sell as the Google traffic – it’s blind coming in.

Offline Dealfish used radio, in-store advertising, posters in malls and in club bathroom stalls. The form of advertising dictates the type of user, whether they use mobile phones or PC web. In the beginning mobile users were their predominant type, but now it’s split 50/50 between mobile and PC web users.

Dealfish is doing well, and will continue to do so, especially as they have enough financial backing to continue seeding the market. Their competition comes in the form of verticals that are specifically created for a niche market. In this case, autos with Cheki, jobs with Brighter Monday and homes with Property Kenya. And that’s just in Kenya, they’ll fight that same battle in the other markets as well.

Tackling Africa

The only other classifieds system that has made a dent in Africa is Kerawa, operated out of Cameroon. They have thousands of listings in quite a few countries. They’ve done this over the last 3 years, bootstrapped and growing organically.

However, there’s a danger in trying to go after everyone and everything. In the broad classified space there is only a single winner, no prizes for second place, except in niche areas. Whoever reaches critical mass first wins, and the rest can go home. It’s better to win in a couple countries than to lose in all.

Both Dealfish and Kerawa have to fight the very real issue of spam listings. Just letting anything to so as to get bigger numbers only decreases the value to the user. How customer service and clarity of use and value play out to the listing companies and people is where a lot of time and resources can be spent.

[Update: Google Trader launched in Ghana and Uganda to mixed success. As long as there was a lot of marketing put into the effort, they had a lot of listings, as soon as they stopped there was a big drop-off. It's yet to be determined if Google Trader is a failure or success, or if Google is still putting any more effort into it.]

Urban then Rural

Finally, you have to start in the urban areas due to users, devices and general “mass”. However, if you think that’s enough, then you haven’t learned the lessons taught by the mobile operators. That is, urban is your anchor, but rural is your long tail, your reach.

Any attempt to get enough critical mass to make serious money off of traffic or transactions has to reach beyond the cities. The towns and rural areas are untapped and ripe for the approach. Phase 2 of this approach should look a lot like what I wrote about back in 2009, on how village billboards should be leveraged alongside the mobile phone shops in smaller communities.

In 2008 we saw the scales begin to tip with imports of data enabled phones being larger than that of non-data enabled phones.
In 2009 we saw the undersea cables hit East and Southern Africa in a big way.
In 2010 we saw the mobile operators get serious about data availability and cost packaging for everyday Africans.

2011 is upon us, and with it brings a new type of data-enabled mobile user in Africa. It also brings the mobile web to center stage.

Mobile web content has been defined as any internet-connected or browser-based access to the internet and as digital content connected to a database that passes through a handheld device connected to a wireless network.

Simply put, the mobile web is the same data that the web layer brings to you on a computer, just now on your phone.

The mobile phone is the most ubiquitous instrument there is in the market. Usage is no longer limited to sending and receiving calls and texts, especially with the increase of data enabled phones, increased bandwidth availability and decreasing data costs. The convenience in terms of use-anywhere-anytime has made access to mobile web content easier, accelerated by dropping rates of mobile handsets and data.

What does it look like?

Here are a couple of examples:

• Consumer content such as movie times and restaurant reviews, such as Flix and EatOut.
• Consumer focused transaction sites and classifieds like Dealfish and Pigia.me.
• Content, such as news, blogs and aggregators like Afrigator.
• Business information for consumers and businesses, such as Mocality.
• Mobile-specific communities, such as Motribe, Facebook and Twitter.
• The ability to pay via mobile payment methods or credit cards, brought to you by mobile payment aggregators like PesaPal.
• Advertising done by the likes of InMobi and AdMob.

You can see that it doesn’t look all that different from it’s purely web-based counterparts. It’s the same data, just more accessible on your phone.

There are strong plays to be made in all of these fields, as there are few leaders in any country, much yet regionally… yet. The reason for that is we’re just on the front end of this sea change, so even the leaders only have a very small slice of the pie.

While there will always be a place for client-focused mobile applications (Android, iPhone, Ovi, etc.), there is just too much friction there to scale. Friction for the developers who build the applications, and friction for the users who need the “right” phone to access the apps.

For more brain food on this topic, I suggest reading Fred Wilson’s post, Counternotions and alternate thoughts from Diogenex.

It’s not a big surprise to see Nokia’s Symbian operating system is the most popular in Africa. We all knew that, but it’s by how much that draws your attention.

Royal Pingdom has an excellent post on the web usage (which is what they can measure) of the top OS use around the world. It’s amazing to see the difference between Africa, Asia and South America as opposed to Europe and North America.

While, as a developer, it’s a lot more sexy to work on the cutting edge operating systems like iOS and Android you’d be making a mistake to do that in Africa. Unless you’re developing apps that are global in scale or you’re doing client work, you should be focusing on Symbian (or Samsung’s Bada OS in some countries). It’s where the numbers are.

Reaching Ordinary Africans

This brings to mind something I’ve been thinking about for a while. Mxit, as most people know now, is the mobile social network out of South Africa. It was built about 4 years ago and has 20 million+ users.

Mxit didn’t get big because they tried to build something that was cool and sexy for the middle/upper classes in South Africa (which is what so many try to do there). Instead, they built one of Africa’s most successful tech companies by focusing on everyday South African youth and fulfilling their needs.

In fact, you can take this one step further. Almost any meaningful success in Africa’s mobile or web space has been from companies focused on meeting the needs of ordinary people. Go ahead, think of the success stories in Africa’s tech space, now name them and see if they’re made for a global market, Africa’s elite, or for the masses.

[This is a guest post by Ben Lyon of Kopo Kopo, and recently of FrontlineSMS:Credit, who I consider to be one of the leading experts on mobile money, banking and payments in Africa. Kopo Kopo aims to make the integration of microfinance and mobile money as affordable as possible by offering a software-as-a-service that connects m-money transaction data to customer accounts in a range of common loan management systems. You can follow Kopo Kopo on Facebook and Twitter.]

Kenya is by far the most exciting, innovative mobile money market on earth. Below is an overview of some of the major and upcoming players.

MAJOR PLAYERS

Safaricom M-Pesa
Launched in March 2007, Safaricom M-Pesa was the first mobile money system in Kenya. It is now the most successful mobile money deployment on earth, boasting use by 51% of the adult population. In addition to person-to-person transfers, you can use M-Pesa to remit funds from the UK to Kenya, pay bills, purchase goods, buy airtime, and, with the launch of M-Kesho, move funds to and from an interest-bearing account with Equity Bank. Fun fact: Safaricom M-Pesa has more agents in Kenya than Wells Fargo and Wachovia have ATMs in the United States.

Airtel Money
Formerly Zain Zap, Airtel Money is the second largest mobile money system in Kenya. Prior to its acquisition, Zain was focused on creating a “cashless society” whereby any number of needs could be met via mobile money. Zain was also committed to its notion of One World, the idea that a Zain customer in Country X should be able to call a Zain customer in Country Y a at local rate. One World was the source of much speculation with regard to international person-to-person mobile money transfer. It will be interesting to see if / how Airtel changes course, especially with regard to pricing.

Orange Money
Orange Money launched in late 2010 in association with Equity Bank. Instead of offering the same features as M-Pesa, Zap, or yuCash, Orange opted to create a de facto front-end for Equity Bank accounts, allowing it to exceed regular transaction and m-wallet balance thresholds.

Essar yuCash
Essar yuCash launched in December 2009 and is powered by Obopay. yuCash offers some standard features such as person-to-person transfer and balance inquiry as well as some unique features like requesting money, adding a short message to a payment, and inviting friends to join. yuCash is also unique insofar as it offers five different front-ends: WAP, SMS, Voice, USSD, and STK.

Equity Bank
Equity Bank is the largest microfinance institution in Kenya and is nothing short of a powerhouse. It has an extensive ATM network throughout Kenya and has integrated with M-Pesa (M-Kesho), Orange Money, and yuCash.

Musoni
Musoni is at the cutting edge of microfinance, enabling loan disbursal and repayment via Safaricom M-Pesa and Airtel Money. Musoni plans to conduct country studies in Rwanda, Tanzania, and Uganda in the coming years.

Paynet Group
Paynet is responsible for all Visa transactions in Kenya, interchange for 2,000+ ATMs, and PesaPoint. Due to their interaction with Visa, they are PCI DSS compliant, meaning that their system is both redundant and incredibly secure. Paynet aggregates and formats transaction data for several mobile money providers in East Africa.

UPCOMING PLAYERS

iPay
A product of Intrepid Data Systems, iPay enables merchants to accept online payment via Safaricom M-Pesa, Zain Zap, and Essar yuCash. Prominent users include PewaHewa, Fenesi, and Zetu.

PesaPal
PesaPal is a product of Verviant Consulting that, according to CEO Agosta Liko, aims to “make sense of the Kenyan payment landscape”. PesaPal lets online merchants collect payments via M-Pesa, Zap, Google Checkout, and a range of common credit cards. Their latest product, e-Ticketing, allows event organizers to accept online payments for registration via mobile money.

M-Payer
A recent product of Zege Technolgies, M-Payer enables real-time mobile money transaction processing. The CEO of Zege Technologies, Kariuki, played an instrumental role in the M-Pesa / Equity Bank integration that resulted in M-Kesho.

Lipuka
Powered by Cellulant, a company that serves 60M+ subscribers throughout Sub-Saharan Africa, Lipuka integrates bank and payment channels to enable music downloads, bill payments, and information services via WAP.

Moca
Formerly called ZungukaPay, Moca is a product of Symbiotic Media Corsortium. ZungukaPay enabled online merchants to accept payments via M-Pesa, Zap, yuCash, PayPal, Google Checkout, and a range of common credit / debit cards. ZungukaPay also had an open API for integration purposes. The new product, Moca, takes a different turn by enabling customers to buy ‘Moca credits’ via mobile money, which they then use to pay for goods and services on partner websites (e.g. KeleleMobile). Fun fact: selling non-refundable credits precludes Moca from being seen as an e-money issuer by the Central Bank of Kenya.

JamboPay
A product of Web Tribe Limited, JamboPay is an “Online Checkout & Micro-Payment Service” that enables merchants to accept online payments via M-Pesa, Zap, yuCash, and Visa credit/debit cards. JamboPay has a tariff structure similar to PayPal in the US: a commission per transaction + a flat fee for any transactions initiated over the JamboPay web platform.

MobiKash
MobiKash, a third party mobile money provider, is operated by MobiCom Africa Limited in partnership with Sybase 365 and Seal Systems. MobiKash leverages USSD to give Kenyans on any mobile network real-time access to accounts at participating banks, including Post Bank, National Bank of Kenya, and Trans National Bank. MobiKash uses the Sybase 365 Mobiliser Platform.

KrossPAY
Formerly PesaPot Holdings Limited, KrossPAY worked with PAYG Solutions to develop a hosted core banking and financial management platform for microfinance institutions, credit unions, and community benefit organizations. Some PAYG Solutions programmers were involved with the creation of M-Pesa, so there may be a mobile money integration in the works. KrossPAY also offers a “universal mobile money transfer and payment” service called CaribPay.

Jipange KuSave
Jipange KuSave is an initiative of Mobile Ventures Kenya Ltd., a subsidiary of Signal Point Partners. Launched as a pilot in 2010 in partnership with FSD Kenya and CGAP, Jipange KuSave aims to extend affordable micro-savings and micro-credit to the ‘mwanachi’ (Kiswahili for ‘common man’) via mobile phones.

Tangaza Limited
Managed by Mobile Pay Limited and a network of independent trustees, Tangaza enables both local and international money transfer as well as services like utility bill payment and remote airtime purchase. Tangaza is accessible via USSD and the internet and works across multiple mobile networks.

NOTABLE M-MONEY INTEGRATIONS

PewaHewa
PewaHewa is similar to the iTunes Store insofar as you can browse for musical artists, albums, genres, etc. and purchase songs via mobile money. PewaHewa is powered by iPay.

Kalahari
Often referred to as “the Amazon.com of Africa”, Kalahari offers a wide range of online goods and services, which customers can pay for via Safaricom M-Pesa.

Kilimo Salama
Kilimo Salama, Kiswahili for “safe farming”, is a crop insurance product offered by the Sygenta Foundation for Sustainable Agriculture. Kilimo Salama enables farmers to pay crop insurance premiums and receive payouts via Safaricom M-Pesa.

The only time I’ve ever seen an event have more people at the iHub is at the grand opening back in March, and Barcamp Nairobi over the summer. Today is Mobile Monday, an event that happens at the iHub about once per month, run by John Wesonga. It’s quickly becoming a big event to be at.

M-Farm

“Great ideas are always born on a tissue paper”

Jamila talks about the genesis of their idea, M-Farm: To bring farmers together to buy and sell together.

IPO48 put together a competition for Kenyan techpreneurs to pitch their ideas – the Akirachix won the 1,000,000 Ksh prize with the M-Farm idea.

How does it work?
Prices are found by information collection through crowdsourcing of that information from the farmers and by having people go out and find out the prices from the sellers as well, in locations all over Kenya.

Their goal is to give the farmer more information, through reports, to help the farmer make an informed decision on what to grow next. It’s a mixture of historical sales, predicted weather, and other information that would help them make a better decision. M-Farm works with the farmers cooperatives as well.

The unique thing about M-farm is the socialization of the farmers. It’s not just about information, it’s about the community.

Overlap

Limo Taboi and Kahenya are giving a presentation on overlapping, the term used by Kenyans when guys go into the wrong side of the road to pass others and cause a massive traction jam. Their new website is Overlap.co.ke.

“We have bad driving habits in Kenya.”

We’re trying to find a way for ordinary Kenyans to track eachother’s bad driving using the Ushahidi platform. This is everything from buses and matatus with no lights, to overlapping and reckless driving.

Right now it’s a citizen effort, but they’re hoping that one day the police will take note as well.

You can report in by submitting something to the website, by email in a report to overlap.kenya@gmail.com or using the #OverlapKE hashtag on Twitter.

Nokia Infrastructure Support

Nokia is a sponsor of tonight’s Mobile Monday. Agatha Gikunda is here to talk about the way Nokia is doing things in East and Southern Africa to engage with developers. They’re really trying to reach out to small businesses and developers to build more apps and services with Nokia software and for their handsets. Most of all, they want to help with the marketing of your new product, using the Nokia marketing infrastructure through partnerships.

One example of what they’re doing took place last week. They trained 25 developers in QT and Advanced Java at the University of Nairobi. 10 universities and key training institutions were engaged and participated in the training.

Another way they’re working with local developers and entrepreneurs is helping local app developers to market their product. Their example here is AfroHotorNot, an app that they go around and market at universities. Beyond local marketing, they also help you publish your work globally and make money off of your apps.

Other partners that Nokia has helped market globally, beyond Kenya are Sharper Innovations (LSU, Afrohotornot and Wazzup), Symbiotic Media (Tusker Project Fame and Daily Nation Media) and Shimba Technologies (Tuvitu App and MTV Music Awards app).

To get paid, Nokia takes 30% and pays out 70% to the developer. You have to have a local bank account to get paid directly, and the money is released once you reach around 100 Euros. There isn’t a really good way to get paid in Kenya, but they’re trying to get a deal with local mobile operators for operator billing to happen.

About 30 apps have been created by Kenyan devs for the Ovi Store. About 99% of those are local focused, only 3 are focused on the global market.

Agatha was asked about when they’ll have local billing integration. The answer is that they’re trying but they don’t know when it’ll happen.

To get started with the Nokia Ovi Store, go to publish.Ovi.com.

Safaricom and Innovation

“I tell my colleagues that you need to get off that ivory tower and start sitting with everyone. See what ticks.”

– Nzioki Waita, Head of Strategy and New Business at Safaricom

ICT is going to make the next 500k jobs in Kenya, and Safaricom plans to be on the forefront of that. He goes on to talk about how Safaricom is trying to be more friendly to smaller organizations and entrepreneurs in the country. You used to be able to predict with some certainty the types of value added services that would work. Now, enter the smartphone and data connections, and your phone is now a vehicle to a new destination. Life became more complex to us.

We now get people walking into our office saying “I have an idea, it will make money for both of us.” The people they were coming to talk to weren’t set up to take on these kinds of ideas. This made them form a “new products” division where Mpesa and the VAS team’s are seated.

They’ve moved away from the stages where you’d walk in with an idea and then you’d never hear from Safaricom again. Now they have to deal with the ideas, and they’re trying to understand a better way to do that (see my post on the Safaricom Innovation Board). They’re trying to figure out how to channel it.

What Safaricom is doing:

• SDP (Service Delivery Platform) plus and App store launching at the same time.
• Safaricom Academy (with Strathmore Univ). A way to get young innovators working on their ideas with training.
• Incubation Centre. A small space within Safaricom to incubate ideas on their infrastructure
• The Safaricom Innovation Board – A group who helps set policy and buffers devs from Safaricom and vice versa.
• The Safaricom Garage – a place for devs to come and work on a portion of the Safaricom network (location based services, billing, etc.)

Nzioki won’t discuss revenue share, unfortunately. Too bad, they need to be a lot more open about the money side of this equation, otherwise it will be perceived as the same old Safaricom.

John Waibochi of Virtual City

Virtual City is also a sponsor for the Mobile Monday event, and John Waibochi, the CEO is here. Virtual City recently won the $1m Nokia Growth Economy Venture Challenge about 3 months ago.

Africa’s mobile industry needs to re-invent itself to meet tomorrow’s challenges
Another great zinger from Russell Southwood’s Balancing Act on the state of the mobile industry across Africa and what needs to change.

“Furthermore, although the shift to data puts a spring in the step of most mobile executives, the shift to an interest in services and apps has the potential to marginalise them as “dumb pipe” operators. The new generation of OS operators (Blackberry, iPhone, Android and others) are offering services and apps in a way that the mobile operators failed to do.”

Desert discs: How mobile phones are at the root of Saharan music.
Christopher Kirkley went to Mali to make field recordings, but returned with a mixtape of music taken from Saharan Sim cards.

African Facebook stats, by Country:

“Only 1.7% of Africans are on Facebook, but since there is only 10.9% Internet penetration, we see that 15.9% of African Internet users are on Facebook.”

Kenyan Internet users woo businesses to Twitter and Facebook

“According to the research, Kenya is ahead of its peers in East Africa in social networking with an average consumer spending atleast 6.5 hours per week, followed by Tanzania — 1.6 hours per week — and Uganda 1.5 hours per week.”

Reflections with Michael Joseph in his last week as CEO of Safaricom:
(Video 1, Video 2)

Reflections with Michael Joseph from Al Kags on Vimeo.

Wrong model. Wrong place.
Ken Banks discusses the challenges of normal business models in the ICT4D and M4D space.

The Future of Mobile in Africa:
A great deck by Rudy de Waele, from his talk at Mobile Web Africa 2010.

I get asked a lot about mobile data costs in East Africa, so thought I would put it in writing for everyone to find easier.

Mobile data access charges have fallen drastically in the last several years in East Africa, in large part to the SEACOM undersea cable arriving and increased competition between operators. Data connectivity is the new battleground, fighting not just amongst mobile competitors, but also with traditional ISPs.

In the mobile data connectivity space, each country sells either data capped bundles (or time capped bundles in the case of Uganda) that can be loaded onto a SIM card. There are out of bundle charges, priced per Megabyte or Kilobyte, but these rates are exorbitant, so anyone who connects regularly uses a bundle of some sort.

More creative offerings come out each month by the mobile operators, making it more confusing and harder to compare against competing services, but also offering some incredibly low pricing for entry-level users, or consumers who don’t need high speeds.

No doubt, a downward trend of mobile data charges will spur the growth of mobile web usage and publisher forwards.

Kenya
In Kenya, from charging internet usage at 10 shillings a minute just a few years ago, now cyber cafes charge 1 shilling a minute for browsing. The use of mobile data has been made easier by increasingly cheaper rates. For example in Kenya, Safaricom are offering a limited 10MB worth of mobile internet usage at 8 shillings per day. Zain Kenya offers unlimited internet usage for 3,000 shillings per month. Orange Kenya on the other hand are having a 7-day unlimited offer for their 3G network at 1000 shillings.

Uganda
In Uganda costs for mobile data connectivity have been driven down by the SEACOM cable landing in 2009, and led by costs cutting by Orange. Orange was first to the market with cheap, affordable 3G service and has played a major role in driving market prices down. They were the first to institute 5,000Ush/day & 25,000Ush/week packages for Internet – finally making it accessible to the common man. MTN, the larger network in Uganda,

Tanzania
Tanzania boasts some of the most unreliable data networks with the least penetration within East Africa. Zain and Vodacom both offer 3g, while Tigo offers GPRS. Zantel and Sasatel are CDMA networks, with EVDO connectivity. All networks, no matter what the speed of the connection, charge a flat rate of 40,000Tsh for 1gb of data. Data prices have gone down, but not noticeably.

While not possible to do an apples-to-apples comparison of the rates between the three countries, here is a pricing comparison chart for 3g data on 1Gb bundles and 1Mb pay as you go costs for the leading operator in each country:

As is true in this hyper competitive market, these numbers will change (hell, I’m probably already off on something). The overriding trend is that the costs are going down for consumers, even if slower than we’d all like to see.

[Picture courtesy of Stefan Magdalinski]

This is the third year that I’ve gone to Pop!Tech. I’m part of their Fellows program this year, along with Ken Banks of FrontlineSMS, as a faculty/Senior fellow member helping with the event for the incoming 2010 class. As usual it’s a surprising number of interesting and intelligent people that are in the midst of changing the world.

The Fellows

One of my favorite things about the program is how we’re shuttled off to a beautiful setting in the Maine woods to spend time with experts from a number of different fields. It’s a time for contemplation on the reasons that you do what you do, as well a chance to gain access to experts who will help you build and evolve your organization to fit your vision.

This year, I know a number of the Fellows, making it feel like this is also a meeting of old friends.

• Matt Berg, a technologist with a focus on Africa, is here from Rural Technology Lab and ChildCount.
• Nina Dudnik, with Seeding Labs project getting scientific equipment and labs setup all over the world.
• Ben Lyons, mobile payment and and credit guru of FrontlineSMS:Credit
• Leila Janah, creating outsourcing work to rural Africa through Samasource.

Funnily enough, I had to come all the way to Camden, Maine in the US to hear about an innovation in Kenya. One of the Fellows is Rose Goslinga, the founder of Kilimo Salama (meaning “safe agriculture” in Swahili). She has created an innovative micro-insurance program designed for Kenyan farmers. The project is a partnership between Syngenta Foundation for Sustainable Agriculture, UAP Insurance, and telecoms operator Safaricom.

The service has been so wildly successful that Rose is missing the Fellows program due, she’s still in Kenya in the midst of scaling the service nationally.

India is watching Africa closely, especially after the big $10.7bn move by Bharti Airtel to take over Zain’s Africa operations. Yesterday Ankit Rawal, head of advertising for inMobi in Africa, spoke at the iHub. He spent a good amount of time explaining why Africa was so important to their growth strategy, and used a good bit of data from an InMobi research project to show why.

Ad Impressions

From their July 2010 statistics, Africa has over 2.8 billion mobile ad impressions available, an 18.5% growth from just one month before (June 2010). That’s an amazing figure, and amazing growth, by anyone’s standards. Only 16% of that inventory is on smartphones.

InMobi’s largest African markets, in order, are: South Africa, Egypt, Kenya, Sudan, Libya, Nigeria. There is a big difference between these countries and some of the others that we saw stats for. For instance, Mozambique, Tanzania, Angola and Namibia have only about 20-40 million impressions/month. There is a wide gap between Africa’s tech leaders and the rest of the continent.

Manufacturers

Continent-wide, the most popular manufacturer is Nokia at 61.3%, followed by Samsung at 21.8%, with SonyEricsson a distant third at 6.3%. Those aren’t especially surprising figures, but if you dig down into the country details provided for South Africa, Kenya and Nigeria, they differ.

• In South Africa, it’s 38% each for Nokia and Samsung
• In Kenya, it’s 66% Nokia and 18% Samsung
• In Nigeria, it’s 78% Nokia and 9% SonyEricsson

Operating Systems

Important information for mobile app developers and businesses is which operating system to focus on. Nokia OS and Symbian lead, followed by RIM. No Android, iPhone or Windows Mobile mentioned, though there is a suspiciously large (37%) chunk of the pie for “other”.

Handsets

The actual devices that people are using that show mobile advertising is interesting as well. It’s largely Nokia, holding 7 of the top 10 spots, with Samsung carrying the other 3. The top device, is the moderately priced Nokia N70 is a popular, though unpretty, “do it all” phone.

Other Information

Not available in the qualitative research document provided by InMobi, but part of Ankit’s talk yesterday, were some other demographic statistics.

Male acceptance of mobile advertising in Africa is the highest in the world, when asked, “How comfortable are you with mobile advertising?”. African women came in second behind Asia on that same question. Women in South Africa were the clear outlier compared to Nigeria and Kenya, with only 45% comfortable with mobile ads.

Africa’s under 25 population has the highest comfort level with mobile ads in the world. 75% from this age range are okay with mobile ads, as opposed to 67% in Europe, 73% in the US and Asia.

South Africans are more interested in ads when top global brands appear as ads. The primary benefit of mobile ads that all consumers are looking for is “new information”.

Final Thoughts

Africa, as a whole is well positioned to see a huge growth in mobile advertising. This comes from a combination of consumer acceptance of mobile ads being the highest in the world, healthy support via increased data plan competition among telcos, growth in 3g and smartphone adoption, and mobile screen mindshare amongst users.

Somalia is intriguing. Since they 7th century they’ve been refining and working within their Xeer system of community law and have a violent aversion to the authority of any centralized government. It’s also one of the most entrepreneurial, hard-edged business cultures around. For instance, there are currently 7 mobile operators, offering better and more varied services (at lower prices) than almost any other country in the region.

Why I’m interested in Somalia is two-fold. First, I’m interested in watching how the international community tries to force central government on a society that clearly abhors it and functions without it. Second, Somalia is a fascinating study for anyone watching the African tech and business scene. Out of one of Africa’s harshest environments, entrepreneur’s thrive.

Hawala (money lending) and remittances

Somali’s have been using the Hawala form of money transfer for centuries, to the tune of approximately $1.6 billion annually. Somalia, per capita, has one of the largest diaspora populations in the world. One in eight Somali’s live abroad. Therefore, it’s not surprising that the remittances they send make up approximately 40% of urban household income, averaging out at $132/per.

(sidenote: my ongoing thoughts are that it is no longer a digital divide solely between rich/poor in Africa, but between urban/rural)

While the political ramifications of Hawala are hugely important and interesting in the post-9/11 world, what I find more pertinent are the mechanics and how technology is changing the way it works.

The East African newspaper put out a good visualization today on the way that Hawala currently operates in the form of remittances from Western nations to the Middle East and finally to Somalia. The United Arab Emirates (UAE) serves as a central clearing house for both simple cash transfers and more complicated import/export relationships.

As can be seen, the person in the US or Europe gives money to a branch agent in their country. This is sent to a central country clearing house, then onto a UAE clearing house, then to a Somali agent and finally to the individual who collects the funds in Somalia.

It used to be that Somali local private operators could only communicate by HF radio (yes, they did it before this via trust networks, family ties and paper), but when the mobile phone revolution hit Africa in the 90′s the communications were made more efficient. At first this was through satellite phones, and now by the robust local mobile phone network.

Banks and Hawala

“Modern banks will always ask lots of questions and ask you to fill in lots of forms, our people are used to Hawala, we know it very well.” (via BBC)

There are no commercial banks in Somalia. The country’s relationship with international creditors has been frozen for over 20 years and has a national debt of $3.3 billion, of which 81% of that is in arrears. It’s safe to say that no one is going to lend money to Somalia anytime soon.

The most attractive economic growth would seem to stem from Hawala organizations opening up arms that do commercial, formal banking. Wealth generation without the ability to access debt and credit is more difficult than if you have those tools available – for businesses and for individuals.

I just got back from Mombasa, and there are large amounts of money being imported into Kenya and invested, both at the coast and in Nairobi. Somali’s have clearly shown their enterprise ability and entrepreneurial spirit, there are great swaths of the city that are almost 100% Somali owned now. However, until the communities there figure out a way for life and business growth to be more tenable, the investments will continue to flow to Somalia’s more secure neighboring countries rather than building their own.

The Mobile Web is the future of mobile apps, and it’s not surprising to see Vincent Maher and Nic Haralambous, from South Africa, on the front end of it. Motribe is a simple community building platform for the mobile web. You can easily get a site up and going in an hour that allows chat, photo sharing, private messaging and mobile blogs.

That bit about the mobile web is important, since it means you can browse to it on most phones, and you don’t need a special app for it built on all the smartphone platforms, like iPhone, Android, Ovi, WinMo and Bada – as in, there’s one less barrier to entry.

I asked Vincent why he chose mobile web, his response:

“Mobile is the killer internet platform for Africa, but also the rest of the world. We have found that our younger users prefer using an ipod touch to surf the web than a PC. Motribe works on 4000 devices (or more) and the Motribe plan is to change the way people use social networks in emerging markets.”

Initial funding was raised 4DI Capital, and they’ve got a clear business strategy, which is to sell their product. Pricing ranges from $10 to $50, and each level gives you a greater ability to customize and “own” the mobile social network that you’ve built. There is also an enterprise level available for bigger brands and companies. Motribe also has a free plan with core features and a 100-user limit for you to get started quickly.

Its built on Amazon EC2, S3, RDS and Cloudfront using PHP, Codeigniter, Google Charts, JQuery and Cassandra. Vincent stated that, “Cassandra is the most interesting of the components because its going to be the key to scaling to millions of users.”

Giving it a Test Run

I went ahead and signed up to give Motribe a whirl. My test site is AfriGadget.Motribe.mobi, where I’ll put up some stuff from AfriGadget and see if a community grows around it. Just getting going, I can see that a lot of attention has been put behind this platform (as would be expected with veterans like Vincent and Nic).

Some notes:

• Signup: done easily, nice little touch to provide a QR code directing to a URL for login.
• Setting up a community: simple, see image below.
• Access code: for when you want only certain people to join
• Test mode: for making sure your community is setup right before it goes live
• Themes: many simplified stock themes available out of the box.
• QR code generator: there’s a neat QR code generated for the URL of your new site. (Would be nice to have this as an embed code for websites)

There are a couple example sites already going – emofwendz.com is the one they ran for the pilot, and it has some fantastic engagement stats, like an average of over 100 pages viewed per visit (the norm for web sites is about 5) and average visit lengths of around 60 minutes. Today, Vincent said, an Afrikaans-language site was created for Christians http://ekerk.motribe.mobi, its a good example of exactly what they people to do with the platform.

Some Thoughts

If there’s any platform that’s come out of Africa in the last year that fills a global need, it’s Motribe. I won’t be surprised to see this go big at all.

There are always teething pains, experimentation and adjustments when a new platform goes live. I found a few issues, like when I went to upload my logos they threw a bug (I was a pixel off on the size, thus the issue). Not unexpected in a brand new platform, and I’m sure it’ll be fixed shortly.

I wasn’t able to test out the “Custom URL” and “Advertising Manager” features, though I would like to see how each is implemented. It might be worth having a section on the website to preview at least the Advertising Manager in more detail to see if it’s worth upgrading to.

There isn’t any SMS functionality yet, and I’m not sure there needs to be either. As Vincent said, “we don’t have a need for SMS right now but we may well integrate SMS at a later stage depending on whether we can find some good uses for it.”

Worth reading: other posts by TechCentral and the Daily Maverick.

John Waibochi of Virtual City, from Kenya, won the Nokia $1,000,000 Growth Economy Venture Challenge here at Nokia World today. This is an investment of $1m in John’s business, so it comes with support and connections that only an organization of Nokia’s size can provide. The award was given out by Stephen Elop, Nokia’s new CEO, as the first action of his at Nokia – this sends a certain signal to all devs around the world.

I asked John to give a quick soundbite on what this solution is:

John Waibochi wins the Nokia $1m Challenge from WhiteAfrican on Vimeo.

Here’s more:

Virtual City Ltd, a home-grown Kenyan company, has developed a solution that aims at addressing systemic issues along the Supply Chain for distributors and retailers of Fast Moving Consumer Goods in emerging markets. The Mobile Distributor Solution is designed to contribute to improved efficiencies and value to all the stakeholders in the value chain and result in increased number of transactions, accurate records, improved Inventory management & reporting from the field and effective management decision making. The solution will also bring value to a large number of beneficiaries comprising of thousands of small and micro enterprises in the FMCG Market.

It’s a product that can be monetized due to high demand by both retailers and distributors in Kenya. This is a very solid company, with a solid proposal. Seeing the video (not available yet) of this working with one of Africa’s leading beverage company’s was impressive.

From a Nokia Challenge perspective, this provides a solution that will bring value to a large number of beneficiaries comprising thousands of small and micro enterprises in the Fast Moving Consumer Goods (FMCG) Market through the smart application of mobile business and cashless payment technologies.

The project will generate revenue for the partners Virtual City and Nokia, while increasing the income levels of the stakeholders in the supply chain by opening up increased product sales coupled with additional benefits of mobile payment capabilities, transaction fees revenue, loyalty programs benefits, etc all facilitated by inexpensive and affordable mobile phones.

The new found ability to transact via mobile phones and use cashless means to make payments for goods or services, has the potential of availing solutions that the over 6 million users of mobile payment solutions from the telecommunication players can access and utilize in their business dealings, the aim is to fully utilize the potential that a mobile phone has in adding value to the user.

Background on Nokia’s Growth Economy Venture Challenge

Launched at CES 2010 by Nokia CEO, Olli-Pekka Kallasvuo, Nokia’s Growth Economy Venture Challenge called on innovators from around the world to create a mobile product or service to improve the lives of people in developing nations and compete for the chance to win venture capital investment of $1 million.

Why is Nokia holding the Growth Economy Venture Challenge?

Nokia is a leader in enabling mobile technology to transform people’s lives for the better (through projects like Nokia Life Tools, etc.). Efforts like The Progress Project and the Nokia Growth Economy Venture Challenge endeavor to show the mobile community what is possible in order to focus the entrepreneurial spirit of innovators on accelerating transformation in these areas of the world. We see this Challenge as a win for Nokia, a win for the developer that is selected, and a win for their customers.

What are the criteria for selection of the finalists and eventual winner of the challenge?

• The mobile product, application or service must undeniably enhance the standard of living or lifestyle of the target customer.
• The target customer must be from a region of the world where the general daily per capita income is $5 USD or less.
• The organization that receives the $1 million USD investment must have shown that it has the potential to be a vibrant and successful business that will be profitable for itself and its investors (as judged through normal venture investment vetting procedures).

Your mission:
To build a product, which will be a profitable business, that improves the lives of people who live in a part of the world where they make less than $5/day. It can be hardware, software or services as long as it is related to mobility.

What application would you build to win a $1,000,000 investment from Nokia to do that?

Picking a Winner

If you’re just hearing about this contest, you’re already too late. Today I’m sitting in on the final judging panel to pick a winner from the 10 finalists who come from all over the world.

Since the challenge ended July 31, 2010, Nokia has received nearly 300 submissions from 54 countries, with a majority of them coming from India (47), followed by the United States (42), Kenya (14), the UK (11) and Egypt (9).

In no specific order, here are the finalists:

eVOTZ
www.eVOTZ.com
USA

Mobile devices have become the dashboard for people’s live, and eVOTZ allows their voices to be heard and counted in a whole new way. We believe mobile handsets offer profound social impact to improve eDemocracy with mobile apps for social good. Our eVOTZ platform incorporates SIM card security with location-based services that for the first time bring both TXT voting and mobile Web Smartphone solutions to South Africa and other emerging growth economies for trustworthy voting. Help us in our mission to ensure mobile voting is secure, convenient and trustworthy in South Africa and other emerging economies, worldwide.

IDIFIED
Black Tie Networx
www.btnetworx.com
USA

Could someone use their Nokia phone to avoid a roadside bomb or mine? As amazing as that may sound, it is possible and soon. IDFIED is an application being developed to identify buried explosives in the Developing World and areas of conflict. One benefit will be to quickly provide information to civilians, NGOs and emergency workers to avoid IEDs using GPS and proximity alerts. We think this will change the way people use their mobile phone and that Nokia can be a major contributor to its success.

Mobile Distributor Solution
Virtual City Ltd.

http://www.virtualcity.co.ke 

Kenya

Virtual City Ltd, a home-grown Kenyan company, has developed a solution that aims at addressing systemic issues along the Supply Chain for distributors and retailers of Fast Moving Consumer Goods in emerging markets. The Mobile Distributor Solution is designed to contribute to improved efficiencies and value to all the stakeholders in the value chain and result in increased number of transactions, accurate records, improved Inventory management & reporting from the field and effective management decision making. The solution will also bring value to a large number of beneficiaries comprising of thousands of small and micro enterprises in the FMCG Market.

FloCash Payment Network
Flocash Ltd 
www.flocash.com 
UK

FloCash is a mobile payment service that extends the bank to the unbanked in the form of a virtual bank based on the unique MoCharge mobile terminal. FloCash provides the unbanked masses of Africa the ability to make remittances, make bill payments and pay for product and services across a network of agents. The FloCash service is not a closed loop service. Its payment intermediary can be a Micro Finance Institution, a telco or a bank. Through provisioning of the FloCash smart card, anyone can sign up for the FloCash service, even those who do not own a mobile phone.

Mobile JobHunt
Shenzhen LEG 
www.leg3s.com
China 

“Mobile JobHunt”, targeting 300 million urban blue-collar workers and rural migrant workers in China, an under-served sector for a long time. It’s a set of employment information applications and services based on “Mobile Internet” and “Cloud Computing”. It covers recruitment, rights and interests, and training. Since late 2008, we have partnered with 200 phone makers and accumulated 15 million installation units, nearly 10 million active users and 1 million corporate customers. Revenue exceeded US$10M in FY2010 (ending June), with US$5M profit. With proprietary IP, “Mobile JobHunt” has no known direct competitors. We intend to go public in 1-2 years.

mmatcher – your mobile, your marketplace
mmatcher (R3 d.o.o.)
www.mmatcher.com
Slovenia

Mmatcher is a personalized mobile marketplace, which automatically in real time matches complementary interests. For example, mmatcher will match a cabbage seller with all potential buyers that are interested in his product. India is full of online marketplaces, but problem comes with accessibility to computers. Mmatcher resolves the problem and provides a solution to 640 million mobile users. We believe that mmatcher could be the missing element between Nokia life tools and Nokia money by providing buying and selling opportunity over the phone. Our vision is to reach 2.5 billion users in India, Pakistan, China and Indonesia in 3 years.

Bionic Power – The Portable Power Solution
Bionic Power Inc. 

http://www.bionic-power.com/ 

Canada

Wireless communication is not truly wireless as users are tethered to power grids to charge their mobile phone batteries. This is a particular problem for 1.6 billion people in developing countries without access to electricity. By generating electricity from everyday movements of individuals, the Bionic Energy Harvester provides a cost-effective and reliable solution to this power problem. Bionic Power’s technology is powerful, producing about half an hour of talk time from one minute of walking. Among other applications, it can be used to power things such as headlamps for harvesting crops at night, LED lights in homes, and laptop computers.

m-Employment platform using SMS
Cogilent Solutions 
www.BrightSpyre.com 
Pakistan

Low-income people without reliable access to Internet and technology do not enter into the job search through the modern tools. The solution is to bring complete functionality of a job portal on mobile by using SMS service. This m-Employment platform will connect more than 1 billion opportunity seekers (skilled, semi skilled workforce) in the South Asian and African countries with the opportunity providers (jobs, work). Short profiles built using SMS will connect opportunity seekers with all the opportunities advertised in their context. The opportunity providers will post work job opportunities and will be able to search and connect with the workforce matching their requirements. The platform will support local regional languages with strong spam and abuse control system.

Transclick for Globalization of m-commerce
Transclick 
www.transclick.com 
USA

Transclick is the leader in mobile digital translation of SMS, email and IM as well as Internet Browsing text translation at 400 words per sec. using customized microglossaries for higher accuracy than free online translation. Transclick’s API allows m-commerce and m-banking vendors to add Transclick into mobile commerce to enable those who make less than $5 per day to access English speaking buyers and communicate post-sale. The seller in Africa can create advertising of a product, translate and publish it automatically, using Transclick’s SMS translator and the price includes 10 cents per transaction paid by the m-banking vendor to Transclick.

Remote Diagnostics Kit
Vyas Labs

http://medical.vyaslabs.in

India

Vyas Labs Remote Diagnostics Kit (RDK) is a user-friendly remote medical diagnostic device that can work with mobile phones to allow medical specialists to attend to patients sitting thousands of miles away. It provided real-time ECG, non invasive blood pressure measurement, pulse oximetry monitoring, electronic stethoscope, body fat index, height, weight and pan-tilt camera, with total control with the remote doctor. The doctor can point to a specific location on the mobile screen and the nurse using the device sees the location and places instruments there.

The Award

Though we’ve voted today on the finalist, the winner won’t be announced until tomorrow at Nokia World. Someone is walking away with $1m to fund their project!

At the Nokia World event in London. Keep up with it using the #NokiaWorld hashtag on Twitter and on their Nokia Blog.

“At Nokia, “connecting people” is more than a feelgood tagline.” Niklas Savander, Executive Vice President Markets, Nokia.

He goes on to talk about the fact that they’re the largest manufacturer hitting the largest number of people worldwide. Just as everyone has a different need, they have to create phones that offer different features, compromising on the device due to the customer needs.

Smartphones

“People bought far more Nokia smartphones than Apple and Android combined.” On average, people buy 260,000 Nokia smartphones daily. Despite all of these new competitors, Symbian is still the largest with just over 40% of the smartphone market.

Symbian 3 has been rewritten to be faster, easier to use and more developer friendly. “A transition from legacy to leading edge.” They plan to ship 50 million of these new Symbian 3 smartphones. Over 100 operators and distributors will be offering the N8 globally.

Another dig at Apple: “Our phones work day in, day out, no matter how you hold them.”

Maps

Nokia has invested a lot in Ovi Maps, having bought Navteq a couple years ago, and going on from there. NIklas claims that they have further reach and impact than Google Maps. It’s more accurate, has dedicated (correct) pedestrian routes. You also don’t need to be connected to the internet to use it, without a constant mobile connection. If you do need it connected, you’ll find it much less data hungry than Google Maps.

Nokia’s Ovi Maps is available in 78 countries and 46 languages.

By 2013 over 800 million people will be using GPS enabled devices. Soon, everything on the internet will have a location. This is huge and will transcend the user experience as we know it today. “It’s a space we intend to own.”

The Nokia N8

Anssi Vanjoki, EVP, General Manager of Mobile Solutions comes on stage.

“People are buying more than hardware and software when they buy a smartphone, and Nokia is the company that built this market.”

“A few critics have looked at the Nokia N8 and said that it looks like the “same old Symbian”. That’s like dismissing the experience of a new car because it has the same dashboard. You have to drive it to know the difference.”

A broader distribution base than any other platform. He’s talking to developers.

The Nokia N8 is an important milestone, because it’s the first to take the new Symbian OS to the next level. It’s got new hardware, and new software – a new user experience. He wants us all to give it a test drive, they’ve got plenty of them around the event to play with.

He talks about the N8′s 12mp camera, and shows us some examples. They are amazing. It has a mechanical shutter, so the images look great. It has the largest sensor used in any phone-like device.

No other smartphone on the market can give you such a high-level experience. Anssi then shows us a trailer for Tron, with a direct cable (HDMI) onto the big screen from the phone itself. It is amazing.

A lightening fast processor and a 3d graphics accelerator. Aluminum body. Glass OLED Screen, etc.

More new phones

Different people have different needs. A new family of Symbian devices.

Introduces the Nokia C6. Has an 8mp camera, built in Ovi Maps, location sharing is made easy. It also features something new, the ClearBlack Display (CBD), a premium touch screen with a great view. “The black screen is blacker than black, as the sensors take away reflection on the glass.”

The Nokia C7 is thinner, with a stainless steel body.

Social network support for Facebook and Twitter are built into the new C6 and C7. Since Nokia’s customers are global, they’re also supporting Renren in China, Orkut in Brazil – and other global mobile social networks. Both will start shipping in Q4 2010.

They’re looking to find the “most active Facebooker” among their 1.1m Facebook Fans. They’ll choose 5, and they’ll win a new Nokia C6 and C7 and 20 of their closest friends.

“The Nokia E7 is BIG.”, it takes over the space that the Nokia 9000 started in 1996. It’s an office on the go, supporting Microsoft’s suite of business software.

[Note: trying to find an image of the Nokia e7 to share with you, but their site gives me no responses for a search... crap. Bad marketing.]

Found one on Engadget:

Environmentally friendly: C7 uses biopaints, C6 uses recycled metal.

Nokia Developer Community

Purnima Kochikar, VP Forum Nokia and Developer Communities

1.3 billion Nokia people. She crisscrossed the world to talk to developers (she didn’t go to Africa though).

2+ million developers globally.

Simplified developer interaction and made it easier to distribute applications. “You have an improved ability to write apps that mean the most to 1.3 billion Nokia users that use payment methods that serve them best.”

We believe that success isn’t measure just in Dollars, Euros or Pounds, but also in the lives of people. We see this impact everyday in the apps that you have built. Our goal is to help increase the health, wealth and lives of our users, and bring them joy. Uses the example of Proxil for checking if drugs are legitimate.

Think globally and act locally. This isn’t a race to the next million apps. It’s about getting relevant apps to everyone around the world.

Have created a way to reach consumers via demographics, not just geographic location. For instance, have found a great desire of Indian apps in Canada.

Last year alone Nokia shipped 364 million phones with Java (s40) on them. There is a real hunger for great apps on these devices, and people are absolutely willing to pay for them.

Ex: VuClip allows you to watch videos on your mobile phone. The founder thought it would sell best on smartphones in the West. He was pleasantly surprised to find that most of his users come from the emerging markets.

“Touch and Type” SDK for s40 is available on ForumNokia.com.

The Ovi Store

175 million devices available to be sold to.
45 million touch devices
50 million potential new users with the new Symbian 3 OS phones. (C6, C7, E7, N8 models)

There are 2 simple ways to build for Nokia: native Qt SDK and the Symbian Web Runtime (web SDK).

The new standard compliant Nokia Browser. It has been updated for touch, improving consumer interaction, especially for people who will use the mobile as their primary internet device.

Available in 190 countries
Supports 120+ Nokia devices
Credit card and operator billing (choose operator billing 2/3 times… that’s huge.)

Fizwoz as an example has 167 country reach due to the Ovi Store.

App distribution cost reduced on Ovi Store – application signing is free for Java and Symbian.

They have 150 people in Forum Nokia to support developers, with someone on every continent, including someone in South Africa (do they help the rest of Africa or only South Africa?).

Mikael Hed, CEO of Rovio, leader in mobile games. Creator of “Angry Birds” (which I and my daughters love) and has sold over 7 million copies and the free version has been downloaded 11 million times. A new bird, the “Mighty Eagle”, is released to let you not get frustrated with a level – an in-app purchase for $1.99. (awesome new video)

The Ovi Store’s in-app purchase option let’s them maintain the immersive gameplay experience.

Vodafone

Vittorio Colao, Chief Executive Vodafone Group, comes on stage. “I personally believe that data is a great opportunity.”

Vittorio talks about his recent holiday in Greece, and how they interact with their mobile devices now as compared to years ago. They’re emailing, hiring cars, booking restaurants, mapping beaches, reading news on tablets, watching video news, getting wind forecasts by the hour, etc… They’re using data seamlessly.

Life is changing in an incredible way amongst the masses. Real life.

Here’s just 1 month from Vodafone Group usage of data:

• 1/3 browse
• 25% play games
• 20% Email
• 15% social networking
• 11% maps
• 30% business
• Video and music fastest growing.

All people, rich or poor, north to south, will have their interactions done on the mobile. We need 5 things now to make things work better:

1. Network speeds and quality of service – the expectation, in terms of quality, is quickly rising. Pervasiveness, speed, accessibility, distribution and care. Vodafone has never cut investment in this area. The operator can provide two things: privacy and security. Data pricing and data caps have to change, he wants different levels of service.

2. Devices and operating systems – low-end smartphones, PCs, emerging market smartphones.

3. Content and services – Thinks social networking will double. Navigation will increase by 90%. Streaming music and video are already the largest of Vodafone Groups work.

“In reality, the network’s main job is not voice anymore, it’s handling our customer’s entertainment.”

A couple recommendations for devs: 1) tailor your apps to individual users – they have loads of customer information that can be tapped as an operator. 2) Operator billing is quick, intuitive and much easier to manage and will grow your usage of paid apps.

4. Customers affordability – pricing is becoming more important than features in the new segment of adopters of smartphones (emerging markets).

5. Ecosystem profitability – There has to be the right return for all the players. Pricing should be adjusted to reflect usage and load on the system. We’re reaching the end of the “free” time, otherwise we’ll have a free bad experience. Segmentation must drive the right device to the right demographics at the right time. There must be enough margin for developers to have a strong incentive to create locally relevant experiences for customers.

I’m at Nokia World this week in London as part of the final judging panel for the $1m Growth Economy Venture Challenge. I’ve been reading and reviewing dozens of entries from all over the world, and I’m excited to see the finalists in action as they do their presentations tomorrow.

Nokia in Flux

There are a lot of things going on within the world of Nokia right now. The Monday Note has a great overview of the big challenges facing Nokia right now, not least their incoming Canadian CEO, Stephen Elop, and the effect that it is having internally on other high level executives.

A couple months ago I gave a talk on “Innovating Africa“to some of the Nokia executives in Nairobi, they largely dealt with Africa, as well as specific products and operating systems. Most of my suggestions were directly from passionate customers of theirs from all over Africa. The Nokia brand is still very strong in Africa, the game is still on here. However, Nokia needs to be careful that they don’t lose this advantage by faster moving, cheap Chinese manufacturers and the better software and UI found on the Android/iPhone smartphones.

Developers, Money and Nokia in Africa

Smartphone growth and marketshare is getting more and more aligned with the types of apps that are available for people to use. If the apps, utilities and games that they want aren’t present, then they’re more likely to move somewhere else. In Africa, where unlimited, high-speed bandwidth isn’t the norm, the mobile web as an option isn’t quite reality yet. It’s a different paradigm than in the West.

This means that you need third-party developers interested in building apps on your operating system. While almost all operating systems have a store for apps now, including Ovi, iPhone, Android, Bada and others, there is a glaring hole in Africa:

You can’t get paid…

So, here’s a hint for Nokia, taken from the talk months ago: make it easy for developers to make money, even in Africa. Figure out a way that people get paid and can bill via your server-side offerings like Ovi.

Smartphones

Africans are aspirational; they might not be able to afford the Mercedes Benz, but everyone is working their way towards buying one. The same holds true for smartphones, though the vast majority cannot afford a high-powered iPhone, the latest $600 Android phone or the Nokia N8, they look to who the leader is in the space. He who controls the mindshare of the smartphone space, holds the mindshare of the mobile brand as a whole.

I’m looking forward to testing out, I’m sure it will have excellent hardware as all Nokia devices tend to be well engineered. However, I’ve yet to find a Nokia with good software or UI, and since it’s running the brand new Symbian 3 OS, it will likely be laden with bugs as all first-time OS are prone to have. (Engadget and CNet reviews)