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Samsung’s Mobile Future Is On Galaxy M, Not Galaxy S10

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Samsung Galaxy 10 rumors (Source: CNET)

On February 20, Samsung will launch the latest version of its flagship smartphone, the Galaxy S10, to the world. You can count that the price will move north in the spirit of making more money per unit sold. Yet, despite the hype around Galaxy S10, the future of Samsung mobile device business will be anchored on another phone which is not getting a lot of press attention because it is not a fashionista. The new lower-priced Galaxy M is the device that will position Samsung to compete as the service era begins to take effect for mobile device makers.

Samsung will launch its new lower-priced Galaxy M series in India before the smartphones roll out globally. Asim Warsi, senior vice president of Samsung India’s smartphone business, told Reuters that three devices will be available through its website and Amazon India at the end of January and are intended to help the company double online sales.

Samsung is currently trying to recover its lead in India, the world’s second-largest smartphone market behind China, after losing it to Xiaomi at the end of 2017, when Xiaomi’s sales in India overtook Samsung for the first time, according to data from both Canalys and Counterpoint.

Largely, in a world which is largely on transition into the post-smartphone era, except some regions like Africa, devices have become better on quality despite their prices. When that happens, customers are no more necessarily moved by brand logos because any device can get the job done. The implication is that devices become commoditized.

Think about it: two decades ago, people bought laptops focusing on the brands. But over time, laptops have become very reliable across the board that undue attachments to the specific brand have faded. In other words, laptops have become commoditized as buyers simply look for value over paying for brand logos. You want a decent laptop, not specifically a Dell or HP laptop!

This design of minimizing the impact of brand is coming to smartphone. Galaxy M offers Samsung that opportunity to ride that global competitive smartphone market over the fashionista Galaxy S10. In a post-smartphone era, device makers would move into services. Interestingly, succeeding on services demands volume. So, what Samsung needs is to have many people in its ecosystem to win on Bixby and not extra dollars on hardware via Galaxy S10. Samsung Pay will appreciate that strategic redesign as it needs more users to have competitive relevance in a world where everyone is doing an element of fintech.

Nigeria’s Ecommerce Startup, Gloo .ng, Fails

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Gloo founder (source: Twitter)

I did not see this before posting my piece on ecommerce earlier today where I recommended avoiding ecommerce venture in Africa (except South Africa) yet. Gloo, one of the “most successful”, and well known ecommerce companies in Nigeria is shutting down. Few days ago, it was DealDey that gave up.

Unless you have a double play in Africa, think again, as you venture right now in ecommerce. Companies like old Konga, DealDey, OLX, etc never had double play. When that happens, the gestation period to profitability via pure ecommerce operations becomes longer, triggering cashflow challenges which lead to failures. Those challenges emanate because we have severe logistics problems which must be fixed to unlock opportunities in the sector.

No one takes glory for the failure of these entities. It is painful to write on them. Here (LinkedIn), last week, a company wanted to hire my practice to come up with a strategy for an ecommerce venture it was plotting. I declined 3 times and the firm did not give up. Then, I stopped responding. There was no need of collecting the money, for no value, because I see no path to success yet in that sector, in Nigeria.

Simply, the problem is not your website: the paralysis is something you have no control unless you have $800 million to build a regional logistics system.

Nigeria Launches China-Funded Satellite TVs in 1000 Villages, DStv Take Note

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MultiChoice, DStv,
DStv systems

Nigerian Government launches a satellite TV initiative supported by the Government of China. Our government has selected 1,000 villages to test-run the service which will carry 30 digital channels. If these channels have European football via Chinese licensing rights, through satellite, MultiChoice’s DStv Nigeria has a headache.

The Minister of Information and Culture, Lai Mohammed, has launched a project to provide free satellite television to 1000 villages across Nigeria.

The project is being funded by the government of China.

Mr Mohammed flagged off the project Monday in Kpaduma 3, a village in the Federal Capital Territory, (FCT).

The minister said the 1000 Villages Satellite TV Project was announced by Chinese President Xi Jinping at the 2015 Forum on China-Africa Cooperation (FOCAC) in Johannesburg, South Africa.

He said the project is under the ”Ten Major China-Africa Cooperation Plans” that were announced at the event.

[…]

”With access to more than 30 digital channels, with crystal clear pictures and Hi-Fidelity audio, the DSO roll-out brings the benefits of digital television to all households.

”We call this the democratisation of information and entertainment, ” he said.

Mr Mohammed said the 1,000 villages project could not have come at a better time.

Network Slicing Paving The Way For 5G Business Models

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5G

By Olayinka Oduwole

In my previous piece on 5G, I mentioned the use of Network Slicing, Network Function Virtualisation (NFV) and Software Defined Networking (SDN) as possible technologies to achieve virtualization and softwarisation within the core of the 5G network. The softwarisation of the 5G network has in essence triggered the development of new business models for 5G which were not possible using the architecture of previous cellular generation.  For example, Network as a service, Radio as a Service etc. are services that can be offered due to the virtualized environment. Here, I delve a bit about the use of Network Slice as a tool to aid the development of new business models for 5G.

A network slice is simply an end to end logical network running on a shared physical infrastructure. It offers a way to deliver services with different requirements within the same physical infrastructure in a 5G network.

5G is typically classified in terms of ultra-high bandwidth, ultra-reliable and low latency and Internet of Things (IoT) applications. For example, a remote surgeon may require low latency to aid his surgical procedure whereas a customer with AR/VR technology may require ultra-high bandwidth to download a TV broadcast. These service requirements are different and can be uniquely delivered on network slices tailored to the needs of the consumers.

Timeline towards 5G [Source: Analysys Mason, 2014]
It is also possible that a client (or vertical) require two or more of these services simultaneously, for instance, an automated car may require high bandwidth for its entertainment as well as low latency for assisted driving; these services could be delivered on different slices packaged together as a business bundle for the client. The client can also decide to have multiple slices from different operators to serve its needs. Furthermore, a client requiring two or more services may have a unique hierarchy for these services. Thus, network slicing offers the opportunity to tailor the application to meet the need of the client.

Network Slicing has also given mobile operators the opportunity to differentiate their offerings into Network connectivity, where connectivity services such as bandwidth, latency, coverage, mobility etc. are offered to the client and Network resource services, where other resource are offered to the client as services in the form of Big Data analytics, Edge Computing, Cloud Computing, Localisation, Security etc., as highlighted by GSMA.

Slicing can either be vertical or horizontal. Vertical slicing refers to the development of slices to serve the different requirements of the industries (often referred to as verticals). For example, using the example of the automated car above, vertical slicing implies that a slice would be created to meet the entertainment needs within the car and another slice for assisted driving. Horizontal slicing, on the other hand, implies developing slices to meet the needs of individual machines or users. For example, a horizontal slice could serve the need of a consumer in a smart home as well as sensors within a smart industry. For a horizontal slice, the service requirements are the same but requested by different clients.

The use of Network Slicing also presents a challenge when the client roams from its home network to an international network. How do you guarantee that the client enjoys the same quality of experience whilst having access to the tailored slice for his/her application? In order to overcome this challenge, three options have been recommended by GSMA below:

  1. The International network issues a globally agreed slice to the customer.
  2. The International network issues a slice similar to the slice used in the home network.
  3. The Home network request for permission of control of the resources of the international network to provide a slice with the same functionality as previously offered within the home network.

5G is expected to act as the backbone for a variety of verticals ranging from healthcare, manufacturing, consumer applications, transportation, logistics, energy, environment, construction etc. These verticals have a myriad of requirements; hence a one size fits all network architecture would not work. Network Slicing thus offers the opportunity to develop a flexible, agile and elastic network which is able to meet the demands of the verticals on the fly; thus encouraging the development of new business models which help justify the investment in 5G networks.

Avoid Starting Ecommerce Venture in Africa Now

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I just spoke with BuzzFeed on ecommerce in Africa.  My thesis remains that we are not close to the inflection point where ecommerce becomes a profitable venture. Unless you can sustain losses as Amazon did for a decade, do not venture yet. Wait for some anchors and enablers to strengthen first.

The easiest way to waste money and destroy value in Nigeria is to start an ecommerce business. As I have noted many years ago in a seminal piece in Harvard Business Review, making money on ecommerce in Africa would happen but would take a really long time. I do not expect any to work till after 2023 (2022). But before then, it is putting good money in a value-destroying venture that would bleed cash until the owners give up. Ecommerce today in Africa is simply a loss-making online endeavor only people with deep pockets can do. You can be in it if you do not care for profitability.

Also, you must have a double play to reduce the exposure emanating from losses from ecommerce operations [the marginal cost paralysis of ecommerce operation makes it largely loss-making). Amazon does that cleverly: as it dismantles many brick-and-mortar stores via its ecommerce operations, many run to the web for new opportunities. You know what happens? Amazon sells them cloud services through AWS.

I explained in the duality element that digital products which thrive are typically both products and platforms. It would be hopeless to build modern digital products without having a moat through platforms. Interestingly, the greatest digital ICT utilities have double plays in their business models: if Amazon decimates many brick-and-mortar stores, it would welcome many online to sell them cloud services. Alibaba welcomes you to its marketplace platforms, and you certainly have signed up for its (partly affiliated) payment processing solutions (Alipay) which command commissions.

So, provided Amazon can keep many flipping from physical stores to digital stores, it would make up any ecommerce loses via the cloud service business. Alibaba does the same: have a free account in my marketplace but you must use my Alipay which attracts commission for processing all transactions.

Unless you have a double play in Africa, think again, as you venture right now in ecommerce. Companies like old Konga, DealDey, OLX, etc never had double play. When that happens, the gestation period to profitability via pure ecommerce operations becomes longer, triggering cashflow challenges which lead to failures. Those challenges emanate because we have severe logistics problems which must be fixed to unlock opportunities in the sector.

Gloo founder (source: Twitter)

Sure – if you have investors who do not care for losses, you can go ahead.