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Google Nigeria Promises Free Wifi, What Do We Search Or Do With It?

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Google search Nigeria, Google Nigeria wifi

I read a really illuminating comment on the state of things on the Google Station project on my LinkedIn profile from a user (read further). Yes, Google is providing free Wi-Fi in selected locations in Nigeria. We commend Google for that: Nations are built when companies fix challenges in markets and societies.

After my note on the “depressing” search trajectory from Nigeria, many in the community did not like it. Many wished it away, arguing that America searches American Idol, Justin Bieber, etc. So, why not allow Nigerian kids to indulge on BBNaija, shaku shaku dance, etc at top search items.

Now, as Google brings faster internet, we have a choice: continue to search shaku shaku, BBNaija or someone could offer the young people a path to do something useful on the web. That is not for Google; it is for NGOs, schools, you, myself, etc. (from LinkedIn summary)

But if you check how we are using the current internet we have in Nigeria, there is certainly a need to examine the expected impact of this initiative.  Should we just spend our time looking for these mundane things on the web? (I understand many do not have any problem with what these searches represent. The argument is that people just search, and search queries should be decoupled from other elements of our existence.)

Top searches from Nigeria (source: Google event)

A LinkedIn user captures the points here: do we waste the bytes on frivolities or do we use them to build social and economic engines for the future?

Great move by Google, but “now that Nigeria has WiFi, what is she going to do with it?” From the published “most searched by Nigerians” lists to the several news reports of vices powered by social media, it is clear we as a people, across age groups, social and working classes, need some education on how to utilize connectivity for economic and social good. I hope this educative package is somewhere in the works with this initiative (maybe not by Google themselves, but other relevant partners).

That is the point: how can we get young people looking for jobs to use connectivity to improve their lives? How can we get accountants looking for new skills to use connectivity to advance their careers? How can students improve their capabilities with better connectivity Google may be offering? Yes, how can Nigeria accelerate its economic and social systems with better connectivity?

Certainly, the searches do not define the nation: I might have been “wrong” when I used the word “depressing”. But we need to make sure better internet delivers better wellbeing in the nation. That is not the work Google should be concerned with; our NGOs and governments could lead to ensure our young people have creative things to be engaged online. Where we fail to help them, the expected benefits from better connectivity may not be realized.

A Brilliant LinkedIn Comment

Well, I ‘resisted’ from commenting on comparison between what Nigerians and other developed nations search on the web. The reason is simple: you make like for like comparisons, and not two disproportionate things.

If you see a son of rich a man misbehaving, and at same time that of a poor man doing same, obviously your admonition to the latter is likely to be stronger. The reason? Because it’s possible for the son of the rich man to be well ‘setup’ in the future, you cannot say same about that of the poor man, meaning that he needs to work harder, to even stand a chance of leading a better life. This is what it’s like comparing what Nigerians search online with that of the Americans.

People who belong to first world countries can afford to waste all their time, searching frivolous things on the web, because their founding fathers had done a great job for them, meaning that with minimal effort they are likely to succeed. You cannot say the same for an average Nigerian: the youths here need to work harder like the son of a poor man, who should know that nothing is a given, every time must be well spent.

When we understand the conversation in this light, then we can craft the right narrative, impressing it on the younger ones.

Guardmile Design Spec and Structure – Smart Driving, AutoCare & Insurance

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Guardmile design
Guardmile spec and structure

Last week, I noted that Fasmicro did works on smart driving assistance, autocare management & on-demand auto insurance brokerage but decided to focus on something else. If Jonathan was re-elected Nigerian president, we would have continued with this project. But when General Buhari was elected president, we pivoted to agriculture after reading his inaugural speech. […]

This post is only available to members.

Winning Ecommerce Strategy for Africa

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I invite you to read the one oasis strategy in Tekedia store [PDF]. In that piece, I used Amazon as a case study. Reading from that piece, you will get a good idea on how to run an ecommerce company especially in Africa to make a profit. Sure, I have noted some challenges with this sector in an article in the Harvard Business Review. But that does not mean one cannot built a thriving business therein.

The One Oasis Strategy is the proposition that if the best product drives key investments in a firm, it has the capacity to help other products in the business. Other products would feed from the best product, and on overall, the company would flourish. By removing the inherent risk of external markets, the best product becomes the first and the most important customer for that new investment and in the process eliminates investment risks. It makes firms move very fast because you do not have to even consider external customer opinion since the products are not made for them. Indeed, the time wasted on surveys, focus groups and market research works are eliminated because there is a customer right inside the firm.

Once done, I invite you to read this extract from Fortune newsletter.

It’s a well-known fact that restaurants make their money on marked-up cocktails and other libations, not the food they serve, no matter how tasty. It’s a similar story for auto dealers, whose margins are slim on hunks of steel even as their vigs are fat on warranties, financing fees, and car mats. (I fell for that one in 1997, and I’m still annoyed.)

Now we see Amazon has pulled off a similar feat. Its barely-break-even retail business was all it had for years, and for eons Amazon didn’t make money. Just wait, the company’s fans would say. Eventually Amazon’s hugeness will pay dividends.

And it has, but not because the business of traditional retailing suddenly got better. Amazon, instead, is now oozing profits because of the services it has built on top of its something-for-everyone merchandising. It takes a cut from other merchants who sell on its platform. It charges brands and others to advertise on its sites. And its best services business of all is AWS, the online business that rents computing power and software programs to the commercial masses. Fortune Newsletter

As Fortune notes, Amazon does not have to make profit in the best product. It simply needs the best product to ensure it can make the supporting ones work out. The oasis, the ecommerce business, drives payment, advertising, etc. And on those ones, Amazon is finding profitability. This is the winning strategy for ecommerce even in places like Africa.

Facebook’s Unbreakable Gene

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Facebook CEO

In April 2018, I wrote that no person or government can effectively break Facebook. In my opinion, breaking a platform-business within the same mindset of the industrial age companies is waste of time: one part of that company will grow and dominate just as the previously broken one.

If you decide to break Facebook apart, one part will grow and dominate others. This is possible because of the positive continuum of network effect where the biggest keeps getting bigger and also better. I explained that in a recent piece in the Harvard Business Review. You can regulate Facebook but another company will come to take over its position because in this sector, it is winner-takes-all. Yes, the best wins.  Why? The scalable advantage improves with lower marginal cost.

In a piece in Bloomberg, the Editorial Board made the same point:

Market forces would also likely impede such an effort. The main way Facebook and its fellow tech behemoths have grown so powerful is through network effects: The more people who join Facebook, the more useful it becomes; the more useful, the easier to attract more users. Breaking it up wouldn’t reverse this dynamic. One of the new MiniBooks would in all likelihood emerge as better than the rest — bringing in disproportionate users, data, and advertising dollars, and thus achieving dominance just as Facebook has.

Simply, only markets can put these companies in order – not dead regulations. And markets are working: Facebook lost $119 billion yesterday over its problems.

Facebook lost about $119 billion of its market cap today. Technically, it made history: it recorded the largest loss in a single day in stock market history. But Facebook is lucky: it did not lose because of competition; it lost because of correcting its past. Yes, User Privacy won even as Facebook temporarily lost.

Governments need to focus on policy and standards, and allow these companies to compete. Provided they do no harm, consumers will be fine. We are already used to the best search, best social media, best micro-messaging, etc and even if governments engineer many versions at the end, only one or two would survive. Simply, the best will win because of the positive continuum which drives these businesses.  As the Bloomberg editorial noted, governments need to be on alert to check abuses from platform companies.

Regulators must keep a close eye on this sort of thing, and shouldn’t hesitate to intervene when it’s being abused. The Federal Trade Commission should ensure that Facebook isn’t collecting such data under false pretenses — Onavo, audaciously, markets itself as tool to “keep you and your data safe” — and any new Facebook acquisitions should be greeted with due skepticism by antitrust officials.

The Brilliance of Google Nigeria, Twilight for Nigerian Telcos

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Google unveiled a new vision for Nigerian tech sector yesterday with the launch of Google Station. In my practice, we now think that our 2022 target year of immersive connectivity may even come earlier. Many things are connected to this BOLD initiative by Google.

This is a catalytic industry-defining project in Nigeria: our web sector is ON. If Google follows through [there is no reason why it should not, it has the cash], Nigeria will have free high speed Wi-FI in 200 locations. This would affect 10 million people – think of a nation in a country.

Google Station will be rolling out in 200 locations in five cities across Nigeria by the end of 2019, bringing Wi-Fi to millions of people. Sites will include markets, transport hubs, shopping malls, universities and more. Nigeria is the fifth country in which we’re launching Google Station, after India, Indonesia, Thailand and Mexico. (Source: Google newsletter)

Nigerian Telcos

It is looking increasingly challenging for telecom operators in Africa. I can predict that African telcos have past their best moments. Yes, MTN, Glo, Airtel Nigeria and 9Mobile will struggle as Nigerians are provided with these new options to connect to the web. It is not just Google; SpaceX is coming along with amalgam of satellite players. Add the pains from OTT solutions like WhatsApp, you would understand why the telcos will have sleepless nights.

Simply, the future will look increasingly challenging for terrestrial operators. Because from internet balloons to satellites, telcos will be under-serve competition and many of them will die. By 2025, I do expect the top four telcos in Nigeria to merge to become two. The four telcos are now more than necessary with all the evolving options.  If they do not merge, they will lose value and that will hurt investors. The world is changing rapidly and the competition will be extremely ferocious that telcos as we have them will continue to see massive loss in ARPU. These GSM players disrupted CDMA players. Now, they need to find ways to survive.

All Together

The web sector in Nigeria is here. This is a new era. Do not wait any longer. The time has come because internet connectivity is going to become ubiquitous, unlocking new business models. Nigeria needs to get in touch with Amazon to help with logistics. I do not care who does it; we need to have these infrastructures. I am very confident Amazon can help.

As we explore support from ICT utilities like Facebook and Google, I do think we need to find ways to get Bezos to show interest. He is among the few that can invest in hard infrastructure to unlock more values in the continent. Think of establishing a solid logistical system that will help in the economic integration of Africa. He has done it before and he can do it here. African Union should explore that opportunity with him.

Meanwhile, well done Google – this is brilliance at best. But it would be painful season for Nigerian telcos because if 10 million people connect to free Google internet, I do not know who the profitable customers would be. Call it a double whammy: OTT like WhatsApp on one side depressing revenue, Google Loon, etc on the other side pivoting new paths. Simply, for most telcos, the best days are past. I am not sure how they could get over this, unless they decide to become Google, SpaceX, etc vendors.