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App Stores Direct Revenue to Hit $14 billion in 2012, $37 billion by 2015, says Canalys

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Canalys has  announced that app store direct revenue from the sale of apps, in-app purchases and subscriptions across smart phones and pads combined will hit $14.1 billion next year, up 92% from an expected $7.3 billion in 2011, and will reach $36.7 billion by 2015. This equates to a four-year compound annual growth rate for 2011 to 2015 of just under 50%. According to the analyst firm, this projected revenue growth presents an excellent opportunity for mobile network operators (MNOs) to compete with vendor app stores. MNOs have a strong platform on which to offer an improved customer experience, leveraging their detailed subscriber data.

 

‘The leading stores already have hundreds of thousands of apps, so it’s hard for operators to compete with those numbers,’ said Canalys Analyst Tim Shepherd. ‘On the other hand, too much choice brings serious problems in terms of application discovery for both developers and users, which operators can turn to their advantage.’

 

With 419.0 million application-addressable smart phones and 43.3 million pads expected to ship worldwide this year alone, the market opportunity for apps is still growing rapidly. But for operators, there are other advantages to having a branded app store offering beyond direct revenue. For example, they can actively build consumer experiences that bolster customer loyalty. A vibrant app ecosystem could lure new customers, while helping operators upsell current customers to higher-end smart phones and larger data contracts, and could even encourage pre-pay customers to consider post-pay contracts.

 

In conclusion, Canalys estimates that the impact of mobile apps will extend to all aspects of the customer lifecycle, from acquisition and retention to lifetime value and profitability: ‘Mobile apps are a disruptive technology force,’ said Shepherd. ‘Consumers will continue to value mobile device design and functionality, but the quality and availability of certain apps will progressively influence their buying decisions. By building on their strengths, operators can capture more of the market, while delivering a better customer experience.’

Congratulations Ms Omobola Johnson – Nigeria’s First Minister of Information and Communication Technology

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The former Chairwoman of outsourcing giant, Accenture, gets the node as the minister of the newly created ministry, Information and Communication Technology.

For all the likes and talks of the professors and activists in the ISPON, NCS, etc, this could be coming as a surprise. We think the Accenture lady is a nice one. Nigeria needs a strategic vision and her skill, experience and networks could be important gain here. Lady, Go on and be a tiger! (ok, Tiger has been fired by Accenture).

But this is good. And who is she? From her Linkedin page, she studied electrical engineering and later became the boss of Accenture Nigeria. Good enough, she took early retirement to pursue teaching and of course sideways politics. And it just worked well. A better profile is here.

Mrs. Omobola Olubusola Johnson was until recently the Country Managing Director of Accenture in Nigeria and the first woman to hold that position. Omobola holds a Bachelor’s Degree in Electrical and Electronic Engineering from the University of Manchester and a Masters degree in Digital Electronics from King’s College, London. She joined Accenture, then Andersen Consulting in 1985. At Andersen, she garnered experience in the areas of enterprise transformation- having worked with Board and Management of several major banks and CBN of Nigeria to successfully transform these organisations in a more competitive and dynamic environment. Some of the initiatives in these transformation projects range from strategy development to process re-engineering, HR transformation, technology developments and change and programme management.

In the multiple of years she spent at Accenture, she progressed through various roles and was a Director and the Head of the Financial Services operating group in Nigeria before her appointment as the Managing Director December 2005 where she was responsible for implementation of Accenture’s strategies in Nigeria and the rest of West Africa. Omobola likes travelling and plays golf. She is a member of many prestigious clubs in Nigeria and Non-Governmental Organisations- she is the founding Chairperson and member of Board of Trustees of Women in Management and Business, among others.

Omotobola Johnson, Congratulations. Now, let us go and do it and make Nigeria a an ICT titan.

Omobola Johnson

Country Managing Director at Accenture

Nigeria
Information Technology and Services
Current
  • Chairman at Accenture
  • Country Managing Director at Accenture

Arik Airline is Heading To Bankrupcy If Strategy Does Not Change

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On Mar 17, 2011, Punch reported that an Arik Air’s Airbus A330-200 plane has been impounded in Johannesburg, South Africa for allegedly defaulting on lease agreement payments.

 

Few days ago,  SaharaReporters reported on a similar case in Senegal.  The company owns the Senegalese authorizes. In the same report, it was noted that  Arik is also owing Nigerian authorities: the airline owes Nigerian civil aviation authorities some N2 billion in unpaid fees.

 

Certainly, business is not as cool as we expect in Arik. With all the fancy and launching of new crafts, things are not well. This is where it gets interesting. If they have this record of being impounded, customers will go and when that happens, the business will collapse.

 

Now is the time for Arik to get its house in order. We certainly wish them good luck.

Zynga’s “Empires & Allies” Facebook Game Accrues 40 million Active Monthly Users

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Facebook continues to get the best from its partnership with Zynga. Tekedia has maintained that Zynga is adding a huge value to Facebook.

 

According to market research firm,  IHS iSuppli, Zynga’s latest game, “Empires & Allies,” has accrued more than 40 million monthly active users (MAUs) during its first month.   Currently the second most popular app on Facebook, “Empires & Allies” is outperformed by Zynga’s “CityVille,” which has 87 million MAUs, but has recently surpassed another Zynga title, “FarmVille,” which has 40 million MAUs.

 

“The strong performance of ‘Empires & Allies’ is hardly surprising, given that Zynga’s pre-existing network of titles was already hosting more than 250 million monthly users,” said Steve Bailey, analyst for games at IHS. “With this in mind, luring one-third of the player base of ‘CityVille’ to sample ‘Empires & Allies’ would be sufficient to provide 30 million monthly active users. In terms of debut-month figures, anything less than approximately 40 million MAUs would be below expectations, given Zynga’s capacities for leveraging advertising and cross-Zynga network promotion on Facebook.”

 

Yet, it is worth knowing that most of these users are not paid users. In its SEC filing as it prepares to go public, Zynga noted that its revenue comes from disproportionally a small percentage of its users. Analysts have noted the slower pace of product introduction by Zynga.

 

Specifically,  Zynga’s release schedule is slowing, and “Empires” is the first Zynga game in more than six months, a far cry from its behavior in late 2009, a period of golden growth that propelled the company to the forefront of Facebook gaming. The role of “Empires” isn’t just to gain traction in an upcoming genre and find a new audience but also to combat churn: four of Zynga’s Top 10 titles have seen significant loss of foothold in the past quarter, and will need to be replaced or refreshed within an increasingly competitive environment. Even with “Empires” performing strongly at launch, Zynga is currently 30 million MAUs short of the 300 million record high achieved by its portfolio at the beginning of the year, concludes the report.

 

MTN Nigeria is 10 Years – They Celebrate With New Logo and Products

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MTN Nigeria is 10 years and they have launched a new MTN talk on Logo to mark it. They should indeed because business has been good for them so far. This MTN talk on is among the many products the company introduced along with MTN pay go tariff score card recently.

 

The MTN talk on brand had been launched with new services and data plans to solidify grip on the market at the height of the mobile telecom tariff war.

 

Yet, though a new  logo had been launched to mark MTN’s 10th year anniversary in Nigeria, the company will not replace the  universal Yello logo that is known internationally.

 

MTN Nigeria is part of the MTN Group, Africa’s leading cellular telecommunications company. On May 16, 2001, MTN became the first GSM network to make a call following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt.

 

MTN paid $285m for one of four GSM licenses in Nigeria in January 2001. To date, in excess of US$1.8 billion has been invested building mobile telecommunications infrastructure in Nigeria.

 

Since launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in 223 cities and towns, more than 10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of the Nigeria and the Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever.