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India passes USA in number of Internet users

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India has overtaken the United States to become the world’s second largest Internet market, with 333 million users, trailing China’s 721 million.

A new report released by the UN Broadband Commission for Sustainable Development also confirms that just six nations – including China and India – together account for 55% of the total global population still offline, because of the sheer size of their populations.

While Internet access is approaching saturation in richer nations, connectivity is still not advancing fast enough to help bridge development gaps in areas like education and health care for those in poorer parts of the world, according to the 2016 edition of The State of Broadband report.

Globally, an estimated 3.9 billion people are not using the Internet. But the Commission’s new report estimates that, between them, China, India, Indonesia, Pakistan, Bangladesh and Nigeria account for 55% of all unconnected people, while 20 countries – including the US – account for a full 75% of those not using the Internet. These findings suggest that targeted efforts in just a few key markets could help enormously in redressing the gaping ‘digital divide’ between those who are online and those still offline.

Released just ahead of the 14th meeting of the Commission in New York on September 18, The State of Broadband 2016 is optimistic about the potential of mobile broadband, with 165 countries now having deployed ‘4G’ high-speed mobile networks. As smartphone penetration reaches near-saturation in the US, Europe and mature markets in Asia like Japan and Korea, India and Indonesia in particular are expected to drive future growth. India also recently overtook the US to become the world’s second-largest smartphone market, with an estimated 260 million mobile broadband subscriptions.

The Commission argues that if today’s near-universal basic mobile phone access could be converted to high-speed mobile broadband access, mobile phones could serve as a major accelerator of development, driving rapid progress towards the UN Sustainable Development Goals.

“There is a large body of economic evidence for the role of affordable broadband connectivity as a vital enabler of economic growth, social inclusion and environmental protection,” said ITU Secretary-General Houlin Zhao, who serves as co-Vice Chair of the Commission with UNESCO Director-General Irina Bokova. “The Sustainable Development Goals for education, gender equality and infrastructure include bold targets for information and communication technology. The SDGs are achievable, but require urgent efforts and progress in the speed, degree and equality of development. The Commission believes this can be realized through broadband.”

“Broadband technologies can be powerful development multipliers,” Director-General Bokova added, “but this requires combined investments in access and in skills and in education. This is about opening new paths to create and share knowledge. It is about enhancing freedom of expression and about widening learning opportunities, especially for girls and women. This is about developing content that is relevant, local and multilingual.”

Issued annually, The State of Broadband report is a unique global snapshot of broadband network access and affordability, with country-by country data measuring broadband access against key advocacy targets set by the Commission in 2011.

The report confirms that according to latest ITU figures, by end 2016 3.5 billion people will be using the Internet, up from 3.2 billion last year and equating to 47% of the global population. Progress in the 48 UN-designated Least Developed Countries has been encouraging, with the Commission’s target of 15% of the LDC population online expected to be reached by the end of this year.

This year’s figures show that, once again, the top ten developing countries for household Internet penetration are all located in Asia or the Middle East. The Republic of Korea continues to have the world’s highest household Internet penetration, with 98.8% of homes connected; Qatar (96%) and United Arab Emirates (95%) rank second and third, respectively.

Iceland continues to have the highest percentage of individuals using the Internet (98.2%), while Luxembourg (97.3%) has surpassed Norway to take second place, and Andorra (97%) takes third place from Denmark.

Monaco remains very slightly ahead of Switzerland as the world leader in fixed broadband penetration, at over 47 subscriptions per 100 inhabitants compared with the Swiss figure of 45%. There are now seven economies (Monaco, Switzerland, Liechtenstein, Denmark, the Netherlands, France and the Republic of Korea) where fixed broadband penetration exceeds 40%, up from six countries in 2014 and just one nation (Switzerland) in 2012.

Finland has the world’s highest percentage of active mobile broadband subscriptions, with 144 subscriptions per 100 people, followed by Singapore (142) and Kuwait (139). The Asia-Pacific region accounts for nearly half (48%) of all active mobile broadband subscriptions.

In total, there are now 91 economies where over 50% of the population is online, up from 79 in 2015. But whereas in 2014 the top ten countries for Internet use were all located in Europe, this year sees Bahrain (ranked 7th) and Japan (ranked 9th) join the group. The lowest levels of Internet usage are found in sub-Saharan Africa, with less than 3% of the population using the Internet in a number of countries including Chad (2.7%), Sierra Leone (2.5%), Niger (2.2%), Somalia (1.8%) and Eritrea (1.1%).

Broadband Commission Global Targets

Progress towards the Commission’s 2011 targets has been mixed. As regards Target 1: National Broadband Plans, the Commission’s advocacy around the importance of broadband has seen the number of countries with a National Broadband Plan grow from 102 in 2010, when the Commission began its work, to 151 today.

Progress on Target 2: Affordability, has seen the majority of countries now having reached the Commission’s goal of basic fixed broadband costing less than 5% of monthly GNI – including 83 developing countries. However, to date only five of the 48 UN-designated Least Developed Countries have achieved the target.

Target 3: Connecting Homes to Broadband has seen good progress, with 52% of households globally having a broadband connection. In the developed world, 84% of households are now connected, but progress has also been solid in developing countries, where household access has risen from 38% last year to 41% in 2016, exceeding the target of 40% set by the Commission in 2011.

While the Least Developed Countries are expected to attain Target 4: Getting People Online, with 15% of the population connected by the end of this year, at current growth rates the Commission’s overall global target of 60% of people online is unlikely to be achieved before 2021.

Finally, the gender gap which Target 5: Equality of Access sought to redress has in fact widened slightly, from an Internet user gender gap of 11% in 2015 to 12% in 2016, equating to 257 million more men online than women.

The Broadband Commission comprises more than 50 leaders from across a range of government and industry sectors who are committed to actively assisting countries, UN experts and NGO teams to fully leverage the huge potential of information and communication technologies (ICTs) to drive new national SDG strategies in key areas like education, healthcare and environmental management.

The State of Broadband 2016 is the sixth edition of the Commission’s broadband connectivity report. Released annually, it is the only report that features country-by-country rankings based on access and affordability for over 160 economies worldwide.

Africa News

Smart grids needed for Africa’s utilities

Power utilities across Africa should rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem, says COLIN BEANEY, Global Industry Director for Asset-intensive and Energy and Utilities at IFS.

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Africa’s abundant natural resources and urgent need for power mean that it is one of the most exciting and innovative energy markets in a world that is moving rapidly towards clean, renewable energy sources. The continent’s energy industry is taking new approaches to providing unserved and underserved communities with access to power, with an emphasis on smart technologies and greener energy sources.

Power systems are evolving from centralised, top-down systems as interest in off-grid technology grows among African businesses and consumers. And according to PwC, we will see installed power capacity rise from 2012’s 90GW to 380GW in 2040 in sub-Saharan Africa. Power utilities are needing to rethink their business models and how they manage and monetise their assets to keep pace with the changing energy ecosystem.

Energy and utilities providers are transforming from centralised supply companies to more distributed, bi-directional service providers. They can only achieve this through the evolution of “smart grids” where sensors and smart meters will be able to provide the consumer with a more granular level of detail of power usage. This shift from an energy supplier to “lifestyle provider” will require a much more dynamic and optimised approach to maintenance and field service.

African companies must thus embrace digital transformation as an imperative. This transformation begins by embracing enterprise asset management to improve asset utilisation. The subsequent steps are enhancing upstream and downstream supply chain management; resource optimisation; introducing enterprise operational intelligence; embracing new technologies such as the Internet of Things, machine learning, and predictive maintenance; and becoming a smart utility.

Embracing mobility to drive ROI

Getting it right is about putting in place an enterprise backbone that accommodates asset and project management, multinational languages and currencies, new energies and markets, visualisation of the entire value chain, and mobility apps. Mobile technologies that support the field workforce have a vital role to play in driving better ROI from utilities’ investments in enterprise asset management and enterprise resource planning solutions.

Today’s leading enterprise asset management solutions feature powerful functionality for mobile management of the complete workflow of work orders – from logging status changes and updates, from receiving and creating new orders to concluding the job and reporting time, material and expenses. Such solutions are easy to deploy and intuitive for end users to learn and use.

Importantly for organisations operating in parts of the continent with poor telecoms infrastructure, connectivity is not an issue. The solutions work offline and synchronises when network connectivity is available. Users can work on any device—laptops, tablets, and smartphones—commercial or ruggedised.

By ensuring that field technicians have easy access to information and processes, the mobile solution enables technicians and maintenance engineers to easily do the following tasks:

·         Create a new work order on the fly and log new opportunities

·         Access both historical and planned work information when requested

·         Permit customers to sign when the job is completed

·         Capture measurements and inspection notes on route work orders

·         Create new fault reports on routing

·         Facilitate documentation through photo capturing

·         Provide easy access to technical data and preventive actions.

The power of mobility allows the engineer to be the origin of all data capture on a service event. They can easily inquire on asset history, record parts used or parts needed for repair, record labour hours, and expenses as they occur, and any notes of repairs performed. When coupled with workforce management tools, such solutions unlock significant productivity gains for utilities who are trying to get the most from their workforce and assets.

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Brands fall for app vanity

The experience of a mobile screen full of icons, representing independent apps that your need to open to experience them, is making less sense. Instead, businesses should serve customers with an ‘app-like’ experience inside the digital platform they already use, says PIETER DE VILLIERS, Group CEO at Clickatell.

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Many brands remain obsessed with creating mobile apps. This not only defies trends that point to increasing consumer app apathy, but can exclude a sizeable portion  of your customers in emerging economies. Companies need to engage with their users where they are rather than forcing them onto an app, in what can only be described as brand vanity. 

In 2017 there were around 2.2 million apps available in the iOS app store and over 3 million on Google Play. And, while the number of apps being downloaded continues to rise, analysis shows that consumers are only using 30 apps per month and accessing just 9 on a day-to-day basis. 

While these numbers still seem attractively high, in reality the majority of the apps we use are for messaging (like Facebook Messenger, WhatsApp, and WeChat) and our social networking, gaming, leisure, dating or utility activities. 

Despite the facts, the application strategy as the holy grail for digital transformation is still being pushed even within large progressive brands. What’s more, some advertising agencies and digital consultants are still pushing apps as the best means for companies to connect with their customers. This has resulted in some organisations stubbornly doubling down on app strategies which are simply not showing return on investment (ROI). 

It’s not immediately clear to us whether the fascination with apps is a roll-over from long overdue projects or whether brand owners equate a mobile-first strategy with a mobile app. Mobile-first in 2018 means customer first, and therefore embracing chat commerce in order to deliver services with convenience and simplicity in mind. 

Why apps won’t win the internet

The problem with apps goes beyond user fatigue. In the first instance, many apps are poorly designed, assuming technical sophistication which may not match reality for the average customer. Poor user interfaces and attempts to provide complex engagement can result in even the best ideas missing their targets due to lack of engagement. 

Secondly, we all know that economic realities drive consumer behaviour. In Africa, new mobile phone users typically opt for feature phones over smartphones. With a longer battery life and a much more accessible price point, feature phones still allow for a basic internet connection, chat platforms like WhatsApp, and call and message functionality. In these regions, the cost of an app – even if it’s free – goes far beyond installing it. Constant updates require reliable and cheap access to the internet. For the average phone owner in an emerging market, this can be a serious challenge. 

Thirdly, and most importantly, apps must be relevant to their intended market. Frequency of usage is a key measure of relevance. 

Apps which are used on a daily basis, like health and fitness trackers, enjoy constant engagement. New features which are added are eagerly awaited by users who are happy to update their apps. 

However, users may well question the relevance of the app if they are required to conduct updates on a monthly or even weekly basis when they are only making use of the app once or twice a year. 

On average, I download one app per quarter. Some I use more frequently than others, but all of these apps need to be regularly updated to maintain security, update features, and fix bugs. Many apps are pushing out updates much more frequently. I noticed over the past year that I could go from having all apps updated, to 32 apps requiring an update in five days.

When it comes to a customer-first digital strategy, companies should be asking themselves if an app is really the best way to reach their target audience. 

In fact, at the end of 2016, Gartner predicted that by 2019, 20 percent of brands would ditch their mobile app. What’s more, in its 2018 predictions, the company forecast that by 2021, more than 50 percent of corporations would spend more per annum on bots and chatbots than on mobile app development. 

So, we need to ask, what is the alternative for CIOs, CDOs, CMOs, and digital leaders who are looking for ways to reach, retain and grow their customer base? 

The logical app alternative 

The old battle advice goes: fight your enemy where they are not. Military strategists agreed that having your enemy come to you and fight you on your own terms was preferable. In a world where customers have access to thousands of offerings and millions of deals online, we need to flip that idea to Meet Your Customers Where They Are. 

Any marketeer will tell you just a how difficult it is to drive app downloads. Development, cross platform testing and user interface aside, the marketing campaign required to get customers to download the app can swallow entire annual budgets and still come up short. 

Looking at the facts, it makes infinitely more sense to work within the digital platforms already being used by your target audience. 

Clickatell is already enabling chat commerce for some of the leading global brands with its Touch solution. This allows organisations to serve their customers with an ‘app-like’ experience inside the chat or browser platform of their customer’s choice (Twitter, Facebook Messenger, etc.) 

Brands can now send an actionable Touch link such as ‘find the nearest ATM’ or ‘reset my password’ within a chat stream that will open an intuitive touch card without the user having to download an app to perform the action. Services can also be linked to the in-app experience for brands not looking to abandon their app efforts. 

Working with our clients, many of whom are global innovators and thought leaders, we’ve found that having the courage to design with an ‘end user first’ approach and dealing with the back-end complexity behind the scenes results in cost efficient customer delight and ROI. 

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