African providers shift to mobile TV for revenue

31.07.2009
Africa's leading mobile-phone companies -- MTN and Safaricom -- have teamed up with phone manufacturer Nokia and Digital Mobile TV (DMTV) to provide television content through mobile phones.

The partnership is part of a campaign by operators in the mobile industry to attract more users after recording reduced profits and lower average revenue per user (ARPU). AfricaNext, a telecom research firm, released a report in May this year projecting that the dramatic growth of mobile services will lead to 100 percent geographical penetration in 2013, but that ARPU will be reduced.

The shift to mobile TV is expected to generate new advertising revenue streams, contribute to economic development and diversify services offered by mobile-phone companies -- which now heavily depend on voice for revenue.

"For mobile operators, they view mobile business as an opportunity to further enhance convergence of data, voice and video as a way of satisfying customer needs and improving ARPU," said Felix Kyengo, DMTV Kenya general manager.

The switch over to digital TV and the tremendous growth of mobile phones in the region have provided more opportunities for broadcasters to provide entertainment, sports, news and educational content to the public.

"For broadcasters -- with all the changing competing technologies -- their main objective is to use the best of the new digital technologies to make their content more personal, more convenient and more relevant," said Kyengo in an e-mail interview. "Broadcasters are convinced that mobile TV is the best way to keep in touch with their audiences, maintain service loyalty, and increase their advertising revenue."