With more than 300 million“dumb” phones in use and 834 million people still unconnected to the internet, Africa is the next frontier for smart feature phones. But even with this vast opportunity, challenges still loom large on this magnificent continent.

Many people believe that Africa is poor. With an average income of $6.6 per day and 36% of the population living in extreme poverty (on less than $1 per day), there is some truth to that. At the same time, many countries on the continent are showing signs of growth. According to the World Bank, Sub-Saharan Africa economies are expected to grow at 3.1% this year, accelerating to 3.7% by 2020.

Zooming in closer—beyond just these macro-level numbers—signs of this progress appear all across the continent. Governments see the importance of technology and are driving policy and capital towards modernizing infrastructure. As a result, homegrown technological innovation is happening and startup hubs are springing up everywhere.

Powered by connectivity

One of the remaining hurdles to fuel this growth is affordable connectivity. As mentioned in the introduction, 834 million people in Africa are still unconnected today. Despite the progress in many areas, several barriers stand in the way of widespread internet access:

1. Poor network infrastructure.
2. Device affordability.
3. Costs of data.
4. Lack of localized content.
5. Financial inclusion.

Let’s look at these issues in detail.

Poor network infrastructure

Network infrastructure in Africa is of notoriously lousy quality. For example, Nigeria’s average mobile download speeds clock in at just 9.87 Mbps, far below those in developed markets —
between 30 to 40 Mbps. While urban areas are starting to see early adopters in 3G and 4G coverage, smaller towns and the rural countryside rely on 2G connectivity. This detail is important because the story of Africa is still a rural story, with 62% of the population living in the countryside.

Luckily this situation is changing. The business case for improving mobile connectivity in rural areas is becoming more evident to carriers, especially since the success of the KaiOS-powered JioPhone in India. As such, network operators are starting to upgrade their infrastructure to 4G/LTE, even outside of the big cities.

Device affordability

In Africa more than anywhere else, device affordability is a crucial barrier to moving people from 2G voice and text-capable phones to 3G/4G devices that can access the internet. According to research from GSMA, the threshold lies at $34. Below that point, even those in the lowest income groups are capable of upgrading to a data-enabled phone.

Until recently this forced people to choose between a feature phone without internet access, or a budget smartphone with limited user experience. Now, with KaiOS-powered smart feature phones coming to market, there is an attractive alternative: a device that is affordable, yet provides a smooth user experience and all the essential capabilities of a smartphone.

Costs of data

Once a user has purchased a phone, there’s still the “cost of ownership” in the form of a monthly data plan that has to be factored in. Most smartphones come with a data plan of at least $10 per month. For someone who can’t afford a $35 phone, such monthly costs are unacceptable.

To reduce the costs of data, KaiOS Technologies works closely with network operators to design new data plans priced between a 2G(voice and text)plan and a full-blown smartphone data plan.

There are many ways in which we achieve reduction of data costs together with carriers and content providers：

• KaiOS minimizes data requirements on both the OS and content (apps) side.
• We work closely with partners to provide specific content and features that don’t require additional charges.
• We’re implementing advertising solutions that give users free data in exchange for engaging with ads.

Lack of localized content

Africa is not Silicon Valley. This observation seems obvious, but it doesn’t get enough thought when you consider how our modern tech productsare developed. While innovation is on the rise in emerging markets, products coming out of Silicon Valley—and to a lesser extent other parts of the USA—still form a disproportionate amount of our tech “intake.”

There is nothing inherently wrong with this. Many of the innovations from this infamous region in California are truly phenomenal and satisfy universal needs. Yet some problems can only be identified and addressed by a local, someone who’s familiar with the culture and lifestyle in a specific region.

There are already great examples of this, like Anitrack(which allows farmers to track their livestock), Asoriba(a church management application for worshippers and religious leaders), and LetiArts(and African gaming studio). But on this p, there is still a gap in Africa, or at least an opportunity to bring the local content that’s already available to a much wider audience. Growing the number of connected users, while simultaneouslysupporting local developers, is what’s needed to bring the digital revolution to everyonein Africa.

Financial inclusion

In places like Nigeria, Tanzania, and Uganda, less than half of the adult population have a bank account, nor have they ever conducted a digital payment. Also, less than 10 percent of the adult population receive income (e.g., wages, social security) via a bank account. A lack of trust and access to financial servicescause these issues.

Financial inclusion needs to improve dramatically to drive the digital revolution in Africa. Without the means to easily make and receive payments, innovation is slowed or even blocked altogether. It also makes the job of poverty reduction difficult as people can’t plan their financial futures and are unable to do the most important thing that leads to prosperity: saving.

Research finds a strong correlation between mobile internet connectivity and financial inclusion—the adoption, usage, and sustainability of financial services. The rise of mobile moneyon smart feature phones can play a central role in extending thereach of formal financial services in Africa, as demonstrated by the success of mobile money services in countries like Tanzania, Uganda, Kenya, and South Africa.

The emerging ecosystem

When all the above pieces come together, the smart feature phone becomes a compelling proposition to change the digital landscape in Africa.

The device and monthly data plan are affordable even for those in the lowest income groups. With support for local developers and content—in addition to the global apps that are already available on KaiOS —people will be able to enjoy the fruits of the digital revolution in areas like education, entertainment, business, health, and finance.This means real progress towards closing the digital divide and will impact the lives of millions of people in Africa for the better in the years ahead.

KaiOS is committed to help grow the African smart feature phone ecosystem together with all local stakeholders (carriers, phone distributors, and app developers). Come meet the KaiOS team at NigeriaCom (Lagos, September 19th and 20th) and AfricaCom (Cape Town, November 13^th– 15^th).

If you have additional questions, don’t forget to check out our Help Center!

It’s hard to imagine areas of our world where constant mobile communication isn’t the norm — but even in the U.S., there are places where mobile internet access is not as all-encompassing. Despite our culture’s near-obsession with smartphones, a glance at Pew Research statistics shows the mobile revolution is still impacting urban and suburban areas more than rural areas.

While the number of mobile devices in rural-American areas has sharply increased, adults in these areas are still 10 to 12 percent less likely to have a smartphone than in urban or suburban areas. Only 58 percent of rural survey respondents told Pew Research that they go online on a daily basis, while one in five said they never go online.

Mobile-only still not an option

This discrepancy is largely due to a lack of infrastructure to provide speedy internet access — broadband or mobile — consistently across rural areas. Part of the struggle is a lack of choice: a 2015 White House study found that three out of four Americans have access to only one high-speed internet service provider. While the freedom to access networks on the go may seem like a logical fix, limited selection means it simply isn’t feasible at this point in time.

The FCC recently reported that “mobile services are not full substitutes for fixed services — there are salient differences between the two technologies.” This conclusion was made even as the FCC was evaluating standards that would consider mobile internet a sufficient replacement for home internet. For many rural residents, this gap between mobile and fixed services often means no internet use at all — 39 percent of rural Americans, or 23 million people, still lack access to high-speed Internet, compared to just 4 percent of urban Americans.

Gaps in mobile coverage

While it’s currently not a full replacement for strong fixed internet, mobile-only internet is on the rise. For example, Pew Research found one in 10 Americans now rely on smartphones for internet access, with increasing reliance coming from non-white, low-income, and younger Americans.

Recent analysis by University of Texas communication professor Sharon Strover examined mobile internet as one of the options to fix rural America’s internet gap. Conducting the research in Maine, her team found a case involving four people on four different carriers lacking any consistent service in an area, and another where good signals could only be found in specific spots in a town — often in inconvenient places like the middle of streets.

The U.S. is not a world leader in availability of the most current mobile internet standards like 4G LTE. According to openSignal, that honor goes to South Korea, followed by Japan, Lithuania, Hong Kong, and the Netherlands. The U.S. edges out Qatar for the No. 10 spot, but is considered a drag on the global average LTE speed. In addition to this, densely populated urban areas are the first to get mobile internet improvements like the incoming 5G, which won’t even see broad deployment until next year.

How do we close the gap?

There are multiple solutions that have emerged to start closing the rural internet gap, with many of these ideas coming from people in the rural areas themselves. For example, a company in Georgia called Paladin Wireless leases space on existing structures in cities to install wireless internet transmitters in a manner similar to cellphone service. There’s also a strong push to treat high-speed internet access as a public utility. In a Pew Research poll, 70 percent of respondents said local governments should be allowed to construct their own broadband services, with Chattanooga, Tenn., being one of the most widely reported success stories.

Ultimately, as Professor Strover points out, closing rural America’s mobile internet gap — and its overall internet gap — will come down to a fundamental question of values: that is, whether or not government and private companies are willing to invest in providing internet service to both rural and urban areas of America, and commit to ensuring that it is affordable.

2017 marked a year of innovations for the mobile industry, especially in emerging markets. New regulations were passed to ensure protection against the digital divide in some countries, including developed nations.

But this is only the beginning. We predict that 2018 will see continued innovation, and consumers will be the lucky winners.

The mobile industry, like many others, is dictated by consumer behavior, so updates and changes should be based on a thorough understanding of how consumers are currently engaging with their mobile activities. To that end, we’ve gathered consumer statistics from notable reports to envision four different ways that mobile phones will change in 2018.

Artificial Intelligence Mobile Integration

AI is already a hot topic — its endless possibilities open doors for new innovations across many industries, from healthcare to transportation. This year, AI is expected to revolutionize the mobile industry. According to the 2017 Global Mobile Consumer Survey from Deloitte, 68 percent of consumers currently use some AI/Machine Learning features, including predictive text and voice assistants on their phones. The rise of mobile shopping also triggers such behavior. 62 percent of mobile users use their device to make a purchase online, and more than 40 percent of adults search using voice technology.

Given the advancement in AI, it’s no surprise to see more AI-powered smartphones being introduced. For example, Apple’s iPhone X is integrated with AI features that focus on imaging and animation. Samsung also enters the game by introducing Bixby, an assistant software on the Galaxy S8 and Galaxy Note 8 smartphones. But, this isn’t just happening on smartphones. In December 2017, Google Voice Assistant for feature phones was announced, and the first one to market will be the JioPhone (powered by KaiOS). With this new technology, Jio phone users can speak with a Google Assistant in Hindi. Looking forward to 2018, we anticipate more AI technology integrating into mobile phones. Given the upward trend in AI mobile integration, we anticipate more visibility of AI technology in mobile phones in 2018

Online streaming via mobile devices

2018 will be the year of mobile streaming, as more consumers are using their mobile devices to watch TV or movies. A study in 2016 found that nearly a quarter of U.S. phone users viewed TV shows/movies on their devices daily. Another report found that the percentage of consumers who stream movies on mobile devices is 9 percent higher than 2016, and the number is expected to be even higher in 2018.

Using these insights, telecom companies are leveraging their mobile user market. Verizon has announced a partnership with A+E Networks, allowing its customers to watch fresh mobile and digital content. This is great news to Verizon mobile users as they can access premium content any time on mobile devices. Other big mobile operators, such as Reliance Jio, are also making moves to attract movie fans. The company offers TV apps for the JioPhone, allowing users to watch live TV shows on feature phones. They also include a special connector with the device, which lets users display video from their JioPhone on a larger display.

IoT-friendly mobile apps

Like AI, Internet of Things (IoT) is another hot area for mobile users to watch in 2018. The previously mentioned Deloitte survey reported more mobile users are showing interest in connected cars and entertainment. This means consumers expect their phones will connect with other smart devices.They can then do things like remotely turning off their air conditioning at home, or using a camera app to protect their homes from burglars.

Mobile commerce

Mobile commerce is on the rise, bringing new opportunities to both vendors and consumers. An Assocham-Deloitte study showed that more people have been submitting their shopping queries through mobile devices. The percentage has risen from 76 percent in 2016 to 82 percent in 2017, implying an increase in mobile transactions.

Mobile payments are becoming more popular too as 29 percent of U.S. consumers reported to make purchases via mobile devices last year. Many merchants across the United States are adopting mobile payments, allowing customers to pay via mobile apps. Even outside of the U.S., developing countries, including India, are also taking advantage of mobile commerce.

As many people are relying on mobile phones to make purchases, as well as payments, we expect to see more mobile apps that support the mobile e-commerce journey on the market in 2018.
2018 is going to be a great year for the mobile industry, and we’re so excited to be a part of the effort.

Looking for help with your KaiOS phone? Visit our Help Center. Have a partnership idea? Click here to fill out the form. Our sales will get in touch with you shortly.

What if everyone — regardless of location, socioeconomic status, or age — had an internet-enabled mobile phone? Right now, it’s estimated that only 30 percent of the world has a smartphone, which means the other 70 percent either doesn’t want one, can’t afford one, or is looking for an alternative.

In fact, the high cost of smartphones in relation to income levels continues to constrain universal access, especially in emerging markets. For those living on below $2 per day, a $100 mobile phone accounts for 14 percent or more of their annual income, according to GSMA.

To put that into perspective, based on the average annual income of $45,000 in the U.S., Americans would be spending $6,300 on a smartphone. To make matters worse, unlike developed markets, there are few financing options for buying mobile phones in emerging markets. So instead of a $100 or more device, a phone in the range of $15–35 would be closer to the affordability threshold for this group. However, smartphone costs are not expected to drop enough to make a significant difference to low-income groups in the near future.

Internet access at everyone’s fingertips

According to the International Telecommunications Union’s ICT “Facts and Figures for 2017”, only 15 percent of households in the developing world have internet access at home. In these countries, many internet users only have access from work, schools, and universities or other shared public connections outside the home.

Fortunately, the challenges of broadband restrictions and internet use through a personal computer can be overcome. People are more likely to turn on their mobile device to access the internet than their desktop computer, resulting in a higher adoption rate and use of mobile phones.

At Kai, we’re powering an emerging global ecosystem of affordable digital products and services that help overcome these connectivity issues. Specifically, our mobile operating system KaiOS enables a new category of lite phones that require limited memory, offering smartphone-like functionality at a fraction of the cost.

These affordable, internet-enabled mobile phones have the greatest potential for delivering unprecedented opportunities in education, communication, entertainment, and business to both established and less developed markets. This includes giving many users first-time access to the internet.

Connecting the unconnected

Looking at emerging markets as a whole, there has been a dramatic transformation in connectivity. According to the ICT Facts and Figures 2017, mobile broadband subscriptions have grown more than 20 percent annually in the last five years and are expected to reach 4.3 billion globally by end 2017.

With internet-enabled mobile phones, users will be able to connect with each other like never before. UNCTAD’s World Investment Report found that access to the internet directly correlates to productivity gains in sectors like education, healthcare, financial services, agriculture, retail, and government, among others.

In Indonesia, for example, mobile banking became a catalyst for the peer-to-peer lending firm Amartha, when the company moved into fintech. While three quarters of the country’s population does not have a bank account, the addition of mobile technology to Amartha’s services allowed for 30,000 microentrepreneurs to receive $5.1 million in loans – providing new opportunities and revenues for their families. Amartha was also able to disburse nearly 600 percent more loans and raise the maximum loan value from $225 to $750 to provide additional funds to its customers.

The last piece of the digital divide puzzle: apps

While making devices affordable is an important step in bridging the digital divide, it’s not enough by itself. The other crucial piece is content. Without the same world-class apps smartphone owners enjoy, as well as apps tailored at these new user groups, the digital divide remains in place

Together with our partners we’re also solving this remaining piece of the puzzle. KaiOS is one of only three global operating systems capable of supporting the most popular third-party apps, offering consumers an alternative to smartphones. Soon, you’ll be able to download mobile apps, such as social media, instant messaging, games, video calls, and even intelligent voice assistants, without the expensive price tag that comes with owning a smartphone.

Alongside our partners, we want to go from digital divide to digital opportunity for all members of society. With the affordability lowering and the number of apps on KaiOS increasing every month, we get a step closer to fulfilling this mission every day.

Looking for help with your KaiOS phone? Visit our Help Center. Have a partnership idea? Click here to fill out the form. Our sales will get in touch with you shortly.