{"id":508,"date":"2018-12-04T11:28:05","date_gmt":"2018-12-04T09:28:05","guid":{"rendered":"http:\/\/www.jongore.com\/blog\/?p=508"},"modified":"2018-12-04T11:28:19","modified_gmt":"2018-12-04T09:28:19","slug":"low-cost","status":"publish","type":"post","link":"https:\/\/www.jongore.com\/blog\/fintech\/low-cost\/","title":{"rendered":"Low Cost Phones and the Rise of Digitization"},"content":{"rendered":"

Low-Cost Android Phones are becoming more available across Africa.\u00a0 I\u2019ve seen phones for as low as $40 in Tanzania and Zambia.\u00a0 These are generally subsidized by MNOs, and customers are even given incentives to buy with cheap credit options. Digitization is spreading across Africa, and the MNOs are all rushing to capture of much of the business opportunity as possible.<\/p>\n

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It\u2019s evident that the business opportunity lies on two ends of the spectrum.\u00a0 African markets exhibit a barbell market, with a wealthy, stagnant upper class and a rapidly growing lower income population.\u00a0 Both ends of the barbell need digital services, and mobile is the driver behind their adoption.\u00a0 \u00a0The needs of both sides are also similar.\u00a0 People want streaming services, digital financial services, and communication tools.\u00a0 The differentiator is how these services are delivered and consumed.\u00a0 If you have more money, you\u2019re more willing to pay for high definition video services, whereas if you don\u2019t have cash to spend on data, downloading and keeping the content cached on your phone is far more appealing.\u00a0 Wealthier consumers want full banking services provided via apps, while poorer consumers need a few services like payments and remittances provided quickly and cheaply.\u00a0 These segments will likely remain distinct for the next 10 years.\u00a0 I think the companies that serve the massively growing low income segment will capture more of the value in Africa\u2019s markets.\u00a0 There\u2019s more data, more opportunity, and more growth there.\u00a0 Amazing it all starts at the phone.<\/p>\n

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Low-Cost Android Phones are becoming more available across Africa.\u00a0 I\u2019ve seen phones for as low as $40 in Tanzania and Zambia.\u00a0 These are generally subsidized by MNOs, and customers are even given incentives to buy with cheap credit options. Digitization is spreading across Africa, and the MNOs are all rushing to capture of much of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-508","post","type-post","status-publish","format-standard","hentry","category-fintech"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/comments?post=508"}],"version-history":[{"count":2,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/508\/revisions"}],"predecessor-version":[{"id":511,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/508\/revisions\/511"}],"wp:attachment":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/media?parent=508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/categories?post=508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/tags?post=508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}