SIM Card Penetration Rate

SIM card penetration is the total number of SIM card connections in a country as a percentage of the total population. Looking at the statistics from DataReportal, there are 187.9 million mobile or SIM connections in Nigeria in January 2021. These mobile connections are spread across the four major mobile service providers in the country.

Comparing these figures with the number of mobile connections in January 2020, we find there has been a 10% increase in mobile connections in the past year, with a 17 million additional mobile connections being added from January 2020 to January 2021.  Another statistic from The Nigeria Communications Commission (NCC) shows that there are over 198 million mobile (GSM) active lines in Nigeria in July 2020.

However, gauging mobile phone ownership in Nigeria by using mobile or SIM connections is often not very accurate. This is because many mobile phone users in Nigeria use dual SIM phones which allow them to use multiple SIM cards or mobile connections within one mobile device. A report by OpenSignal shows that 66% of phones in Nigeria’s mobile market are dual SIM phones. The same report ranks Nigeria as the country with the highest numbers of dual SIM phone users—closely followed by Bangladesh and Tanzania.

Dual SIM phones are high in demand in Nigeria’s mobile market because they allow users to juggle between two network providers on the same mobile phone. Users can easily switch their connection to get the best rates for voice calls, text, and data without having to carry two mobile phones. Because one person may own multiple SIM cards, using mobile connections or SIM connections as a metric can artificially inflate the actual penetration rate of mobile phones within a population.

Unique Subscriber Penetration Rate

Unique subscribers refer to the number of individuals who own a phone in a country. While Nigeria’s mobile penetration rate is lower than developed markets, it is higher than the average across sub-Saharan Africa, standing at around 50% as of 2018, and estimated to rise to 130 million or about 60%-65% of the total population by 2025. Additionally, a 2017 study by Pew Research found that 80% of adults in Nigeria owned some type of mobile phone, though the most common phone type was a basic mobile phone.

Mobile Internet Penetration in Nigeria

Aside from the basic mobile features like SMS and voice calls, it’s important to take a close look at mobile internet penetration and smartphone usage in Nigeria as well. According to Pew Research Center, only 32% in Nigeria use smartphones, below some sub-Saharan countries like South African (51%), Ghana (35%), and Senegal (34%) when it comes to smartphone usage. However, it is estimated that smartphone and mobile internet usage in Nigeria will continue to grow over the coming years, and GSMA found that mobile internet penetration had doubled in Nigeria from 2014, growing to 32% by 2019.

It is also important to note that when Nigerians connect to the internet, the vast majority do so from a mobile phone. A study Data Reportal shows that 92.4% of the total internet users in Nigeria are from smartphones, demonstrating the importance of the continued growth of mobile internet connectivity in the country.

These figures are partly driven by an increasingly low price point for Android phones in Nigeria’s mobile market. Thanks to Asian brands like Techno and Infinix making smartphones targeted to Nigeria’s mobile market, the average price of smartphones, which was $216 in 2014, dipped to $95 in 2018, and some basic internet-enabled phones can be bought for as low as $20.

Barriers of Mobile Internet Penetration in Nigeria

Although mobile internet penetration is growing, there are several barriers to access in Nigeria. Affordability is one major barrier for many internet mobile users in Nigeria. Internet cost is still at the high end even after The Nigerian Communications Commission(NCC) lifted data floor price limits in 2015 and gave service providers the liberty to drop their data tariffs as it suits them. The lifted data floor resulted in a drop in data prices, but data costs are still high, especially for those living in poverty.

A report by Research ICT Africa shows that the price of 1GB of data in Nigeria fell from $11.18 in Q3 of 2014 to $2.78 by the end last quarter of 2019. However, looking at the high volatility of Naira, Nigeria’s official currency, the cost of data for 1GB in the third quarter 2014 was $11.18 and six years later, it was $2.78. Although Nigeria has the largest economy on the continent, 40.1% of its population lives in poverty, earning 137.4 thousand Naira (roughly $361) per year, so mobile and internet access is still out of reach for large portions of the population.

Another major barrier to mobile internet access is poor quality service from mobile operators. Oftentimes, there are frequent interruptions of services. Inadequate power supply, heavy taxation of network providers, and infrastructure deficit are some of the major reasons for epileptic network services in Nigeria.

Conclusion

While Nigeria still has a ways to go until all of its population has access to mobile phones, the benefits of the growth in mobile penetration in the country are clear. The availability of mobile services has encouraged digital inclusion in Nigeria and has made the exchange of information very easy for business and social advancement. Mobile usage has also helped in the reduction of transportation especially in the agricultural sector, since communication can be done on mobile phones.

Businesses in Nigeria are also leveraging SMS, mobile apps, and websites to reach new business prospects, and the mobile advertising market in Nigeria is also booming. As mobile and mobile internet penetration rates continue to grow in the country, even more services will be tailored for mobile.

GeoPoll leverages the power and reach of mobile to conduct research in Nigeria via voice calls, SMS, mobile-optimized web links, and other modes. To learn more about our research services or get a quote for an upcoming project, please contact us.

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Unique Subscriber Penetration Rate

Based on statistics drawn from Worldometer and Statista, in 2019 South Africa had a population of 58.56 million and 101.9 million mobile subscribers spread across five main mobile network operators. Using these two numbers, the unique subscriber penetration rate comes out to 170%, meaning that there were more mobile subscriptions than people living in South Africa in 2019; however, this rate can be deceiving. In actuality, people may have a few mobile subscriptions across the various networks and this can artificially inflate the penetration rate. The reason why people have multiple subscriptions varies on a case-by-case basis but can be due to attempts to save money and connectivity issues. A recent GeoPoll Application study confirmed this, finding that over 40% of South African respondents reported using multiple SIM cards.

Mobile Access Penetration in South Africa

Mobile access penetration is defined as the number of unique individuals who have regular access to a mobile phone, even if they do not personally own one, as a percent of the population. A study conducted by Pew Research Center identified that 8% of South African adults do not own a phone themselves but share a phone with someone else, while only 5% of South African adults do not own a phone or share a phone. These statistics show that mobile access penetration in South Africa as of 2018 was 95%.

The group of respondents in the study that do not own or use a mobile phone were also asked about if they would want a mobile phone in the future and 65% indicated that they would. This leads us to investigate some barriers to mobile phone ownership and access in South Africa.

Barriers to Mobile Phone Access and Usage in South Africa

Out of the 5% of South Africans that do not own a phone and do not share a phone, 65% indicated that they would like to get a phone in the future. Some of the key reasons that this population indicated as deterrents for phone use were: “worries about theft” (52%), “device cost” (49%), “devices too complicated” (46%), and lack of sufficient literacy for mobile phone use (29%).

Eight percent of Africans who do not own phones of their own but use phones by sharing with a friend or family member reported financial limitations, fear of device theft, and a lack of reliable connectivity as the top reasons for sharing phones rather than owning their own devices.

Phone owners in South Africa reported similar financial and connectivity issues as phone sharers during the same study. Specifically, phone owners indicated that they avoid using their mobile phones due to high data costs: 28% indicated that this happens frequently while 22% indicated it happens occasionally. Data costs in South Africa are notoriously high when compared to other emerging markets, with one report finding that South African data costs are about six times as high as in other emerging economies. Additionally, 19% of the same respondents indicated that they have trouble getting a reliable mobile connection frequently and 25% reported connectivity issues occasionally.

GeoPoll’s Mobile Research in South Africa

GeoPoll’s robust database of survey respondents in South Africa is used to conduct research projects via mobile phones. Our direct connection with mobile network operators in South Africa not only allows us to send mobile-based surveys that are free for respondents to participate, but also immediately provide respondents with the earned incentive the moment a questionnaire is completed. We run surveys in South Africa via SMS, voice calls (CATI or IVR), in-person (CAPI), mobile web, mobile application, and mobile-based focus groups. To learn more about our research capabilities in South Africa and beyond, contact us today.

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The Challenge of Gathering Mobile Penetration Data 

Although the mobile penetration rate in Asia has been increasing dramatically, it can be difficult to get accurate mobile subscriber and user numbers for the region. There are multiple factors that contribute to this difficulty including individuals having access to a phone they do not own, or people owning multiple SIM cards. An accurate count of subscribers in rural areas can be particularly challenging because counting non-users face-to-face may be impossible due to time and money. To get accurate data, some mobile penetration statistics rely in some part on numbers provided from mobile operators, as well as independent research projects. All of these factors can help account for the variation between different research sources. 

Current Mobile Penetration Rates in South Asia and Southeast Asia

To fully understand the data on mobile penetration rates in Asia, we must take a more granular view and consider statistics from specific parts of the region. Countries in South Asia and Southeast Asia provide a snapshot of this rapidly changing region.

Mobile Penetration in South Asia

Mobile penetration in South Asia varies between countries, with India having the highest reported access. The penetration rate in India was at 55% in 2018 and is projected to reach 63% by 2025. A 2018 Pew Research Center study looking at smartphone penetration found India to have a 40% rate of mobile phone ownership with a further 24% owning smartphones. Another source reported 26% smartphone penetration in 2018. While estimations may vary slightly, all show a strong growth trend.

A 2019 GSMA study on mobile internet specifically found the mobile internet penetration rate in India to be at around 35% the previous year. Bangladesh, the 5th largest mobile market in the region, had a mobile internet penetration rate of 22% in 2018 with Pakistan at 24%. Overall in South Asia, 33% of the population is connected to mobile internet, a number which has almost doubled since 2014. During these four years, an additional 50 million people have also gained access to mobile broadband coverage. 

Mobile penetration across South Asia will likely continue to grow in the coming years. South Asia has some of the most affordable access to coverage worldwide. Additionally,  significant infrastructure investments by 4G providers over the years can partially account for the growth in mobile penetration. 

Mobile Penetration in Southeast Asia

The countries in Southeast Asia have seen incredible growth in mobile penetration over the last few years. GSMA highlights Indonesia as an emerging digital economy giant and one of the top ten most improved countries since 2014. In 2017, there were 176 million unique mobile subscribers in Indonesia, which equated to a 64% penetration rate. This number is estimated to grow to a 69% penetration rate by 2025. Due to infrastructure growth, affordability of monthly data plans, increased higher education, and development of local content 25 million people started using mobile internet in one year. Two thirds of the country now own a mobile device. 

The  2018 Pew Research Center study on smartphone penetration reported 42% of the population had smartphones, with another 28% of people owning another type of mobile phone. A recent GSMA study calculates smartphone connection at 73% of total connections in Q3 of 2019. Young adults are particularly quick to adopt this technology. Only 17% of young adults (18-34yrs) owned a smartphone in 2013, but the Pew study cites a growth to 66% by 2018. 

The Philippines is another area in Southeast Asia that has seen significant growth in mobile penetration rates over the last several years. Startups are driving digital innovation in the country. A recent GSMA report on the mobile economy indicated 2018 mobile subscriber penetration at 64% of the population. Specifically for smartphones, the Pew Research Center cited 55% of adults are reported owning a smartphone, with another 22% owning another type of mobile phone. Of this 55% of adults who owned a smartphone, the largest percentage of these (74%) were young people ages 18-34. 

What is next for mobile penetration in Asia?

Mobile technology is increasingly essential for innovative businesses and international trade. Unsurprisingly, economic success is directly correlated to phone ownership. As a country’s mobile phone penetration increases, the economy becomes more successful. One commonality across Asia and other emerging regions is that younger people are more likely to have access to smartphones. 

We should continue to examine trends in mobile penetration, as well as smartphone and mobile internet adoption while simultaneously not discounting those who do not have access. GeoPoll leverages the growing power of mobile connectivity, while also utilizing face-to-face research modes in certain situations. We are able to reach all types of mobile devices and connectivity levels through SMS, voice calls, and web-based methodologies. 

For more information on our mobile methodologies, please contact us today.

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According to our survey in February on mobile usage and media consumption, there is an increasing dependency on technology and a mobile first approach by youth consumers in Africa. This trend is being driven by African millennials with Africa having the highest youth population in the world. African millennials are increasingly using social media sites as tools for communication and as their first source for news and information.

Although extensive research on media and consumer trends in Africa shows a growing transition of consumers and audiences away from traditional media towards online media, television remains a highly significant contributor to consumer spending.

In a white paper presented at last year’s PAMRO conference for Media & Media Researchers in Africa, Waithera Kabiru the Digital Marketing Manager, Coca Cola Southern and East Africa posed the following questions to marketers; why is media investment not in line with the activity that is going on online? If African consumers are spending much more time online versus print or even TV, why is there still an under-investment in online channels?

In June 2017, GeoPoll sought to better understand how youth consumers are interacting with the advertising they encounter from the multiple sources of media consumed daily. We interviewed 3,710 youth aged between 15-35 years old in Kenya, Uganda, Tanzania, Ghana, Nigeria and South Africa with the aim of determining the specific media platforms they consumed the ads from and how online advertising is fairing against above the line advertising media namely TV, radio and print,  in terms of reach and effectiveness.The insights from this survey, though not representative of the total population in these countries, provides valuable insight into the consumption of advertising by youth and the rise of digital advertising’s reach.

Media Consumption and Frequency
According to the survey, the top three most consumed forms of media on a daily basis are the internet (46%), TV (25%) and radio (24%) with the internet having the highest daily usage rating of 7.09 points.  

Today’s youth has become more outspoken about their buying experiences and interactions with brands before, during and after purchasing goods and services. The age of the second screen phenomenon in which these young consumers are more likely to be on their smartphone as they watch TV, encounter outdoor media or even as they listen to the radio. This is due to the increased growth in smartphone in usage as compared to other media forms. Digital ads are the most encountered advertising media consumed mostly through smartphones.

According to the poll, those who encountered advertisements reacted by either buying the product, going online to seek more information or going on social media to share their thoughts and opinion on the ads.

Unlike the pre-internet era, youth no longer have to wait until the next time they are out shopping to get more information about a new product or service. The information seeking phase of the consumer buying process is shorter thanks to the internet. This new channel has enabled consumers to easily search for, inquire about or discuss the product or service from whichever device is closest to them when encountering an advertisement.

Information search is crucial to consumers who encounter ads from various sources. 22% of respondents indicated that they went online to read up on the product/service they saw in an ad. Social media is increasingly becoming a popular platform for consumers to discuss and engage with brands.  In fact, 8% of respondents also indicated that they had used their social channels to speak about an ad with 15% reaching out and engaging the brands in the ads directly on their online channels.

Youth, Brands and Digital Advertising

As the internet continues to enjoy increased usage among the surveyed age group, there is a need for businesses to seek deeper insights on their marketing strategy around this demographic. Actions such as online information gathering on brands and social media interactions about and to brands continue to see a surge in growth as consumers who encounter brand advertisements seek to be better informed.

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*This GeoPoll rapid survey was conducted in June among 3,710 youth in Ghana, Kenya, Nigeria, South Africa, Uganda and Tanzania using the GeoPoll Mobile application. 

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