Mobile phones are no longer a luxury, even in the geographies that were once underserved in terms of technology. The proliferation of mobile phones across diverse avenues has led to a transformation that was inconceivable, a few years ago.

Mobile phones- the new normal for Africa

In Africa, the mobile phone market is heavily driven by the large population of the youth, today have access to a smartphone. According to a study by the World Bank and African Development Bank report, there are more than 650 million mobile users in Africa.

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Clearly, the African market is more than ready for a revolution that not only subsidizes the cost of mobile phones, which will curb the digital divide within the continent but also opens up new avenues to the growth of the local youth population.

But the question is, are the youth able to afford to acquire the latest mobile tech available. A report by Praekelt foundation suggests 95% of South African youth are making use of prepaid or ‘pay-as-you-go’ plans, with the remaining 5% being on long-term contracts. Device leasing which involves mobile handsets coupled with telecom service is a lucrative option for the population that wants to access mobile tech at a smaller upfront cost.

Device leasing by telecom operators: The challenges

The rising costs of smartphones are one of the key reasons that pose a conundrum when it comes to device leasing. The cost of smartphone production which newer technologies such as 5G has led to an overall increase in the cost of the phones, narrowing the profit margin obtained by the telecom companies from the bundled solution of handset + SIM services.

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As telecom companies venture into device leasing in markets such as Africa, they are met with several auxiliary challenges- first is to ensure that the users stay on their platform after the device is leased because once the device is leased, the SIM card can be ported to another operator. This is crucial to ensure that the telecom companies acquire and retain users onto their SIM services and the leasing model is profitable for the telecom company.

The second major challenge is to ensure that the payments are fulfilled regularly without any centralized payment remittance system. If the device goes offline, there is no way for the telecom providers to recover the leased device.

NuovoPay to the rescue

NuovoPay understands the perils of device leasing that the telecom industries face which is why NuovoPay brings forth an avant-garde approach to secure the device leasing model.

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NuovoPay’s proprietary technology fits seamlessly on the leased handsets and the non-intrusive client software acts only when the device payment is missed. The leasing companies can configure the payment cycle for each leased device and automate payment reminders and regular payment reminders are sent to the device. The device access is blocked if the payment is missed and stays so until the payment is completed. The threat of the device going offline is mitigated with NuovoPay’s offline mechanism that enables device locking to work in an entirely offline mode.

If the SIM is removed, the device access is blocked which helps the telecom carriers to retain the customers with their service until the device lease is active. One way or the other, customer loyalty is assured and so is the payment against leased devices.

Cloning lines

NuovoPay is strengthening the device leasing model, offering the much-needed relief to the telecom companies by securing underlying payments of leased devices, while also enabling device accessibility to markets that are left abaft in the mobile revolution. If this isn’t a win-win, don’t know what is! 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry