Proving the Business Case for the Internet of Things

Improving connectivity to spur take-up of fleet management, other M2M services in Nigeria: IDC

Iain Morris
June 18, 2014
Usage of M2M technology to support the use of security management, fleet management and point-of-sale devices in Nigeria is set to grow rapidly as connectivity services improve, according to the latest research from IDC.

Some 30% of enterprises in the country have already introduced some form of M2M technology to improve the efficiency of their operations, according to the market-research company, but more advanced applications in the areas of smart metering, pay-as-you-drive insurance and intelligent buildings have yet to see more widespread adoption.

That is largely because of issues regarding connectivity and the complexities involved in implementing and managing these technologies, according to IDC.

Connectivity in Nigeria is currently unreliable and even the regulatory authority has expressed concern about the quality of service levels among operators.

Authorities are, however, keen to implement a national broadband policy and IDC believes this will lead to considerable improvements in voice and data connectivity in coming years, facilitating the take up of more complex M2M technologies.

Better connectivity is expected to spur the adoption of services that would help organizations to improve logistics and fleet management, among other things.

The IDC research also indicated that Nigerian businesses typically prefer to buy a combination of services from one provider with one contact and one bill.

IDC reckons this concern is primarily being driven by cost-reduction initiatives.

“The preferences exhibited by Nigerian enterprises show that communication service providers enjoy a first-mover advantage when it comes to providing fixed and mobile voice services and data services,” said Oluwole Babatope, an analyst with IDC. “IT and hosting services companies, meanwhile, have the edge in providing network services in tandem with IT or cloud services.”

“The most important factors influencing the selection of a network provider by Nigerian businesses are pricing and the quality of service and support,” he added. “Quality of service has been a major challenge for enterprises in Nigeria in recent years, and IDC expects enterprises to increasingly gravitate toward network providers that can demonstrate consistent quality of service and offer price points that match their budgets.”
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