UK based mobile messaging solutions provider Synchronica has seen great success on the African continent. Although the company has agreements with over 80 mobile operators and eight device manufacturers worldwide, their heart seems to lie in Africa.
We spoke to Synchronica’s CEO Carsten Brinkschulte about the company’s main competitors, their strategy for Africa, and the most common misconceptions about doing business on the continent.
* Tell us more about Synchronica. Give us an idea of the size of the business.
Synchronica is a public company listed on the London Stock Exchange and the Venture Exchange of the Toronto Stock Exchange.
With 134 full-time employees, Synchronica has development and operational centres in the UK, Germany and the Philippines and have worked for more than nine years providing ground-breaking mobile messaging solutions for Mobile Network Operators, with a particular focus on using open industry standards.
Our flagship solution, Synchronica Mobile Gateway, has been implemented by more than 83 mobile network operators as well as eight mobile handset manufacturers, and our mission is to take mobile messaging to the next level by enabling mobile email, instant messaging, social networking and PIM synchronization for the “rest of us”.
* How has Mobile Gateway agreements with Nigerian operators impacted Synchronica’s business?
Nigeria is undoubtedly the single most important mobile market on the continent, and we’ve been quite successful here. Synchronica’s Mobile Gateway has already been selected by two of Nigeria’s top three mobile operators, and seven out of every ten GSM customers in the country now have access to our award-winning mobile messaging infrastructure. Our service is also used by a major Nigerian religious community, allowing them to disseminate church-related news to the greater congregation.
* Which African countries, besides Nigeria, are you currently operating in?
We have a group-wide framework agreement with Bharti Airtel and Mobile Gateway has been deployed in each of the 16 African countries where Airtel operates. The service, marketed as ‘Airtel Connect’, combines push email, synchronization, instant messaging and social networking in a single platform and is offered at an affordable, flat-rate, monthly charge.
Mobile Gateway is also being used by five of MTN’s African subsidiaries, as well a handful of smaller regional players. We also have an agreement with Mi-Fone – a fast-growing African handset manufacturer that has launched a range of devices, powered by Synchronica Mobile Gateway, and are targeted towards the ‘tech-savvy’ in Africa.
* What is Synchronica’s strategy for Africa?
With a mobile penetration rate of just 41%, Africa is one of the mobile industry’s most exciting regions. The continent has quite a number of well capitalised and innovative mobile operators rolling out services which are relevant to the real needs of their markets.
Africa is also getting increased access to wholesale bandwidth – in 2009, we saw undersea cables connecting East Africa, and even more cables connecting West Africa in 2010. But what good is wholesale bandwidth if your subscribers can’t access the Internet because they either don’t own personal computers, or can’t afford to purchase a Smartphone?
This is where Synchronica fits in – our product works on any mobile phone, and allows subscribers to manage their email, IM, or Social Networking Services without having to visit an Internet Cafe. Our role is to work with mobile operators and device manufacturers in the region to take advantage of this opportunity, and to continuously improve the customer experience with cutting-edge product innovation.
* What is the most common misconception about doing business in Africa?
The negative publicity that plagues Africa as a business destination is out-dated. While corruption, poor infrastructure and institutional bureaucracy can certainly make for a challenging business environment, Synchronica has found the continent to be incredibly entrepreneurial and backed up with a wealth of highly skilled, resourceful and incredibly talented people.
* Which African mobile operators are you hoping to partner with?
Mobile Gateway is compatible with the widest range of phones, including support for Smartphones, mass-market feature phones and even basic phones (devices which cannot connect to the Internet).
Mobile Gateway also supports a wide range of messaging communities, extending from business messaging services such as Microsoft Exchange, to mass-market consumer webmail and Instant Messaging services such as GoogleMail, GoogleTalk and Yahoo! Mobile Gateway’s wide device and community compatibility means that the single platform is relevant to multiple customer segments, and we’re keen to assist any operator wanting to offer advanced messaging across their base.
* What informed your decision to acquire Nokia’s messaging business and how will it be integrated with your current product/service mix.
Nokia’s operator branded messaging business is successful and complementary to Synchronica’s mobile messaging business, and it provides us with a strong foothold in the strategically important North American operator market.
Combined with more than 80 existing carrier contracts in Europe, Latin America, Middle East, Russia, and Asia – and with our market-leading position in Africa, we see this acquisition as a route to becoming the global leader in next-generation mobile messaging.
The acquired Nokia messaging platform complements Mobile Gateway and we plan to continue to develop the acquired messaging platform and to merge both products to create a superior solution with significantly enhanced functionality.
* You recently announced a partnership with Airtel Africa to launch a new product “Airtel Connect”. Has this partnership been successful? Is this an indication of things to come?
Airtel Ghana was the first subsidiary to launch ‘Airtel Connect’, and embarked on a major print and radio advertising campaign to promote the service which is offered at a fixed monthly rental of GHC3 (US$1.99) for unlimited use. Airtel connect is now launching in the remaining 15 Airtel Africa countries. We have worked closely with Airtel on developing the service, and are constantly engaging with them to make sure that the service is a success.
* Who are your main competitors and what is your key competitive advantage?
The majority of Synchronica’s competitors tend to focus their efforts on a specific segment of the mobile device market and many competitors have focussed predominantly on the growing, but relatively small Smartphone segment.
Synchronica’s products, however, support the widest range of devices, including support for Smartphones, mass-market feature phones and even basic phones (devices which cannot connect to the Internet). While Synchronica’s competitors often focus predominantly on the business or consumer markets, Synchronica’s products also support a wide range of messaging communities, extending from business messaging services such as Microsoft Exchange, to mass-market consumer webmail and Instant Messaging services such as GoogleMail, GoogleTalk and Yahoo.
Bontle Moeng, ITNewsAfrica
