Thread by @ido_sum

#Saturday #Africatech #reflections: @Google just invested $1b in Airtel 18months after investing $4.5b in @reliancejio - but why? and whay does it mean for #AfricaTech?

1/ doing my weekend catch-up, came across this by @TheKenWeb: the-ken.com/the-nutgraf/wh…

Which made me think a but more about the role of Telcos, channels and how we might differ from some developped markets conventional wisdom...

2/ While I think @TehKen made some very valid points, to me, one thing overlooked in our developing markets is channel and (and consumer data/reach profiles) ownership.

3/ Content distribution in the developed world started over PCs. Power distributed between PC makers, ISPs (internet service providers) and the browsers (Microsoft and later others), as well as Google and later FB as the discovery mechanics for content.

4/ With time the last latter 2 became the most powerful in this equation as other pieces became either very fragmented (device manufacturers, excluding apple that integrated an OS, and content disc. engine > the app store), or integrated into google/FB (OS/content assets etc)

5/ In developing markets PC era was skipped. Telcos were the device sellers (at times co-manufacturers), the connectivity providers, and many times the ones enabling the content discovery (portals or by deciding which apps they push/zero-rate (or pre install etc.)

6/ While majority of data on users ended in the hands of Google and FB I the developed world, in the developing parts due to different usage patterns, the Telcos were the center of it. Allowing many of them to enable payments gave them even more data and leverage.

7/ While many telcos are yet to decide what to do with it, and sometime just power-play their ownership of channel with short term view – its fascinating to see Google identifying it, and betting on Telcos as one of its main ways to acquire users in India.

8/ The move away fro mcookies, and the fact that majority of 'new' potnetial digital services users are in the developing world that is digitaised in a eye-watering pace, means a new balance of power could be created, and rules might be different that what we know.

9/ Both google & FB trying to gain back the same level of power they have in US/Europe via becoming part owner of Telcos, integrating some of the access infrastructure, and in general cracking quickly how to be the 'internet' and didgital services gateway to billions.

10/ So what does it mean for #AfricaTech?

Channels could prove different than in the US/Europe. and when building for mass market, it required new thinking about costumer acquisition, and not just more of the same. If Google sees it - maybe there is a point there.

11/ With that, no African Telco went as far and wide as Jio and Airtel India as of now. AirtelAfrica raised $500m for mobile money, but will be interesting to see if and who identifies it first and acts.

12/ for us, its a good reminder that dynamics might play out different, and we are not here to just follow, but many times to discover and invent, as the ways things grew elswhere might not always be an accurate estiamte on how they will play out in #Africa or for us.

13 / I might be very wrong – but I think its an indication that some growth stories and trajectories of companies will be different in developing markets, where Telcos/Banks and other incumbments can not be overlooked.

end / Partner wisely, make sure you manage all these power dynamics with a very clear mind, and always be creative and intentful about how to scale in the most efficient and effective way in the #Africa context, a path we all still need to define...

#AfricaTech #AfricaVC