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Specific recognition and bacterial adhesion to host cells by uropathogenic Escherichia coli (UPEC) are the first steps towards infection of epithelial tissue of the human urogenital system. Therefore, targeting of UPEC virulence factors, relevant for adhesion, is a promising approach for prevention of recurrent urinary tract infections (UTI). A fully characterized plant-derived aqueous extract from the leaves of Orthosiphon stamineus (OWE), a plant traditionally used in clinical practice in Europe and Asia for UTI, has been shown to exert strong antiadhesive effects under in vitro and in vivo conditions. For improved understanding of the underlying mechanisms, transcriptome analysis of OWE-treated UPEC strain UTI89 by Illumina sequencing and cross-validation of these data by qPCR indicated significant downregulation of bacterial adhesins (curli, type 1-, F1C-, and P fimbriae) and of the chaperone-mediated protein folding/unfolding and pilus assembly process; in contrast, flagellar and motility-related genes were upregulated. We conclude that OWE transforms the sessile lifestyle of bacteria into a motile one and therefore disables bacterial attachment to the host cell. Additionally, the extract inhibited gene expression of multiple iron-acquisition systems (ent, fep, feo, fhu, chu, sit, ybt). The present study explains the antiadhesive and anti-infective effect of the plant extract by pinpointing specific biochemical and molecular targets.

Ethnopharmacological relevance Extracts from Cranberry fruits (Vaccinium macrocarpon) are traditionally used against urinary tract infections, mainly due to antiadhesive activity against uropathogenic E. coli (UPEC), but the exact mode of action and compounds, responsible for the activity, are unknown. Aim of the study i. To investigate if cranberry extract acts only by a single component or must be assessed as a multi-active-compound preparation; ii to screen isolated cranberry-related natural products under in vitro conditions to pinpoint natural products with antiadhesive effects against UPEC, followed by in silico calculations (QSAR) to predict potential antiadhesive compounds; iii. investigations by using urine samples from cranberry treated volunteers for evaluation on the bacterial transcriptome and the mannose-binding side of FimH, iv. to investigate if besides Tamm Horsfall Protein induction in the kidney, the extract acts also directly against UPEC. Material and methods Antiadhesive activity of 105 compounds was determined by flow cytometric adhesion assay (UPEC UTI89 on T24 bladder cells). Urine samples from 16 volunteers treated with cranberry extract (p.o., 7 days, 900 mg/day) were used for ex vivo testing concerning influence on the bacterial transcriptome (Illumina RNA-seq) and interaction with the mannose binding domain of type-1 fimbriae. Results i. The antiadhesive effect of cranberry extract cannot be attributed to a single compound or to a single fraction. ii. Unglycosylated flavones and flavonols with bulky substitution of the B ring contribute to the antiadhesive activity. 3′-8″-biflavones and flavolignans (not related to cranberry fruits) were identified as potent antiadhesive compounds against UPEC. iii. QSAR yielded a model with good statistical performance and sufficient internal and external predictive ability. iv. Urine samples from male cranberry-treated volunteers indicated significant interaction with the mannose binding domain of type-1 fimbriae, which correlated with the amount of Tamm-Horsfall Protein in the test samples. v Cranberry extract did not influence the UPEC transcriptome; gene expression of bacterial adhesins (P-, S-fimbrae, curli) was not influenced by the urine samples, while a slight, but non-significant upregulation of type 1 fimbriae was observed. Conclusions B-ring substituted flavones and flavonols from cranberry contribute to the antiadhesive activity against UPEC by inhibition of the FimH-mediated interaction with the host cell bladder epithelium.

This paper analyses the transition from the voice and SMS era of mobile telephony to the data-only era, and the strategies that operators have adopted during this transition phase. Key drivers for the transition are Over the Top services (OTTs). The paper uses quarterly prices for prepaid user baskets across 44 African countries and introduces an alternative tool to measure and compare top-up bundles. Prepaid voice, prepaid data and top-ups are analysed, to demonstrate the various strategies operators in Africa have adopted, in response to revenue loss caused by OTTs, such as Facebook, WhatsApp and Skype. Case studies of dominant operators in South Africa, Kenya and Namibia are used to highlight which strategies have successfully defended or increased mobile operator revenues. The paper shows that embracing OTTs, and providing prepaid products that resemble flat-rate pricing (top-ups with limited validity), is the most successful strategy for mobile operators to retain revenues. The paper also shows how zero-rated OTTs can be used to gain market share for new entrants. We argue that regulators should resist the push for regulating OTTs, and instead facilitate the evolution to flat access pricing.

Pathogens rely on a complex virulence gene repertoire to successfully attack their hosts. We were therefore surprised to find that a single fimbrial gene reconstitution can return the virulence-attenuated commensal strain Escherichia coli 83972 to virulence, defined by a disease phenotype in human hosts. E. coli 83972pap stably reprogrammed host gene expression, by activating an acute pyelonephritis-associated, IRF7-dependent gene network. The PapG protein was internalized by human kidney cells and served as a transcriptional agonist of IRF-7, IFN-β and MYC, suggesting direct involvement of the fimbrial adhesin in this process. IRF-7 was further identified as a potent upstream regulator (-log (p-value) = 61), consistent with the effects in inoculated patients. In contrast, E. coli 83972fim transiently attenuated overall gene expression in human hosts, enhancing the effects of E. coli 83972. The inhibition of RNA processing and ribosomal assembly indicated a homeostatic rather than a pathogenic end-point. In parallel, the expression of specific ion channels and neuropeptide gene networks was transiently enhanced, in a FimH-dependent manner. The studies were performed to establish protective asymptomatic bacteriuria in human hosts and the reconstituted E. coli 83972 variants were developed to improve bacterial fitness for the human urinary tract. Unexpectedly, P fimbriae were able to drive a disease response, suggesting that like oncogene addiction in cancer, pathogens may be addicted to single super-virulence factors., Author summary Urinary tract infections affect millions of individuals annually, and many patients suffer from recurring infections several times a year. Antibiotic resistance is increasing rapidly and new strategies are needed to treat even these common bacterial infections. One approach is to use the protective power of asymptomatic bacterial carriage, which has been shown to protect the host against symptomatic urinary tract infection. Instilling “nice” bacteria in the urinary bladder is therefore a promising alternative approach to antibiotic therapy. In an effort to increase the therapeutic use of asymptomatic bacteriuria, we reintroduced bacterial adhesion molecules into the therapeutic Escherichia coli strain 83972 and inoculated patients who are in need of alternative therapy. To our great surprise, the P fimbriated variant caused symptoms, despite lacking other virulence factors commonly thought to be necessary to cause disease. In contrast, type 1 fimbriae, did not provoke symptoms but enhanced the beneficial properties of the wild-type strain. This is explained by a divergent effect of these fimbrial types on host gene expression, where P fimbriae activate the IRF-7 transcription factor that regulates pathology in infected kidneys, suggesting that a single, potent virulence gene may be sufficient to create virulence in human hosts.

It would be desirable to have an unambiguous scheme for the typing of Shiga toxin-producing Escherichia coli (STEC) isolates to subpopulations. Such a scheme should take the high genomic plasticity of E. coli into account and utilize the stratification of STEC into subgroups, based on serotype or phylogeny. Therefore, our goal was to identify specific marker combinations for improved classification of STEC subtypes. We developed and evaluated two bioinformatic pipelines for genomic marker identification from larger sets of bacterial genome sequences. Pipeline A performed all-against-all BLASTp analyses of gene products predicted in STEC genome test sets against a set of control genomes. Pipeline B identified STEC marker genes by comparing the STEC core proteome and the "pan proteome" of a non-STEC control group. Both pipelines defined an overlapping, but not identical set of discriminative markers for different STEC subgroups. Differential marker prediction resulted from differences in genome assembly, ORF finding and inclusion cut-offs in both workflows. Based on the output of the pipelines, we defined new specific markers for STEC serogroups and phylogenetic groups frequently associated with outbreaks and cases of foodborne illnesses. These included STEC serogroups O157, O26, O45, O103, O111, O121, and O145, Shiga toxin-positive enteroaggregative E. coli O104:H4, and HUS-associated sequence type (ST)306. We evaluated these STEC marker genes for their presence in whole genome sequence data sets. Based on the identified discriminative markers, we developed a multiplex PCR (mPCR) approach for detection and typing of the targeted STEC. The specificity of the mPCR primer pairs was verified using well-defined clinical STEC isolates as well as isolates from the ECOR, DEC, and HUSEC collections. The application of the STEC mPCR for food analysis was tested with inoculated milk. In summary, we evaluated two different strategies to screen large genome sequence data sets for discriminative markers and implemented novel marker genes found in this genome-wide approach into a DNA-based typing tool for STEC that can be used for the characterization of STEC from clinical and food samples.

Escherichia coli can colonize the urinary bladder without causing a disease response in the host. This asymptomatic bacteriuria (ABU) can protect against recurrent symptomatic urinary tract infection by virulent bacteria. Here, we report the whole-genome sequences of nine E. coli ABU isolates from diabetic patients.

Asymptomatic bacterial colonization of the urinary bladder (asymptomatic bacteriuria, ABU) can prevent bladder colonization by uropathogens and thus symptomatic urinary tract infection (UTI). Deliberate bladder colonization with Escherichia coli ABU isolate 83972 has been shown to outcompete uropathogens and prevent symptomatic UTI by bacterial interference. Many ABU isolates evolved from uropathogenic ancestors and, although attenuated, may still be able to express virulence-associated factors. Our aim was to screen for efficient and safe candidate strains that could be used as alternatives to E. coli 83972 for preventive and therapeutic bladder colonization. To identify ABU E. coli strains with minimal virulence potential but maximal interference efficiency, we compared nine ABU isolates from diabetic patients regarding their virulence- and fitness-associated phenotypes in vitro, their virulence in a murine model of sepsis and their genome content. We identified strains in competitive growth experiments, which successfully interfere with colonization of ABU isolate 83972 or uropathogenic E. coli strain 536. Six isolates were able to outcompete E. coli 83972 and two of them also outcompeted UPEC 536 during growth in urine. Superior competitiveness was not simply a result of better growth abilities in urine, but seems also to involve expression of antagonistic factors. Competitiveness in urine did not correlate with the prevalence of determinants coding for adhesins, iron uptake, toxins, and antagonistic factors. Three ABU strains (isolates 61, 106, and 123) with superior competitiveness relative to ABU model strain 83972 display low in vivo virulence in a murine sepsis model, and susceptibility to antibiotics. They belong to different phylogroups and differ in the presence of ExPEC virulence- and fitness-associated genes. Importantly, they all lack marked cytotoxic activity and exhibit a high LD50 value in the sepsis model. These strains represent promising candidates for a more detailed assessment of relevant fitness traits in urine and their suitability for therapeutic bladder colonization.

This paper demonstrates that analysing ICT indicators, based on benchmarking through the application of a dynamic diagnostic approach with context relevant indicators, provides a far more valid evidence-base for ICT policy and regulation than using the ranking of a country on one of the global ICT indices. Both approaches - composite indices and benchmarking - use the same data but differ in how the data is analysed. Both approaches have shortcomings. However, the benchmarking approach used in this paper is seen as the starting point for further analysis, showing clearly the linkages between individual indicators. Global ICT indices, as they are currently formulated, disguise these linkages by providing a composite measure, encouraging the perception that the index is the end result of the analysis, rather than the beginning. Ranking all countries, from poorest to the richest, leads to an automatically high correlation of an index to GDP per capita, making the latter the best predictor for the index score.

This paper analyses the link between mobile termination rate reductions and retail prices. It draws on in-depth case studies of South Africa, Namibia and Kenya where regulators have reduced termination rates towards the cost of an efficient operator. To varying degrees these have all led to lower retail prices and significant market expansion. While retail prices in both Namibia and Kenya dropped following substantial termination rate reductions, the South African case demonstrates that termination rate reductions are not always passed on to consumers as is hoped by such regulatory interventions. In South Africa, it was only after the second reduction in March 2012 that smaller operators were able to reduce their off-net prices to a level that could tempt the subscribers to dominant operators to switch. All the case studies confirm nevertheless that retail prices do not go up in response to termination rates going down as contended by dominant mobile operators around the world. This is in contrast to a body of literature stating that termination rates and mobile retail prices constitute a two-sided market and that termination rate reductions will lead to a so-called "waterbed effect". Termination rates and mobile retail prices do not constitute a two-sided market and termination rate reductions will not lead to a so-called "waterbed effect".The pass-through to consumers of MTR savings is not automatic, and that relatively small reductions in termination rates do not provide new entrants with sufficient room to compete.There is no unidirectional link between termination rates and retail prices, as is often claimed by those defending the status quo of arbitrarily high termination rates.Setting retail prices is not a question of revenue replacement but rather one of profit maximisation in a competitive environment where the choices of one operator influence the revenues and profits of another.

Purpose – This paper aims to provide an answer as to whether fibre to the home and other types of fixed internet access still have a role to play in Africa beyond a few urban elites, as well as what business models are likely to be successful in the African context. Design/methodology/approach – The paper uses data from nationally representative ICT household surveys conducted in 12 African countries in 2012. These data are complemented by an OECD broadband pricing methodology and data. In addition to the OECD basket methodology, own baskets were defined to capture the complexity of African products, and to draw out the different business models for fixed and mobile broadband. Findings – The paper demonstrates that if fixed internet is provided as an uncapped service at an affordable price, it has a chance to at least co-exist with mobile broadband in Africa. The availability of fixed internet is rapidly diminishing where it is offered as a capped service and not at prices similar to mobile broadband. The paper also demonstrates that fixed-line telecommunication companies should to focus on data only before mobile operators do, and they lose out once again. Practical implications – In Africa, mobile voice overtook fixed voice at the turn of the millennium with the introduction of prepaid services. Ten years later, mobile internet is rapidly overtaking fixed internet by overcoming key obstacles to fixed internet access. While the developed world discusses the merits of fixed and mobile broadband, it is clear that for Africa, fixed broadband in the form of fibre to the home, or even plain ADSL, will only reach a few urban elites in the next decade. Fixed-line operators then should rethink their pricing and investment strategies: they are advised to invest in high-speed technologies such as VDSL or fibre to the home, if fixed broadband is to stand a chance against mobile broadband. Whether fixed-line operators will lose the data battle as well will be determined by their business decisions as well as by policy and regulatory interventions. Originality/value – This paper uses primary household and individual data that allows for a better understanding of internet access and use in Africa. The analysis of internet access prices for ADSL against prepaid and post-paid mobile broadband is used to assess broadband business strategies across 12 African countries. The paper provides policymakers and regulators with the evidence required for an informed ICT policy and regulation and it recommends business strategies that should be pursued by operators to improve broadband sector performance.

Purpose – The purpose of this paper is to analyse internet access and use trends in 11 African countries based on household and individual ICT survey data. Design/methodology/approach – The study uses nationally representative data for households and individuals in residential and semi-residential areas, as defined by national census sample frames for 11 African countries. Findings – While the 2007/2008 African ICT access and use survey demonstrated alarmingly little access to the internet on the continent, together with a large-scale absence of computers and smart phones, compounded by the high cost of connectivity, the mobile phone is now the key entry point for internet use. Internet access has increased significantly across all countries, as a result increasing internet penetration to 15.5 per cent across the 11 African countries surveyed by Research ICT Africa in 2011/2012. Mobile internet requires fewer ICT skills, less financial resources and does not rely on electricity at home, compared to computers or laptops. Other findings highlight the unevenness of internet take-up across and within countries. Thus, while the majority of the countries under investigation demonstrate increased mobile internet take-up, in Rwanda, Tanzania and Ethiopia, internet use remains negligible. In those countries where mobile internet is boosting connectivity, this is being driven by social networking applications. Practical implications – The policy implications of the shift in significant numbers from negligible internet access at public access points serviced primarily by fixed access lines to mobile internet access are significant. Just as traditional reform strategies of increasing competition in the market increased access to voice services more successfully than traditional universal service strategies, mobile again appears to be addressing the internet gap. Competition in mobile markets appears to address the efficiency gap in the market, resulting in an increase in the choice of services and a reduction in prices. Strategies that seek to aggregate users at public access points, funded by complex levies and subsidies again seem to have been overtaken by the increasing availability of mobile internet access, as feature phones and smart phone become more available to individual users. Social implications – Understanding prepaid mobile internet further provides a pro-poor dimension to public policies seeking to improve internet access, which historically has been available and affordable to the elite. The rest of the society had to rely on public access points, whether private internet cafés or schools and libraries. Originality/value – This paper uses primary data that allow a better understanding of internet access and use in Africa. It provides policymakers and regulators with the evidence required for an informed ICT policy and regulation.

Purpose – The purpose of this paper is to analyse the extent to which informal businesses employ information and communication technologies (ICTs) in their daily activities and the challenges they face in making use of ICTs. Design/methodology/approach – The study uses nationally representative data for informal businesses in residential and semi-residential areas, as defined by national census sample frames for nine African countries. Findings – The results show that mobile phones remain the most commonly used ICT among informal businesses, while the use of other ICTs, such as fixed-line telephones, computers and the internet remains negligible. Businesses were found to communicate more with their suppliers than with their customers via mobile phone. The lack of use of the different kinds of ICTs was attributed to issues around need, affordability, availability and access. Research limitations/implications – The data are not representative of formal businesses. Practical implications – There is little money to be wasted on gadgetry in the informal sector and only technologies that add value (i.e. bring in money in the short term) will be used. There is the need to be concerned about creating a business environment that allows informal businesses that have the skills and ambition to grow and become formal and sustainable. ICTs, in particular the mobile phone and mobile internet, have the potential to facilitate this. ICTs may allow for a deepening of the distribution and procurement channels of businesses. Doing business over distance could become more affordable through the mobile phone and mobile money. Social implications – Policy makers have many choices in addressing affordability and access to ICTs in the informal sector, ranging from introducing competition and removing import duties on prepaid airtime, to supporting mobile application development for informal businesses in general. Originality/value – This paper uses primary data that allow a better understanding of informal businesses and their use of and access to ICTs. It adds to the literature on the informal sector in which Africa's poor find their livelihood and from which base the formal economy operates.

Purpose – The purpose of this paper is to demonstrate the complexity of prepaid mobile pricing in Indonesia and suggest tools that allow consumers to make informed decisions. Design/methodology/approach – Defining a basket of services and pricing it for all prepaid mobile products available in Indonesia. Findings – Findings suggested the importance of price transparency to ensure that consumers are well-informed concerning the range of services and prices available. Practical implications – The paper provides recommendations for the Indonesian Telecommunication Regulation Agency (BRTI), which could use price baskets to create transparency and monitor price developments in the market. Another measure BRTI could undertake is to require any advertisement to include the cost for a price basket defined by BRTI. Social implications – Price transparency is likely to lead to price competition and thus lower prices and/or better services. The economic impact of lower prices is well documented. Originality/value – The authors have developed a unique basket methodology to address the specific situation in Indonesia.

Asymptomatic bacteriuria (ABU) is a bacterial carrier state in the urinary tract that resembles commensalism at other mucosal sites. ABU strains often lack the virulence factors that characterize uropathogenic Escherichia coli (E. coli) strains and therefore elicit weak innate immune responses in the urinary tract. In addition, ABU strains are active modifiers of the host environment, which they influence by suppressing RNA polymerase II (Pol II)-dependent host gene expression. In patients inoculated with the ABU strain E. coli 83972, gene expression was markedly reduced after 24 h (>60% of all regulated genes). Specific repressors and activators of Pol II-dependent transcription were modified, and Pol II Serine 2 phosphorylation was significantly inhibited, indicating reduced activity of the polymerase. This active inhibition included disease–associated innate immune response pathways, defined by TLR4, IRF-3 and IRF-7, suggesting that ABU strains persist in human hosts by active suppression of the antibacterial defense. In a search for the mechanism of inhibition, we compared the whole genome sequences of E. coli 83972 and the uropathogenic strain E. coli CFT073. In addition to the known loss of virulence genes, we observed that the ABU strain has acquired several phages and identified the lytic Prophage 3 as a candidate Pol II inhibitor. Intact phage particles were released by ABU during in vitro growth in human urine. To address if Prophage 3 affects Pol II activity, we constructed a Prophage 3 negative deletion mutant in E. coli 83972 and compared the effect on Pol II phosphorylation between the mutant and the E. coli 83972 wild type (WT) strains. No difference was detected, suggesting that the Pol II inhibitor is not encoded by the phage. The review summarizes the evidence that the ABU strain E. coli 83972 modifies host gene expression by inhibition of Pol II phosphorylation, and discusses the ability of ABU strains to actively create an environment that enhances their persistence.

PurposeThis paper aims to demonstrate that call termination is not one side of a two‐sided market and that a “waterbed effect” does not exist for calling‐party's‐network‐pays (CPNP) markets where mobile termination rates are being reduced towards the cost of an efficient operator.Design/methodology/approachThe cases of Namibia, Kenya, South Africa, Nigeria and Botswana are investigated and the impact of cost‐based termination rates on subscriber numbers, investment and profits of dominant operators is analysed.FindingsIn Kenya, the reduction in mobile termination rates in August 2010 led to an immediate reduction in retail prices, allowing smaller operators to compete with dominant operators. In Namibia, lower retail prices led to an expansion of the market, which, in turn, led to higher investment and profits for the dominant operator. On the strength of the most recent empirical evidence from Africa, the paper shows that cost‐based mobile termination rates increase competition between operators and lead to lower prices, more subscribers and more investment in networks and services.Originality/valueThe paper provides empirical evidence for five African countries on impact on regulatory interventions.

PurposeThis paper aims to examine whether mobiles are replacing the use of public access telephones (mobile or fixed) in Africa.Design/methodology/approachThe paper uses data from nationally representative household surveys from 17 African countries to explain public phone usage.FindingsMobile use is often in conjunction with public phone use for some sections of the population. At lower levels of income, increases in income are associated with a higher likelihood of payphone use due to income related barriers such as the inability to afford a mobile handset and the minimum recharge amounts for mobile minutes. At higher levels of income use of public phones tends to decline, while high‐income users do not use public phones at all. The latter is in keeping with the expectation of a gradual switch to mobile use with rising incomes.Practical implicationsThe main policy recommendation that follows from the study is the need to ensure that public pay phones continue to exist as a communication safety net.Originality/valueThe empirical research explains public phone usage in terms of individual characteristics like income, age, gender representation for 17 African countries.

PurposeInformation communication technologies (ICTs) are widely seen as having the potential to contribute positively to economic growth and development and to improve the livelihoods and quality of life of individuals and households and yet access to ICTs and usage of them remains highly inequitable. This paper aims to identify areas of inequality in access to ICTs between men and women in Africa.Design/methodology/approachDrawing on the Research ICT Africa (RIA) household and individual ICT survey conducted in 17 African countries between 2007/2008 the paper provides an empirical basis for assessing gender dimensions of ICT access and usage. Additionally, focus group studies were conducted in Cameroon, Ethiopia, Nigeria, South Africa and Uganda to gain a greater qualitative understanding of access to and usage of ICTs from a gender perspective.FindingsAlthough the results confirmed in many countries the widely held belief that men have greater access to ICTs than women in some instances more women than men owned mobile phones such as in South Africa and Mozambique. In Cameroon women were found to have greater knowledge of the internet than their male counterparts. Most significantly perhaps is the finding that when women have similar income, education and employment status they have comparable access to ICTs as their male counterparts. However, as women generally do not have the same access to those core factors that enhance ICT access and usage, their access to ICT is generally lower.Originality/valueThe quantitative as well as focus group results of this study confirm gender differences in access to ICTs, raising important questions about the points of policy intervention to redress such imbalances.

PurposeThis paper seeks to contribute to the debate about the regulation of termination rates in the context of Africa.Design/methodology/approachThe methodology is based on analysis of secondary data and a case study of a regulatory intervention in Namibia and its impact.FindingsMobile call termination is a monopoly and not one side of a two‐sided market. Cost‐based termination rates increase competition between operators and lead to lower prices, more subscribers and more investment.Research limitations/implicationsThe case of Namibia is presented as an example of termination rate benchmarking as an alternative regulatory strategy to overcome regulatory and institutional bottlenecks in Africa.Practical implicationsAfrican regulators are presented with a tool for removing market distortions.Social implicationsCost based termination rates will lead to lower retail prices and allow more people to use mobile phones.Originality/valueThe paper presents theoretical and empirical evidence against the waterbed effect and the two‐sided market argument.

This paper presents an assessment of existing mobile application (app) business models that are targeted at people living at the base of the pyramid (BoP) or that are suitable for people living at the BoP. The purpose of the paper is to address specific pain points for app developers and to provide practical, actionable advice. The recommendations of this paper are specific to each of four countries: Ghana, Mozambique, Nigeria and Zambia. In assessing the app markets in each of the four countries, it quickly becomes clear that there is a wide range of business models. Part of the business model is unique to the sector and to the business problem that the app is attempting to solve. In order to provide maximum value for app developers, this research focuses on three areas that are common to all business models: *Revenue sources - How to generate revenue is at the heart of any business model. App developers have to choose how to make money from their products and services. The options include in-app advertisement, pay per download of content or app, in-app purchases, upgrade of a free app to a more feature-rich one in exchange for a fee (freemium) and subscriptions. *Distribution channels - The availability of a mobile application is dependent upon its distribution network. Distribution can take place either via an app store, a mobile operator (through USSD services, for example) or through a local distribution network. *Payment facilities - The main payment options for app developers include premium SMS, airtime transfer, mobile money and bank-based payments such as electronic transfers and payment by cheque, or with debit and credit cards. In addition to an analysis of the three common business model areas, there is a brief assessment of the significant role of incubators in in supporting app developers. However, the impact of incubators is only partially realised and the paper has several recommendations. The key findings in each of the three business model areas as well as for app incubators are: *Revenue sources - Multi-sided platforms are an under-exploited business model. Providing a service to consumers that is paid for by businesses - the other side of the platform - means that apps are more likely to make a profit and be sustainable. Of course, the multi-sided model is dependent on addressing a problem or need experienced by both sides of the equation: consumers and businesses. *Payment facility - Premium SMS is the ideal payment facility because it reaches all mobile subscribers regardless of phone type. However, premium SMS is challenging because the MNO revenue share can be very high. Nevertheless, the finding of this report is that rates are negotiable and MNOs are beginning to realise that their high revenue share is slowing market growth. At the same time increasing Smartphone penetration and mobile money adoption rapidly creates alternative payment facilities, outside MNO control. *Distribution platform - MNO stores are ideal distribution channels because of their access to local subscribers, but this is unrealised. As a result, independent distribution is the most common option. For feature phones, the Ovi Store is a viable alternative but this is only an option in Nigeria where the Ovi Store has a local presence. As smartphone adoption increases, Google Play will become dominant, and there is a commercial opportunity for Google in terms of registering developers as merchants. Currently, this is not possible in any African country. *Incubators & hubs - Every hub or incubator visited by the team was staffed by inspiring and motivated personnel. It is clear that the more structured the environment, the more beneficial the process will be for developers in terms of providing specific programs at regular and planned intervals. The target is to better mix the commercial realities of launching a business with the technical skills already available in each of the hubs. This paper identifies business models for mobile applications that target the BOP, i.e., those that live on less than US$2.5 a day and that are revenue generating in in Ghana, Nigeria, Zambia and Mozambique. The key theme informing the analysis was as follows: can an environment be created that would support an explosion of mobile applications such as in Europe and North America? There is clearly an opportunity - in 2012, the mobile application economy was worth US$53 billion and is expected to expand at a 28% compound annual growth rate up to 2016, reaching US$143 billion. In comparison, the app economy in Africa is minuscule, and the likelihood of the number of mobile applications growing explosively is low. GitHub, an online resource for developers to store code, shows that only 0.12% of its users are from Africa out of a developer base of nearly 4 million.

“Wireless mobile services for the delivery of broadband provides false hope for the future and promotes inefficient use of resources in the present”, Eli Noam argued in Lusaka, one of the least connected capitals in the world. Applying his 2011 paper, Let Them Eat Cellphones: why mobile wireless is no solution for broadband, in which he rejects proposals in the United States for the deployment of mobile wireless services to meet rural broadband needs to Africa, he argued that the cost of mobile wireless deployment was only cheaper in the short term. The high costs associated with matching constantly growing demand with limited supply of spectrum, he argued, meant that mobile did not enjoy the longer term economies of scale that fixed-line investments did. Noam also cautioned against underestimating the power of video, to which he attributed broadband take up in the United States. He challenged the notion that communities forced to access video on mobile wireless networks would simply accept poorer quality services than their urban or wealthier counterparts, who were able to receive the array of high-quality digital services on offer.

This paper examines three barriers to effective policy-making and regulation in developing countries: inefficient operators; information asymmetry between regulator and operators; and where the role of the regulator to balance the interests of consumers, competing enterprises and investors is not being fulfilled. The paper demonstrates how ICT research of Research ICT Africa in combination with multiple communication strategies have been used to assist regulators and policy makers in making informed decisions and led to market liberalization and legislative and regulatory reform in Namibia. A presentation on research results to the Namibian president and cabinet in 2006, private sector co-funding of research projects, over 80 newspaper articles covering research results, 21 magazine articles, six target policy briefs, radio and TV interviews, face to face consultations all helped shaping public opinion and informing policy makers and regulators. This paper describes how ICT research was translated into useful information and advice for policy makers and regulators by working with journalists, providing strategic information to the private sector, researching issues for the regulator and maintaining impartiality.

Regulators across Europe and Africa agree that termination rates should be based on the forward-looking long-run incremental cost (LRIC) of termination of an efficient operator. Termination rates at cost of termination will remove economic distortions witnessed in Europe and Africa today and prepare the markets for a smooth transition to IP-based Next Generation Networks. The paper reviews the latest developments and trends for interconnection rates and shows how interconnection benchmarking can be used to set termination rates using the case of Namibia. Implementing LRIC is challenging, expensive, time consuming, and the required information is often not available in developing countries. The benchmarking methodology benchmarks termination rates, termination costs and regulatory best practice. The paper also demonstrates how annual reports and traffic volume can be used to as common sense check to compliment the benchmarking approach.

This paper discusses how mobile phones may be used to extend banking services to the ‘unbanked’. Generally, many more people possess mobile phones than bank accounts across Africa. Mobile banking services are already offered as an addition to existing bank accounts. Instead of adding a mobile phone as a complementary channel, why not add a bank account to an existing mobile phone number? This would narrow the access gap considerably, allowing mobile phones to be used to provide financial services to those without bank accounts. Two models are discussed that may help narrow the access gap: first—airtime cash convertibility, already a defacto practice in many parts of Africa, and second—the mobile wallet, which would allow full banking services to be performed on the basis of a virtual wallet linked to a SIM card. Results from Research ICT Africa’s 2007/8 e-Access & Usage household Survey are used to investigate the current usage of airtime as a means of payment as well as the potential demand for m- banking. Regulatory challenges to the adoption of m-banking as well as potential business models and possible models of cooperation between banks and mobile operators are also explored.

This paper uses data from nationally representative household survey conducted in 17 African countries to analyse mobile adoption and usage. This paper shows that countries differ in their levels of ICT adoption and usage and also in factors that influence adoption and usage. Income and education vastly enhances mobile adoption but gender, age and membership in social networks have little impact. Income is the main explanatory variable for usage. In terms of mobile expenditure the study also finds linkages to fixed-line, work and public phone usages. These linkages need however be explored in more detail in future. Mobile expenditure is inelastic with respect to income, ie the share of mobile expenditure of individual income increases less than 1% for each 1% increase in income. This indicates that people with higher income spend a smaller proportion of their income on mobile expenditure compared to those with less income. The study provides tools to identify policy intervention to improve ICT take up and usage and define universal service obligations based on income and monthly usage costs. It help to put a number to what can be expected from lower access and usage costs in terms of market volume and number of new subscribers. Linking this to other economic data such as national household income and expenditure surveys and GDP calculation would allow to forecast the economic and social impact of policy interventions. Key policy interventions would be regulatory measure to decrease access and usage costs, rural electrification and policies to increase ICT skills of pupils and teachers.

This article reports on a small and medium enterprise (SME) survey carried out by the ResearchICTAfrica (RIA) in 14 African countries. It argues that the nega- tive return on investment reported in the literature can be attributed to the failure to distinguish between the formal and informal sectors. This article demonstrates that informal SMEs have a higher proatability than formal ones. It further shows that ICTs are productive input factors and that their use in- creases labor productivity for informal as well as formal SMEs. The article fur- ther argues that there is still demand for axed-line phones among SMEs but that mobile phones have become the default communications tool because axed lines are either too expensive or not available. The primary policy recom- mendation arising out of this is that applications for SMEs need to be devel- oped using mobile phones.

Mobile cellular telephones have been the success story of communications globally. In the developed world, mobile telephony is traditionally seen as being complementary to fixed-line telephony, primarily because of its pervasiveness but also because the fixed-line network provides access to other technologies such as broadband. This article finds that, in nine African countries, in contrast to the developed world, mobile telephony is a substitute for fixed-line telephony - across all income groups and not just low income households as previously thought. The article argues in addition that pre-paid payment options (not just for mobile phones) are key to increasing use by low income households because irregular incomes do not support regular financial commitments in terms of contracts.