CAMBRIDGE, Massachusetts, January 27 /PRNewswire/ --

Regulatory flexibility is a key factor of success for the African mobile 
payments sector due to the fact that service providers need active 
central-bank support and flexibility, according to a new report from Pyramid 
Research (www.pyr.com), the telecom research arm of the Light Reading 
Communications Network (www.lightreading.com).

"Mobile Financial Services in Africa: The Business Case for Operators and
Banks" reviews and analyzes mobile financial services offerings in African
markets, looks at drivers and obstacles to mobile financial services, breaks
down business models to assess their true bottom-line impact, and provides
market projections based on intrinsic market dynamics. The report includes
analysis and forecasts for the three primary segments within mobile finance
-- namely, payments, transfers, and banking services.

Click here for more information and to download an excerpt:
http://www.pyramidresearch.com/store/RPMOBPAYMENTSAFRICA0901.htm?sc=PR012809_
MPIA

Historically, mobile financial services in Africa have been driven by
banks providing additional services and convenience to their client base,
which tend to be urban and with a certain income level. This leaves a
significant opportunity to provide financial services to the "unbanked"
across the continent, which typically make up between 75 percent and 95
percent of the population, and mobile operators have the infrastructure and
distribution networks to reach such segments efficiently.

"Regulation and compliance are arguably the tallest hurdles a provider of
mobile payment services faces," comments Jan Ten Sythoff, Manager of EMEA
Research at Pyramid and co-author of the report. "Mobile banking services
have to meet requirements such as 'know your customer' (KYC), security, and
cash management that are critical to financial industry regulation."

The report determined that regulatory frameworks are still in flux. With
regulators themselves still coming to grips with the inner workings and
overall implications of mobile financial services, "Mobile Financial Services
in Africa" found the legalization process is bureaucratic and cumbersome.

"Laws governing financial services are extensive, complex, and require
substantial compliance resources," notes Sythoff. "They are also typically
built for pure financial institutions, making them difficult for non-banks to
implement without becoming full-fledged banks themselves."

The report discovered other practical challenges that complicate the
implementation of mobile financial services in the African context, including
fulfillment, security challenges, and distribution.

An important conclusion of the report is that, although there is a
revenue upside for offering such services, it is primarily other benefits for
network operators that make such services attractive, particularly churn
reduction and subscriber acquisition. The report includes a number of case
studies to demonstrate its findings, including that of Safaricom's success
with its MPESA service.

"Mobile Financial Services in Africa" is part of Pyramid's research
report series. A blend of primary research and qualitative analysis,
Pyramid's research reports offer comprehensive coverage of the fixed and
mobile communications space and enable those in the communications industry
to stay ahead of changing market dynamics.

This Report is now available for purchase. To purchase, contact Dave
Williams at dave.williams@pyr.com, or click here:
http://www.pyramidresearch.com/store/RPMOBPAYMENTSAFRICA0901.htm?sc=PR012809_
MPIA.

About Pyramid Research

Pyramid Research (www.pyr.com) offers actionable solutions to the complex
demands our clients face in the telecommunications, media and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries
-- a distinction that has remained unmatched for over 20 years. As the
telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's
most comprehensive market data, trusted research and insightful technology
analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading
online media, research, and focused event company serving the US$3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading's
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
our communities created around our global face-to-face events, Interop, Web
2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly
connections

About United Business Media Limited (www.unitedbusinessmedia.com)

United Business Media Limited (UBM) is a global media and marketing
services company that informs markets and brings the world's buyers and
sellers together at events, online, in print, and with the information they
need to do business successfully. UBM serves professional and commercial
communities, from IT professionals to doctors, from journalists to jewelry
dealers, from farmers to pharmacists around the world. UBM employs more than
6,500 people in more than 30 countries. UBM's businesses operating in the US
include CMPMedica, Commonwealth Business Media, Everything Channel, PR
Newswire, RISI, TechInsights, TechWeb and Think Services. UBM is listed on
the London Stock Exchange (UBM.L) and has a market capitalization of US$2.5
billion.

Press contact:
    Jennifer Baker
    +1-617-871-1910
    jbaker@pyr.com