266m sub-Saharan phone users by 2017

TELECOMS

|
Image: By BiztechAfrica
266m sub-Saharan phone users by 2017

New analysis from Frost & Sullivan,  the ‘Sub Saharan African Communications Quantitative Quarterly Tracker Q3 2012’, covering key countries in the region, finds that the market had 181.7 million mobile and fixed telephony subscribers and 29.8 million internet subscribers in 2010, and estimates this to reach 266.1 million mobile and fixed telephony subscribers and 77.5 million internet subscribers in 2017. This expansion will be driven primarily by demand and uptake of mobile voice and internet services.

The report noted that broadband penetration in African countries is significantly low, with a majority of countries recording penetration levels of less than 5%. This has had a considerable impact on internet usage levels in the region. African countries, however, have experienced a steady uptake of mobile communications and are poised to witness an appreciable growth of mobile, broadband and internet services over the next 4-5 years.

"The growth of voice and internet markets in Africa is expected to be driven by a decline in retail price for these services," noted Frost & Sullivan's Information & Communication Technologies Business Unit Leader for Africa, Chantel Lindeman.

"Operators in the region are investing significantly in mobile infrastructure, including base stations and transmission networks. This is expected to result in the availability of higher network capacity at lower cost, with operators spurring growth by passing savings in network costs to the end users of services."

Operators are investing in shared terrestrial fibre optic infrastructure to increase transmission capacities and connect end users to undersea cables. They are also adopting infrastructure sharing at base stations to minimise the overall cost of delivering services to end users. Cost minimisation is likely to translate to lower retail prices of voice and internet services and push up demand and uptake levels.

The key challenge to growth and increased penetration of voice and internet markets in Africa is the low disposable income of a majority of consumers. The cost of devices required for the uptake of internet services is generally perceived to be high. As a result, operators in the region are likely to experience significantly low levels of new subscription to voice and internet services in the short-term.

To facilitate wider uptake of mobile voice and internet services, African operators are likely to analyse models utilised in developing markets in the region.

"Operators should learn from experiences in the uptake of mobile telephony services in African countries, such as Kenya, that have experienced notable penetration levels," advised Lindeman. "They should engage governments to offer tax subsidies on mobile phones, laptops and smartphones that are required to access internet services. In addition, operators can extend their range of internet access packages to meet the budget capabilities of more consumers."



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE TELECOMS NEWS

AMOTEL, WTL rural network now up and running

World Telecom Labs (WTL) and AMOTEL have announced that the network they have built in rural Tanzania is now live with residents in three remote villages able to make calls and use the internet for the first time.  Read More

MTN Ghana launches 20th anniversary edition of i-Fest

The MTN Ghana 20th anniversary edition of the internet festival (iFest) was officially launched at a colourful outdoor event in Abeka Lapaz, a suburb of Accra. Read More

Gilat Satcom, Total IT Solutions connect 10 villages in Nigeria

Gilat Satcom is providing voice and high-speed data to ten villages in the states of Adamawa, Borno, Kano, Katsina, Oyo and Yobe in the North East of Nigeria. Read More

NCC enforces 2442 Do Not Disturb short code

Following an NCC directive, Nigerian mobile operators will activate a Do Not Disturb facility which gives subscribers the freedom to choose what messages to receive from the various networks. Read More

Tigo Business – Building trusted business partner relationships with clients

CEO of Tigo Ghana, Roshi Motman Tigo Business has increased and empowered its account management team to improve its overall customer service experience.  Read More

Danbatta seeks Reps’ cooperation on telecom regulations

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has called for more cooperation and understanding of members of the House of Representatives, on regulatory functions of the commission. Read More

Orange completes acquisition of Airtel in Burkina Faso

Orange has announced that, together with its subsidiary Orange Côte d’Ivoire, it has completed the acquisition of 100% of the mobile operator Airtel in Burkina Faso.  Read More

MTN Ghana goes live with 4G LTE in grand style

The plush iconic MTN House, home to MTN Ghana’s operations came to a standstill on Tuesday, as the country’s telecom leader officially unveiled its latest 4G LTE services across the length and breadth of Ghana.  Read More

NCC to end telcos’ voluntary adherence to corporate governance

  Felix Adeoye; Prof Umar Dambatta and Communications Technology Minister Adebayo Shittu After more than one year of voluntary adherence by telcos to the Corporate Governance Code for the industry, the Nigerian Communications Commission (NCC) yesterday started a journey that will lead to mandatory enforcement. Read More

Telkom Kenya appoints new CEO

Telkom Kenya has announced the appointment of Aldo Mareuse as the Chief Executive Officer and member of the Board of Directors. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

First-ever Africa Barclays Accelerator programme concludesFirst-ever Africa Barclays Accelerator programme concludes

Ten fintech companies have concluded the first-ever Barclays Accelerator, powered by Techstars in Africa.

 

IN DEPTH

Ethical Hacking students can’t get a heck of a jobEthical Hacking students can’t get a heck of a job

Botswana ethical hacking students report that they are failing to break into the local job market.