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

comments powered by Disqus

MORE TELECOMS NEWS

World Bank to help rehabilitate DRC telecoms

Dilapidated, outdated and unreliable telecommunications infrastructure in the Democratic Republic of Congo (DRC) will be rehabilitated, rebuilt and modernised. Read More

30 phone brands registered with SON

The Phone and Allied Products Dealers Association (PAPDA) at Computer Village, Lagos says it has registered 30 brands of mobile phones with the Standards Organisation of Nigeria.  Read More

TNM dishes out K2.5m in Independence promotion

Premier mobile telecom operator TNM has dished out K2.5m worth of Mpamba value during the first draw of its commemorative promotion as Malawi celebrates 50 years of self rule. Read More

Airtel chief explains Touching Lives initiative

Airtel Nigeria says its launch of Touching Lives, a new corporate social responsibility (CSR) initiative, is meant to raise hope and inspire people. Read More

Vodacom Mozambique partners with Flytxt

Flytxt, a Big Data analytics solution provider for Communication Service Providers, has announced a strategic tie up with Vodacom, Mozambique’s leading mobile network.  Read More

CEC Liquid Telecom Zambia appoints new MD

The Liquid Telecom Group and Copperbelt Energy Corporation PLC have announced the appointment of Andrew Kapula as Managing Director of CEC Liquid Telecom in Zambia. Read More

MTN enhances data communications in Western and Central regions

MTN now has over 2275 2G sites and 1090 3G sites in as well as over 4000km of fibre in place in Ghana, to empower customers to do more with voice and data.  Read More

NCA lifts ban on Vodafone

The National Communications Authority (NCA) has lifted the ban imposed on Vodafone Ghana. Read More

Samsung Ghana bemoans influx of fake phones

Samsung Ghana has bemoaned the influx of fake Samsung products on the Ghanaian market and called for collaboration to combat it. Read More

Tigo Ghana sales team scoops 2013 Millicommander Awards

Tigo Ghana's sales team has been voted the best within the Millicom Group. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Widening ICT skills gap: Cause for concernWidening ICT skills gap: Cause for concern

Nigeria's FDI gains could be eroded by the widening gap in indigenous skilled ICT manpower, writes Kokumo Goodie.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.

COMPANY NEWS

How the cloud can power entrepreneurship and urbanisation in Africa

Cloud computing is not only fundamentally changing the way business operates, it is also driving a new wave of job creation opportunities, says SAP Africa.