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

Telecel Go reduces cost of calls to all networks

Telecel has launched a new pre-paid service platform called Telecel Go, which removes the boundaries between networks and reduces the cost of calls across all networks significantly. Read More

Huawei rolls out new base stations in Zambia

Vice President Dr Guy Scott makes a call from the new tower Chinese communications equipment giant Huawei Technologies has launched the first of a series of 169 base stations that will connect rural communities in Zambia to the mobile phone network. Read More

Kenya, Uganda, Rwanda strike deal to lower roaming rates

Plans are underway to lower roaming rates among Kenya, Uganda and Rwanda. Tanzania is not part of the deal because it has missed a number of talks that led to the pact. Read More

Kenyans making longer calls - CAK Report

Robust marketing by telecoms and lowered call rates saw Kenyans use mobile phones more in 2013, the latest sector report shows.  Read More

Telecom Namibia, XON Systems, Juniper Networks invest in network academy

Frans Ndoroma Telecom Namibia has set up a Telecom Namibia Juniper Networks Academy in conjunction with XON Systems and Juniper Networks to boost the training of network engineersin its training facility. Read More

Nokia X excites Ghana smartphone lovers

Nokia Ghana has unveiled one of its new smartphone products, the Nokia X, onto the Ghanaian mobile phone market. Read More

XDSL signs agreement with DFA, Conduct for more fibre

Internet Service Provider XDSL has entered into an agreement with Dark Fibre Africa (DFA) and Conduct, DFA’s last-mile fibre network subsidiary.  Read More

Glo clinches two new brand awards

Kamaldeen Shonibare, Globacom’s Head of Corporate Sales, receiving the Brand of the Year Award Globacom won two prestigious brand awards at two separate awards ceremonies in Lagos at the weekend. Read More

Airtel Chad awarded 3G/4G licence

Bharti Airtel has been awarded a 3G/4G license by the Chad Government.  Read More

Samsung unveils Galaxy S5 in Kenya

Samsung East Africa Director of Internet & Mobile, Manoj Changarampatt (left) and SEEA VP Robert Ngeru Mobile phone maker Samsung has unveiled its latest smartphone, the Galaxy S5, in Kenya. Read More

PRESS OFFICES

Sage ERP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN Business

FEATURED STORY

Kenyan shift to Green Economy would generate USD 45bn by 2030 Kenyan shift to Green Economy would generate USD 45bn by 2030

Kenya’s transition to a green economy could produce major economic benefits  equivalent to an estimated USD 45 billion by 2030, a new  study shows.

IN DEPTH

E-waste threatens Ghana’s beachesE-waste threatens Ghana’s beaches

Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.