Lower prices, social media, spur African mobile broadband

MOBILE

|
Image: By BiztechAfrica
Lower prices, social media, spur African mobile broadband

A new report by Frost & Sullivan says affordable handsets and a boom in social media usage will spur mobile broadband markets in West and Central Africa.

The report says in recent years, the West and Central African region has witnessed a dramatic increase in mobile broadband connections, mainly due to the surge in mobile broadband connections in Nigeria.

Effective regulatory environments have made Nigeria and Ghana among the most dynamic broadband markets in sub-Saharan Africa with over 150 market participants and massive terrestrial infrastructure development.  With the deployment of advanced technologies, such as 3G networks in the Democratic Republic of Congo (DRC) and Gabon, mobile broadband subscribers are expected to outpace fixed broadband connections in these two countries over the next 5 years.

New analysis from Frost & Sullivan, West and Central African Broadband Market Tracker, finds that the market (covering Nigeria, Ghana, DRC and Gabon) earned revenues of approximately USD1.2 billion in 2010 and estimates this to reach USD2.5 billion in 2017. The low levels of broadband penetration in the four countries indicate that there are significant growth opportunities in the short-to-long term.

"The availability of cost-effective mobile and wireless solutions will be a key market driver," notes Frost & Sullivan's Information and Communications Technologies Research Analyst Mervin Miemoukanda. "At the same time, greater demand for access to social media platforms will emerge as the most important factor for market participants to formulate their strategy for this year."

Rising demand for broadband services in the region has helped reduce the cost of customer-premises equipment, as well as smartphones. Internet service providers (ISPs) have introduced affordable Chinese customer-premises equipment to render broadband services to consumers.

"Furthermore, broadband providers are expected to increase partnerships with equipment vendors to reduce the cost of customer-premises equipment," adds Miemoukanda. "The impact of this driver is expected to be high throughout the forecast period, as mobile operators are shifting focus on growing their data offerings."

The advent of social media platforms, coupled with growing computer-literate societies, has boosted demand for broadband connections across the region. As a result, the number of broadband users in these countries has swelled.

"The increase in broadband users has been primarily because mobile operators have deployed advanced technology networks," remarks Miemoukanda. "As consumers are becoming more aware of the benefits of social media platforms, this driver is expected to remain high throughout the forecast period in all four countries."

With decreased bandwidth costs in the region, the uptake of broadband services is expected to increase significantly. More and more households, and small and medium companies, are expected to sign up for broadband services. As voice revenues have been declining, mobile operators are expected to shift focus on broadband services to maintain profit margins.

"Mobile operators are expected to improve the quality of services through continuous infrastructure investment, such as network capacity upgrade and deployments of new technologies; develop innovative solutions such as cyber cafés for broadband services targeting the mass market and focus on enterprise solutions" concludes Miemoukanda. "These strategies will help mobile operators sustain their profit margins."



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE MOBILE NEWS

Safaricom to lower Kenya - Rwanda roaming rates

Safaricom has announced that it is set to lower the cost of calls and roaming rates between Kenya and Rwanda, with effect from the 1st of October 2014. Read More

Hunt on for Africa’s music talent

Bharti Airtel has partnered with TRACE Music Star and global recording icon Akon to roll out what it describes as the largest mobile musical competition in Africa. Read More

Blu Telecommunication unveils Founders Campaign at Accra Mall

Blu Telecommunication, one of three companies authorised by the National Communications Authority to provide 4G internet services in Ghana, is gearing up for launch.  Read More

Mobile telephony makes inroads into rural DRC

Mobile telephony continues to make its way – slowly but triumphantly – into the rural areas of the Democratic Republic of Congo (DRC). Read More

Zim moots new taxes on telecoms

Zimbabwe’s Minister of Finance and Economic Development, Hon. PA Chinamasa, has proposed new taxes on airtime, data and handset costs among moves to raise additional revenue. Read More

Samsung opens three retail outlets in Abuja

Samsung Electronics West Africa, in partnership with accredited local partners, has stepped up its nationwide market expansion drive in Nigeria with the opening of three more direct-to-consumer stores in Abuja. Read More

Microsoft urges SON to act on fake imports

Microsoft has expressed dissatisfaction over the influx of fake and substandard mobiles into Nigeria. Read More

Vodafone Icons Remix holds final auditions in Accra

Ghana’s capital city, Accra, came to a standstill when the final audition of the Vodafone Icon Remix edition hit town.  Read More

STK Accessories expands in Nigeria

STK Accessories has announced further success in Nigeria with the launch of four product lines on Jumia.com. This latest announcement follows the brand’s launch with Sapphire distribution earlier this year. Read More

Samsung showcases biometric scanner-enabled Galaxy Tab S

Samsung Electronics has announced the availability of its new flagship tablet, the Galaxy Tab S, in Nigeria.  Read More

PRESS OFFICES

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

FEATURED STORY

MFarmer SMS redefines market access for Ugandan farmersMFarmer SMS redefines market access for Ugandan farmers

Ugandan smallholder farmers are benefitting from an ambitious innovative ICT mobile phone initiative that offers weather reports and up-to-date market information about changes in prices for agricultural commodities, thus granting them lucrative returns from their farming ventures. 

IN DEPTH

iProcure delivers inputs to farmers’ doorsteps using ICTsiProcure delivers inputs to farmers’ doorsteps using ICTs

An innovation dubbed iProcure is already being used by several agro input firms which are now relying on it to distribute their products to farmers. 

COMPANY NEWS

Schneider Electric signs exclusive off-grid solar distribution agreement with Zimbabwean firm

Schneider Electric has announced the signing of an exclusive agreement with Samansco, a Zimbabwean renewable energy, back-up power and appropriate technology company.

SAP Innovation Helps The Global Fund Fight AIDS, TB and Malaria in Africa

Extending a longstanding partnership, SAP is a founding member of The Global Fund’s new Innovation Coalition to support disease prevention and treatment.