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

Lenovo reduces smartphone prices, unveils YOGA series laptops

Lenovo has reduced the prices of its P70 and A5000 smartphones in Nigeria, in a drive to deliver rich mobile experiences and superior smartphone technology to more Nigerians.  Read More

MTN Ghana wins award in procurement and supply management

MTN Ghana has received an award from the Chartered Institute of Purchasing & Supply (CIPS) for being the most innovative in the use of technology in procurement and supply.  Read More

Samsung unveils Galaxy J7 and Galaxy J5 LTE in Kenya

Samsung Electronics on Thursday launched its 4G enabled Galaxy J5 and Galaxy J7 mid-range smartphones that will enable users get the most of their mobile experience. Read More

Glo offers Wi-Fi roaming in 42 countries

Globacom Nigeria has unveiled Wi-Fi Roaming to give its teeming subscribers seamless internet connectivity when they travel to 42 countries. Read More

Student, others now landlords in MTN Trutalk promo

More lucky winners have emerged in the MTN Trutalk Best 11 Promo. At the final prize presentation ceremony held in Victoria Island, Lagos, at the weekend, some lucky winners were presented with gift of houses worth N15million each. Read More

Airtel, Ericsson extend partnership with LTE deployment in Gabon

Airtel Gabon has partnered with Ericsson for the deployment of next generation LTE technology and mobile network transformation.  Read More

Afmobi promises Nigerians jobs with offline platform

A team of experts at Afmobi Nigeria have designed a wireless platform that will create jobs or make Nigerians entrepreneurs through a plethora of fun apps, games, movie, music, pictures and business content hosted on a ‘magical fun box’ called Palmplay offline TM. Read More

The hospital of tomorrow uses mobile

Aruba Networks discusses how mobile technology is creating a radical shift in the future of healthcare. Read More

MNOs prefer paying fines to compliance, says NCC

The NCC has expressed disgust at the attitude of mobile network operators (MNOs) in Nigeria when it comes to compliance.    Read More

Safaricom announces new suite of data products

Safaricom has announced a suite of new data products that will offer its subscribers access to faster data more conveniently. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Young innovators shine during pitch sessionsYoung innovators shine during pitch sessions

Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.

IN DEPTH

High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.