USD2.5bn in mobile broadband revenue
MOBILEBy BiztechAfrica - March 21, 2012, 9:12 a.m.
Booming social media and drops in handset prices will double mobile broadband revenue in West and Central Africa by 2017, says a new report.
A new report by Frost & Sullivan says the West and Central African region has witnessed a dramatic increase in mobile broadband connections in the last decade, with much of the growth attributed to the surge in mobile broadband adoption in Nigeria. Both Nigeria's and Ghana's regulatory environments have helped them create the most dynamic broadband markets in sub-Saharan Africa, with over 150 market participants and massive terrestrial infrastructure development.
Advanced technologies such as 3G networks in the Democratic Republic of Congo (DRC) and Gabon will lead mobile broadband subscriptions to outpace fixed broadband connections in these two countries over the next 5 years, it says.
Frost & Sullivan finds that the market generated revenues of approximately USD1.2 billion in 2010 and estimates this to more than double to USD2.5 billion in 2017 across Nigeria, Ghana, DRC and Gabon. There are significant growth opportunities in the short-to-long term, in part due to low levels of existing broadband penetration in the region.
"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 both customer-premises equipment (CPE) as well as smartphones. Additionally, internet service providers (ISPs) have introduced affordable Chinese CPE to render broadband services to consumers at reduced cost.
"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."
Increasingly computer-literate societies and the simultaneous advent of social media platforms have boosted demand for broadband connections across the region, driving a surge in the population of broadband users.
"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."
Decreased bandwidth costs will dramatically increase the uptake of broadband services among individual households, as well as small and medium companies. Mobile operators are expected to shift focus on broadband services to maintain profit margins as voice revenues continue declining.
"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."
MORE MOBILE NEWS
tn mobile rolls out 4G LTE prepaidtn mobile, the mobile division of Telecom Namibia, reports that it is the first operator in Namibia to offer 4G LTE prepaid broadband service to consumers. Read More
Do you have an effective mobile strategy?How does mobility impact your business, asks PBT Group. Read More
Arusha ‘gets reason to Smile’Smile Communications has extended its 4G LTE services to Arusha, taking high speed mobile internet to the region. Read More
Safaricom buys naming rights to Moi International Sports CentreSSMB and Safaricom have signed a two year partnership worth KES 55 million for the naming and branding rights for the Moi International Sports Centre. Read More
Beware updatesWhether it’s a firmware or an operating system upgrade, updates tend to be extremely data hungry, says MIP Holdings. Read More
Econet in wind power projectEconet Wireless has joined an initiative led by Danish wind energy group Vestas to build small wind power generators across Africa. Read More
BYOD: 1bn consumer-owned mobile devices at work by 2018The BYOD trend will drive the number of consumer-owned devices up to 1 billion by 2018, says Juniper Research. Read More
Ghana’s First Lady commends MTN Ghana FoundationGhana’s first lady, Lordina Mahama, has commended Ghana’s mobile telecom giant MTN Ghana and the MTN Foundation for taking the initiative to assist the Akropong School for the Blind. Read More
Africa well positioned for leap to 4G LTEAfrica’s mobile network sector is well positioned to drive the explosion in service offerings on the back of 4G LTE implementations, says Gemalto. Read More
FEATURED STORYGaming app introduces investors to trading
A new virtual stock market app is equipping would-be investors with the skills they need to trade.
BEST READ NEWS
IN DEPTHCorporate cyber security threats of the year
91% of organisations polled suffered a cyber-attack at least once in the past year, says Kaspersky Lab in its security review of 2013.