USD2.5bn in mobile broadband revenue
MOBILE| 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
Airtel, UNAIDS partnerThe Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya, has explained that the partnership of the telco with the Joint United Nations Programme on HIV/AIDS (UNAIDS) will allow ample opportunity to further promote its Touching Lives initiative aimed at positively impacting on Nigerians, especially in the area of quality healthcare ... Read More
GSMA: mobile phone gender gap emergesA new GSMA report says over 1.7 billion women in low- and middle-income countries do not own mobile phones. Read More
French phone maker Archos debuts in NigeriaFrench mobile devices major, Archos Societe Anonymes, at the weekend in Lagos, launched its range products and connected objects, promising to redefine the service offering in the country. Read More
Glo’s smart plan gives enhanced voice, value to customersGlobacom subscribers on the postpaid platform will enjoy up to 5,000 free Short Messaging Service (SMS), up to 50GB data and up to 50 hours of free voice calls in a new and unprecedented Smart Postpaid Plan launched by the company in Lagos. Read More
Airtel Kenya launches UnlimiNET bundles for unlimited connectionsAirtel Kenya has announced the introduction of a flexible and affordable bundled tariff dubbed UnlimiNET. Read More
African Android growth makes strong headway for mobile internet accessAfrica is poised to become a hotbed for mobile growth and commerce in the coming years, according to Opera Mediaworks’ State of Mobile Advertising report released today. Read More
Orange rolls out Wi-Fi in Bungoma CountyIntegrated telecommunications solutions provider Orange has rolled out Wi-Fi in Bungoma County. The Wi-Fi solution, which is in its first phase, covers the county headquarters in Bungoma and the town. Read More
Tigo Senegal invests over US$220 000 to deploy 3G+ networkMobile operator Tigo Senegal says it has invested more than 110 million FCFA (about US$220 000) to deploy and expand the 3G+ network in various areas of this West African country. Read More
Airtel star prize winner bags Range RoverThe star prize winner of Airtel Nigeria’s redhot promo, 50-year old Abiodun Adio, has said he plans to use the 2015 edition of Range Rover valued at N30 million he won for a while then resell it to invest the proceeds. Read More
FEATURED STORY2bn priced out of internet access
A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.
BEST READ NEWS
IN DEPTHKenya’s digital TV battle hots up
Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.
COMPANY NEWSVMware unveils vCloud for NFV with Integrated OpenStack to accelerate service innovation
VMware, the global leader in virtualisation and cloud infrastructure, today debuted VMware vCloud for NFV, an integrated Network Functions Virtualization (NFV) platform that will combine VMware’s production-proven ...