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
MTN recognised at Nedbank Sustainable Business AwardsMTN and Fenix International have been recognised at the Nedbank Sustainable Business Awards for a solar charging solution that’s improving the lives of communities without access to electricity and financial services in Uganda and Rwanda. Read More
Global Smartphone shipments reach 317m in Q3 2014Analyst firm Juniper Research estimates that the number of smartphone shipments reached 316.6m in Q3 2014, representing 13.1% year on year growth and 5.5% quarter on quarter growth. Read More
Tablets improving workplace productivityDell today announced the results of its 2014 International Tablet survey of IT Decision Makers (ITDMs) indicating that current implementations of tablets in the workplace are good for business. Read More
MTN Foundation holds breast cancer screening in EnuguIn a drive to create renewed awareness about Breast Cancer, MTN Foundation (MTNF), the corporate social investment vehicle of MTN Nigeria, has taken its free breast cancer screening to residents of the South East geopolitical zone of Nigeria. Read More
MTN Uganda receives US$100 000 towards community projectsMTN Group today recognised employees in Uganda for their selflessness and dedication towards improving the lives of ordinary people, including the blind, as part of this year’s 21 Days of Y’ello Care campaign, a popular employee volunteer initiative in MTN markets. Read More
Airtel partners with UNESCO for youth IT training in GabonBharti Airtel has unveiled a new training programme to impart new technological skills to thousands of youth in Gabon in partnership with United Nations Educational, Scientific and Cultural Organization (UNESCO). Read More
Samsung donates 3,000 smartphones in support of the fight against EbolaSamsung Electronics Co will donate 3,000 smartphones, worth about USD 1 million, to support the ongoing fight against Ebola. Read More
Tigo gives customers free 250MB data on Alcatel smartphonesTigo Ghana is giving away free 250MB data and 60 minutes' talk time per month for a year to customers who purchase the latest Alcatel Pixi 2 handset. Read More
Huawei joins Vodafone to bolster E-learning in refugee campHuawei has come out in support of an initiative to supply over 18,000 refugee students in Africa’s largest refugee camp, Dadaab in Kenya, with tablet PCs for education. Read More
SA author writes acclaimed novel using BlackBerry smartphoneA South African businessman and author has written an entire novel using his smartphone. Read More
FEATURED STORYGrowing African focus on data security
Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation.
BEST READ NEWS
IN DEPTHAfrica lags on digital migration
Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.
COMPANY NEWSSchneider Electric off-grid, on-profit solutions to create social change in African rural communitie
Schneider Electric South Africa has set itself a target to create access to energy for 20,000 Africans by the end of this year.SAP accelerates shift to the Cloud with 41% revenue growth in third quarter
SAP has once again raised its revenue outlook, reporting broad market adoption of SAP HANA and its ‘Run Simple’ strategy validated.