USD2.5bn in mobile broadband revenue

MOBILE

|
Image: By BiztechAfrica
USD2.5bn in mobile broadband revenue

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."



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE MOBILE NEWS

Tigo explores options to give customers a greater choice for 4G services in Ghana

Following her recent visit to Ghana, Cynthia Gordon, the CEO of Millicom Africa, has emphasized the remarkable growth opportunities in data and Tigo’s commitment to giving customers access to superior high speed internet services.   Read More

Blogger Kamota Mayondi takes Huawei Y6 Pro for a spin

Huawei has set its latest smartphone, the Y6 Pro on a photographic journey across the capital city to capture the energy of young residents in Lusaka.  Read More

Huawei in #ThisIsBotswana Campaign

Huawei has partnered with some of Botswana’s leading influencers under the #ThisIsBotswana social campaign that meshes the powerful world of social media with high quality smartphone photography. Read More

Airtel Ghana launches ‘Flex Awesome You’ talent hunt

Head of Corporate Communication at Airtel Ghana, Richard Ahiagble Airtel has announced the launch of an exciting talent search and competition dubbed “Flex Awesome You” to unearth the next big star in Ghana at a press soiree at its Head Office in Accra. Read More

Tigo staff educate customers on new loyalty promotion

The management and staff of telecom company, Tigo, on Friday took time out to interact with customers about ‘Wo suro aaa wondi’. Read More

Tigo Pesa Customers Pocket Tshs. 5.6b in Ninth Quarterly Profit Share

Tigo Tanzania has announced another quarterly payment of Tshs 5.6 billion (US$ 2,570,120) to Tigo Pesa users, the ninth time in a row that the telecom is distributing profit to its mobile financial services users. Read More

Visafone test-runs 4G LTE internet services

Visafone has started the test-run of its Fourth Generation Long Term Evolution (4G LTE) internet technology service for smart phone users in Nigeria. Read More

Glo sustains lead in new internet subscribers

Globacom, Nigeria's data grandmasters, has again bested other operators to the top position in the segment of acquisition of new internet subscribers in the month of June.   Read More

Glo offers new subscribers N42,000 value for N5,000 recharge

The grandmasters of data, Globacom, has launched ‘Glo Jollific8,” a plan designed to give new prepaid customers eight times more value on every recharge made on its platform. Read More

African mobile subscriber numbers pass half a billion

More than half a billion people across Africa are now subscribed to mobile services as the continent continues to migrate rapidly to mobile broadband networks, reveals a new GSMA study.  Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Financial services sees AI as both opportunity and threatFinancial services sees AI as both opportunity and threat

Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.

IN DEPTH

Access and Use of ICT stats releasedAccess and Use of ICT stats released

Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.