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

comments powered by Disqus

MORE MOBILE NEWS

Chris wins Ghana Vodafone Icons 2014 in grand style

The auditorium of Ghana’s national theatre came to a standstill on Wednesday night as the master of ceremonies for the occasion announced Chris as the  overall winner of the 2014 Vodafone Icon contest. Read More

Airtel Ghana sweeps PR Excellence Awards

Maame Dufie Cudjoe, Kwame Gyan, Hannah Agbozo, Edward Sasu Appiah, Lucy Quist and Donald Gwira Airtel Ghana, Telecommunications giant and winner of CIMG Marketing Oriented Company of the Year, has won five awards at the 2014 Institute of Public Relations Excellence Awards.  Read More

Who wins Vodafone Icons 2014?

Come Wednesday, the final five Vodafone Icons contestants will battle it out and trill music fans to their wonderful compositions to climax this year’s Remix Edition of Vodafone Icons at the National Theatre.  Read More

Alliance for Affordable Internet welcomes Ghanaian moves to cut mobile phone taxes

The Alliance for Affordable Internet (A4AI) has welcomed Ghana’s commitment to scrap hefty import duties on smartphones.  Read More

VMware Study: Businesses can Take Three Weeks to get Employees Mobile-Ready

EMEA businesses say concerns over trust, ownership and delivery capability may hold back taking advantage of the mobile cloud-era. Read More

Satellite-powered tablet to use Newtec technology for e-learning

Satellite solution provider Yazmi has announced a new e-learning scheme using the first satellite-enabled tablet, called Odyssey, and Newtec's multicast technology to deliver content via satellite to rural, remote and low income regions in Asia, Africa and the Middle East. Read More

TECNO to launch sub-$30 smartphone next year

Device manufacturer TECNO Mobile is planning to launch a smartphone next year that will cost less than US$30, as it looks to remove the barriers to smartphone ownership in Africa. Read More

Airtel, Facebook to bring Internet.org mobile app to Kenya

Airtel has announced a partnership with Facebook to offer the Internet.org app to its prepaid and post-paid customers in Kenya beginning later this week.  Read More

80% interest in “right person, right message, right moment” mobile marketing

New research reveals that although 80% of respondents feel annoyed when receiving unsolicited messages, the same proportion could be won back by operators and brands if they implemented best practices to improve customer engagement. Read More

Airtel Ghana MD urges youth: ‘strive for excellence’

The Managing Director of Airtel Ghana, Lucy Quist, has called on all to blaze their own trail through persistence in the pursuit of their dreams. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

GSMA: half a billion mobile subscribers in SSA by 2020GSMA: half a billion mobile subscribers in SSA by 2020

The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.

IN DEPTH

Africa lags on digital migration Africa 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.