A new look at Africa’s telecoms market winner-takes-all prize.
Consolidation seems to be an inevitable component of any mature industry and telecoms is no exception. In Africa, however, the race for dominance runs parallel to the rise of the middle class and other phenomena of highly dynamic, developing markets. Owning the hearts, minds and wallets of consumers is the goal as operators and banks clash for the ultimate prize.
Deloitte’s latest in-depth look at telecoms in Africa is aptly titled Blueprint for the brave and describes the mashing together of industries where nobody can lay ultimate claim to any of the things in consumer’s pockets.
Says Deloitte’s Arun Babu: “Industry boundaries are dismantling, and owning the consumer experience space is the prize.”
The interesting thing is that when competitors arrive from adjacent sectors, they bring with them a new outlook on the consumer experience and other functionality that gives them a competitive advantage. Since mobile represents such a central role in everyday life, it’s a struggle between the operators that make the networks possible in the first place and service providers that bring new possibilities to the fore.
Says the Deloitte report, “New entrants come with greater added value than the traditional carriers – foreign media and even advertising groups are viewing telcoms as a ready-made channel to market… Will telcoms, who