Broadband revolution to sweep Africa

Youth to drive demand for mobile devices and services

THE SUB-Saharan Africa mobile market presents significant opportunities for telecommunication companies, device and module vendors, and application providers. With the telecommunications market maturing and cellphones taking on the role of service delivery platforms, the region is proving to be extremely lucrative for players in the mobile ecosystem.

Analysis given in Frost & Sullivan’s Sub-Saharan African Mobile End-User Trends report expects the market to be on a strong upward trajectory as more than half the population has no access to a cellphone.

The mobile penetration in the region is expected to increase from 52 percent in 2012 to 79 percent in 2020.

Sub-Saharan Africa will be the world’s fastest-growing region in cellphone use over the next seven years.

“The introduction of affordable smartphones, specifically designed for the African market, has improved the market scenario,” said Frost & Sullivan information and communication technologies industry analyst Joanita Roos.

“Mobile broadband connections are expected to quadruple from the 2012 figure to 160 million in 2016. This reflects the gradual change in the habits of consumers as they gain their first internet experience through a mobile device.”

The key drivers that increase the uptake of mobile broadband internet in the region include: increased coverage by 3G networks, the rise in local content, and the development of new apps.

Mobile broadband is a tremendous driver in the mobile market as fixed lines across sub- Saharan Africa are constrained by cost, cov- erage and reliability.

“As mobile devices start to gain popularity in sub-Saharan Africa, other related end-user trends are also beginning to surface,” said Roos. “For example, the large unbanked population and rural environment in the region are fuelling the use of mobile financial services.

“As a result, manufacturers are creating sustainable business models to leverage broadband in the mobile financial services market.”

The younger generation and youth in sub-Saharan Africa are expected to drive the demand for mobile devices and services.

Enterprising customers are demanding more advanced mobile services.

It is expected that enterprise segments will drive the growth in the subscriber base as well as the generation of revenue in the short to medium term.

Sub-Saharan African Mobile End User Trends is a part of Frost & Sullivan’s Mobile and Wireless Communications ( www. wireless. frost. com) growth partnership service programme.

The industry analyst’s related studies include: Public Wi-Fi in subSaharan Africa; The Telecommunications Market in West Africa: Key Fixed and Mobile Market Indicators; the Telecommunications Market in East Africa: Key Fixed and Mobile Market Indicators; and the Telecommunications Market in Central Africa: Key Fixed and Mobile Market Indicators.

All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Frost & Sullivan has, for more than 50 years, developed growth strategies for the Global 1000, emerging businesses, the public sector and the investment community.