A $50bn+ market in Africa

Publié le par Jean Arnal

Africa now is a hot topic, and at the heart of all mobile actors' strategies. With very low phone teledensity, Africa could be the new place for high-speed mobile growth, attracting operators and vendors. The first initiative is coming from the International Telecommunication Union (ITU) in association with the African Development Bank that agree to collaborate on interconnecting all African capitals and major cities with ICT broadband infrastructure by 2012. The goal is to invest in communications to accelerate the economic development. The second initiative, published at the Connect Africa Summit, is coming from a group of local operators, including MTN, Orange, Vodacom and Zain, and helped by The GSMA Association to lobby African governments on spectrum allocation. The initiative is centered on extending mobile coverage in the Sub-Sahara region to more than 90% of the area's population, and improving penetration where mobile services are already available. The project will focus on pushing 2.5G and 3G services into the region, boosting internet access as well as voice and messaging coverage. The cost of the operation would be about $50bn over the next five years. Is it a new Eldorado? With very low ARPU (current economical conditions) and getting lower as the subscription base expands, cost management would be critical for the success of the project.

Publié dans Top stories

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