Snapshot of mobile operations in 8 Sub-Saharan African markets
At first glance, press releases touting new market research reports are not be the most engaging documents around. Much of the release consists of a table of contents and there is always a call to action to purchase the full (expensive) report. However, most announcements of a new telecoms market report also come with an executive summary, key summary, and brief rundown of the domestic telecommunications situation. All for free.
These releases, brief as they are, give a useful snapshot of current mobile access within a particular country. They also provide a near-term outlook for domestic telecoms markets. In particular, we’ve come across 8 such publications in the past week that are worth summarizing as they cover many under-represented Sub-Saharan African nations.
Benin
- Submarine cable systems (there are 3 of them) have lowered the cost of international bandwidth
- Benin Telecoms has a fixed-line monopoly
- Mobile competition is strong with 5 main players who have helped push mobile penetration above 90%
- 3G licenses were first awarded in 2012
- Source: BuddeComm
Burundi
- GDP growth is stable though low economic output and a lack of ICT infrastructure worries investors
- The World Bank is funding a fibre backbone network that will connect with international bandwidth
- Two mobile operators offer 3G services
- Mobile penetration is rapidly growing but stands at 30% which is half of the regional average
- Source: BuddeComm
Cameroon
- There are only two mobile operators (MTN and Orange) with Viettel to launch services later in 2014
- 3G will reportedly launch by the end of 2014 though 4G/LTE will exist from a wireless ISP
- Average revenue per user (ARPU) continues to decline as more people are able to afford mobile services
- Camtel’s monopoly of the SAT-3 international cable has led to high fixed broadband costs
- Source: BuddeComm
Dem. Rep. of Congo
- Fixed infrastructure is the least developed in the region due to decades of war
- Loose government regulation of the telecoms sector limits successful projects
- Five major mobile operators provide service (many offer 3G)
- The WACS submarine fibre cable launched in 2013 and a national fibre backbone is nearly completed
- 4G LTE service will launch by the end of 2014
- Source: BuddeComm
Gabon
- 100% mobile penetration was exceeded in 2008 due to multi-SIM ownership
- ARPU is higher than average for the region
- 3G service was recently launched with 4G on the way
- Two undersea fibre cables now reach Gabon and should bring down fixed costs
- Source: BuddeComm
Malawi
- Currency devaluation amid weak GDP has prevented telcos from upgrading their networks
- A consumer internet tax, added in mid-2013, only added another obstacle to mobile adoption which is low at 33%
- Airtel and TMN maintain a duopoly of the mobile market with two fixed-line operators also in the market using fixed-wireless technology
- 15 licensed ISPs provide internet access but bandwidth is expensive and limited
- Access to submarine fibre cables is provided though neighboring countries
- Source: BuddeComm
Niger
- SIM registration caused nearly 2 million subscriptions (23% of the total) to disconnect, thus bringing mobile penetration to 25% in 2013
- Voice continues to be the main source of telecoms revenue
- Mobile data revenue was estimated at $7 million for 2013 and is much lower than other West African markets though CAGR of 28% is expected for the next few years
- Source: WhaTech
Togo
- Togo’s Ministry of Communication is taking efforts to encourage telecoms competition (there are currently only two mobile operators)
- Mobile money services launched fairly recently but have become exceedingly popular
- Opportunities exist for operators to invest in underserved rural areas
- Source: WhaTech
consumer internet tax! Come on Malawi – look to the future.
Seriously. This one is especially tough since they removed the tax in 2012 and re-introduced it in 2013. Countries who have these taxes may see a short term revenue benefit but the long term results are very damaging.