African
Continent Fastest Mobile Growth Market
- The number of mobile subscribers in Africa at the
end of 2005 was 113.55m, this is forecast to rise
to 378m by 2011, representing a CAGR of 22% and 265
million net additions in 6 years
- 95% of the subscriber base in Africa is pre-paid,
indicating excellent prospects for SMS based services
tailored to the African market
- There are tremendous opportunities for Mobile Virtual
Network Operators (MVNOs) in many African countries,
with numerous cultures, languages and religious groups
demanding local, relevant content and services
The latest report from Portio Research, ‘Opportunities
In The African Mobile Sector’ predicts that the
African continent will see significant growth in mobile
subscribers between 2006 and 2011, adding 265 million
new subscribers over that period. During 2004 and 2005
Africa saw overall mobile market growth surge forward
faster than any other continent in the world. As Africa
relieves its debt burden, continues to liberalise its
telecoms markets and open up to further competition
and foreign investment, the mobile sector will be a
vital component of future growth in a continent with
an under developed fixed line telecoms infrastructure.
The availability of pre-paid subscriptions has been
a major growth stimulus across Africa, as in other regions
of the world where the bulk of the population live in
low per-capita income groups. In Africa, approximately
95% of all mobile subscribers are on pre-paid subscriptions.
This should indicate a strong future for P2P SMS and
SMS-based services, as has proved popular with pre-paid
subscribers the world over. With GPRS and EDGE rolling
out all over Africa and 3G licences being issued in
many countries, a thriving value-added services market
could start to develop.
One key to driving non-voice services may lie in the
cultural diversity found in many African countries.
In some markets there are many languages, religious
groups, political beliefs and cultural differences,
for example Nigeria, with a population of over 125 million,
is home to over 250 separate ethnic groups. Locally
and ethnically-relevant content has been well received
elsewhere in the world, particularly in Asia and the
Middle East, and there should be plenty of scope for
growth in Africa.
This should also indicate numerous MVNO opportunities,
where local markets are liberalised and developed enough
to allow MVNOs in. Virgin Mobile’s move into South
Africa could lead to a rush of MVNO activity elsewhere
on the continent. In fast growing markets, where growing
competition is reducing ARPU and increasing churn, MVNOs
may be the next big thing in Africa.
‘Opportunities In The African Mobile Sector’
provides a comprehensive analysis of the African Continent
with detailed country profiles focussing on the telecoms
market as a whole, the mobile sector, deployed technology,
market size, regulatory development and outlook.
Opportunities
In The African Mobile Sector
For reader enquiries, further information
or to purchase a copy of this report please send an
e-mail to: info@portioresearch.com
or phone: +44 (0)7909 957360
For editorial enquiries please contact: William
Allbrook Tel: 01666 826641, Fax:01666 822594, Email:
william@market-it.co.uk
Portio Research Ltd is an independent
UK-based research company, specialising in the mobile
and wireless sector. Portio is focused on providing
high quality, data-centric reports based on hard facts
and proven numbers, rather than hype and speculation.
www.portioresearch.com
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