Africa & Middle East Telecom Insider. New Undersea Cables Help Boost African Broadband Prospects

Date: July 22, 2010
Pages: 17
US$ 595.00
Publisher: Pyramid Research
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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In this report, we analyze factors related to the new undersea cables that will be instrumental in the growth of broadband adoption and revenue in Africa. In particular, we highlight how variations in the state of domestic terrestrial networks in the regions where these cables land can impact potential operator revenue and broadband penetration rates among end users. Then we discuss the effects of competition, regulations and pricing strategies across the undersea cable suppliers as they enable small or large operators/service providers and create different market dynamics. To that end, our report also includes a fresh analytical approach by providing four scenarios of how the AME markets can grow in terms of broadband adoption and revenue under different prices and different market reactions to price reductions. For instance, we show the specific price reductions necessary for a four- or eightfold growth in broadband adoption and revenue between 2010 and 2015.
  A. Undersea cables will be accompanied by new terrestrial networks to help grow broadband penetration in Africa from 3.2% in 2010 to 6.8% in 2015
  B. Competition among undersea cables will motivate flexible pricing strategies and reduced tariffs
  C. Growing broadband access will need end-user devices that can exploit the available bandwidth
Market Detail
  Case Study: Tanzanian broadband market reacts positively to Seacom and Eassy prospect
  Case Study: South African international bandwidth prices
Key findings
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