Mobile market trends in Africa
Africa’s mobile telecoms market has been a remarkable success story for the continent. Since mobile phones went mainstream in Africa in about 2000, the mobile industry has reshaped the continent’s business landscape, impacting every facet of economic and social development in the region. This report distils the trends in the African mobile market, outlining the key dynamics at play and the forces affecting the industry.
Executive summary
In a nutshell
Key messages
A genuine success story
Differences and surprises remain across Africa
Geography, demographics and economy favour Africa
New innovations are sprouting from Africa
3G is improving, and it will be mainly GSM-based
Multinationals are still interested in Africa
There is room for domestic players
African mobile market – the big picture
Phases of development of the African mobile market
One continent, different markets
Having more operators is no guarantee of progress
Market trends
Africa’s penetration rate leaves plenty room for growth
ARPU levels in Africa don’t follow convention
Revenues from Africa will outgrow all other regions
GSM rules Africa, but CDMA and WiMAX have a role
3G is gradually debuting across Africa
Portfolio investors ready to cash in
Tariff structures are evolving
Free roaming has worked in Africa
Mobile money services accelerating in Africa
Fibre cables are circling Africa
External environment
Demographics favour Africa
Post-recession, Africa’s economy is growing
Harnessing Africa’s solar potential
Tax is still an issue across Africa
Market competitors
MTN and Zain dominate
Domestic groups are also thriving across Africa
Independent operators remain
Orange and Vodafone avoid ‘mega’ takeover deals
Late surge for Middle Eastern players
‘Better late than never’ for Chinese and Indian operators
In a nutshell
Key messages
A genuine success story
Differences and surprises remain across Africa
Geography, demographics and economy favour Africa
New innovations are sprouting from Africa
3G is improving, and it will be mainly GSM-based
Multinationals are still interested in Africa
There is room for domestic players
African mobile market – the big picture
Phases of development of the African mobile market
One continent, different markets
Having more operators is no guarantee of progress
Market trends
Africa’s penetration rate leaves plenty room for growth
ARPU levels in Africa don’t follow convention
Revenues from Africa will outgrow all other regions
GSM rules Africa, but CDMA and WiMAX have a role
3G is gradually debuting across Africa
Portfolio investors ready to cash in
Tariff structures are evolving
Free roaming has worked in Africa
Mobile money services accelerating in Africa
Fibre cables are circling Africa
External environment
Demographics favour Africa
Post-recession, Africa’s economy is growing
Harnessing Africa’s solar potential
Tax is still an issue across Africa
Market competitors
MTN and Zain dominate
Domestic groups are also thriving across Africa
Independent operators remain
Orange and Vodafone avoid ‘mega’ takeover deals
Late surge for Middle Eastern players
‘Better late than never’ for Chinese and Indian operators
LIST OF TABLES
Table 1: of Africa’s mobile markets
Table 1: of Africa’s mobile markets
LIST OF FIGURES
Figure 1: How competition affects mobile market development
Figure 2: Penetration rate forecasts (2007–14)
Figure 3: ARPU trends do not always tally with GDP per capita (2008)
Figure 4: Regional CAGR of mobile revenues (2007–14)
Figure 5: The dominance of GSM-based technologies in Africa
Figure 6: Countries with high-speed 3G networks in Africa (Sep 2009)
Figure 7: Prepaid as a % of total connections
Figure 8: Seamless roaming options in Africa
Figure 9: Africa’s international fibre connections
Figure 10: Compound annual growth rate of the population (2009–14)
Figure 11: How high TCO/GDP per capita hurts the mobile industry
Figure 12: Number of African countries in which mobile groups operate
Figure 1: How competition affects mobile market development
Figure 2: Penetration rate forecasts (2007–14)
Figure 3: ARPU trends do not always tally with GDP per capita (2008)
Figure 4: Regional CAGR of mobile revenues (2007–14)
Figure 5: The dominance of GSM-based technologies in Africa
Figure 6: Countries with high-speed 3G networks in Africa (Sep 2009)
Figure 7: Prepaid as a % of total connections
Figure 8: Seamless roaming options in Africa
Figure 9: Africa’s international fibre connections
Figure 10: Compound annual growth rate of the population (2009–14)
Figure 11: How high TCO/GDP per capita hurts the mobile industry
Figure 12: Number of African countries in which mobile groups operate
