Mobile subscriptions in Africa to hit one billion by 2015

"And substantial opportunities for further growth remain, because the rate of mobile penetration in Africa is the lowest among major world regions and fixed networks are under-developed or absent across much of the continent."

The number of mobile subscriptions in Africa will reach 761 million by the end of 2012 and will rise to 1.13 billion by 2017, according to Informa forecasts.

Nigeria, which crossed the 100 million mobile subscriptions threshold in the second quarter of 2012, continues to be Africa's largest mobile market and is forecasted to have 168.99 million subscriptions at end of 2017, followed by Egypt with 129.4 million subscriptions by the end of 2017.

IMPROVEMENTS ON INTERNATIONAL CONNECTIVITY

The take-up of mobile data services is growing strongly in Africa, as a result of the roll-out of 3G networks, the increasing affordability of data-enabled devices and huge improvements in international connectivity following the deployment of new submarine cables connecting the continent to the rest of the world.

Remarkably, operators in five African countries (Angola, Mauritius, Namibia, South Africa and Tanzania) have launched LTE services in recent months, ahead of some developed European markets.

However, LTE subscription numbers in Africa are very low at present, at an estimated 5 000, and take-up of LTE services is likely to be limited to niche markets of more-affluent business and consumer customers for the coming few years.

 Informa's analysts spoke on a range of topics in Africa's telecoms market at the AfricaCom conference, which took place from,   November 13 until November 15 2012 at the Cape Town International Convention Centre (CTICC), South Africa.

Meanwhile mobile broadband will  become the biggest single revenue opportunity in Africa in the immediate and longer term, according to the results of a recent Industry Outlook survey commissioned by Informa Telecoms & Media.

This resonates with Informa's forecasts that suggest that annual mobile data revenues in Africa will reach US$18.5 billion by 2016 accounting for 22 per cent of the region's total mobile service revenues as compared with 12 per cent  in 2011.

Informa Telecoms & Media commissioned the survey for AfricaCom 2012 and will publish the results in its "Africa Telecoms Outlook 2013: Seizing new revenue opportunities" report at the event in taking place in Cape Town between 13-15 November 2012.

EMPOWERING ENTERPRISES

Mobile data growth will power a number of revenue opportunities. The business case for 4G technology will emerge, according to 70 per cent of the survey's respondents, as the growth of mobile data services continues to accelerate. Giving mobility to broadband services will empower enterprises and especially SMEs to benefit from more mobile working thereby generating greater business agility.

Yet there remains a large constraint on the ideal of connecting Africa. Even the cheapest mobile phone is still not affordable for many there. There is a powerful message from Informa's survey: seven out of 10 respondents agreed that operators must use their buying power and distribution networks to make more devices available and device manufacturers need to make more affordable devices.

A NEED FOR MOBILE NETWORK OPERATORS

A central message from the survey is the need for mobile network operators (MNOs) to take notice of the changing demands and characteristics of its customers.

Nick Jotischky, principal analyst for emerging market analysis at Informa Telecoms & Media comments, "There is more depth to a mobile operator's customer base in Africa than two or three years ago and, for this reason, MNOs need to gain a greater insight into their customers' behavior and offer them services that match their individual needs and preferences.

Using this insight to design new business models that combine an MNO's traditional capabilities (mobility, location) with Internet-style services (search, mapping) will enable a more compelling and personalized set of services to a wider variety of customer segments".

Jotischky  chaired a session at AfricaCom  conference that  discussed Africa's evolving telecoms market. 

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