Friday, August 29, 2014

"African Telecoms sector worth $65b By 2018" – Analysis Mason


The telecommunications market in the Sub-Saharan African region is set to be one of the main growth success stories for the telecoms sector in the next five years with an estimated $65 billion worth over the next five years, DigitalSENSE Business News authoritatively reports.

According to a new report titled: ‘Sub-Saharan Africa telecoms market: trends and forecasts 2013–2018’ from telecoms specialist, Analysis Mason, the telecommunications market in African will record an explosive growth in the next five years.

In the report, the telecoms market in Sub-Saharan Africa (SSA) is transitioning, as growing revenue from mobile data services is becoming proportionate to mobile voice growth while increased 3G coverage and capacity, and the widespread introduction of low-cost smartphones will help support the take-up of mobile data services.

A related key driver is the increasing take-up of adjacent digital economy offerings – notably, mobile financial services.

According to Analysis Mason’s regional analyst Mpho Moyo, “SSA’s telecoms market is growing faster than that of any other region, and will increase its share of worldwide telecoms revenue over the next five years, although this will still remain small compared with other regions.”

The SSA market, DigitalSENSE Business News gathered, accounted for only 2.9 per cent of worldwide telecoms revenue in 2013, increasing to 3.6 per cent by 2018 while mobile voice and handset data revenue will together deliver 90 per cent of the total telecoms revenue growth in the region in the next five years.

DigitalSENSE Business News checks indicate that telecoms revenue in SSA will continue to be heavily dominated by mobile services, which accounted for 86.5 per cent of telecoms revenue in 2013 and will contribute an even higher 89.4 per cent in 2018.

According to the report, mobile voice will continue to be the largest component of the telecoms market through 2018, as new subscribers, new market entrants and Mobile Termination Rate (MTR) reductions drive price competition and increased traffic.

However, the report speculates that mobile data revenue will grow faster than mobile voice revenue.

Mobile handset data’s share of total telecoms revenue will almost double by 2018, reflecting the role of mobile devices as the main Internet access point for most users in Africa.

According to the analysis, “Telecoms service revenue in the SSA market will leap at a six per cent Compound Annual Growth Rate (CAGR) during 2013–2018 (mobile at 6.7per cent and fixed at 1.0per cent), soaring from $49 billion in 2013 to more than USD65 billion in 2018”.



Chukwudi Obi

... Making SENSE of digital revolution!

No comments: