2007 Africa - Telecoms, Mobile and Broadband Overview

Publication Date	October 2007
Publisher	BuddeComm
Product Type	Report
Pages	140
ISBN Number	not applicable
Product Code	BUD00193

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Summary

This report provides a comprehensive overview of trends and developments in the telecommunications markets in Africa. Subjects covered include:

Key Statistics

Market and Industry Overviews
Regulatory environment and structural reform
Major Players (fixed and mobile)
Infrastructure development;
Fixed and mobile voice and data markets
Internet, including broadband development
Internet telephony (VoIP)
Convergence of telecommunications, digital media and broadcasting
Analyses of key developments shaping the future of telecommunications in Africa
(Approx. number of pages: 140)
Current publication date: October 2007 (6th Edition)

While being the worlds most rapidly growing market for mobile telephony and also home to the fastest growing fixed telephony markets in the world, Africa still has some of the world's lowest penetration rates. Foreign investors are scrambling for positions in this very lucrative market as privatisation and liberalisation are progressively being introduced. Explosive growth in the mobile sector has meant that by early 2007 mobile users constituted almost 90% of all African telephone subscribers. Other wireless solutions are also used to serve as substitutes for inadequate fixed-line infrastructure. A surge in demand for Internet access and broadband capabilities is expected to drive these developments further in the coming years. Several international fibre projects currently under development will deliver the necessary bandwidth to Africa and bring down costs. Overall, Africa's telecoms future looks very promising and offers great opportunities to service providers, equipment vendors and investors.

The continent's mobile market is consistently growing at around 50-60% every year. Enormous further potential remains, with market penetration standing at little more than 20%. Due to Africa's poor fixed-line infrastructure, the mobile networks are beginning to play an increasing role in Internet service provision as well, following the launch of 3G services in a number of markets - a welcome new revenue stream in an almost entirely prepaid environment with low ARPU levels. Newly introduced converged licensing regimes have increased the competitive pressure in a number of key markets but also allow the mobile operators to branch out into new service segments.

Africa's data traffic is on the rise, fuelled by rapid growth of ADSL and wireless broadband services. Massive efforts are under way to adapt the continent's underdeveloped infrastructure to the growing need, both on the national and international level. Broadband has begun to rapidly replace dial-up as the preferred access method, and this process is already virtually completed in the continent's more developed markets. Overall Internet market penetration is still low at just over 4%, leaving ample room for further growth in the coming years.

The extent of Next Generation Networks and services on the continent is still limited. There are, however, encouraging developments. Several countries have launched broadband initiatives and are rolling out dedicated IP-based networks and new fibre optic links. Given the still large amounts of unsatisfied demand for basic voice services in Africa, VoIP is a primary application at this stage, and this technology is now gaining ground on the continent following steady improvements in Internet bandwidth, deregulation in several countries and the growing number of VoIP service providers entering the market. The first triple play services have been launched across the continent, offering converged voice, data and broadband TV/video. WiMAX technology, currently being rolled out in at least 20 African countries, will enable the continent to leapfrog straight to wireless NGNs at affordable cost.

The number of African countries where VoIP can be regarded as open to private operators has more than doubled to around 20 in 2007. Nevertheless, at least 10% of international calls in almost every country on the continent are still carried by unlicensed grey market players, because many operators are not yet passing on the full cost savings from VoIP to their customers. Profit margins are still very healthy in this emerging market.

Broadcasting is an integral part of Africa's development and a means of communication over the vast areas of the continent. Improvements in broadband infrastructure and the emergence of 3G mobile systems are now opening the way to convergence of conventional and digital media as well as telecommunications. With far greater ownership of TV sets compared to PCs in Africa, the broadcasters' viewers represent a huge potential customer base for Internet services as well. Interactive TV, especially the variety using mobile phone text messages (SMS), has found its way to Africa and is growing fast. At least nine African countries are currently trialing or planning to introduce Broadband TV and VoD services, typically converged with voice and data services under so-called triple play models.

Key Highlights

Major privatisation events in 2006/07;
Several new submarine fibre projects currently under development will improve the supply of international bandwidth at drastically reduced prices;
Status reports from 17 African countries where the migration to IP-based NGNs have begun;
Record prices are being paid for investments in African mobile operations;
Converged licensing regimes increase competition in all market sectors;
Status reports from all 29 African countries with significant VoIP developments;
Broadband is rapidly replacing dial-up Internet access;
3G mobile is gaining a foothold in Africa;
Wireless and mobile broadband is overtaking ADSL;
Status reports from 20 countries on the continent with WiMAX trials, rollouts or commercial services;
The first four service providers on the continent have launched commercial Triple-Play services, with at least five others at advanced stages of deployment.
Top 10 African markets by annual mobile subscriber growth - 2006

Country Annual growth

Libya 357%
Guinea Republic 280%
Ethiopia 131%
Madagascar 88%
Central African Republic 86%
Somalia 86%
Sudan 84%
Angola 84%
Guinea-Bissau 83%
Malawi 81%

(Source: BuddeComm based on Global Mobile data)

For those needing high level strategic information and objective analysis on this region, this report is essential reading and gives further information on:

Government policies affecting the telecoms industry;
Market liberalisation;
Telecoms operators - privatisation, acquisitions, new licences and competition;
Internet and broadband development and growth;
The fast growing mobile markets of the region;
Convergence: fixed and mobile, voice and data, telecoms and media.

Content

1. Telecoms, Mobile And Broadband Overview And Analysis 2007
- 1.1 Telecom Market Overview
- 1.2 Key Developments
  - 1.2.1 Deregulation And Privatisation
  - 1.2.2 Infrastructure Developments
  - 1.2.3 Mobile Mergers & Acquisitions - A Bubble?
  - 1.2.4 Internet And Broadband Market
2. Telecommunications Market
- 2.1 Overview Of Africa's Telecom Market
  - 2.1.1 The Wireless Explosion
  - 2.1.2 The Beginning Of A Fixed-Line Renaissance
  - 2.1.3 Internet And Broadband Market
- 2.2 Foreign Investments In Telecommunications
  - 2.2.1 The Chinese Vendors - Huawei And Zte
3. Regulatory Environment
- 3.1 Wto Members
- 3.2 National Ict Policies
- 3.3 Regulatory Authorities
  - 3.3.1 Regulatory Associations
- 3.4 Market Liberalisation
  - 3.4.1 Converged Licensing Regimes
- 3.5 Privatisation
- 3.6 Universal Access
4. Telecommunications Infrastructure
- 4.1 Overview
- 4.2 Domestic Infrastructure
  - 4.2.1 Pan African Telecommunications Network (Panaftel)
  - 4.2.2 Comtel
  - 4.2.3 East African Community Digital Transmission Project
  - 4.2.4 Intelecom Ii
  - 4.2.5 Utilities
  - 4.2.6 Eastern Africa Backhaul System (Eabs)
- 4.3 International Infrastructure
  - 4.3.1 Satellite Networks
  - 4.3.2 Submarine Cable Networks
5. Major Fixed Network Operators In Africa
- 5.1 Operating Environment
  - 5.1.1 Deregulation And Privatisation
  - 5.1.2 Mobile Operations
- 5.2 Major African-Based Players
  - 5.2.1 Econet Wireless Group
  - 5.2.2 Mtn Group Limited
  - 5.2.3 Orascom Telecom Holding
  - 5.2.4 Telkom South Africa Ltd
  - 5.2.5 Vodacom Group
- 5.3 Major Off-Shore Players
  - 5.3.1 Celtel International
  - 5.3.2 Etisalat
  - 5.3.3 France Telecom/Orange
  - 5.3.4 Millicom International Cellular (Mic)
6. Data Market
- 6.1 Traffic Growth Limited By Infrastructure
- 6.2 Vsat Networks - An Instant Infrastructure Solution For Africa
- 6.3 Availability Of Advanced Data Services
7. Broadband And Internet Market
- 7.1 Overview Of Africa's Internet Market
  - 7.1.1 Internet Statistics
- 7.2 African Internet Developments
  - 7.2.1 Barriers To Internet Development
  - 7.2.2 Internet Access Locations
  - 7.2.3 African Internet Projects Sponsored By International Agencies
  - 7.2.4 Internet Connectivity
  - 7.2.5 African Internet Exchange Points
  - 7.2.6 African Network Information Center (Afrinic)
- 7.3 Africa's Isp Market
  - 7.3.1 Africa's Largest Isp - Africa Online
  - 7.3.2 Internet Solutions (Is)
  - 7.3.3 Average Cost Of Internet Access Accounts
  - 7.3.4 Payment Models For Dial-Up Internet Access
  - 7.3.5 Email-Only Services
  - 7.3.6 African Isp Association (Afrispa)
- 7.4 Voip Telephony
  - 7.4.1 Voip Cost Savings
  - 7.4.2 Voip Regulatory Restrictions
- 7.5 Broadband Market
  - 7.5.1 An Emerging Market
  - 7.5.2 Asymmetric Digital Subscriber Line (Adsl)
  - 7.5.3 Wireless Broadband
  - 7.5.4 Powerline Communication (Plc)
  - 7.5.5 Internet Via Satellite
8. Voip Telephony In Africa
- 8.1 Market Overview
- 8.2 Benefits Of Voip
- 8.3 Brief Overview Of Selected Voip Service Providers In Africa
  - 8.3.1 Itxc, Teleglobe, Vsnl
  - 8.3.2 Ibasis
  - 8.3.3 Net2phone
  - 8.3.4 Vocaltec
  - 8.3.5 Ip Planet
- 8.4 Voip Peering
- 8.5 Voip Regulatory Restrictions And Liberalisation
- 8.6 Voip Telephony In Selected African Countries
  - 8.6.1 Algeria
  - 8.6.2 Angola
  - 8.6.3 Benin
  - 8.6.4 Botswana
  - 8.6.5 Burkina Faso
  - 8.6.6 Chad
  - 8.6.7 Cote D'ivoire
  - 8.6.8 Democratic Republic Of Congo
  - 8.6.9 Egypt
  - 8.6.10 Ethiopia
  - 8.6.11 Gabon
  - 8.6.12 Gambia
  - 8.6.13 Ghana
  - 8.6.14 Kenya
  - 8.6.15 Lesotho
  - 8.6.16 Madagascar
  - 8.6.17 Malawi
  - 8.6.18 Mali
  - 8.6.19 Mauritius
  - 8.6.20 Morocco
  - 8.6.21 Nigeria
  - 8.6.22 Rwanda
  - 8.6.23 Senegal
  - 8.6.24 South Africa
  - 8.6.25 Sudan
  - 8.6.26 Tanzania
  - 8.6.27 Uganda
  - 8.6.28 Zambia
  - 8.6.29 Zimbabwe
9. Digital Media And Convergence
- 9.1 Ip And Ngns In Africa
  - 9.1.1 Developments In Various African Markets
- 9.2 Voip Telephony
  - 9.2.1 Market Overview
- 9.3 Wimax
  - 9.3.1 Developments In Various African Markets
- 9.4 Overview Of Broadcasting Market
  - 9.4.1 Problems Facing The Broadcasting Industry
  - 9.4.2 Free-To-Air Tv
  - 9.4.3 Pay Tv
  - 9.4.4 Satellite Coverage
  - 9.4.5 Digital Tv (Dtv)
  - 9.4.6 High Definition Television (Hdtv)
  - 9.4.7 Interactive Tv (Itv)
  - 9.4.8 Broadband Tv, Triple Play
  - 9.4.9 Personal Video Recorders (Pvr)
  - 9.4.10 Mobile Tv
10. Mobile Communications
- 10.1 Analysis Of Africa's Mobile Market
  - 10.1.1 The Impact Of Mobile Phones In Africa
  - 10.1.2 Statistical Analysis
  - 10.1.3 More Mobiles Than Fixed Lines
  - 10.1.4 Average Revenue Per User (Arpu)
  - 10.1.5 Churn
- 10.2 Mobile Technologies
  - 10.2.1 Analogue
  - 10.2.2 Digital
  - 10.2.3 Third Generation Mobile (3g)
- 10.3 Fixed-Mobile Convergence
  - 10.3.1 Wireless Local Loop (Wll)
  - 10.3.2 Converged Licensing Regimes
- 10.4 Pan-African Mobile Operators
- 10.5 Mobile Virtual Network Operators (Mvno)
- 10.6 Mobile Voice Services
  - 10.6.1 Prepaid Cards
  - 10.6.2 Community Phones
- 10.7 Mobile Data Services
  - 10.7.1 Overview
  - 10.7.2 Short Message Service (Sms)
  - 10.7.3 Multimedia Messaging Service (Mms)
  - 10.7.4 General Packet Radio Service (Gprs)
  - 10.7.5 Edge
  - 10.7.6 3g
  - 10.7.7 Evolution Data-Only (Ev-Do)
- 10.8 Mobile Banking
- 10.9 Satellite Mobile
  - 10.9.1 Globalstar
  - 10.9.2 Inmarsat
  - 10.9.3 Iridium
  - 10.9.4 Thuraya
11. Glossary Of Abbreviations
- Exhibit 1 - Ethiopia - One Of The Poorest Countries Going Ip
- Exhibit 2 - An Analysis Of Egypt's Third Mobile Licence Valuation
- Exhibit 3 - African Countries With Independent Regulators - 2007
- Exhibit 4 - Telkom Sa Major Subsidiaries And Associates - March 2006
- Exhibit 5 - Major Vodacom Group Companies - March 2004
- Exhibit 6 - Vodacom International Subsidiaries - March 2006
- Exhibit 7 - Etisalat International Subsidiaries - 2006
- Exhibit 8 - Countries Providing Advanced Data Services - 2007
- Exhibit 9 - Countries With More Than One Mobile Network Operator - 2007
- Table 1 - Telkom South Africa Adsl, Dial-Up And Satellite Internet Subscribers - 2003 - 2007
- Table 2 - Morocco Internet Subscribers, Adsl Subscribers - 2004 - 2007
- Table 3 - Mtn Aggregate Subscribers - 1998 - 2006
- Table 4 - Mtn Subscribers By Region And Country - 2004 - 2006
- Table 5 - Mtn Revenue - 2000 - 2006
- Table 6 - Mtn Revenue By Service And Annual Change - 2006
- Table 7 - Mtn Operations - Market Share And Arpu By Region And Country - 2006
- Table 8 - Mtn South Africa Operating Statistics - 2000 - 2006
- Table 9 - Orascom Gsm Subscribers, Annual Change And Market Share By Country - 2006
- Table 10 - Orascom Revenue - 1999 - 2006
- Table 11 - Orascom Gsm Arpu And Annual Change By Country - 2006
- Table 12 - Telkom Sa Fixed-Line Statistics - Pre And Postpaid, Isdn And Payphones - 1997 - 2006
- Table 13 - Telkom Sa Fixed-Line Traffic - 2006
- Table 14 - Telkom Sa Data Communication Services - 2006
- Table 15 - Telkom Sa Revenue - 1996 - 2006
- Table 16 - Telkom Sa Percentage Of Revenue By Service And Annual Change - 2006
- Table 17 - Vodacom Group Subscribers And Percent Prepaid - 1996 - 2006
- Table 18 - Vodacom Group Statistics - Subscribers, Market Share And Arpu By Country - March 2006
- Table 19 - Vodacom Group Revenue - 1999 - 2006
- Table 20 -Vodacom Group Percentage Of Revenue By Service And Annual Change - 2006
- Table 21 - Vodacom Group Percentage Of Revenue By Country And Annual Change - 2006
- Table 22 - Vodacom International Revenue By Country - 2002 - 2006
- Table 23 - Vodacom International Customers By Country - 2002 - 2006
- Table 24 - Celtel Operating Statistics By Country - 2006
- Table 25 - Orange Operations Statistics In Africa - Subscribers & Annual Growth - September 2006
- Table 26 - Millicom African Operating Statistics - Subscribers & Annual Increase By Country - 2006
- Table 27 - Top Five African Internet User Markets - 2006
- Table 28 - Internet Users In Africa - 1995 - 2006
- Table 29 - Telkom South Africa Adsl, Dial-Up And Satellite Internet Subscribers - 2003 - 2007
- Table 30 - Morocco Internet Subscribers, Adsl Subscribers - 2004 - 2007
- Table 31 - Naspers Pay Tv Subscribers In Africa - 2004 - 2007
- Table 32 - Top 10 Countries By Annual Growth In Mobile Subscribers - 2006
- Table 33 - African Mobile Subscribers, Annual Growth And Penetration - 1998 - 2006
- Table 34 - Top 10 African Countries By Mobile Subscribers - 2006