Oct 16, 2012
Africa telecoms enter high-growth phase - PwCBack
Education|PricewaterhouseCoopers|Africa|USD|Advisory Services|Communications Market|Finance Industry|Mass-market Mobile Networks|Telecommunications|Telecommunications Capital|Elmo Hildebrand|Johan Van Huyssteen|Southern Africa
© Reuse this
In the inaugural ‘Communications review, telecoms in Africa: innovating and Inspiring’, PwC communications leader for Southern Africa Johan van Huyssteen said the continent, which surpassed the fixed-line development phase in favour of mass-market mobile networks and services, remained an untapped market, despite a mobile subscription base of more than 500-million.
“With billions of dollars of international investment flowing in and subscriber numbers rising across the continent, Africa’s communications market is at the inflection point where high potential starts to turn into high growth,” he said, noting that a 10% increase in mobile penetration equated to a 0.6% rise in a country's economic growth rate.
The mobile sector, which would account for 68.9%, or $100.1-billion, of Africa’s expected cumulative $145-billion telecommunications capital spend by 2015, would drive the growth, said Van Huyssteen.
Fixed-line penetration on the continent remained below 10%, with no indications of growth, while the mobile market continued to experience a rapid uptake of subscriptions, rising from 16-million in 2000, to 500-million in 2012.
The continent was also a “global testing lab” with the emergence of innovative digital- and mobile-enabled applications for the finance industry, citing the success of mobile money payment in Africa, as well as the commerce, health and education sectors.
However, PwC associate director for advisory services Elmo Hildebrand warned that mobile operators should assess and improve their current network performance before implementing and upgrading networks for newer technologies.
He noted that the aggressive build of a 2G network, for instance, could have left “stranded assets” hampering the network capacity and processes.
Further, the knowledge of the inefficiencies in a network enabled the operators to align future network developments with the existing network, as well as improve network performance and lower operational costs.
Assessment of the networks could improve performance by 20%, while reducing capital expenditure by between 5% and 30% in the first year, with similar operational expenditure reductions.
“Operators that take stock of their networks at the end of the 2G phase, and before they roll out the next technology, tend to perform better because knowing more about their existing network helps them make the necessary changes faster for a 3G roll-out,” said Hildebrand.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other ICT News
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.