http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 16, 2012

Africa telecoms enter high-growth phase - PwC

Back
Africa|Education|Health|PricewaterhouseCoopers|Testing|Africa|USD|Advisory Services|Communications Market|Finance Industry|Mass-market Mobile Networks|Services|Telecommunications|Telecommunications Capital|Elmo Hildebrand|Johan Van Huyssteen|Southern Africa
Africa|Education|Health|Testing|Africa||Services|||
africa-company|education-company|health|pricewaterhousecoopers|testing|africa|usd|advisory-services|communications-market|finance-industry|mass-market-mobile-networks|services|telecommunications|telecommunications-capital|elmo-hildebrand|johan-van-huyssteen|southern-africa-region
© Reuse this



Africa’s telecommunications sector has passed the tipping point from high potential to high growth, a new report by professional services firm PricewaterhouseCoopers (PwC) found on Tuesday.

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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96