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Ericsson’s latest Mobility report shows Africa’s IoT potential

2nd December 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Africa’s reliance on mobile technology, as opposed to fixed-line technology, is a significant contributing factor in the rapid growth of mobile subscriptions, with the continent accounting for 15-million of the 80-million new mobile subscriptions recorded in the third quarter.

Nigeria has led the way with more than two- million new subscriptions, followed by Ethiopia and South Africa, each with just under two- million new mobile subscriptions, the latest Mobility report by information and communications technology giant Ericsson shows.

Unpacking the findings of the November 2016 edition of the report during a press briefing on the sidelines of AfricaCom, in Cape Town, Ericsson sub-Saharan Africa president Jean-Claude Geha said the additions indicate strong mobile uptake across the continent.

With an 80% mobile penetration in Africa, compared with the overall 101% penetration globally, the continent’s rising mobile subscriptions augur significant growth in the next five years on the back of an expanding population, more affordable smartphones and rising data traffic.

Further, the continent’s population is more used to mobile technology, leapfrogging the traditional technology progression of more developed economies, and with the increasing affordability and rising youth population, there is expected to be a continued upward trend in growth.

The Mobility report forecasts mobile penetration in sub-Saharan Africa is set to reach 105% by 2021 – maintaining the highest growth rate in mobile subscriptions globally.

Mobile subscriptions are expected to rise from 720-million in 2016 to 1.03-billion in 2022, representing a compound annual growth rate (CAGR) of 6%, with 55-million net additions this year.

It is expected that smartphone traffic across sub-Saharan Africa will grow 14-fold by 2022, with an expected 800-million smartphone subscriptions within five years, at a CAGR of 21%, compared with the current 260-million.

Mobile subscriptions on smartphones will account for 78% of total subscriptions by 2022.

Smartphone penetration on the continent stands at around 26%, while the mobile broadband penetration is about 35%.

Data traffic per active smartphone will rise from 1 GB a month to 5 GB a month in the period to 2022.

By 2022, mobile data traffic, however, will have increased more than tenfold.

In the next five years, monthly mobile traffic in sub-Saharan Africa will surpass 1 000 Pb, while WiFi traffic over cellular devices will reach over 400 Pb a month at a CAGR in excess of 70%.

Meanwhile, the Internet of Things (IoT), a partial driver of increased subscriptions, is gaining traction, with 75-million connected cellular IoT devices expected in 2022, up from the current ten-million devices.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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