Mobile Telecommunications Market in Africa

You may now purchase this report directly from Amazon for your kindle or kindle-ready device Go here to be taken to the purchase site directly. This work is part of the Manifest Mind Adaptive Sustainability Series. This is the first time any research organization has brought high-value, high-quality market research within the reach of most interested individuals. Help us get the word out! We want our grand experiment to work! Read the research, get informed, and make a difference. We need buyers, reviewers, and world-changers.

  • Report Summary
  • Table of Contents
  • Charts and Figures

Market Dynamics and Challenges, Unique Innovations, Sustainability Issues, and African Telecom Market Forecasts

This market research report from Manifest Mind, LLC is delivered via the Amazon eBook service at an investment cost that is designed to bring as many app developers to the tableAre you going to be one of them?

This eBook explores the emerging opportunities in Africa related to mobile infrastructure, technologies, and applications with a special focus on sustainability factors. Based on a series of primary interviews and secondary research, the authors provide a real-world analysis and forecast for the African market; a market which is largely misunderstood due to cultural and social issues. We also contribute concrete conclusions and recommendations that account for the fact that even while many reports indicate that Africa holds 50% or more of the top 10 fastest-growing economies of the world, it is a very challenging marketplace to penetrate. Still, in a country where more Africans have access to mobile phones than reliable electricity —  hundreds of millions of connected mobile phones — there are massive opportunities to use this technology to improve sustainability outcomes for  the environment, the economy, and for African society. This report provides the key information that is necessary in understanding the role that mobile telecommunications plays in these emerging economies, the growth of the market, and the likely winning approaches for vendors, development organizations striving to improve health and economic conditions, and for the African people.

A Transformative Technology

The adoption of mobile phones in Africa has been transformational not only for individuals but also for entire countries and regions. With very poor overall infrastructure—from roads to electricity—in Africa, most Africans largely held to antiquated ways of doing business. Business meetings or sales calls amounted to a long walk down the road and a face-to-face conversation. Not so today. Mobile telephony has brought a wide range of new possibilities to the continent. Across urban/rural and rich/poor divides, mobile phones are connecting individuals to other individuals, markets, services, and local and global information. For many people, the mobile phone is raising standards of living that have long been among the lowest in the world. The telecommunications industry is driving economic growth and enabling the development of a burgeoning middle class.

The mobile telecommunications market in Africa is developing in a manner that is unique to the African continent. With its lack of a landline-based infrastructure, Africa has leapfrogged what many consider to be the standard evolutionary adoption path of telecommunications technology. For many Africans, the mobile phone is the first form of telecommunication (versus a landline telephone) and the first computing device they own (versus a PC or laptop). Because of this, mobile phones have become one of the most valued possessions for many Africans—not only enabling increased communications between family members but also opening new possibilities and opportunities for their futures.

Massive Opportuntity for Growth, But Often Misunderstood

The mobile telecommunications market in Africa is developing in a manner that is unique to the African continent. With its lack of a landline-based infrastructure, Africa has leapfrogged what many consider to be the standard evolutionary adoption path of telecommunications technology. For many Africans, the mobile phone is the first form of telecommunication (versus a landline telephone) and the first computing device they own (versus a PC or laptop). Because of this, mobile phones have become one of the most valued possessions for many Africans—not only enabling increased communications between family members but also opening new possibilities and opportunities for their futures.

The African continent currently supports a population of about 1.1 billion people. Mobile adoption penetration rates for the countries on the continent are commonly thought to be between 50% to almost 80%, but these adoption rates are misleading due to the unique nature of the African mobile telecommunications market. Although Africa boasts a number of fast-growing economies, many inhabitants still live below globally recognized poverty lines. As such, mobile users in Africa are highly sensitive to costs and have adopted mobile phone–usage strategies to minimize these costs. These strategies include the use of multiple subscriber identification module (SIM) cards in their phones and the extensive sharing of phones between users or families. Given this use of multiple SIM cards, Manifest Mind estimates that mobile phone penetration rates for unique subscribers are well below other popular market estimates. This exposes a mobile telecommunications market of more than 700 million people who have yet to own their own phone.

Mobile Telecom Subs in Africa 2013

Smartphones are the Next Wave

MNOs are currently upgrading their infrastructures to handle 3G and 4G long-term evolution (LTE) bandwidths from the currently predominant 2G services. As it stands, 3G coverage is limited, but available in 31 African countries. Smartphones are slowly replacing the less-capable feature phones to take advantage of the more advanced infrastructure, especially in select urban areas of South Africa, Kenya, Ghana, and Nigeria. The African appetite for data, mobile web browsing, and the latest mobile apps is growing proportionately.

Key Issues Addressed

Overview of Mobile Telecommunications in Africa
The Economic and Social Impacts of Mobile Use on Citizens and Economies
The Mobile Phone Infrastructure in Africa
The Impact of Connectedness on the Environment, Economy, and Society
Overview of Key Players in the Current Market
Market Dynamics for the Mobile Phone in Africa
Sustainability Challenges Related to Mobile Phones

Audience

Mobile Application Developers
Mobile Network Operators
Governments Providing Guidance on African Investment
Non-Governmental Organizations Operating in Africa
Trade Promoters and Development Agencies
International Financiers, Export-Import Banks and Private Investment Concerns
International Health Care Agencies

Report Bundle: PDF document and Microsoft Excel Spreadsheet
Length: 145 pages with infographic on application development statistics and accompanying  workbook of 39 charts and figures and tables
Authors: Tom Machinchick and Carol L. Stimmel

© Manifest Mind, LLC 2013

Section 1: Executive Summary
1.1 Introduction to the Mobile Telecommunications Market in Africa
1.2 Market Opportunities

Section 2: Market Challenges
2.1 Sustainability
2.2 Market Forecasts

Section 3: Market Issues
3.1 Introduction
3.2 Overview of the Mobile Phone Market in Africa
3.3 Regional Influences on Mobile Telecommunication
3.3.1 North Africa
3.3.2 Sub-Saharan Africa
3.4 Mobile Phone Statistics
3.4.1 The Mobile Phone Ecosystem in Africa
3.4.2 The Mobile Phone Market in Africa
3.4.3 Penetration Rate Estimates
3.4.4 Penetration Rates and Actual Subscribers
3.4.4.1 The Use of Multiple SIM Cards in Africa
3.4.5 African Weighted-Average Penetration Rates
3.4.6 The Number of African Individuals with Mobile Subscriptions
3.4.7 Prepaid Subscriptions: The Only Way to Pay
3.4.8 MNOs: Increasing Competition
3.4.9 Mobile Subscription Pricing
3.5 Macro Forces Influencing the African Mobile Ecosystem
3.5.1 Urbanization
3.5.2 Urbanization in Africa
3.5.3 Global Connectivity
3.5.3.1 African Connectedness: Progress with Help from Mobile Adoption
3.6 Market Dynamics
3.6.1 Feature Phones Rule
3.6.1.1 Smartphone Penetration
3.6.2 Text Messages: The Foundation of African Apps
3.6.3 The Leapfrog Effect
3.6.4 Low Internet Penetration Rates
3.6.5 Mobile Developers in Need of Business Experience and Expertise
3.6.6 The Emergence of Business Incubators
3.6.7 African Diversity and the Need for Local Content
3.7 Market Drivers
3.7.1 Technology and Infrastructure Have Led to Adoption
3.7.1.1 Market Drivers’ Effects on Market Participants
3.7.2 The Need and Desire to Communicate and Connect
3.7.2.1 Market Drivers’ Effects on Market Players
3.7.3 The Desire for Opportunity
3.8 Market Hurdles
3.8.1 Cost
3.8.2 Availability
3.8.3 Access to Electricity

Section 4: Technology Issues
4.1 Technology Introduction
4.2 The Mobile Phone Infrastructure
4.2.1 Mobile Base Stations
4.2.1.1 Governments and MNOs Work together to Build Out the Mobile Infrastructure
4.3     GSM versus CDMA Phones
4.4     Mobile Phone Hardware
4.4.1   Low-Cost Handset Brands Gain Traction
4.4.2   Handset Makers Positioning for the Smartphone and Data Uptake
4.5     Mobile Broadband: 3G, 4G, LTE
4.6     Spectrum Allocation

Section 5: Key Industry Players
5.1 Introduction
5.1.1   biNu
5.1.2   France Telecom–Orange
5.1.3   Google
5.1.4   Jana
5.1.5   iCow
5.1.6   iHub
5.1.7   Mi-Fone
5.1.8   MTN Group Limited
5.1.9   NikoHapa
5.1.10  Opera Software
5.1.11  Robert Belt and Associates
5.1.12  Safaricom
5.1.13  Worldreader

Section 6: Sustainability Issues
6.1 The Mobile Ecosystem and African Sustainability
6.2     Mobile Phones and African Sustainability
6.3     Definition of Sustainability
6.4     Areas of Sustainability
6.4.1   Environmental
6.4.1.1 Mobile Phones, Energy, and Energy Efficiency
6.4.1.2 E-Waste
6.4.2   Cultural Impacts of Mobile Phones: The Need for Local Content
6.4.2.1 Cultural Apps, Sustainability, and Local Content
6.4.2.2 Popularity of Mobile Apps
6.4.3   Sustainable Social Benefits of Mobile Applications
6.4.3.1 Health
6.4.3.2 Education and Literacy
6.4.3.3 Employment
6.4.3.4 Government
6.4.3.5 Citizens’ and Women’s Rights
6.4.4   Economic Impacts of Mobile on Local and Regional Economies
6.4.4.1 Agriculture
6.4.4.2 Mobile Banking
6.4.5   Holistic Sustainability Goals and Planning

Section 7: Market Forecast
7.1 Market Forecast Introduction
7.2     Methodology
7.2.1   Primary Research
7.2.2   Secondary Research
7.2.3   Scope
7.3     Africa Telecom Industry Forecasts
7.3.1   Africa Population Growth
7.3.2   Mobile Subscribers
7.3.3   Unserved Population
7.3.4   Mobile Telecom Revenue Projections
7.3.5   Uptake of 3G and LTE Services
7.3.6   Application and Content Developers
7.3.7   Distributors of Mobile Products and Services

Section 8: Conclusions and Recommendations
8.1 Introduction
8.2     Conclusions
8.3     Recommendations

Section 9: Company Directory

Section 10: Acronyms and Abbreviation

Section 11: Table of Contents

Section 12: Table of Charts and Figures

Section 13: Sources and Methodology

Chart 1.1    Mobile Telecommunications Subscribers and Unserved Population, Africa, 2013
Chart 2.1    Mobile Telecommunications Revenues by Market Segment, Africa, 2013-2020
Chart 3.1     Mobile Connections and Penetration Rates, Africa and USA, 2000-2013
Chart 3.2     Mobile Telecommunications Penetration Rates, Africa 2006-2013
Chart 3.3     Mobile Telecommunications Subscribers and Unserved Populations, Africa, 2013
Chart 3.4     Number of Mobile Operators, Africa 2013
Chart 3.5     Rural and Urban Population Growth, Africa, 1950-2050
Chart 3.6     GDP per Capita, African Countries compared to $50K USA, 2012
Chart 4.1     Mobile Communications Technology Market Penetration, Africa 2012 and 2018
Chart 4.2     Mobile Phone Market Share, Select Countries, Africa, 2012
Chart 6.1    Mobile Market Ecosystem Contribution to GDP, African Markets, 2012
Chart 7.1    Population Growth, Africa, 2013-2020
Chart 7.2     Composition of the Mobile Telecommunications Market, Africa, 2013-202
Chart 7.3     Unique Mobile Subscribers and Unserved Population, Africa, 2013-2020
Chart 7.4     Mobile Market Composition by SIM Card Use, Africa, 2013-2020
Chart 7.5     MNO Revenues, Africa, 2013-2020
Chart 7.6     Average Mobile Revenue per User and Subscriber, Africa, 2013-2020
Chart 7.7     Mobile Broadband Technology, Adoption Rates, Africa, 2013-202
Chart 7.8    Mobile Application and Content Developer Revenues, Africa, 2013-2020
Chart 7.9     Mobile Distributors and Retail Supplier Revenues, Africa, 2013-2020

Figure 3.1    Mobile Subscriptions per 100 People, World Regions, 2013
Figure 3.2    Prepaid and Postpaid Mobile Subscription Percentages by Country, Africa 2013
Figure 3.3    Mobile Subscription Pricing, Select African Markets, 2001-2011
Figure 3.4    Average Revenue per Subscriber and per Connection, United States, 2002-2012
Figure 3.5    Average Revenue per User, Select African Markets, 2007 and 2011
Figure 3.6    Urban and Rural Population, Total World, 1950-2050
Figure 3.7    KOF Index of Globalization, Global and African Region, 1980-2010
Figure 3.8    Percentage of Households with Internet Access, World Regions, 2005-2013
Figure 3.9    Mobile Application Development Earning, Global Markets, 2013
Figure 3.10   Language and Cultural Diversity, Africa 2012
Figure 3.11   Mobile Telecommunications Coverage, Select Countries in Africa, 2012
Figure 4.1    Map of Mobile Penetration Rates, Africa, 2012
Figure 4.2    Map of Undersea Cables, Africa, 2014 Projections
Figure 4.3    3G and 4G Wireless Penetration Rates, Africa 2012-2016
Figure 6.1    Total Wireless Cloud Energy Consumption Projections, Global Markets, 2012 and 2015
Figure 6.2    List of Top 10 Mobile Apps, biNu.com in Top 10 Global Markets, 2013
Figure 6.3    Number of Countries with at Least 1 mHealth Care Deployment, Global Regions, 2003-2011
Figure 6.4    Mobile Industry Contribution to Employment, Africa Regions, 2011
Figure 6.5    Economic Impact of the Mobile Ecosystem, African Markets, 2008-2011