As the African telecommunications market matures, operators are increasingly looking at value-added services in order to boost their growth. Consumer needs are unique to African markets, so telcos have to be innovative to develop the services that will meet their requirements and their budgets.
Informa Telecoms & Media estimated the mobile VAS market in Africa to be worth over US$5.5 billion in 2010. Over the next five years, the market is expected to grow at a strong compound annual growth rate of around 22% and to be generating revenues of over US$11.5 billion by 2014. Currently South Africa is by far the largest VAS market representing a third of the continent’s revenues with over US$1.5 billion in 2010, ahead of Nigeria and Egypt.
Among the most cited services expected to boost operators’ revenues are messaging (which currently account for just over 80% of VAS revenues in Africa), mobile money services and m-health opportunities. Mobile entertainment services(e.g. mobile music, games, images, TV and video) still represent a marginal section of operators’ revenues, but expectations are high, particularly as mobile internet access is increasing. The FIFA World Cup was a great moment for operators to push content services, as Cambridge Mokanyane, Head of 2010 FIFA World Cup for lead sponsor MTN said in his inspiring presentation at AfricaCom last November. The question now is how to keep the momentum to ensure that entertainment services continue growing.
In order to address this booming market, the Com World Series is launching a new event: VAS Africa, to be held in Sandton, South Africa on 6th and 7th July 2011. The conference programme will include operator keynotes, case studies, new product briefs and interactive discussions on the hottest topics in the market: market forecasts, mobile entertainment partnerships, messaging and social networking, mobile advertising and marketing, mobile money, and cost-effective VAS management.
The event will bring together heads of VAS and commercial directors from operators, content providers and aggregators, VAS solutions suppliers, regulators, consultants, financial institutions and more. The programme is currently being produced so don’t hesitate to get in touch with the team to be involved.
13 Jan 2011
Should the economic recession still be affecting the Eurasian Telecommunications market?
The Economic Recession: Implanting a Global Mindset of Panic
Following the events of 2007, the phrase ‘economic downturn’ resonates strongly in the hearts of individuals all over the globe. With the macroeconomic environment having falling into significant decline and being shadowed in great uncertainty following the global economic recession, it is no wonder that its impacts echo considerably into daily life years into its aftermath. My view however is that the impacts of the recession have escalated far beyond the extent of its reality. It is the ‘global mindset of panic’ embodied almost universally which has triggered the escalation of the recession from an epidemic into a global pandemic. I believe that to recover, one must look forward. To grow, one must spend. And this thinking is of paramount importance to the business world. Positivity not only in thinking, but in spending, is crucial if we are to grow out of this ghost of recession which continues to haunt the public mind.
Is the recession still truly affecting the Eurasian Telecommunications market?
The telecommunications market has no less been threatened by the deepest post-war recession to date. With reduced consumer spending and volatility in the markets of operations, there has been a negative impact on financial and operational performance. In Eurasia, many of the leading operators of the region have stated that ‘global difficulties within the financial sector make it difficult to attract additional financing’ (MTS) whilst ‘inflationary pressures on daily necessities are hitting peoples wallets leading to cautiousness when it comes to consumption’ (Telenor).
But what have been the actualities of the market through this recessive period? Subscription growth for telecommunications has in fact steadily grown from prior to 2007. Penetration of mobile broadband is currently at 74% and is forecast to reach an impressive 97% by the end of 2012 (Informa Telecoms & Media). Thus evidence shows consumers are consuming and growth will continue. And with the increasing opportunities given by evolving telecommunication technology, epitomised by mobile tv and videos, gaming, multiple applications and healthcare, this is set to grow further. Additionally, with the release of new spectrum at 2.5Ghz in accordance with the digital dividend, mobile broadband services are set to become truly pervasive. The necessity for communication is constant, which alongside the multidimensionality of the telecoms markets, leaves a picture which is predominantly positive.
But what have been the actualities of the market through this recessive period? Subscription growth for telecommunications has in fact steadily grown from prior to 2007. Penetration of mobile broadband is currently at 74% and is forecast to reach an impressive 97% by the end of 2012 (Informa Telecoms & Media). Thus evidence shows consumers are consuming and growth will continue. And with the increasing opportunities given by evolving telecommunication technology, epitomised by mobile tv and videos, gaming, multiple applications and healthcare, this is set to grow further. Additionally, with the release of new spectrum at 2.5Ghz in accordance with the digital dividend, mobile broadband services are set to become truly pervasive. The necessity for communication is constant, which alongside the multidimensionality of the telecoms markets, leaves a picture which is predominantly positive.
So what should Eurasian Telcos be concentrating on to maximise their ROI?
A seemingly relatively easy question becomes much more difficult in the aftermath of a destabilising economic recession. Is it right to increase expenditure now to prepare for forecasted growth or to limit expenditures considering the instability of a recovering market?
Personally, I feel that now is the time to get ready for the next stage of growth. In order for telco businesses to stay at the cutting edge of the market, now is the time to start investing in the technologies of the future and shed this mindset that has been so detrimental to the economy of the present day. So what way can telecos do that, you may ask? Let’s take LTE. Having now been tested, trialled and commercially announced by over 100 manufacturers, surely the migration to LTE from 3G is the future of the networks, addressing market needs for the foreseeable future. The idea of investing in new LTE architecture, rather than building upon existing infrastructure, although expensive now, seems like the right thing to do.
Other big earners for the market in my opinion must be value-added content, crucial in keeping the ever-demanding customer happy. Loyalty schemes, similarly, will surely benefit operators in retaining their highest-value customers. The opportunities for growth are endless in such a multi-dimensional arena, as long as thinking and spending remain positive.
Discussion and Debate: Determining the Direction of Development
I am sure my view is one that will not be unopposed. Even the world’s leading economists disagree on what are the optimal business models for moving out of a recession. This unsettling fact leaves the industry in a predicament on the best way forward. So what to do?
We need to talk through these issues in depth and detail, with advice from the regions’ key leaders. Platforms are needed to resolve queries of the future of the Eurasian telecoms market: how can we capitalise on new revenue streams and constant broadband developments? How can businesses be revolutionised to boost their development? Do the answers lie in LTE, IPTV and seamless fixed-mobile convergence? The answers are far from clear-cut but dedicated discussion and debate holds the key for finding the right path.
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Where can the right level of discussion and debate be found? Where is there dedication to a focus on the Eurasian teleco market specifically? Where can you proactively join in these discussions? To find out more about such a forum that initiates truly topical discussion, click here...
Do you have any comments?
Please contact Jane.Schofield@informa.com
26 Oct 2010
Rural expansion, broadband and convergence are key to continue growth in North Africa's telecoms market, say speakers at North Africa Com
The annual North Africa Com conference and exhibition opened today in Cairo with a lively keynote session in which representatives of some of the region’s leading operators, ISPs and regulators highlighted the many growth opportunities in the market.
The conference opened with a market overview from Mai Barakat, Analyst at Informa Telecoms & Media, who said that “the opportunities in North Africa lie in rural expansion, converged services and the data market; Egypt remains the region’s largest market in terms of subscription counts followed by Algeria and Morocco”.
Her presentation was followed by Michel Monzani, Senior VP of Orange France Telecom Group, who described his company’s vision for the region, in particular its new investments in Tunisia and Morocco. The group’s strategy is “to build roots to remain strong in difficult times (reducing costs, maintaining investment, working with solid local partners) while working on new sources of growth such as service innovation”.
Representing one of the region’s most talked-about markets, Cherif Yaici, Chief Strategy Officer of Algerie Telecom Group, gave an overview of Algeria’s telecommunications market and of his group’s unique position within it as incumbent and only fixed-line operator. In terms of commercial development, Algerie Telecom is focusing of corporate customers, broadband access and call centres. On the technical side, the company is migrating its network to IP, developing the national backbone, deploying Fttx and launching new services such as IPTV, VoD, VoIP and more.
Fadel Deguam gave a regulator’s perspective with an update on the National Telecommunications Regulatory Authority of Egypt. He said that the NTRA’s primary objectives are to ensure free competition, while maintaining “the right balance between accountability (to protect consumers and fulfil the interests of the state) and flexibility to attract investment and promote innovation”.
The morning’s discussions also included talks on building international connectivity and increasing capacity in the region, with contributions from representatives of Vivendi, Corning International Fibre, Acision and Egyptsat.
The afternoon’s conference is divided into two separate sessions: one on network evolution to LTE, and one on new revenue streams, with contributions from representatives of operators, ISPs, telecoms solutions vendors and consultants.
The second day will continue to look at strategies to continue growth in the region’s markets, with a keynote presentation from Hatem Dowidar, CEO of Vodafone Egypt, and contributions from operators Telecom Egypt, Mobinil, MDC Lebanon (managing firm for Vivacell Sudan), LinkedonLine and other companies specialising in the region’s market.
In addition to the conference, participants enjoyed many opportunities to network with their peers in the exhibition. Over 500 participants are expected over the two days of the event (with over 350 in attendance on the first morning), and 25 countries are represented in the audience, showing the high degree of interest in the region’s market.
The conference opened with a market overview from Mai Barakat, Analyst at Informa Telecoms & Media, who said that “the opportunities in North Africa lie in rural expansion, converged services and the data market; Egypt remains the region’s largest market in terms of subscription counts followed by Algeria and Morocco”.
Her presentation was followed by Michel Monzani, Senior VP of Orange France Telecom Group, who described his company’s vision for the region, in particular its new investments in Tunisia and Morocco. The group’s strategy is “to build roots to remain strong in difficult times (reducing costs, maintaining investment, working with solid local partners) while working on new sources of growth such as service innovation”.
Representing one of the region’s most talked-about markets, Cherif Yaici, Chief Strategy Officer of Algerie Telecom Group, gave an overview of Algeria’s telecommunications market and of his group’s unique position within it as incumbent and only fixed-line operator. In terms of commercial development, Algerie Telecom is focusing of corporate customers, broadband access and call centres. On the technical side, the company is migrating its network to IP, developing the national backbone, deploying Fttx and launching new services such as IPTV, VoD, VoIP and more.
Fadel Deguam gave a regulator’s perspective with an update on the National Telecommunications Regulatory Authority of Egypt. He said that the NTRA’s primary objectives are to ensure free competition, while maintaining “the right balance between accountability (to protect consumers and fulfil the interests of the state) and flexibility to attract investment and promote innovation”.
The morning’s discussions also included talks on building international connectivity and increasing capacity in the region, with contributions from representatives of Vivendi, Corning International Fibre, Acision and Egyptsat.
The afternoon’s conference is divided into two separate sessions: one on network evolution to LTE, and one on new revenue streams, with contributions from representatives of operators, ISPs, telecoms solutions vendors and consultants.
The second day will continue to look at strategies to continue growth in the region’s markets, with a keynote presentation from Hatem Dowidar, CEO of Vodafone Egypt, and contributions from operators Telecom Egypt, Mobinil, MDC Lebanon (managing firm for Vivacell Sudan), LinkedonLine and other companies specialising in the region’s market.
In addition to the conference, participants enjoyed many opportunities to network with their peers in the exhibition. Over 500 participants are expected over the two days of the event (with over 350 in attendance on the first morning), and 25 countries are represented in the audience, showing the high degree of interest in the region’s market.
11 Oct 2010
Africa tops half billion subs in 3Q10
Mobile subscriptions passed the 500 million mark in Africa during 3Q10, according to the latest data from Informa Telecoms & Media. The continent’s mobile subscriptions grew by 18% year-on-year to over 506 million compared to 16% globally. With less than 50% SIM card penetration rate, Africa was still lagging behind all the other regions while the global penetration rate was 74% in 3Q10. Africa’s mobile subscriptions contributed to 10% of global subscriptions.
Growth is not restricted to the cellular voice market. There are signs that demand for data services is also increasing. The construction of a series of new submarine cables is bringing profound change by increasing the amount of international capacity available to the coasts of East and West Africa, and crucially bringing down costs. There is evidence too of the rise in usage of mobile value-added services. Informa estimates the size of the non-voice market to have been worth US$4.8 billion in 2009, with this figure set to rise in 2010 to in excess of US$5.5 billion. Data revenues now represent 9% of total service revenues.
An innovative response required from across the industry
Regulators are encouraging initiatives to bridge the digital divide between urban and rural Africa. Mobile operators are transforming their business structures so as to focus more on what is core to operational delivery. In response, vendors across the value chain are beginning to showcase solutions to meet the challenges of Africa’s telecoms landscape.
It is likely that service providers become more innovative by launching dynamic tariff plans, segmenting the market to deepen their value offering or by building brand through entering into partnership with content providers. The use of data services is expected to continue to transform society, by connecting rural communities to ICT services, giving hundreds of millions of unbanked some financial muscle and providing a stronger technology infrastructure for the SME business segment. All in the ICT value chain have their part to play in this ongoing transformation.
Business leaders join to set the way forward
It is these market changes that will form the backdrop to discussions and learning at Africa’s largest annual congress and exhibition – the 13th annual AfricaCom taking place in Cape Town on 10-11 November 2010. 4,000+ decision-makers from operators, solutions and technology providers serving across the continent will meet to collaborate in driving this new phase of growth.
The strategic congress will gather a select 2,000 business leaders from the attendee list for a 2 day programme of discussions and idea sharing around the broad outline of “Driving the Next Stage of Growth in African Telecoms“. Sessions cover broad strategic answers to driving growth and predicting trends alongside more specific topics including: Efficiency and ROI Strategies; LTE; VAS; Marketing, Pricing and Loyalty; Mobile Money; Fibre Optics; Broadband Data Services; WiMAX; and Capacity & Wholesale.
Africa’s telecom leaders reveal their strategies and ideas
Leading discussions at AfricaCom, are a panel of 100 of Africa’s most significant telecoms leaders including:
• Ahmad Farroukh, Vice President, MTN West and Central Africa
• Themba Khumalo, CEO, MTN Uganda
• Serame Taukobong, Chief Marketing Officer, MTN South Africa
• Marc Rennard, Executive Vice President for Africa, the Middle East & Asia, Orange Group
• Nkateko Nyoka, Chief Officer - Regulatory & Stakeholder Relations, Vodacom Group
• Wessel Van der Vyver, General Manger, Telecom Namibia International
• Mickael Ghossein, CEO, Orange Telkom Kenya
• Etienne Kouadio, Managing Director, Alink Telecom Cote D'Ivoire
• Jose dos Santos, CEO, Vodacom Mozambique
• Chiruyi Walingo, Chief Commercial Officer, Zain Tanzania
• Hussein Rifaii, Chairman & Managing Director, MDC
• Noel Herrity, CEO, Zantel Tanzania
• Serame Taukobong, Chief Marketing Officer, MTN South Africa
• Dr Angus Hay, Chief Technology Officer, Neotel South Africa
• Paul Edwards, Chairman, Starcomms Nigeria
• Nazar H Sahal, Information Technology Director, Expresso Telecom Group Ltd
International vendors rise to the challenge
Some of the world’s foremost solutions and technology providers have responded to market conditions and developed a portfolio and solutions and services that meet the challenges of Africa’s telecoms landscape. The 250 stand market place exhibition at AfricaCom will showcase the cream of these companies to the 4,000 attendees. This creates a unique opportunity for telcos from across Africa to see the full product offering in one place to help them make better technology decisions.
It is expected that this year’s AfricaCom will play a pivotal role in bringing the continent’s ICT value chain together to assist this ongoing market transformation.
Growth is not restricted to the cellular voice market. There are signs that demand for data services is also increasing. The construction of a series of new submarine cables is bringing profound change by increasing the amount of international capacity available to the coasts of East and West Africa, and crucially bringing down costs. There is evidence too of the rise in usage of mobile value-added services. Informa estimates the size of the non-voice market to have been worth US$4.8 billion in 2009, with this figure set to rise in 2010 to in excess of US$5.5 billion. Data revenues now represent 9% of total service revenues.
An innovative response required from across the industry
Regulators are encouraging initiatives to bridge the digital divide between urban and rural Africa. Mobile operators are transforming their business structures so as to focus more on what is core to operational delivery. In response, vendors across the value chain are beginning to showcase solutions to meet the challenges of Africa’s telecoms landscape.
It is likely that service providers become more innovative by launching dynamic tariff plans, segmenting the market to deepen their value offering or by building brand through entering into partnership with content providers. The use of data services is expected to continue to transform society, by connecting rural communities to ICT services, giving hundreds of millions of unbanked some financial muscle and providing a stronger technology infrastructure for the SME business segment. All in the ICT value chain have their part to play in this ongoing transformation.
Business leaders join to set the way forward
It is these market changes that will form the backdrop to discussions and learning at Africa’s largest annual congress and exhibition – the 13th annual AfricaCom taking place in Cape Town on 10-11 November 2010. 4,000+ decision-makers from operators, solutions and technology providers serving across the continent will meet to collaborate in driving this new phase of growth.
The strategic congress will gather a select 2,000 business leaders from the attendee list for a 2 day programme of discussions and idea sharing around the broad outline of “Driving the Next Stage of Growth in African Telecoms“. Sessions cover broad strategic answers to driving growth and predicting trends alongside more specific topics including: Efficiency and ROI Strategies; LTE; VAS; Marketing, Pricing and Loyalty; Mobile Money; Fibre Optics; Broadband Data Services; WiMAX; and Capacity & Wholesale.
Africa’s telecom leaders reveal their strategies and ideas
Leading discussions at AfricaCom, are a panel of 100 of Africa’s most significant telecoms leaders including:
• Ahmad Farroukh, Vice President, MTN West and Central Africa
• Themba Khumalo, CEO, MTN Uganda
• Serame Taukobong, Chief Marketing Officer, MTN South Africa
• Marc Rennard, Executive Vice President for Africa, the Middle East & Asia, Orange Group
• Nkateko Nyoka, Chief Officer - Regulatory & Stakeholder Relations, Vodacom Group
• Wessel Van der Vyver, General Manger, Telecom Namibia International
• Mickael Ghossein, CEO, Orange Telkom Kenya
• Etienne Kouadio, Managing Director, Alink Telecom Cote D'Ivoire
• Jose dos Santos, CEO, Vodacom Mozambique
• Chiruyi Walingo, Chief Commercial Officer, Zain Tanzania
• Hussein Rifaii, Chairman & Managing Director, MDC
• Noel Herrity, CEO, Zantel Tanzania
• Serame Taukobong, Chief Marketing Officer, MTN South Africa
• Dr Angus Hay, Chief Technology Officer, Neotel South Africa
• Paul Edwards, Chairman, Starcomms Nigeria
• Nazar H Sahal, Information Technology Director, Expresso Telecom Group Ltd
International vendors rise to the challenge
Some of the world’s foremost solutions and technology providers have responded to market conditions and developed a portfolio and solutions and services that meet the challenges of Africa’s telecoms landscape. The 250 stand market place exhibition at AfricaCom will showcase the cream of these companies to the 4,000 attendees. This creates a unique opportunity for telcos from across Africa to see the full product offering in one place to help them make better technology decisions.
It is expected that this year’s AfricaCom will play a pivotal role in bringing the continent’s ICT value chain together to assist this ongoing market transformation.
24 Sept 2010
MTN confirms top speakers at AfricaCom
MTN Group, the leading provider of communications services in Africa and sponsor of this year's AfricaCom, has confirmed its top speakers at the event.
Ahmad Farroukh, Vice President for the West and Central Africa Region, will give the Leading Operator Interview in the opening keynote of the event. He will answer questions from the moderator and the audience on MTN's regional strategies for the next stage of growth in Africa: key growth markets, opportunities for expansion and M&A activities, business models, operational strategy, target segments.
Themba Khumalo, CEO of MTN Uganda, will give a presentation in the Mobile Money session, looking more particularly at the mobile money ecosystem in Africa and sharing his experience of such services.
Serame Taukobong, Chief Marketing Officer of MTN South Africa will join the Content Panel in the Value-Added Services session on the second day of the event. He will discuss the impact of the FIFA World Cup on MTN's mobile content services and revenues.
MTN will have a stand in the exhibition and are a sponsor of the AfricaCom Awards as well.
Ahmad Farroukh, Vice President for the West and Central Africa Region, will give the Leading Operator Interview in the opening keynote of the event. He will answer questions from the moderator and the audience on MTN's regional strategies for the next stage of growth in Africa: key growth markets, opportunities for expansion and M&A activities, business models, operational strategy, target segments.
Themba Khumalo, CEO of MTN Uganda, will give a presentation in the Mobile Money session, looking more particularly at the mobile money ecosystem in Africa and sharing his experience of such services.
Serame Taukobong, Chief Marketing Officer of MTN South Africa will join the Content Panel in the Value-Added Services session on the second day of the event. He will discuss the impact of the FIFA World Cup on MTN's mobile content services and revenues.
MTN will have a stand in the exhibition and are a sponsor of the AfricaCom Awards as well.
6 Sept 2010
Innovation is key in Africa's telecoms - Hear from leaders on how they foster it within their businesses
As mentioned by my colleague Nick Jotischky, innovation is a crucial part of Africa's telecoms market, and the continent is renowned for having been at the forefront of new technologies and services; mobile financial services are probably the best example of a new service finding its first major market success in Africa.
Despite the continent's status as a developing market, or probably more because of it, companies operating in Africa have to be more innovative than in other parts of the world, because they have to offer attractive services with sometimes little financial support, for a customer base that generally has low spending power.
That is why the programme of this year's AfricaCom includes a keynote session dedicated to innovation. It will start with a 'Leadership Roundtable' on how operators adapt their strategies to changing market conditions, with contributions from Jose dos Santos, CEO of Vodacom Mozambique (whose presentation on 'services for the low-end market' was a great success in 2008, as well as his contribution to the CEO panel last year), Gaurav Anand, VP Africa at Tata Communications (bringing the point of view of a wholesale carrier and owner of dynamic fixed-line operator Neotel), and Hussein Rifai, Chairman and Managing Director of telecom management group MDC (which owns among others Vivacell in Sudan).
The session will also include a perspective from outside Africa, with a presentation from Ashish Thomas, director of Singtel Group Innovation, a division of the pan-Asian operator group dedicated to tackling innovation and creating new opportunities for the group.
And to include the latest company looking to bring a fresh perspective on operations in Africa, the group of speakers will also be joined by a senior representative of Airtel Africa. The speaker will be announced in the days to come so keep an eye on this blog!
Despite the continent's status as a developing market, or probably more because of it, companies operating in Africa have to be more innovative than in other parts of the world, because they have to offer attractive services with sometimes little financial support, for a customer base that generally has low spending power.
That is why the programme of this year's AfricaCom includes a keynote session dedicated to innovation. It will start with a 'Leadership Roundtable' on how operators adapt their strategies to changing market conditions, with contributions from Jose dos Santos, CEO of Vodacom Mozambique (whose presentation on 'services for the low-end market' was a great success in 2008, as well as his contribution to the CEO panel last year), Gaurav Anand, VP Africa at Tata Communications (bringing the point of view of a wholesale carrier and owner of dynamic fixed-line operator Neotel), and Hussein Rifai, Chairman and Managing Director of telecom management group MDC (which owns among others Vivacell in Sudan).
The session will also include a perspective from outside Africa, with a presentation from Ashish Thomas, director of Singtel Group Innovation, a division of the pan-Asian operator group dedicated to tackling innovation and creating new opportunities for the group.
And to include the latest company looking to bring a fresh perspective on operations in Africa, the group of speakers will also be joined by a senior representative of Airtel Africa. The speaker will be announced in the days to come so keep an eye on this blog!
24 Aug 2010
Africa Com launches it's record breaking, 13th annual congress agenda
We’ve now been running and growing our flagship event, AfricaCom for 13 years and there has been much excitement surrounding our recent launch of this year’s conference agenda. We’ve taken on board a lot of the requests from last year’s attendees to broaden the list of topics that delegates can choose from, particularly introducing new topics previously not covered in what started as a purely mobile centric event.
Coming under the overarching umbrella of “Driving the Next Stage of Growth in African Telecoms“ we’ve included topics spanning all aspects of the continent’s ecosystem including some new “hot” technologies yet to hit the market. Special Focus sessions include Efficiency and ROI Strategies; LTE; VAS; Marketing, Pricing and Loyalty; Mobile Money; Fibre Optics; Broadband Data Services; WiMAX; and Capacity & Wholesale Africa.
We’ve worked hard to ensure that our speaker panel broadens in step with the congress agenda. The speaker line-up has reached the golden landmark of 100 and new names are coming on board every week. All in all we’re hoping that this is going to be AfricaCom at it’s best yet!
Coming under the overarching umbrella of “Driving the Next Stage of Growth in African Telecoms“ we’ve included topics spanning all aspects of the continent’s ecosystem including some new “hot” technologies yet to hit the market. Special Focus sessions include Efficiency and ROI Strategies; LTE; VAS; Marketing, Pricing and Loyalty; Mobile Money; Fibre Optics; Broadband Data Services; WiMAX; and Capacity & Wholesale Africa.
We’ve worked hard to ensure that our speaker panel broadens in step with the congress agenda. The speaker line-up has reached the golden landmark of 100 and new names are coming on board every week. All in all we’re hoping that this is going to be AfricaCom at it’s best yet!
30 Apr 2010
More M&A activity in Africa as the continent's telecoms retain strong growth
According to my colleague Matt Reed, preparing an M&A strategy is one of the top 10 priorities operators should look at to succeed in Africa’s telecoms market. Looking at the news in the past couple of weeks, it seems that the major groups operating on the continent are already actively working on this strategy.
Since Bharti announced its acquisition of the African operations of Zain, the deal hasn’t gone as smoothly as it could have been. In Nigeria, Zain’s operation is still the subject of an ownership battle; this is the continent’s largest market and the main source of revenue among Zain’s African assets, so it is crucial in the group's success. In the smaller markets of Gabon and Congo, government authorities are objecting to the buy-out of one of their leading operators without being consulted and are threatening to suspend the operators’ licences. Are these mere hiccups or will they seriously affect Bharti’s strategy in Africa?
MTN, which Bharti spent most of 2008-2009 in failed discussions with, is still on the expansion trail. The pan-African group is now talking to Egypt-based Orascom about its African operations in Algeria, Tunisia, Burundi, Central African Republic, Namibia and Zimbabwe. This would potentially create the world’s 3rd largest mobile operator, but Algerian authorities are currently opposing the deal. Algeria is one of the most promising markets left in Africa, with a large young population and 3G services which have yet to be licensed. Without Algeria, the MTN-Orascom deal would lose a lot of its appeal.
Orange/France Telecom posted its financial results this week, and despite lower overall revenues, its African operations registered considerable growth. With this in mind, the group’s new CEO Stéphane Richard also announced a plan to invest 7 billion euros in Africa and the Middle East in the next five years. Orange already has a strong presence in French-speaking Africa: its latest launch was a triple play service provider in Tunisia, but its main presence is in West Africa, where it seems it would concentrate most of its efforts.
Saudi group STC has also expressed an interest in Africa for expansion in the last few days, continuing the trend (reversed only by Zain) of Middle Eastern groups eyeing Africa as the next place for growth.
M&A activity and regional groups’ strategies on the continent will continue to be major topics of discussion at events in the Com World Series, with among others interviews from regional group representatives of Zain and MTN at West & Central Africa Com in Senegal in June, an event dedicated to Nigeria’s market in September, a special focus on Algeria’s market at North Africa Com in October, and keynote sessions on investment and operators’ strategies at AfricaCom in November.
Since Bharti announced its acquisition of the African operations of Zain, the deal hasn’t gone as smoothly as it could have been. In Nigeria, Zain’s operation is still the subject of an ownership battle; this is the continent’s largest market and the main source of revenue among Zain’s African assets, so it is crucial in the group's success. In the smaller markets of Gabon and Congo, government authorities are objecting to the buy-out of one of their leading operators without being consulted and are threatening to suspend the operators’ licences. Are these mere hiccups or will they seriously affect Bharti’s strategy in Africa?
MTN, which Bharti spent most of 2008-2009 in failed discussions with, is still on the expansion trail. The pan-African group is now talking to Egypt-based Orascom about its African operations in Algeria, Tunisia, Burundi, Central African Republic, Namibia and Zimbabwe. This would potentially create the world’s 3rd largest mobile operator, but Algerian authorities are currently opposing the deal. Algeria is one of the most promising markets left in Africa, with a large young population and 3G services which have yet to be licensed. Without Algeria, the MTN-Orascom deal would lose a lot of its appeal.
Orange/France Telecom posted its financial results this week, and despite lower overall revenues, its African operations registered considerable growth. With this in mind, the group’s new CEO Stéphane Richard also announced a plan to invest 7 billion euros in Africa and the Middle East in the next five years. Orange already has a strong presence in French-speaking Africa: its latest launch was a triple play service provider in Tunisia, but its main presence is in West Africa, where it seems it would concentrate most of its efforts.
Saudi group STC has also expressed an interest in Africa for expansion in the last few days, continuing the trend (reversed only by Zain) of Middle Eastern groups eyeing Africa as the next place for growth.
M&A activity and regional groups’ strategies on the continent will continue to be major topics of discussion at events in the Com World Series, with among others interviews from regional group representatives of Zain and MTN at West & Central Africa Com in Senegal in June, an event dedicated to Nigeria’s market in September, a special focus on Algeria’s market at North Africa Com in October, and keynote sessions on investment and operators’ strategies at AfricaCom in November.
22 Apr 2010
5 questions to Robert Aouad, CEO of ISP Isocel Telecom in Benin
Thanks to the launch of several submarine cables connecting it to Europe et the rest of Africa, Western and Central Africa is soon to experience dramatically improved internet access. This will no doubt give a great opportunity for new operators and Internet Service Providers to create a niche in the region's telecoms market. More particularly, it will improve access to communications for all, particularly for underserved segments such as the young and people on low income.
Robert Aouad is one of those entrepreneurs who has spotted the huge potential for alternative service providers to deliver internet access to the region. He is the main promoter of the ISOCEL project, launched in 2004 and which after 4 months became the first private ISP in Benin after the incumbent. ISOCEL is currently in the process of deploying similar wireless networks in six secondary cities in Benin and operate and manage ICT community centers.
Robert will be a panellist at the West & Central Africa Com cognress in Dakar in June, where he will share his thoughts on how fixed-Line, mobile & wireless operators can deliver reliable and affordable broadband services in the region. As an advance preview of the message he will put forward at the event, he answers five questions for us.
What are the key trends in West & Central Africa’s telecommunications market today?
The telecommunications market in West & Central Africa tends towards a radical transformation in the next 10 years, with increased competition among mobile operators, particularly as ARPU is diminishing. This is due to the fact that the vast majority of new subscribers will come from a low-revenue segment living in remote areas. This will push the sector’s stakeholders to make up for this decrease in revenues by offering other value-added services, mainly access to mobile internet.
What are the key markets trends to watch and why?
It would be interesting to observe the arrival of new generation technologies and their adoption in a larger market, such as WiMAX, HSDPA, CDMA EV-DO Rev B etc. After a few years, we will have a better understanding of which of these different technologies are most successful and if they have a sustainable business model.
How has the global economic situation affected your market, and how has your company responded to it?
We are lucky to be in a market which is still largely under-exploited. This means that we haven’t felt the consequences of the global economic situation, which hasn’t affected our growth in terms of subscribers and revenues. On the other hand, we operate in a market where the buying power is among the lowest and this has always forced us to create products and services that are affordable for our target customers.
Which services or technologies are likely to have the biggest impact on the market in the years to come?
It is certain that mobile internet access will have a remarkable growth but the success of 3rd and 4th generation technologies will be confronted with issues of available capacity when the number of users grows exponentially. We also hope that the MVNO model will be adopted massively by countries in West & Central Africa as it represents a win-win partnership for actual and virtual operators.
How important is the West & Central Africa Com congress for the region’s telecoms industry and what do you expect to take out of the event?
Like every year, the West & Central Africa Com congress is an occasion to meet the main stakeholders in the telecommunications market and to hear about the new market trends. The fact that the event is taking place in a French-speaking country will probably encourage more operators from the region to participate.
Robert Aouad is one of those entrepreneurs who has spotted the huge potential for alternative service providers to deliver internet access to the region. He is the main promoter of the ISOCEL project, launched in 2004 and which after 4 months became the first private ISP in Benin after the incumbent. ISOCEL is currently in the process of deploying similar wireless networks in six secondary cities in Benin and operate and manage ICT community centers.
Robert will be a panellist at the West & Central Africa Com cognress in Dakar in June, where he will share his thoughts on how fixed-Line, mobile & wireless operators can deliver reliable and affordable broadband services in the region. As an advance preview of the message he will put forward at the event, he answers five questions for us.
What are the key trends in West & Central Africa’s telecommunications market today?
The telecommunications market in West & Central Africa tends towards a radical transformation in the next 10 years, with increased competition among mobile operators, particularly as ARPU is diminishing. This is due to the fact that the vast majority of new subscribers will come from a low-revenue segment living in remote areas. This will push the sector’s stakeholders to make up for this decrease in revenues by offering other value-added services, mainly access to mobile internet.
What are the key markets trends to watch and why?
It would be interesting to observe the arrival of new generation technologies and their adoption in a larger market, such as WiMAX, HSDPA, CDMA EV-DO Rev B etc. After a few years, we will have a better understanding of which of these different technologies are most successful and if they have a sustainable business model.
How has the global economic situation affected your market, and how has your company responded to it?
We are lucky to be in a market which is still largely under-exploited. This means that we haven’t felt the consequences of the global economic situation, which hasn’t affected our growth in terms of subscribers and revenues. On the other hand, we operate in a market where the buying power is among the lowest and this has always forced us to create products and services that are affordable for our target customers.
Which services or technologies are likely to have the biggest impact on the market in the years to come?
It is certain that mobile internet access will have a remarkable growth but the success of 3rd and 4th generation technologies will be confronted with issues of available capacity when the number of users grows exponentially. We also hope that the MVNO model will be adopted massively by countries in West & Central Africa as it represents a win-win partnership for actual and virtual operators.
How important is the West & Central Africa Com congress for the region’s telecoms industry and what do you expect to take out of the event?
Like every year, the West & Central Africa Com congress is an occasion to meet the main stakeholders in the telecommunications market and to hear about the new market trends. The fact that the event is taking place in a French-speaking country will probably encourage more operators from the region to participate.
16 Apr 2010
New event NigeriaCom launched at a crucial time for Nigeria's telecoms market
The ash cloud from Icelandic volcano Eyjafjallajokull is still causing a standstill in Northern European airports, and as a result two of my colleagues are extending their stay in Nigeria’s business capital Lagos.
They are there to meet operators and vendors to talk about forthcoming event NigeriaCom, which will take place at the newly built Eko conference centre in Lagos on 28th and 29th September. The event is a new addition to the Com World Series: in 2008 and 2009, the West & Central Africa Com event took place in Nigeria’s administrative capital Abuja, and is now returning to Dakar in Senegal. Feedback from the event concluded that Nigeria was such a booming telecoms market that it required a specific event, while West & Central Africa Com could have a more truly regional feel if located in a relatively smaller market. The idea is proving successful, as both events are attracting high levels of interest from operators, investors, regulators and vendors.
The Dakar event is supported by Senegal’s Minister of Telecommunications, ICT, and Transports Abdourahim Agne, who will preside the opening session. The programme includes representatives from 25 operators, including the major groups investing in the region (MTN, Zain, Orange, Etisalat, Lintel/Africell, Bintel, Intercel), as well as leading telecom solutions vendors (Ericsson, Qualcomm, Corning, Helios Towers, ECI Telecom) and international carriers (Belgacom, Telenor).
The NigeriaCom programme is still being finalised, but it has already received the support of Nigeria’s major operators: already confirmed speakers include the CEOs of MTN Nigeria (Ahmed Farroukh), Starcomms (Maher Qubain), Etisalat Nigeria’s (Steven Evans), Pinet Informatics (Lanre Ajayi) and senior representatives from Zain.
The event will be held at a crucial time in Nigeria’s telecoms market: thanks to the launch of new submarine cables, operators will be able to launch better and more affordable broadband services, which are in great demand. At the same time, they are still to an extent struggling to improve their networks in order to deliver acceptable quality of service and coverage. In addition to these changes, the Nigerian Communications Commission (NCC), will have a new head this year. Ernest Ndukwe, who led the market’s liberalisation and promoted a healthy competitive environment for its stakeholders, came to the end of his 10-year tenure earlier this year. He is currently replaced by Stephen Adedayo Bello as Acting Executive Vice Chairman, and a new head is expected to be announced in the next few months, if not weeks.
NigeriaCom will definitely be a great place to gauge the market’s mood, to discuss its operators' strategies, and hopefully to meet the new executive team at the helm of the NCC.
They are there to meet operators and vendors to talk about forthcoming event NigeriaCom, which will take place at the newly built Eko conference centre in Lagos on 28th and 29th September. The event is a new addition to the Com World Series: in 2008 and 2009, the West & Central Africa Com event took place in Nigeria’s administrative capital Abuja, and is now returning to Dakar in Senegal. Feedback from the event concluded that Nigeria was such a booming telecoms market that it required a specific event, while West & Central Africa Com could have a more truly regional feel if located in a relatively smaller market. The idea is proving successful, as both events are attracting high levels of interest from operators, investors, regulators and vendors.
The Dakar event is supported by Senegal’s Minister of Telecommunications, ICT, and Transports Abdourahim Agne, who will preside the opening session. The programme includes representatives from 25 operators, including the major groups investing in the region (MTN, Zain, Orange, Etisalat, Lintel/Africell, Bintel, Intercel), as well as leading telecom solutions vendors (Ericsson, Qualcomm, Corning, Helios Towers, ECI Telecom) and international carriers (Belgacom, Telenor).
The NigeriaCom programme is still being finalised, but it has already received the support of Nigeria’s major operators: already confirmed speakers include the CEOs of MTN Nigeria (Ahmed Farroukh), Starcomms (Maher Qubain), Etisalat Nigeria’s (Steven Evans), Pinet Informatics (Lanre Ajayi) and senior representatives from Zain.
The event will be held at a crucial time in Nigeria’s telecoms market: thanks to the launch of new submarine cables, operators will be able to launch better and more affordable broadband services, which are in great demand. At the same time, they are still to an extent struggling to improve their networks in order to deliver acceptable quality of service and coverage. In addition to these changes, the Nigerian Communications Commission (NCC), will have a new head this year. Ernest Ndukwe, who led the market’s liberalisation and promoted a healthy competitive environment for its stakeholders, came to the end of his 10-year tenure earlier this year. He is currently replaced by Stephen Adedayo Bello as Acting Executive Vice Chairman, and a new head is expected to be announced in the next few months, if not weeks.
NigeriaCom will definitely be a great place to gauge the market’s mood, to discuss its operators' strategies, and hopefully to meet the new executive team at the helm of the NCC.
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