CAPE TOWN, South Africa, Dec. 3, 2013 /PRNewswire/ -- The increasing availability of affordable customer premise equipment (CPE) and smartphones in East Africa is driving the broadband services market in the region. Greater demand for access to social media platforms, especially on mobile devices, sustains broadband penetration. The laying of undersea cables, too, has helped enhance the reliability of networks, aiding market development.
New analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), East African Broadband Market, finds that the market earned revenues of $109.5 million in 2012 and expects this to reach $159.2 million in 2017. The low broadband network coverage in Ethiopia, Sudan and Rwanda – covering an average of just 20 percent of the geographic area – is indicative of a large under-serviced market and the high growth potential it offers.
"The deployment of worldwide interoperability for microwave access (WiMAX) and third generation wireless networks will contribute to the increase in broadband subscriptions in East Africa," said Frost & Sullivan Information and Communication Technologies Research Analyst Lehlohonolo Mokenela. "Network operators are also offering code division multiple access (CDMA) technology to widen market scope."
Despite infrastructure expansion, insufficient broadband capacity continues to pose a major challenge for the development of the broadband market. The low disposable incomes of customers and a lack of local content, such as eLearning and eCommerce, also affect market income.
Service providers need to develop relevant local content to gain traction in this market. Moreover, providing more affordable handsets can help boost the adoption of broadband services and enhance customer loyalty. New market participants should also target areas without broadband services by ensuring affordable tariffs for both consumers and businesses.
"Internet service providers are already deploying infrastructure in rural and under-served areas, fuelling a gradual rise in the use of broadband services," noted Mokenela. "In fact, regional deployments to service areas where other broadband companies do not operate may present service providers with a first mover advantage in the East African broadband market."
If you are interested in more information on this research, please send an e-mail to Samantha James, Corporate Communications, at firstname.lastname@example.org, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.
East African Broadband Market is part of the Telecom Services Growth Partnership Service program. Frost & Sullivan's related research services include: Southern African Broadband Market Analysis, South African Mobile Banking Market, Argentinean Total Telecommunications Services Market, and Smartphones and Tablet Market in South Asia. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
East African Broadband Market
SOURCE Frost & Sullivan