Africa's mobile subscription predicted to surpass 1.2 bn in 2018

Informa Telecoms and Media, organisers of the on-going AfricaCom conference in Cape Town, South Africa, has said the mobile subscriptions in Africa will surpass 1.2 billion by the end of 2018.

The forecast, according to Informa Telecoms and Media, is based on the continued increasing growth of mobile subscriptions in Africa, even though its penetration level among major world regions, which is currently put at 68.81 per cent, is still low, when compared with the global average of 90.48 per cent.

Principal Analyst, Middle East and Africa (MEA) at Informa Telecoms and Media, Mr. Matthew Reed, who gave the prediction during a keynote address on Tuesday at the opening session of the 2013 AfricaCom conference, said: "Africa had 745.34 million mobile subscriptions at the end of 2012, representing 15.24 per cent year-on-year increase, the highest rate of growth among major world regions.

Corroborating Informa Telecoms and Media’s prediction, Chairman, Mobile Monday, Mr. Richard Walton, said the Africa mobile subscription growth rate was amazing and encouraging.
According to him, mobile subscriptions in the sub-Saharan Africa, contributed immensely to the Africa's mobile subscription number, attributing the growth to Apps culture, especially in the area mobile banking applications, he said, would be propelled by the adoption of Long Term Evolution (LTE) technology that is gradually spreading across the globe.

He however challenged telecoms operators to turn data growth into revenue growth, while still maintaining cost efficiency in mobile broadband in Africa.

Speaking on some of the challenges on mobile subscriptions, some of the telecoms operators that spoke, identified size of their business, connectivity issues and the drive to discover more markets and business opportunities, using new brands, as some of their major challenges.

According to Reed, "The number of mobile subscriptions in Africa is still growing at a higher rate than in any other major Wot prod region. Mobile data subscriptions and  revenues are rising strongly on the continent, albeit from a low base. The rollout of 3G and 4G networks combined with expanded back haul and submarine capacity, should enable further growth in Africa's data sector."

He explained that big international information technology (IT) companies such as Google, Intel and Microsoft, are targeting Africa's telecoms market because of its growth potential, particularly in data services.

"The story of Africa's telecoms market continues to be about growth, but the emphasis is shifting from basic mobile services to data and internet services, even though the basic mobile services like voice telephony still dominate the market," Reed said.

Giving details of the growth rate, he said Africa's mobile subscriptions as at October 2013 was 800 million but predicted that in 2014, it would rise to 900 million, and at the end of 2015, it would further increase to 1 billion. He also predicted that by the end of 2016, the figure would increase to 1.1 billion and at the end of 2017, it would further rise to 1.18 billion, before surpassing the 1.2 billion mark in 2018.

source: www.thisdaylive.com