Capacity demands in Africa: an opportunities for satellite

Africa is served by several satellites and undersea fiber operators – the availability of capacity for communications over the continent is tremendous. This abundance of capacity leads to the creation of a whole new industry for high-speed connectivity from call centers to growing Internet. But most of the capacity available is limited to the capitals, coastal areas and major cities in the countries. There are cities, undeveloped and rural areas still in the dark not only in terms of utilities and infrastructure but also in terms of telecommunications as well. This market presents challenges as well as opportunities for satellite to play an important role; the potential for growth is enormous.

In Africa, the liberalization of the telecom sector, the arrival of multinational conglomerates from the Middle East, Asia, Europe and the Americas coupled with the competition in this sector are contributing to the growth of the demand and opportunities.Today, Africa is served by several satellites and undersea fiber operators – the availability of capacity for communications over the continent is tremendous. This abundance of capacity leads to the creation of a whole new industry for high-speed connectivity from call centers to growing Internet. But most of the capacity available is limited to the capitals, coastal areas and major cities in the countries. There are cities, undeveloped and rural areas still in the dark not only in terms of utilities and infrastructure but also in terms of telecommunications as well. This market presents challenges as well as opportunities for satellite to play an important role; the potential for growth is enormous.

In Africa, the liberalization of the telecom sector, the arrival of multinational conglomerates from the Middle East, Asia, Europe and the Americas coupled with the competition in this sector are contributing to the growth of the demand and opportunities. There may be more than 600 million mobile phones in Africa today but this is still a relatively small percentage to the total population of Africa, which now surpasses 1 billion. Africa’s booming mobile phone market is forecast to almost quadruple in size from a value of $60 billion in 2013 to $234 billion by 2020, according to researchers. With smartphones getting more and more popular, there is a growing demand for data to connect these bandwidth-intensive applications. Mobile operators are in a situation to expand their networks from 3G to 4G and LTE to support the bandwidth-hungry subscribers, which has resulted in more undersea fiber and satellite capacities. Still, satellite is very common and reliable means of backhauling domestic voice traffic in Africa. M-commerce is another area of growth in the region, which demands more bandwidth, be it fiber or satellite.

source: satellitetoday.com