Another South African telecom firm waves goodbye to the Kenyan market.

South African fixed-line telecom operator, Telkom SA, last month made a dramatic retreat from the East African market, selling loss-making units iWayAfrica and Africa Online to Gondwana International Networks. Telkom SA’s sale highlights the competitive and difficult environment facing many telecom companies and Internet service providers as new technologies and better-funded competitors dominate the market and influence the pricing of products and services. Analysts expect the sale to set up the telecom market across Africa for mergers and acquisitions to consolidate market share. It also brings to the fore how a number of South African companies are struggling to penetrate the East African market. The financial details of the Telkom SA transaction were not disclosed, but the operator termed the companies an “immaterial part of the group”. “This transaction is one of many initiatives that will contribute to our own turnaround, allowing us to focus on our core South African fixed-line and mobile operations,” said Telkom SA CEO Sipho Maseko.


source: www.standardmedia.co

Surging mobile internet demand straining African telecom networks

Telecom companies in the Middle East and Africa could face growing quality of service (QoS) issues in future because of a rise in internet usage fueled by more affordable smart mobile devices.

Mahmoud Samy -- area head Middle East, Pakistan and Afghanistan at Arbor Networks -- told the Trade Arabia publication that the Mideast and Africa could see a 31% traffic leap on consumer internet by 2017 from a 10% growth level in 2012.

Samy added that this could pile pressure on telecommunication companies on the continent to expand their networks and maintain quality services.

He said African telcos’ failure to improve QoS could result in service level agreement credits, damage to brand reputation and customer churn - all of which impact the bottom lines of their business

source: www.itwebafrica.com

African mobile penetration hits 80%

We tend to have certain paradigms about the “developed world” and the “developing world.” Including, of course, media-fed images of Africa as a place of almost irredeemable poverty, deprivation, and pain.
 A new report on the African telecommunications market highlights that mobile penetration in Africa hit 80 percent in the first quarter of this year and is still growing at 4.2 percent annually. That’s faster than anywhere else in the world, the report says, and Africa is, after Asia, the world’s second-largest market.

Which means that today, more than eight in 10 Africans have a mobile phone.

In part, that’s driven by a massive reduction in the costs of owning a mobile phone: The average revenue per user for telecom companies has dropped 80 percent between 2001 and 2011. Economies of scale have taken hold now as the basic infrastructure has been built out, and more competition by independent (not state-owned) telecoms has driven down prices.

That’s good for Africans, of course, and good for the market in the long term as well. And there’s still a lot of room to grow.

source: www.venturebeat.com

African mobile penetration hits 80%

We tend to have certain paradigms about the “developed world” and the “developing world.” Including, of course, media-fed images of Africa as a place of almost irredeemable poverty, deprivation, and pain.

A new report on the African telecommunications market highlights that mobile penetration in Africa hit 80 percent in the first quarter of this year and is still growing at 4.2 percent annually. That’s faster than anywhere else in the world, the report says, and Africa is, after Asia, the world’s second-largest market.

Which means that today, more than eight in 10 Africans have a mobile phone.

In part, that’s driven by a massive reduction in the costs of owning a mobile phone: The average revenue per user for telecom companies has dropped 80 percent between 2001 and 2011. Economies of scale have taken hold now as the basic infrastructure has been built out, and more competition by independent (not state-owned) telecoms has driven down prices.

That’s good for Africans, of course, and good for the market in the long term as well. And there’s still a lot of room to grow.

Most mobile connections — 62.7 percent, or almost two thirds — are basic 2G voice and SMS services, the report says. Of the remaining third, about 27 percent have access to 2.5G for low-speed data, and just 11 percent have 3G access — never mind LTE.

As more and more infrastructure is built, however, data services and connection speeds are increasing. Data revenue for telecoms has grown 67 percent in the key African countries of South Africa, Kenya, and Nigeria in the past few years. And while smartphones are cost-prohibitive for some, current penetration is at 20 percent and is projected to grow fast — by almost 600 percent in Nigeria alone by 2017.

source: www.venturebeat.com

Airtel to buy warid Congo

The deal, still subject to regulatory and statutory approval, will make Airtel the largest mobile operator in Congo, ahead of MTN. "This acquisition is in line with our stated strategy of strengthening our market position through in-country acquisitions, as and when suitable opportunities come along, "said Bharti Airtel MD and CEO (International) Manoj Kohli in a news release.

Having acquired Warid Uganda in May, Airtel hopes that the acquisition will strengthen its 2 G and 3 G networks. So far no financial terms have been released by the two telecom companies.

Bharti Airtel which is 32 per cent owned by Singapore Telecommunications Ltd, has since June 2010 bought several firms in Africa.

source :www.allafrica.com