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Palo Alto, CA, United States, 2006/11/30 - Frost & Sullivan - African GSM mobile overview - The African telecommunications market will continue to experience significant growth as new subscribers are signed up and mobile operators introduce new services..
Even while continued conflicts endemic across the region will make investments in the industry relatively risky, it will still remain one of the most lucrative and exciting industries in which to be involved.
“Africa’s mobile telecommunications sector is booming as the demand for communications increases,” notes Frost & Sullivan Research Analyst Lindsey McDonald. “In such a competitive industry, operators need to maintain high levels of service and keep their products cost effective.”
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The need for reliable communication has pushed the African mobile telecommunications sector into high rates of growth. A lack of fixed line infrastructure means that mobile telephony is the only alternative, and the issuance of low denomination prepaid vouchers has made the service more affordable, while also supporting wider accessibility.
Two problems that are pervasive across Africa, poverty and continuing conflict, are having a profoundly negative effect on overall economic growth in the region. The telecommunications sector too has been seriously impacted by these dual trends.
“Operating in conflict areas involves very high risk and can be costly,” cautions McDonald. “It is essential that the risks of Africa are weighed up with the rewards.”
African mobile operators have needs that are unique to the market in which they operate. For instance, there is an increased emphasis on the production of low-cost handsets.
“To expand their services in the region, market participants need to maintain good quality services at cost-effective prices,” advises McDonald. “These are the two most important factors for African mobile users.”
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