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Frost & Sullivan Identifies Africa as the Next Frontier for Growth in Mobile Handsets - The mobile handsets market in sub-Saharan Africa will continue to achieve high growth long after the number of mobile subscriptions has started to decline
Frost & Sullivan Identifies Africa as the Next Frontier for Growth in Mobile Handsets

 

PRZOOM - /newswire/ - Cape Town, Western Cape, South Africa, 2009/09/16 - The mobile handsets market in sub-Saharan Africa will continue to achieve high growth long after the number of mobile subscriptions has started to decline.

   
 
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This will be true particularly for the low-end devices segment, although rising migration to middle and high-tier devices by both existing and new subscribers due to price declines will also support market expansion.

New analysis from Frost & Sullivan (wireless.frost.com), Strategic Analysis of the Sub Saharan African Mobile Handsets Market, finds that over 139 million handsets were shipped to sub-Saharan Africa in 2007 and this is expected to reach 400 million by 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

"High growth in the new subscriber base is currently spurring demand for mobile handsets," says Frost & Sullivan Industry Analyst Spiwe Chireka. "Growth in the low-end devices sector is increasing the availability of relatively affordable handsets."

Mobile subscription growth in sub-Saharan Africa is higher than the global average. Several handset vendors have concerted their efforts to expand their low-end device offerings to more effectively penetrate the region.

However, mobile network capabilities in the region still lag far behind that of devices. As a result, users in the region are deprived of a complete experience, despite significant improvements in the devices to support various applications.

Additionally, most devices are designed to better support data and broadband applications, and the high cost of these services limits the uptake of the devices designed for this purpose. Therefore, low-end devices remain the key driver of growth in this region.

Most mobile networks in sub-Saharan Africa offer only voice and SMS-centric services. Though there are various applications on devices that could enhance user experience and encourage usage and adoption, they are very expensive, further reducing the uptake of some middle and high-tier devices.

"The current middle-tier devices should become the new low-tier devices in the region, in terms of price and functionality," concludes Chireka. "Through affordable devices that can support a wider range of data applications, vendors can effectively tap into a fast emerging segment in the region while enabling operators to increase their average revenues per user (ARPU) and data services usage, resulting in a win-win situation."

The technologies covered in this research are: global system for mobile communications (GSM), code division multiple access (CDMA), and worldwide interoperability for microwave access (WiMAX).

Strategic Analysis of the Sub Saharan African Mobile Handsets Market is part of the Mobile & Wireless Growth Partnership Services programme, which also includes research in the following markets: East African Broadband Market, Analysis of Selected West African Broadband Markets, Angolan Mobile Market, and East African Mobile Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Strategic Analysis of the Sub Saharan African Mobile Handsets Market / M24B

 
 
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Frost & Sullivan Identifies Africa as the Next Frontier for Growth in Mobile Handsets

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Contact: Patrick Cairns 
+27 18 468 2315 patrick.cairns[.]frost.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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