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West Africa will be the Next Broadband Hub for Sub-Saharan Africa Says Frost & Sullivan - The broadband services market in West Africa continues to enjoy accelerated growth, despite the region's poor infrastructure and restrictive regulatory practices
West Africa will be the Next Broadband Hub for Sub-Saharan Africa Says Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2009/11/16 - The broadband services market in West Africa continues to enjoy accelerated growth, despite the region's poor infrastructure and restrictive regulatory practices.

   
 
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The advent of wireless technologies as an alternative to the often poor and outdated fixed-line technologies has promoted rapid market growth. Additionally, West African governments have begun to realise the importance of information and communication technology (ICT) in economic development and have made some improvements in the regulatory space.

New analysis from Frost & Sullivan (ipcommunications.frost.com), Analysis of Selected West African Broadband Markets, finds that the market earned revenues of over $420 million in 2007 and estimates this to increase fourfold by 2014 to reach $2.2 billion. The technologies covered in this study are asymmetric digital subscriber line (ADSL)/digital subscriber lines (DSL), broadband wireless access (BWA), leased lines and integrated services digital network (ISDN), fixed and mobile worldwide interoperability for microwave access (WiMAX), and very small aperture terminal (VSAT).

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 email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

"The introduction of wireless and fixed-wireless technologies in West Africa, coupled with the low broadband penetration rates in the region, has been a key growth driver," says Frost & Sullivan Industry Analyst Spiwe Chireka. "Historically, broadband development in the region has been driven by fixed-line incumbents but, through wireless technologies, internet service providers (ISPs) can circumvent the slow or stagnant development of fixed-line infrastructure."

Moreover, with a regional penetration rate of less than five per cent, the addressable market in this region is huge, encouraging new participants to enter here.

Despite impressive developments in broadband, issues related to affordability and literacy, coupled with the limited financial capacity of operators to invest in infrastructure, continue to hamper market growth. The cost of doing business in some countries is prohibitively high and the market remains characterised by incumbent monopolies, impeding steady market expansion.

"Current networks are outdated and in shambles except in Senegal and the Ivory Coast," notes Chireka "This affects the quality and type of services that ISPs can provide."

Broadband providers have turned to wireless technologies to enable them to effectively compete with incumbents and exert better control over their networks.

"Broadband prices have decreased by an average of twenty per cent in the past two years, making these services more affordable," concludes Chireka. "Technology partnerships between companies have further alleviated issues related to the shortage of investment capital for network expansion."

Analysis of Selected West African Broadband Markets is part of the Communications Services Growth Partnership Services programme, which also includes research in the following markets: East African Broadband Market, Nigerian IT Infrastructure Outsourcing Market, and South African Broadband 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.

Analysis of Selected West African Broadband Markets / M2CB

 
 
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West Africa will be the Next Broadband Hub for Sub-Saharan Africa Says Frost & Sullivan

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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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