2006 Telecoms, Mobile and Broadband in Africa & the Middle East - Geographic

Abstract

With over 1000 pages of research, BuddeComm's 2006 Telecoms, Mobile & Broadband in Africa & the Middle East - Geographic series contains a comprehensive analysis of the telecoms industry and the companies involved in it.

This research is divided into the following volumes:

• Volume 1 - Central and Eastern Africa (Cameroon, Democratic Republic Congo, Ethiopia, Kenya, Tanzania, Uganda).
• Volume 2 - Northern Africa (Algeria, Chad, Egypt, Libya, Morocco, Sudan, Tunisia).
• Volume 3 - Southern Africa and Indian Ocean Islands (Angola, Botswana, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Zambia, Zimbabwe).
• Volume 4 - Western Africa (Benin, Burkina Faso, Cote d'Ivoire, Gambia, Ghana, Nigeria, Senegal).
• Volume 5 - Lesotho, South Africa and Swaziland
• Volume 6 - Telecoms, Mobile and Broadband in Africa Market Overviews
• Volume 7 - Telecoms, Mobile and Broadband in the Middle East

Executive Summary

Africa

• All sectors of Africa's telecom markets continue to be among the fastest growing in the world, thanks largely to the rapid take-up of mobile phones and roll-out of networks.
• With fixed-line and Internet penetration at little more than 3% and mobile penetration at around 15%, enormous opportunities continue to exist for telecommunications service providers, equipment vendors and investors.
• Africa needs to invest US$11 billion per year over a 10-year period to reach its target of 10% teledensity by the year 2010. The private sector is expected to be the key player in the financing of telecommunications development in the region.
• Many African countries are undergoing sectoral reform and massive amounts of foreign investment are flowing in as privatisation and liberalisation are progressively being introduced. More than one-third of all state telcos have already privatised and several more are set to undergo privatisation in the near future. Nigeria and Kenya, two of the biggest markets on the continent, have had difficulties with the privatisation of their national telcos in 2005 which could lead to particularly attractive opportunities for investors in 2006.
• Regional and international players continued to jostle for positions in Africa's lucrative mobile market throughout 2005, and 2006 is likely to see more consolidation. Particularly remarkable is the influx of Middle Eastern capital.
• There are now more than 120 mobile networks in operation in Africa, compared with 33 in 1995.
• The number of mobile phones quickly outnumbered fixed lines in most African countries, and mobile users now constitute around 85% of all African telephone subscribers  a higher ratio than on any other continent. Other wireless solutions are also used to serve as substitutes for inadequate fixed-line infrastructure and Internet access.
• New mobile and fixed operating licenses will become available in several key markets in 2006. The convergence of fixed and mobile networks and services will continue to dominate the market with new licensees gaining combination licences with the ability to operate both wired and wireless systems.
• Africa's mobile networks are playing an increasing role in the delivery of data and saw their data revenues increasing by between 20% and 100% in 2005, even though much of the data traffic consists of Short Message Service (SMS) at this stage.

Middle East

• Many Middle Eastern countries are actively working towards less government involvement and greater competition in their telecoms markets, often encouraged by World Trade Organisation (WTO) membership requirements. To date, only Iran, Iraq, Syria and Yemen have not gained WTO membership.
• Israel is by far the most deregulated market, with active competition in all areas. While nearly all the other countries in the region are now beginning to introduce some degree of competition and private ownership, Bahrain and Jordan are much the most advanced in the process. Oman is also opening its telecoms market, but is someway behind in the process, with only a second mobile licence awarded as yet.
• In mid-2006 the United Arab Emirates (UAE) announced its intention to fully liberalise its telecom sector by 2015, while Saudi Arabia announced plans to liberalise its fixed telephony sector ending the current monopoly, and opening the mobile sector for more competition.