The document analyzes the broadband and mobile device landscape in Africa. It finds that Nigeria, Ghana, and South Africa are experiencing immediate growth in mobile broadband. Nigeria in particular is highlighted as a key growth market and highest value opportunity, with over 120 million mobile subscriptions and plans to increase infrastructure and drive down costs. The mobile sector in Nigeria contributes significantly to GDP and is expected to accelerate rapidly with billions in new investments in networks and devices.

1. Broadband and Mobile Device
Landscape in Africa
David H. Page
Naman Gupta

2. Broadband and Device Landscape: Africa
• Executive Summary
• Landscape
• Key Growth Markets: Nigeria, Ghana, South Africa
• Highest Value Opportunity: Nigeria
• Appendix
2

3. Executive Summary
• Nigeria, Ghana and South Africa are areas of
immediate growth for mobile broadband
• Government support of mobile broadband will
ensure ubiquity and 4G/LTE infrastructure
• Smart phone adoption by Africans is large and
growing
• Entertainment from US is desired
• Now is the time to build infrastructure
3

4. Landscape: Africa Exploding Growth
Africa currently ranks 3rd in continents with 781 million in
mobile subscriptions 1
Mobile broadband growth CAGR (2010 – 2013) - 82% 6,7
4

5. Africa Telecom Landscape: Major Players
•
Vodafone
Group
•
Bharti Airtel
•
MTN
•
Globacom
•
Orange
•
Etisalat
•
Sudatel
•
Millicom
5

6. Africa: Key Growth Markets
NIGERIA
4G status
Number of Telecom Operators
Mobile Connections
Growth Rate for Mobile
Connections
Smart phone as percentage of
total mobile connections
Mobile Penetration
Internet Penetration Rate
Broadband penetration Rate
3G as at Dec 2011
Internet Users
Can Video Streaming be well
viewed on 3G ?
GHANA
SOUTH AFRICA
4G WiMAX Mobitel Nigeria; 4G LTE
Swift;Glo
4G LTE Alcatel-Lucent and Surfline in Q1
2014
4G LTE Vodacom and 4G LTE MTN
in Johannesburg, Cape Town; 8ta
LTE trials
8+
125 Miliion Subscribers
6+
25 Million Subscribers
5+
67.9 Million
18.70%
20.73%
13.60%
8.00%
69.01%
28.40%
84%
14.10%
25%+
123%
17.40%
5.00%
48.3 Million
2%
3.5Million
22%
8.5Million
Yes depending on Service Provider
Yes
Yes
Mobile video traffic will grow 16fold from 2012 to 2017, a
compound annual growth rate of
73%;Video will be 73% of South
Africa's mobile data traffic in 2017
Video data landscape
Entertainment which includes video,audio
and gaming constitutes about 46% of
online activity
New revenue stream for
Telecos
Mobile money and banking,Content Audio
and video streaming,ecommerce,mobile
advertising,e government initiative
6
N/A
Mobile money and banking,Content
Audio and video
streaming,ecommerce,mobile
advertising,mobile health
Mobile money and
banking,Content Audio and video
streaming,mobile advertising

7. Focus Now: Nigeria
•Total number of mobile
subscription in Nigeria is around
120 million active Mobile
subscriptions 1
•Added 4 million net mobile
additions in Q2 2013 only 1
•Mobile broadband outpacing
regular broadband adoption
•Has potential to become the
biggest smartphone market on the
continent 3
Largest African country by population - 177 million
Ethiopia is the 2nd largest – only 86.5 million by comparison
7

8. Nigeria: The Telco Landscape
• 50MM Active Internet Subscriptions 4
• Teledensity between 80-85% 4
8

9. Nigeria: The Telco Landscape
• Telecom is 8.53% of 2013 GDP 4;
CAGR of 22% since 2001
• Plans to increase cable capacity by ~1000%
by 2014 5
9

10. Nigeria: 1-3 years of growth
On-going measures that will drastically
accelerate mobile broadband growth:
Current Numbers:
•Internet penetration ~ 33% 4
•Broadband penetration ~ 6%
4
•Billions of US$ in investments per year, tens of
thousands of new base stations to be built
•3G coverage ~ 35% 4
•Major network infrastructure outsourcing deals
•Smart phone adoption ~ 25% 2
•Mergers and acquisitions (M&A) among smaller
operators
Current State:
•Several LTE networks preparing to launch (current
operation of high speed 3.5G and 3.75G networks)
•Delays in allocating bandwidth
•Lack of built LTE infrastructure
•High cost of smartphones
•Most phones still running Symbian
and S40
•Regulator cracks down on poor quality of service
•New price caps and lower interconnection rates
•Number portability finally introduced
•Extensive government support & planning for
infrastructure development and mobile adoption
•30 million smartphones were expected to be sold
in the country between now and 2015 3
10

11. Appendix A – Mobile web page views
http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/b
11

12. Appendix B – Active mobile broadband subscriptions
http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/b
12

13. Appendix C – Major African telecom operators
13

14. Sources
1.
http://www.vanguardngr.com/2013/09/nigeria-other-african-countries-record-781m-mobile-subscription-inq2/#sthash.A1TnsD6j.dpuf
2.
http://www.technologybanker.com/mobile/mobile-internet-penetration-in-nigeria-stands-at28percent#.UlskwmRgYn0
3.
http://www.punchng.com/business/technology/25-of-nigerian-mobile-subscribers-use-smartphones-tns/
4.
http://www.ncc.gov.ng/
5.
http://www.slideshare.net/eddodds/fmct-the-nigerian-national-broadband-plan-2013
6.
http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/b
7.
http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx
8.
Broadband Commission; Sub Shaharan African Mobile Observatory 2012,
9.
Deloitte; Nigerian Communication Commission International Telecommunication Union, GSMA 2012
14