Africa and the Middle East - Key developments to watch moving into 2014

Synopsis

This report was archived in February 2014 and has not been updated since November 2013.

Following the introduction of third- and fourth-generation (3G/4G) mobile technology in Africa, broadband Internet access for the mass market has become a reality. However, while cut-throat competition between at least three networks in most countries has resulted in rock-bottom prices for voice calls, the cost of broadband services has remained relatively high due to a lack of international and domestic fibre optic infrastructure. This is now rapidly improving, paving the way towards digital economies similar to those found in the neighbouring Middle East region. Like many Middle Eastern countries, some African markets now have mobile market (SIM card) penetration rates of well over 100%. However, the African market is almost entirely prepaid and highly cost-sensitive, which leads to a much lower average revenue per user (ARPU).

The trends and developments provided in this report are an indication of the many exciting developments that have already started in 2013 and which are going to further evolve during  2014 and beyond. It provides a clear indication of where the focus is in these countries and what therefore can be expected to happen over coming years.  It highlights where the opportunities are and the importance of the telecommunications industry in relation to overall social and economic developments.