The triple play services market in sub-Saharan Africa is still in its introductory stage, with just a handful of service providers offering triple play service bundles. However, aggressive technology developments in the region are steering providers toward bundled services offerings.
New analysis from Frost & Sullivan (wireless.frost.com), Analysis of the Triple Play Services Market in sub-Saharan Africa, covering South Africa, Nigeria, and Kenya estimates that this emerging market will account for a combined 1.5 million subscribers in 2017. Currently, Kenya is the only country with a full-fledged triple play service offering.
"Faster Internet speeds are allowing service providers to offer IP-based communication services," noted Frost & Sullivan’s ICT Industry Analyst Ishe Zingoni. "The recent arrival of undersea cables and improvements in networks in the region has led to significant increases in bandwidth availability and notable reductions in broadband prices, thus driving the double-digit growth rates seen in the Internet market over the past three years. Service providers are already leveraging these trends to launch triple-play services in sub-Saharan Africa."
The demand for more cost-effective service provision is motivating the move towards bundled services, which offer cost-conscious customers more for less. Under this model, operators are able to deliver services at reduced cost, taking advantage of common media and resources that can be used to deliver voice, video and data services on a single platform.
"Technology convergence is enabling services to cross-over between broadcasters and telecommunication operators," remarked Zingoni. "The development of fixed-mobile convergent technology, digitalisation of broadcasting, IP-multimedia subsystem architecture, and next-generation networks are pushing service providers toward all IP networks. This enables operators to offer all three telecommunications services, namely, voice, video, and data over a single IP-based network."
Smart phones, tablets, television sets, and computers are now equipped with triple play service capabilities. Such devices are raising end-user expectations about service providers, delivering the complete suite of services on capable devices. For ease of management, customers will favour a provider that is capable of providing all services.
While such factors are encouraging the expansion of the triple play services market in sub-Saharan Africa, there are notable obstacles that still remain. The main challenges include limited infrastructure and regulatory inefficiencies that continually threaten the pace of market development.
Following international trends, triple play services are nonetheless expected to become the norm for communication service providers. Such bundled service offerings are set to provide operators with the ability to increase average revenue per user and reduce customer churn.
"In the next three years, customers are likely to expect bundled services as standard," concluded Zingoni. "As the market matures, close attention to Quality of Service and Quality of Experience will be critical for the success of bundled services."
If you are interested in more information on this research, please send an email to Samantha James, Corporate Communications, at samantha.james[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Analysis of the Triple Play Services Market in Sub-Saharan Africa is part of the Mobile & Wireless Communications Growth Partnership Service programme. Frost & Sullivan’s related research services include: Mobile Enterprise Services Market in South Africa, and West and Central African Mobile Communications Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the Triple Play Services Market in Sub-Saharan Africa / M88C-65