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The Introduction of Economical and Superior Undersea Fibre-optic Cables Spurs Demand for Broadband Internet in East Africa - The demand for broadband Internet services in East Africa is growing due to the introduction of undersea cables in the region
The Introduction of Economical and Superior Undersea Fibre-optic Cables Spurs Demand for Broadband Internet in East Africa

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2010/07/19 - The demand for broadband Internet services in East Africa is growing due to the introduction of undersea cables in the region.

   
 
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Although broadband Internet services are in an early stage of development, there are over 150 market participants in East Africa offering Internet connectivity and application services.

New analysis from Frost & Sullivan (ipcommunications.frost.com), East African Broadband Markets Tracker, finds that the market earned revenues of $38.14 billion in 2009 and estimates this to reach $213.20 billion in 2016. The technologies covered in this study are ADSL, mobile (GSM, GPRS/EDGE, HSDPA), WiMAX, Wi-Fi and satellite.

If you are interested in more information on this study, please 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.

"Fixed-wireless technology offers lower network deployment costs, reduced tariffs and higher quality of services," says Frost & Sullivan Research Analyst Jiaqi Sun. "These factors are driving the East African broadband market,"

Fixed-wireless broadband access will reach its maturity in the next two to three years, while 3G mobile broadband will continue to drive market growth. The costs of bandwidth, computers, handsets and other customer premise equipments (CPEs) are expected to reduce moderately, further fuelling the service uptake in the region for the next seven years.

However, volatile exchange rates may reduce investors' confidence to fund projects in East Africa. Other factors that hinder foreign investments include an immature market environment, the slow process of transferring ideas into products and the fibre-optic network rollout.

"Furthermore, the small market size in terms of subscribers and revenues does not attract foreign funds, slackening market growth," explains Sun.

Service providers should develop a phase-by-phase market entry plan by adjusting business models and repositioning themselves by offering services targeted at different customer groups. They should leverage their marketing capabilities and partnerships with retailers that have good national footprints for maximum delivery of services in the market.

East African Broadband Markets Tracker is part of the Communications Services Growth Partnership Services programme, which also includes research in the following markets: East African Mobile Communications Markets and Tracker, Mobile Backhaul Network Infrastructure in Selected Sub-Saharan African Markets, and Mauritius Mobile Communications Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

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 40 offices on six continents.

East African Broadband Markets Tracker / M57B

 
 
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The Introduction of Economical and Superior Undersea Fibre-optic Cables Spurs Demand for Broadband Internet in East Africa

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Frost & Sullivan |
Publisher Contact: Patrick Cairns 
+27 18 464 2402 patrick.cairns[.]frost.com
 
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