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Research Shows African Telecoms Industry in a Dire Situation

By on November 22, 2012

Despite the phenomenal growth and unprecedented margin explosion of phone users in Africa, recent findings from research and analysis reveal that there is still  a lot of work to be done to ensure the rapid growth of the sector is translated to  increasing and massive opportunities for Africans to explore and benefit immensely from it.

With the recent reports of improved usage from  countries in the recent International Telecommunications  Union  (ITU)statement it is not time to relent but a moment to explore more avenues to improving its delivery on Broadband and also effectively engage necessary groups to boost the sector.

A Global consultancy firm A.T. Kearney in its recent submissions stated in its findings followed by IT News Group that with all the progress so  far in the IT industry in Africa, there are still issues to  tackle which include fallings subscriber base and the  stifling of the margins, which is as a result  of the intense competition in the market.

In a presentation made to the media in its office in Johannesburg, Mr Laurent Viviez ICT sector expert  stated that ‘ The Broader Africa telecom market has reached a turning point. We have seen staggering growth rates in the telecoms sector, but this is changing. At the same time we are seeing a shift in the sector, until now  was focused on voice services, rolling out of networks and base stations. But with the increase in data services demand the sector is becoming very complicated’.

With  the demand for Data services companies that re-strategize with a view to ensuring that they provide cutting edge Value Added Services will gain increasing market efficiency in the midst of the fierce competition and battle for  the mobile and telecoms market.

Huge markets like  Nigeria, South Africa, and Ghana will continue to be the major opportunities for Leading telecommunications  firms like Bharti Airtel, MTN,  Etisalat, and Globacom to explore innovative ways of  dictating the pace of the saturated market.

Also the recent ITU forum which also had Governments and Industry players in Africa discuss the prospects of  growing qualitative service and network delivery that will boost the sector’s viability must be given utmost priority in implementation.