ISSUE 05 2014
AFRICA
41
the introduction of LTE networks in a particular country. However, their higher pricing suggests that LTE smartphone penetration will be gradual, starting with more affluent and technology-savvy users. Since 2012, the LTE portion of total smartphones that shipped in the continent increased significantly. We expect this trend to continue coupled with smartphone price declines and with an introduction of new, lower-end models targeting the African population. At the moment LTE-compatible mobile devices are priced higher than other smartphones. Mobile phone brands, such as Apple, Samsung and Sony Ericsson LTE mobile phones come at premiums. However, OEM’s like Nokia and Techno are gradually penetrating the African market with lower priced LTE mobile phones compared to the other OEMs. This was the same trend observed with the evolution of high-end 3G smartphones. As the LTE ecosystem grows, device prices are expected to decline, making them affordable to the mass population.
Where next for LTE in Africa? BMI: Rwanda’s government has partnered with KT Corporation to deploy a national LTE network, which is slated for an initial launch in August 2014. Morocco’s regulator plans to auction 4G licences in 2014. Ethio Telecom contracted Huawei and ZTE to deploy an LTE network in 2013. Somalia’s Somtel contracted Alcatel-Lucent to deploy an LTE network in May 2014. Cameroon-based WiMAX operator YooMee is in the process of upgrading its network to LTE. Other than these, Tanzania may also be next, as Vodacom has started LTE testing. Orange has also started testing LTE in Senegal. Meanwhile, MTN was ahead of the curve in Uganda and Zambia, so it may be the first to consider LTE in Ghana and Nigeria, if it can get on top of existing quality of service requirements.
Recent research on LTE in Africa from the experts BMI’s ICT team produces an annual report entitled: LTE in Africa, with the 2014 edition currently in production.
F&S has produced its LTE Outlook, a study providing insights into the changing technology landscape in the emerging market of India and advanced markets of Saudi Arabia and UAE. The study aims to determine how ready these telecoms markets are for embracing this upcoming LTE technology. The research service discusses in detail the market trends, market drivers and challenges in implementation and adoption of LTE. It also provides an LTE market forecast for subscribers and revenue, as well as a brief analysis of the overall mobile market in the above-mentioned three countries. It has also produced its report, High Growth Opportunity: LTE Test Equipment Market, which provides a detailed assessment of the global LTE test equipment market. The study includes market forecasts, competitive structure, and market share analysis. Market drivers, restraints, and challenges, along with their impact, are assessed for each trend. Application segments such as research and development, manufacturing, installation and maintenance, and monitoring are analysed.
IDC has produced its Assessment of African Operators’ LTE Strategies, authored by Oluwole Babatope. This IDC insight reviews the strategies and approaches that African mobile network operators have adopted in launching LTE networks. The study begins with a brief overview of the current status of LTE in Africa and looks at the key drivers and challenges to LTE deployment. It then explores successful approaches and strategies to LTE deployments from a global perspective, considering aspects such as spectrum availability, marketing, and network rollout strategies. The report then benchmarks the approaches of African operators against global best practices in order to identify areas that can be improved to ensure success. This insight concludes by forecasting the outlook of LTE deployments and strategies in Africa. The company has also produced its CEMA Status and Prospects of 4G LTE Deployments, authored by Ina Malatinska and Bhanu Chaddha, which provides an update on the state of deployment of 4G networks across the CEMA region.
F&S: The Democratic Republic of Congo (DRC) and Kenya are two African countries that are positioned to receive LTE networks in the near future. Smile Communications plans to go live in major cities within the DRC in 2014. Kenya will start building an LTE network in 2015 and is formulating a strategy partnership with telecoms operators on a 4G implementation model. The launch of 4G in Kenya is part of a national strategy to increase the Internet’s contribution towards economic growth.
IDC: New LTE deployments are hindered to a large extent by existing
regulatory hassles, and difficulties in obtaining licences for spectrum suitable for LTE. We believe that LTE services in Africa will evolve gradually, at a slower speed than in the wider MEA region or CEMA. Operators will promote their LTE networks in more advanced, higher populated markets and will continue expanding their 3G network infrastructure to cover the non-urban population. LTE
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