AFRICAN TELECOMMUNICATION INDICATORS 2004

Contents

• Mobile sector overview– Mobile Africa– Mobile business– Mobile policy – Wireless Internet– Mobile future

• 22 Topical Tables• 55 Country Pages• Directory of ministries, regulators &

operators

AFRICAN TELECOMMUNICATION INDICATORS 2004

MOBILE AFRICA:World’s fastest growing mobile

market

24 24

33 3538

65

Oceania Americas World Europe Asia Africa

Mobile cellular subscribersAnnual Average Growth

1998-2003

AFRICAN TELECOMMUNICATION INDICATORS 2004

Mobile predominant method of telecommunications in

Africa

• 43 African countries (78%) have more mobile than fixed telephone subscribers

• Almost 70% of African telephone subscribers use mobile

3.0

6.2

0

1

2

3

4

5

6

7

1995 1997 1999 2001 2003

Subscribers per 100 inhabitants

Mobile

Fixed

• Mobile passed fixed in 2001

AFRICAN TELECOMMUNICATION INDICATORS 2004

MOBILE BUSINESS

CelTel, MTN, Orascom, Vodacom

Other strategic investors(> 1 country)

Strategic investors in Africa, 2003

11

13

17

27

41

55

60

India

Brazil

Egypt

Africa

UK

Nigeria

Japan

Average Revenue Per User (ARPU)Per month, 2003, US$

AFRICAN TELECOMMUNICATION INDICATORS 2004

MOBILE POLICY

39

14

16

41

93 94 95 96 97 98 99 00 01 02 03 04

Competition

No competition

No network

•Majority allow competition

• Enhancing competition • Universal access

Mobile market structure in Africa, number of countries

AFRICAN TELECOMMUNICATION INDICATORS 2004

Universal service

• Community access centres

0

10

20

30

40

1994 96 98 2000 02

Community access centres, 000s, RSA

License requirement

86.70%

97%

57%

0%20%40%60%80%

100%

1995 1997 1999 2001

License requirement

Mobile population coverage, RSA

• Coverage

• Subsidizing low income users

AFRICAN TELECOMMUNICATION INDICATORS 2004

1.6

0.01

0.1

1

10

100

1995 1997 1999 2001 2003

Internet users per 100 inhabitants, Africa

WIRELESS INTERNET

1. Second Generation (2G)

2. Second and a half (2.5G)

3. Third Generation (3G)4. Fixed wireless

AFRICAN TELECOMMUNICATION INDICATORS 2004

3

3

4

4

6

9

11

17

4

Burkina Faso

Cape Verde

Côte d'Ivoire

Morocco

World

Togo

Egypt (03)

Mauritius

South Africa

SMS per subscriber per month, 2002

2G

• SMS4D: Agriculture, democracy, health, finance

• GSM dial-up

• SMS close to or above world average

AFRICAN TELECOMMUNICATION INDICATORS 2004

2.5G

Commercial GPRS networks in Africa, Dec. 2003

Country

Operator

Launch Name

Subscribers

Total Date % total subs.

South Africa

MTN Jul.02 dataLIVE 30'000 Jun.03 0.6%

South Africa

Vodacom Oct-02 MyLife 36‘000 Sep.03 0.4%

Egypt Vodafone Apr.03 live! 25'000 Dec.03 0.9%

Egypt Mobinil Sep.03 Life 70’000 Dec.03 2.3%

AFRICAN TELECOMMUNICATION INDICATORS 2004

3G

• No “formal” launches or licensing procedures

Source: Uganda Communications Commission.

• Fixed wireless 3G using CDMA2000 1x

• First mobile 3G network in Angola

AFRICAN TELECOMMUNICATION INDICATORS 2004

Fixed wireless

Nigerian Fixed Wireless Access operators deploying CDMA2000 1x, 2003Operator Frequency Infra-

structure Vendor

Date announced

Coverage

Intercellular 800 MHz Motorola July-03 Lagos

Multi-Links 1900 MHz Nortel Networks

March-03 Lagos

Reliance 1900 MHz Ericsson April-03 Nationwide 

Starcomms 1900 MHz Ericsson March-03 Lagos 

Starcomms 1900 MHz Huawei August-03 Kano, Lagos

AFRICAN TELECOMMUNICATION INDICATORS 2004

MOBILE FUTURECan growth be sustained?

13.8

12.2

10.1

8.1

36%

47%

64%

107%

2000 2001 2002 2003

Annual growth rate of total mobile subscribers in Africa

New mobile subscribers in Africa, millions

AFRICAN TELECOMMUNICATION INDICATORS 2004

Barriers?

• Little relation between mobile penetration and low levels of income

R2 = 0.3646

0

5

10

$100 $200 $300 $400 $500GDP per capita

Mob

ile p

er 1

00

R2 = 0.0335

0

50

100

0 50 100Urban pop

Pop.

cov

erag

e• Little relation between mobile coverage and urban population

AFRICAN TELECOMMUNICATION INDICATORS 2004

Expanding mobile• Government

– Minimizing / eliminating taxes/fees– Promote infrastructure sharing– Full service licenses– Interconnect– Minimize inefficiencies– Universal access policies– Market information

• Operators– Lower interconnect rates– Expand coverage– Roaming/data services

• Manufacturers– Cheaper & appropriate equipment– Poverty reduction

• Donors– Capacity building– Recycle handsets– Backbones

51

100

150

200

20.4

15.3

10.2

6.2

2003 2010Low

2010Medium

2010High

Per 100 inhabitants

Low: annual growth 10%Medium: annual growth 16%High: annual growth 21%

Forecast mobile subscribers in Africa under different scenarios. Millions, 2010

Report available here:http://www.itu.int/ITU-D/ict/publications/africa/2004/