Fadi Pharaon, President of Ericsson Middle East and Africa
- Average traffic per smartphone in Sub-Saharan Africa is expected to reach 8.9GB
- Sub-Saharan Africa’s mobile broadband subscriptions are set to account for 76% of all mobile subscriptions by 2025
- Distinct volumes of 5G subscriptions are expected from 2022 in Sub-Saharan Africa
The
November 2020 edition of the Ericsson (NASDAQ: ERIC) Mobility Report reveals
that mobile data traffic in Sub-Saharan Africa is estimated to grow by almost
6.5 times the current figures, with total traffic increasing from 0.87EB per
month in 2020 to 5.6EB by 2026. Meanwhile, average traffic per smartphone is
expected to reach 8.9GB over the forecast period.
As the
demand for capacity and coverage of cellular networks continues to grow,
service providers are expected to continue investing in their networks to cater
for this uptake and meet evolving consumer requirements. In Sub-Saharan Africa,
mobile subscriptions will continue to grow over the forecast period as mobile
penetration today, at 84 percent, is less than the global average. LTE is estimated
to account for around 15 percent of subscriptions by the end of 2020.
The Mobility
Report reiterates the importance of releasing more spectrum in Africa to expand
coverage, improve network quality and encourage mobile adoption.
Fadi
Pharaon, President of Ericsson Middle East and Africa says: “This latest edition of our Mobility Report highlights
the fundamental need for good connectivity as a cornerstone to cater for this
uptake as the demand for capacity and coverage of cellular networks continues
to grow across Africa. Investing in network infrastructure and optimizing
spectrum assignments to deliver expansive 4G connectivity, paving the way for
5G, are critical requirements to consider in this journey and to accelerate
digital transformation across the continent. We will continue to invest in our technology leadership and offer our
state-of-the art infrastructure solutions to help our customers seize the
opportunities that connectivity will bring to Africa.”
Over
the forecast period, mobile broadband subscriptions in Sub-Saharan Africa (SSA)
are predicted to increase, reaching 76 percent of mobile subscriptions. Driving
factors behind the growth of mobile broadband subscriptions include a young,
growing population with increasing digital skills and more affordable
smartphones. Over the forecast period, distinct volumes of 5G subscriptions are
expected from 2022, reaching 5 percent in 2026.
While
5G and LTE subscriptions will continue to grow over the next 6 years, High
Speed Packet Access (HSPA) will remain the dominant technology in SSA with a
share of over 40 percent in 2026.
Service providers compete with distinct
strategies
Within
Africa, offering-led is the most common strategy, frequently offering a wide
range of services linked to mobile subscriptions such as gaming, mobile banking
and insurance. A look at service offerings reveals that offering-led service
providers tend to couple network performance with specific use cases and
end-user expectations, like promoting the best network for video streaming.
The
offering-led strategy is mostly deployed by challengers. The ambition is to be
first to market with new offerings. Prominent in this strategy is maintaining a
high level of market innovation to capture market share, often with one-for-all
offerings, coupled with targeted distribution. These challengers use extensive
campaigns and promotional programs to gain traction and capitalize on their
“first-mover advantage”.
Offering-led
service providers also work with multiple partners in the area of products and
services. They typically use modern technology – such as Artificial Intelligence
(AI) – in their operations, as well as a wide use of omni-channel strategies
for customer experience management.
Service providers offering Fixed Wireless Access
(FWA) on the rise
In addition to the need driven by the
pandemic, there are three main factors that drive Fixed Wireless Access (FWA)
growth. First, demand from consumers and businesses for digital services
continues, driving the need for broadband connectivity.
Second,
FWA delivered over 4G or 5G is an increasingly cost-efficient broadband
alternative in areas with limited availability of fixed services, such as DSL,
cable and fiber. Increasing capacity, allowed by greater spectrum allocations
and technology advancements for 4G and 5G networks, is driving higher network
efficiency in terms of the cost per delivered gigabyte.
Third,
nations are fueling broadband connectivity through programs and subsidies, as
it is considered vital for digitalization efforts and economic growth.
Download
the November 2020 edition of the Ericsson Mobility Report here
Ericsson
enables communications service providers to capture the full value of
connectivity. The company’s portfolio spans Networks, Digital Services, Managed
Services, and Emerging Business and is designed to help our customers go
digital, increase efficiency and find new revenue streams. Ericsson’s
investments in innovation have delivered the benefits of telephony and mobile
broadband to billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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