1. Frost & Sullivan Information and
Communication Technologies
Individual voices in Africa
Next billion mobile subscribers

2. Africa – the dark continent?

3. ICT Major Opportunities
Data Centre:
Data Centre
2012 - $ 2 billion Unified Comms: Unified
2012 - $3 billion Communications
2020 - $ 6 billion
Data Centre hardware and 2020 - $8 billion
services spend Unified communications
hardware, software and
Mobile and Wireless : services spend
2012 - $180 billion
Cloud and Virtualisation:
2020 - $300 billion
2012 - $2 billion Cloud and
Mobile and wireless telephony
Mobile & Wireless
spend
2020 - $10 billion Virtualisation
Internal and external cloud spend
Broadband
2012 - $12 billion
2020 - $30 billion
Bandwidth and
Africa – The Summary broadband spend
BPO / Contact Centres: Broadband
Contact Centres
2012 - $3 billion Communications
2020 - $10 billion
Contact centre and
BPO markets

4. The penetration in the mobile broadband and internet
users is still in nascent phase
Telecommunication Penetration in Africa vs. the World in 2011
600
Number of * per 100 inhabitants
525
450
375
300
225
150
75
0
Active mobile Fixed (wired) Households with
Fixed Telephone Mobile Cellular
broadband Internet users* broadband Internet access at
Lines* Subscriptions*
subscriptions* subscriptions* home*
Africa 1.4 53 3.8 12.8 0.2 5.7
The Americas 28.5 103.3 30.5 56.3 15.5 49.7
Asia and Pacific 13 73.9 10.7 27.2 6.2 24.9
Europe 39.1 119.5 54.1 74.4 25.8 72.2
Arab States 9.7 96.7 13.3 29.1 2.2 26.1
CIS 26.3 143 14.9 47.6 9.6 38.5
Source: ITU
4

5. Mobile broadband is the key driver for growth into the
region
The Mobile broadband will be the key internet services growth driver in Africa, however this hinges on operator commitment to advanced technology
platforms. Fixed access services to be revived through convergence strategies
Technology Adoption Trends (2011 to 2015)
Introduction Growth Maturity Decline
DSL access
High Satellite
Mobile
Adoption Rate
broadband
WiMAx
Wireless technology will
Fixed
remain the primary driver
Broadband Microwave for telecommunications
services in Sub Saharan
Africa
Convergence VoIP/mobile VoIP
Low Ethernet
Technology Status Stage of Development Source: Frost & Sullivan
Bubble size represents adoption rates
2014
M576-65 5

6. By 2020, over 1 bn people are expected to invest in a
mobile device
Mobile Telephony Penetration Rate, Africa, 2010 Mobile Telephony Penetration Rate, Africa, 2020
Morocco
31.5 million
Mobile Phone Subscriptions
• In 2010, African mobile penetration Libya
Algeria Egypt
is just less than 50 per cent 4.5
36 million 76
million
• That said, several countries have million
reached saturation Senegal
10.5 Uganda
• By 2020 we expect a 90 per cent million Sudan 23 million
mobile penetration rate 34
million
Nigeria
150 million
Ghana
Cameroon Dem.
23 million
13 million Republic
Congo Kenya
80–100% 35
$80 billion investment in 32 million
60–80% million
networks Tanzania
40–60% Angola 30.5 million
16.1
20–40% million
<20%
Low cost mobile phones
Namibia
2.1 million
Value-added Services South
Mozambique
Africa
50 milion 18.6 million
500 million 1,170 million
Source: Frost & Sullivan, 2011

7. Blackberry has the highest penetration in Africa and is
considered a status symbol in a number of countries
Source: Frost & Sullivan, 2012

8. A number of local manufactured tablets are entering the
African market such as Inye and Wise Touch
Source: Frost & Sullivan, 2012

9. With the increase of connectivity, data centres across
Africa is becoming paramount
Data Centre Market, Africa, 2011 Data Centre Market, Africa, 2020
Ghana Ghana
$3 million Nigeria Nigeria
$6 million
$21 million $45 million
Uganda Uganda
$3 million $8 million
Kenya Kenya
$5 million Expansion into new $25 million
Tanzania Tanzania
$3 million regions $12 million
Virtualisation options
Lack of infrastructure is an
South Africa opportunity South Africa
$250 million $420 million
$2 Billion $6 Billion
Source: Frost & Sullivan, 2011

10. The changing eco system?
Key Players
IBM Skype
DSTV EThekwini Municipality
BCX Google
IBM Johannesburg City
Didata Facebook
Webstorm Cape Town City
T-Systems Amazon
MWEB
System
Application and Content
Service Providers
Integrators/Internet Over-the-top Providers Public Entities
Service Providers Providers
Communication Service Providers
End-Users
Enterprises Consumers
New players representing potential threats to telcos