Africa: The Last Mobile Frontier

by Joshua Wiesenfeld on September 19, 2011

Today, it seems like everyone is cellular-equipped. In fact, a recent UN survey found that the vast majority of people do indeed own cell phones. This can prove frustrating for mobile providers, who thus lack new markets to expand into and are left competing with one another for existing mobile phone users.

There is, however, one location that offers wireless service providers the new-customer opportunities they so crave. Africa, the world’s 2nd most populous continent, has only 40% cell phone penetration, which is a tantalizing target for cell companies. Better yet, Africa is urbanizing rapidly – 37 cities across the continent house 1 million or more people (North America, by contrast, has only 21) and 41% of people reside in cities, according to an IBM report. Analysts predict that this percentage will increase to over half the continent’s population come 2020. Furthermore, while more than half of African’s live below the poverty line, an estimated 35% qualify as middle class, and this number is expected to expand.

These factors deem Africa ripe for the mobile picking. Growing cities require increasingly sophisticated infrastructure, and an urban infrastructure that hope so compete in the 21st century inevitably includes a communications network. A joint study by Groupe Speciale Mobile Association, which represents mobile companies worldwide, and accounting giant Deloitte and Touche concluded that a 10% increase in mobile coverage will result in 1.2% growth in a developing country’s annual GDP.

A highly developed communications system is essential for the establishment of a modern economic system. It’s efficiency and comparable affordability compared to physical infrastructures will serve to greatly benefit both the installers and the instal-lees.

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