African Telecommunication/ICT Indicators 2008: At a Crossroads
description
Transcript of African Telecommunication/ICT Indicators 2008: At a Crossroads
InternationalTelecommunicationUnion
Committed to Connecting the World
African Telecommunication/ICT Indicators 2008:At a Crossroads
Vanessa [email protected]
Market Information and Statistics DivisionTelecommunication Development BureauInternational Telecommunication Union
May 2008
Committed to Connecting the World
2
Content Sector overview Universal service and access Enhancing the enabling environment Recommendations African Telecommunication/ICT
Indicators (21 country/regional tables) African Telecommunication/ICT
Organizations
May 2008
Committed to Connecting the World
3
Mobile: The African success story
Even the most optimistic projections have been surpassed! Today Africa is home to more than one quarter billion mobile subscribers or more than one mobile for every four people.
0
50
100
150
200
250
300
2000 '01 '02 '03 '04 '05 '06 '07
Subscribers, millions
South Africa
North Africa
Sub-Saharan
0
10
20
30
40
50
60
70
80
90
100
2000 '01 '02 '03 '04 '05 '06 '07
Subscribers per 100 people
South Africa
North AfricaAFRICA
Sub-Saharan
May 2008
Committed to Connecting the World
4
At a crossroads While there has been rapid
expansion in access to ICTs, Africa must sustain and deepen growth and expand access, especially in Internet.
2 paths: ICT policy makers continue as is, with an
unfinished liberalization framework. Additional use of ICT services needs to come from lower income segments. These customers are highly sensitive to pricing. Without deeper reform, it is unlikely that prices will drop sufficiently to sustain growth.
Unleash fresh growth and investment by dealing with regulation, taxation and electricity issues that are hampering the sector’s development. This will lower costs and prices.
May 2008
Committed to Connecting the World
5
Mobile affordability Competition has been a
key driver in reducing mobile prices across the region.
ARPU has fallen in line with tariffs.
There is plenty of scope for prices to come down even further, in order for mobile phone ownership to reach new customer segments among the broader population.
$0
$5
$10
$15
$20
$25
$30
$35
$40
2000
2001
2002
2003
2004
2005
2006
2007
AfricaIndia
Mobile ARPU, US$
May 2008
Committed to Connecting the World
6
Mobile – South Africa First African country to
introduce mobile competition Has remained at forefront of
mobile liberalization: Only African country to
introduced Mobile Virtual Network Operator (June 2006)
1st to introduce mobile number portability (Nov. 2006)
Highest mobile penetration in Africa and on target to reach 100% by end of this decade
Highest number of 3G subscribers in Africa
Monthly prepaid basket price is 3% of income, one of lowest in Africa
19
92
73
31
0102030405060708090
100
2000 '01 '02 '03 '04 '05 '06 '07
Mobile subscribers per 100 peopleHouseholds with a mobile phone (%)
May 2008
Committed to Connecting the World
7
Fixed telephony Africa's dramatic growth in mobile communications has
left fixed telephone lines behind. At the end of 2007, there were 35 million fixed lines on the continent, equivalent to an overall teledensity of 3.3 fixed telephone line subscribers per 100 inhabitants. This is up only slightly from 2.8 fixed lines per 100 inhabitants in 2002.
Incumbents and new entrants are seeking to increase the popularity of fixed telephony through the expansion of fixed wireless networks. CDMA2000 1X has emerged as the de facto technology for fixed wireless in Africa with 31 countries deploying the technology.
May 2008
Committed to Connecting the World
8
Internet Africa has about 50 million
Internet users = about one user among twenty persons. Over half of the region's Internet users are estimated to be located in North African and South Africa.
Bandwidth is scarce and Internet access is relatively expensive in most countries
Levels of international Internet connectivity are quite low in most African countries. Africa as a whole had in total around 40 Gbps of international bandwidth in 2007, of which over 90 percent was devoted to North African countries and South Africa.
Europe 112
Americas86
Asia127Africa
1.7
Oceania5.2
Fixed broadband subscribers by region (millions), 2007
0
10
20
30
40
50
Oceania Americas Europe Asia Africa
20072004
Internet users as percentage of total population
41 42
18
5
424538
31 30
9 3
May 2008
Committed to Connecting the World
9
Wireless broadband 3G and WiMAX starting to emerge as viable
broadband solution for Africa
Provide promising alternative to shortage of fixed broadband options
Countries with both wired and wireless broadband options have lower prices and higher broadband take-up
May 2008
Committed to Connecting the World
10
Broadband - Morocco Inter-modal competition
between ADSL and 3G Broadband prices are the
cheapest in Africa, at US$ 18 per month for a 256 kbps package
Offers highest broadband speeds in Africa (20Mbps)
The 4th highest broadband penetration in Africa and practically all Internet access through broadband
First African country to launch IPTV
0%
10%20%30%
40%50%
60%70%
80%90%
100%
2002 '03 '04 '05 '06 '07
Share of Internet subscribers
Dial-up
Fixed broadband subscribers
May 2008
Committed to Connecting the World
11
Payphones - Togo West Africa is a leader in
the liberalization and spread of privately operated pay phones
Togo has the highest ratio of public pay phones as a % of fixed lines
Almost 25% of Togo's main lines are connected to private telephone cabins
Togo's two mobile operators provide public telephony through GSM cabins which numbered over 10’000 in 2006
Average distance to reach a public telephone facility in the country is around 400 meters 0
5
10
15
20
25
30
2001 '03 '05
Thou
sand
s
0%5%10%15%20%25%30%35%40%45%50%
Private telephone cabinsAs % of main lines
May 2008
Committed to Connecting the World
12
Deepening reform Create fully independent and adequately resourced
regulatory authority Only half of countries have private incumbents. More competition and lower prices through
Infrastructure sharing Mobile termination MVNO & MNP to increases competition Internet Exchange Points VoIP Reduce licensing fees and unify licenses
May 2008
Committed to Connecting the World
13
Taxation• Import duties on IT equipment, VAT
on goods and services and excise taxes on communications services raise prices, limit take-up and discouraging use.
• A 1% drop in the price of a handset in Africa could boost mobile penetration by 2.4 per cent.
• A 1% reduction in taxes could lead to an average increase in penetration of 0.5 per cent.
• “…elasticity of demand is estimated to be higher in Africa than elsewhere, reflecting the potential for further marginal consumers, and hence to increase penetration greatly by a reduction in [mobile related taxes].“
• Reduction in excise taxes can boost tax revenues for governments due to a larger number of users and spillover effects throughout the economy.
0%
5%
10%
15%
20%
25%
30%
35%
Gha
na
Sey
chel
les
B
urki
na F
aso
C
had
C
ote
d'Iv
oire
D
RC
ongo
G
abon
G
ambi
a
Gui
nea
M
adag
asca
r S
eneg
al
Cam
eroo
n
Mor
occo
Z
imba
bwe
T
unis
ia
Ken
ya
Tan
zani
a
Zam
bia
R
wan
da
Uga
nda
ExciseVAT
Mobile taxes
Source: GSM Association.
May 2008
Committed to Connecting the World
14
Electricity The lack of electricity in Sub-
Saharan Africa is a serious impediment to the development of ICT markets. Alternative sources of energy
(wind, solar and biofuel powered base stations).
Synergies between ICTs and electrical utilities ( fiber optic networks; broadband over electricity power lines)
Tax rebates to offset high costs of energy such as import duty waivers and tax reductions for companies supplying renewable-based power and equipment to mobile operators.
0102030405060708090
100
Sub
-Sah
aran
Afr
ica
Afric
a
Dev
elop
ing
Asi
a
Mid
dle
Eas
t
Latin
Am
eric
a
Nor
th A
fric
a
Per cent of population with access to electricity, 2005
Source: Adapted from World Energy Outlook 2006.
May 2008
Committed to Connecting the World
15
African Telecommunication/ICT Indicators 2008 includes:
Analytical section 21 regional tables
covering telecommunication/ICT indicators (2006/2007)
53 individual country pages with a five year profile from 2002-2007
A complete list of telecommunication ministries, regulators and operators in the region
Recommendations Enhance liberalization and
privatization and strengthen regulatory agencies
Lower costs through license and spectrum efficiency, reducing telecom related taxes, infrastructure sharing and energy incentives
Promote wireless broadband
Incorporate mobile into universal access policies
Expand public Internet access