Frost & Sullivan Information and

Communication Technologies

Individual voices in Africa

Next billion mobile subscribers

Africa – the dark continent?

Africa – The Summary

Unified Comms:

2012 - $3 billion

2020 - $8 billion

Unified communications

hardware, software and

services spend

Contact Centres:

2012 - $3 billion

2020 - $10 billion

Contact centre and

BPO markets

Broadband

2012 - $12 billion

2020 - $30 billion Bandwidth and

broadband spend

Cloud and Virtualisation:

2012 - $2 billion

2020 - $10 billion Internal and external cloud spend

Mobile and Wireless :

2012 - $180 billion

2020 - $300 billion

Mobile and wireless telephony

spend

Data Centre:

2012 - $ 2 billion

2020 - $ 6 billion

Data Centre hardware and

services spend

Data Centre

Mobile & Wireless

BPO /

Contact Centres Broadband

Communications

Cloud and

Virtualisation

Unified

Communications

ICT Major Opportunities

4

The penetration in the mobile broadband and internet

users is still in nascent phase

Fixed TelephoneLines*

Mobile CellularSubscriptions*

Active mobilebroadband

subscriptions*Internet users*

Fixed (wired)broadband

subscriptions*

Households withInternet access at

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

0

75

150

225

300

375

450

525

600

Nu

mb

er

of

* p

er

10

0 in

hab

itan

ts

Telecommunication Penetration in Africa vs. the World in 2011

Source: ITU

5

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

Mobile broadband is the key driver for growth into the

region

Stage of Development

Ad

op

tio

n R

ate

Low

High

Introduction Growth Maturity Decline

Mobile broadband

VoIP/mobile VoIP

Fixed Broadband

Technology Adoption Trends (2011 to 2015)

Satellite DSL access

Ethernet

WiMAx

Microwave

Source: Frost & Sullivan

Bubble size represents adoption rates

Convergence

Technology Status 2014

M576-65

Wireless technology will remain the primary driver for telecommunications services in Sub Saharan

Africa

Mobile Phone Subscriptions • In 2010, African mobile penetration

is just less than 50 per cent • That said, several countries have

reached saturation • By 2020 we expect a 90 per cent

mobile penetration rate

By 2020, over 1 bn people are expected to invest in a

mobile device

80–100%

60–80%

40–60%

20–40%

<20%

Mobile Telephony Penetration Rate, Africa, 2010

500 million

$80 billion investment in networks

Low cost mobile phones

Value-added Services

Source: Frost & Sullivan, 2011

1,170 million

Source: Frost & Sullivan, 2011

South Africa

50 milion

Angola 16.1

million

Nigeria 150 million

Senegal 10.5

million

Algeria 36 million

Libya 4.5

million

Egypt 76

million

Namibia 2.1 million

Mozambique 18.6 million

Tanzania 30.5 million

Kenya 32 million

Cameroon 13 million

Dem. Republic Congo

35 million

Uganda 23 million

Morocco 31.5 million

Sudan 34

million

Mobile Telephony Penetration Rate, Africa, 2020

Ghana 23 million

Blackberry has the highest penetration in Africa and is

considered a status symbol in a number of countries

Source: Frost & Sullivan, 2012

A number of local manufactured tablets are entering the

African market such as Inye and Wise Touch

Source: Frost & Sullivan, 2012

With the increase of connectivity, data centres across

Africa is becoming paramount

Source: Frost & Sullivan, 2011

Data Centre Market, Africa, 2011

South Africa $250 million

Kenya $5 million

Tanzania $3 million

Nigeria $21 million

Ghana $3 million

Uganda $3 million

Data Centre Market, Africa, 2020

South Africa $420 million

Kenya $25 million

Tanzania $12 million

Nigeria $45 million

Ghana $6 million

Uganda $8 million

Expansion into new regions

Virtualisation options

Lack of infrastructure is an opportunity

$2 Billion $6 Billion

The changing eco system?

Communication Service Providers

Enterprises Consumers

System Integrators/Internet

Service Providers

New players representing potential threats to telcos

Over-the-top Providers Application and Content Providers

Public Entities

IBM

BCX

Didata

T-Systems

Skype

Google

Facebook

Amazon

DSTV

IBM

Webstorm

MWEB

EThekwini Municipality

Johannesburg City

Cape Town City

En

d-U

se

rs

Se

rvic

e P

rovid

ers

K

ey P

laye

rs