View sample - Report Buyer

Executive Summary
Introduction
• Globally, the declining trend of the number of
Wire-line subscriptions is anticipated to continue
and reach a penetration rate of xx.x per cent
with a total of x.x billion subscribers by the end
of 2009.
• The African continent has some of the world’s
lowest penetration rates in wire-line
communications.
• There are xx countries, with a total population
about xxx.x million, of which xx countries
comprise sub-Saharan Africa with xxx.x million
population.
• While there were x,xxx million fixed telephone
lines world wide in 2008, less than x.x per cent
of these (xx.x million) were in Africa, thereby
representing a tele-density of x.x per cent in
2008.
• Between 1998 and 2008, Africa added only x.x
million fixed-telephone lines, which represent
M514-63
Wire-line Telecommunications Market: Fixed
Telephone Lines Regional Comparison
(Sub-Saharan Africa), 1998 and 2008
Note: All figures are rounded; the base year is 2008.
Source: ITU World Telecommunication/ICT Indicators database
less than x.x per cent of the total number of
telephone lines added globally in the same
period.
• The fixed-line tele-density increased from x.x per
cent to x.x per cent during the past decade.
• The African fixed-line telephone market is
8

Executive Summary (Contd…)
Introduction (Contd…)
stagnating, and this is constraining fixed
broadband growth.
• The number of fixed broadband subscribers was
xxx,xxx in 2008, thereby representing a
penetration rate of x.x per cent in comparison
with x.x million mobile broadband subscribers.
• While the number of fixed-line Internet
subscribers was x.x million, representing a
penetration of x.x per cent in 2008 due to the
low ownership (x.x per cent) of computers.
• In sub-Saharan Africa, the number of fixed-line
subscribers was x.x million, representing a teledensity
of x.x per cent in 2008.
• While the number of fixed Internet subscribers
was xxx,xxx, representing a penetration rate of
less than x.xx per cent in 2008.
• Since the boom in Africa’s telecommunications
market has taken place mainly in the mobile
sector, the African wire-line operators could
M514-63
Wire-line Telecommunications Market: Fixed
Broadband Region Comparison (Sub-Saharan Africa),
2000-2008
Note: All figures are rounded; the base year is 2008.
Source: ITU World Telecommunication/ICT Indicators database.
potentially become less attractive to investors.
• Africa is lacking in investment-intensive infrastructure,
such as fixed telephone lines and fixed broadband.
• These indicators are low in comparison with the world
average of xx.x per cent and xx.x per cent for the
penetration of fixed telephone lines and Internet
connection, respectively.
9

Executive Summary (Contd…)
Introduction (Contd…)
Wire-line Market Development
• Regulatory authorities also often favour
incumbent fixed-line operators, who have
problems to make profits, over new entrants,
and this limits competition and private
investment into fixed-line segment.
• Traditional fixed-line telecommunications
operators generate huge revenue streams, but
are under pressure to expand network coverage,
develop innovative data services and improve
customer services.
• The market participants used to be in the
different tier of competition and/or part of value
chain has started to offer similar lines of product.
• For example, both cable and telecommunications
operators offer fixed-line voice, broadband and
video services.
• Next Generation Network (NGN) is becoming the
future technology of choice. This offers
customers high-quality, converged and Internet
Protocol (IP) -based services on one network.
• In future, sub-Saharan Africa is expected to
witness consolidation in its telecommunication
sector as operators vie for the lower end of the
market to help sustain robust growth.
M514-63
10

Executive Summary (Contd...)
Introduction (Contd…)
Wire-line Telecommunications Market: Undersea Cables Map (Sub-Saharan Africa), 2008
Source: http://manypossibilities.net
M514-63
11

Executive Summary (Contd...)
Introduction (Contd…)
Undersea Cables
• Several current and planned fibre projects will
not only deliver high-capacity bandwidth to
Africa, but also boost competition in the wire-line
market and reduce costs of telecommunication.
• However, expensive satellite services will
continue to play a significant role in reaching
Africa’s extensive rural and remote areas, where
the majority of low-income group resides.
• On the west coast, five submarine cable projects
(Glo-1, WACS, MAIN One, ACE ,SAFE, SEA-ME-
WE.3, and Atlantis-II) are under development.
• Glo-1 has landed in the west coast in September
2009 and WASC will land by the end of 2009.
• MAIN One and ACE are expected to land in 2010
and 2011, respectively.
• On the east coast, the first fibre-optic submarine
cable (SEACOM) went live in July 2009. Other
three undersea cables (TEAMS, EASSy and
Uhurunet) are expected to be operational along
the east coast by the end of 2010.
• These undersea cables will provide high-speed
fibre optic connectivity at lower costs.
• The whole sale tariffs of telecommunication
services range between $x,xxx and $xx,xxx for
SAT3 undersea cable and between $x,xxx and
$x,xxx for satellite connection.
• By the end of 2009, these tariffs will start
declining to be within the range of $xxx and
$x,xxx after Glo-1 undersea cable went live in
the west coast, thereby representing an average
cost reduction of xx.x per cent.
• Besides better international networks, inland
backbone terrestrial links will be needed and
retail prices will have to come down once benefit
of the wholesale price reduction is passed down
to the end users.
M514-63
12

Executive Summary (Contd...)
Introduction (Contd…)
Undersea Cables (contd…)
• In 2008, Africa as a whole had around xx Gbps
of international bandwidth, and this corresponds
to less than one-third of India’s total
international connectivity.
• On an average about xx.x percent of
international broadband traffic volume are
contributed by corporate users. The price of
broadband services is likely to decline between
xx and xx per cent.
• Small and medium-sized enterprises (SMEs) may
realise a cost reduction of xx per cent due to
their relatively low usage of broadband services
than corporate users, thereby increasing their
ability to stay profitable.
M514-63
13