Tag: telecoms

  • TUC rejects proposed 9% telecoms tax

    TUC rejects proposed 9% telecoms tax

    The Trade Union Congress of Nigeria (TUC) has urged the Federal Government to drop its planned introduction of Communication Service Tax (CST). When passed into law, CST will automatically place a nine per cent tax charges on phone calls, Short Message Services (SMSs), Multi-Media Services (MMSs), data packages and other telecoms transactions.

    In a statement jointly signed by TUC President Comrade Bobboi Bala Kaigama, and the acting Secretary General Simeso Amachree, the union described the proposed tax as an exploitation of the already-impoverished masses.

    “We call on the Federal Government and the National Assembly to suspend the bill immediately because the masses are already overburdened with multiple taxation. It makes no sense for the country to initiate policies that would stifle businesses when it seeks to woo more investors.

    “If we sufficiently understand the minister, we wonder how he expects such tax to be paid by any worker in a country where the national minimum wage is N18, 000 and at a time when workers’ take-home pay no longer takes them home. Apart from exploiting the already impoverished masses, the policy would also discourage investment and lead to loss of jobs,” the union stated.

    The Minister of Communication, Mr. Adebayo Shittu, at a private sector dialogue session organised by the Lagos Chamber of Commerce and Industry (LCCI), in Lagos, last week, hinted that the planned tax, which has passed first reading at both chambers of the National Assembly, was conceived to help the Federal Government develop the ICT sector and implement its policies and plans in an integrated manner.

    He claimed that Nigeria would earn as much as N20 billion monthly if the bill is passed into law, adding that it would also help to cushion some of the country’s economic challenges and fund budget deficits in no small measure.

    But the union said: “While we appreciate the minister’s concern on how to fund the budget, should the government’s focus not rather be on ensuring more judicious use of revenue derived from Value Added Tax (VAT), Pay-As-You-Earn (PAYE), stamp duties, vehicle license, passport fees, customs duty, petroleum profit tax (PPT) and other taxes collected from the masses and companies?

    “And would it not be more appropriate for the desired additional taxes to be imposed on the GSM operators and other players in the communications industry rather than the poor masses?”

    Expressing concern over the issue, the group wondered why the common people should always be at the receiving end of government policies. “Most government officers rarely pay for anything, including their children’s school fees and utility bills. The cost is on us the masses,” Kaigama said.

    Kaigama stated that the country was in economic difficulty and needed to generate more revenue to deliver on government promises did not mean that obnoxious laws which adversely affect disposable incomes and gross domestic product (GDP) should be promulgated.

    He said stakeholders were not consulted before the meeting where the decision was taken, adding that various tiers of government that aimed to increase their revenues must do so by looking inward to the vast deposits of natural resources within their respective jurisdictions.

  • Telecoms generates N1.4tr in Q1, says NCC

    Telecoms generates N1.4tr in Q1, says NCC

    • 2.6GHz spectrum auction for review

    The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Danbatta, has lauded the performance of the nation’s telecommunications industry in the first quarter (Q1) of this year, saying it has contributed over N1.4trillion to the economy.

    He expressed optimism that the performance would improve as government policies take firm roots in the subsequent quarters of the year.

    Speaking while receiving a consortium of international investors led by UBS South Africa, Danbatta also said the NCC would soon meet with operators over the recent auction of 2.6 gigahertz (GHz) spectrum, for which only MTN submitted bid for six out of the 14 available slots placed offer.

    “I think we are happy with the level of compliance to regulatory stipulations in general, minus the MTN incident, which cast some sort of shadow in our regulatory derive to ensure sustainability and stability of the industry.

    “I am happy, we are putting that one behind us, and this is attested to by recent statistics by the National Bureau of Statistics (NBS) that the industry recorded a growth of 0.5 per cent to GDP in comparison to the same period last year.

    “In monetary terms this is going to translate to over N1.4 trillion, only in the first quarter of this year.

    “While other sectors of the economy is recording negative growth, the telecom industry has been recording positive growth and I think it is poised to grow even further in the subsequent quarters of the year,” Prof Danbatta was quoted to have said in a statement endorsed by his  SA Media,  Yakubu Musa

    Fielding questions from reporters on the 2.6.GHz spectrums auction, the EVC said: “We are doing a post mortem.  And we have not yet met with the operators to find out why they did not bid, except one operator.

    “The intention is to be able to know their reasons, and to know in what way the regulator can come in to relax some of the conditions in the process, if this relaxation can lead to more operators going for the remaining eight slots.

    “I am sure the commission will be disposed to looking at the reasons that prevented other operators from coming forward to bid, except only one.”

    He said the Commission incorporates elements of flexibility in its dealing with operators in order to continue to sustain the growth in the sector, which he said, “has the potential to provide an alternative to oil and gas”.

  • ‘Stable energy key to improving telecoms service’

    Stable energy is key to achieving quality telecommunications service, says Prof Umar Danbatta, Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC).

    Danbatta spoke at the 6th annual conference of the Renewable and Alternative Energy Society of Nigeria (RAESON) at the National Centre for Energy Research and Development, University of Nigeria, Nsukka (UNN).

    Danbatta, represented by NCC’s Director, Technical Standards,  Fidelis Onah, decried telecommunications firms’ inability to offer quality services at all times, blaming eratic power supply for poor service delivery and increased operational cost. He described the conference as a critical platform for telecommunications stakeholders to learn how to solve their challenges.

    Danbatta, who spoke on the theme: Renewable energy in the national energy mix, said: “Renewable and alternative energy sources have been in the forefront of proffering solutions to the challenges and crisis of global energy demands. It is one easy way of achieving cheap energy source and penetration. And this is not only about cost, but also about its availability and sustainability.

    “No country develops its industries without sustainable and affordable energy source. Bringing solution to telecommunication industry will go a long way into alleviating the problems of unemployment and high cost of living.”

    He identified poor funding, low manpower, lack of technology base, and lack of political will as stumbling blocks against implementation of renewable energy projects.

    Mr. Umar Bindir, Secretary to the Adamawa State Government, urged the members of the society to monitor global trends on renewable energy in order to gain insights into latest technologies. He said monitoring global trends would help the group contribute enormously to the discussion on energy problems.

    RAESON president, Prof Chidi Akujor, bemoaned the delay in addressing the challenges of inadequate power supply despite President Muhammadu Buhari’s promise to tackle the problem.

    He said it was disheartening to hear the nation’s power production capacity collapsed, adding that any solution to power challenges would require the inclusion of renewable energy.

    He said the society was willing to partner with the government to solve the power problems confronting the nation.

    The UNN Vice-Chancellor, Prof Benjamin Ozumba, hailed the society for hosting the conference in the university. He said the event was in line with university’s vision to embark on research that would solve the nation’s challenges.

  • ATCON: telecoms is on Exclusive Legislative List

    ATCON: telecoms is on Exclusive Legislative List

    • States, local govts urged to respect constitution

    Telecoms operators have reminded the 36 states and 774 local government councils in the country that telecoms still remained on the Exclusive Legislative List, urging them to respect the constitution of the country and stop charging spurious taxes, levies and harassing telcos.

    The operators, acting under the aegis of the Association of Telecoms Company of Nigeria (ATCON), lamented that disregard for the provisions of the constitution has stunted the growth of the industry as it has been difficult to expand capacity.

    Its new President, Olusola Teniola, who spoke in Lagos after being elected, said the group will move away from being reactionary to being more proactive, pragmatic and engaging.

    He said to achieve this, there is need to develop strategic and purposeful engagements with all tiers of government.

    “The telecoms business is on the exclusive list of the Federal Government, but what is playing out or obtainable in our country right now is that all tiers of government levy taxes on all our member-companies and it is affecting the growth of the telecoms sector. The conceptualisation of ATCON was to support and give direction to telecoms industry policy formulation and implementation in Nigeria. We shall concern ourselves with the federal, state and local government in respect of developing the telecoms sector in a manner that everyone wins,” he said, adding that ATCON as an institution would work closely with all agencies set up by various tiers of government to develop a model that would be mutually beneficial to everyone in the value chain.

    He said collaboration was important to move the industry forward, adding that collaboration with agencies such as the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA) and other related ministries, departments and agencies (MDAs) would be stepped up.

    “ATCON would collaborate with the Federal Government to protect existing investments in the telecoms sector through advocacy. We would also as a matter of part of its objective to encourage further investment in the sector, encourage embarking on trade missions to other countries of the world to woo investors,” Teniola said.

    Speaking on what he intends doing for the association; he said ATCON under his leadership would reactivate its popular conference and exhibition which is known as Communication Business Information Technology Exhibition and Conference (ComBIT Expo).

    As a matter of fact, the date for the 2016 edition of ComBIT Expo and Conference shall be announced in the month of June this year to underscore the seriousness of the new exco, he said.

     

     

    “The impact of ATCON News in the Nigerian telecoms industry has been impressive in terms of timely information dissemination to all stakeholders in the sector. This NEC (National Executive Council) shall also produce the hard copy of ATCONNews on quarterly basis. ATCON would be open for strategic partnership from members and international communities,” he said.

    Other members of the NEC are Tony Nwosu—first vice president; David Roberts—second vice president; Myke Ofili – national secretary; Adeyegbe Aderonke—treasurer; Ikechukwu Nnamani  —coordinator, Telephone Operators; Jude Egokwu—oordinator, Infrastructure Providers; Gbeyega Ojuri—coordinator, Internet Services Providers (ISPs); Adebusuyi Adetunji—coordinator, Manufacturer’s Representative; and Hyacinth Anucha—coordinator, Value Added Services (VAS).

     

  • Telecoms as Nigeria’s best PR tool

    No sector has advanced the international image of Nigeria like telecoms. Since the advent of what has been rightly dubbed the ‘telecom revolution’, the image of Nigeria in the global communication circuit has shot to the heavens. At the global telecom fest annually organised by the International Telecommunication Union, ITU, from country to country, Nigeria has in recent years enjoyed special attention and mention. The accolades are the same during the Commonwealth Telecommunications Organisation, CTO, conferences which Nigeria has had the privilege of hosting twice since the advent of the telecom revolution. The reasons are not far-fetched.

    In the recent history of global telecoms, Nigeria has held the record of being the fastest growing mobile market in the world for five consecutive years; Nigeria telecom more than many elsewhere in the world has guaranteed the highest return on investment; it has generated more jobs, steady jobs, and millions of ancillary jobs than any sector in the local economy. It has grown to being a major contributor to the GDP; currently telecom contributes about 10 percent of the GDP. It has spluttered to well over $32 billion industry from a paltry $50 million in year 2000.

    At international forums, the telecom sector has attracted positive global commendation for Nigeria more than any other sector. Presidents, techies, technocrats, corporate moguls and leaders of international organisations have consistently cited the Nigerian telecom regulatory model and growth gradient as a template for others.

    It is little wonder, therefore, that since the telecom revolution buzzed in Nigeria, other countries have made several sorties to the Nigerian Communications Commission, NCC, to understudy the nation’s regulator. From Kenya to Ghana to Botswana, the NCC has played host to delegations who have journeyed to Nigeria to study the Nigerian telecom regulatory template.

    In January, 2011, the US Federal Communications Commission, FCC, the equivalent of the Nigerian telecom regulator, NCC, commended the giant strides recorded in the Nigerian telecom industry, giving credit to the Nigerian telecom regulator for bringing Nigeria at par with several advanced nations of the world.

    Mignon Clyburn, Commissioner of the FCC at that time during a meeting with the Nigerian delegation, said after comparing notes about how Nigeria has strived to better the sector over the past years and what has been achieved so far, that the Nigerian regulator appears ahead of other African countries and indeed, some more advanced countries of the world in telecom regulation. The Nigerian NCC delegation to the meeting at the FCC headquarters in Washington DC that year was made up of the chairman of the commission, Peter Igoh, Executive Vice Chairman, Eugene Juwah and Executive Commissioner, Stakeholder Management, Okechukwu Itanyi. The lady commissioner of FCC commended the Nigerian delegation. She observed that it was the first time the commission would host a delegation of telecom regulatory institution from Africa.

    Clyburn said the FCC was keen on how Nigeria, and indeed Africa, marches on to exploit the benefits of telecom and ICT. The two-day meeting hosted by the FCC under its International Visitors Programme, IVP, discussed issues of mutual bilateral telecom regulatory best practices, with an interactive session where the two telecom regulators exchanged ideas on the different dimensions and challenges and agreed to continue to share idea and information. Topical issues discussed at the meeting included telecom compliance and enforcement regulation, universal service, competition and interconnection, rules-making procedures and ethics among others.

    Perhaps, the ITU forums, more than any other, are where Nigeria’s international reputation has continued to soar. At the ITU World in Dubai 2012, Nigeria was the only country listed on the opening session, aside the host nation – the United Arab Emirates – to address the global audience made up of government officials from around the world, chief executives of global telecom brands, investors, other stakeholders and international media.

    The then Secretary-General of the ITU, Dr. Hamadoun Toure, had on several occasions voiced his admiration for the strides of Nigeria telecom, and was never shy of recommending it as a model for other nations.

    By every yardstick, telecom has emerged in recent years as the most effective public relations tool for Nigeria. The signs are all over the place and the brilliant statistics epigraph the arrival of Nigeria on the global telecom stage. The tradition has continued without any sign of abatement.

    The incumbent EVC of the Commission, Professor Umar Danbatta, has not only continued in the tradition of regulatory excellence, he has so far demonstrated that the NCC is willing and ready to position Nigerian telecom as the undisputed enabler for productivity for other sectors. Danbatta whose appointment has been largely hailed as one of the best and most pertinent appointments by President Muhammadu Buhari recently unfolded his eight-point agenda for Nigeria telecom. The agenda is embedded in a five-year plan which targets primarily a pervasive rollout of broadband services across the nation as a way of addressing the knotty issue of quality of service.

    Danbatta sure knows his way around the sector. An accomplished Professor of Electronics Engineering and alumnus of the University of Manchester, he was in his element when he presented his vision to the media recently.  His roadmap is clear; carefully crafted and conceived to fit into the vision and goals of the government of President Buhari: to create jobs, wealth and widen the revenue base of the economy away from crude oil receipts while maintaining a high degree of fiscal prudence and good corporate governance.

    The success story of Nigeria telecom has continued to win more international accolades and attract partnerships for the nation. Recently, the Global System of Mobile Communications Association (GSMA), the umbrella body for all mobile operators, equipment manufacturers, vendors among others opened talks with the NCC on capacity building, and sundry ways to attain an accelerated growth in the mobile sector.

    A couple of days back, the Nigeria telecom narrative was, again, a reference point for many speakers at this year’s Nigeria Summit organized by the authoritative international magazine, The Economist. Africa’s richest man, Aliko Dangote, Philip Walker, Regional Manager, The Economist Intelligence Unit and other speakers while commenting on the global oil crisis and the opportunities it presents for Nigeria to diversify her economy all cited the critical success recorded in telecom as an indicator that with the right political will, good mix of policy and robust regulatory framework, the nation can achieve much in other sectors in a manner that would make earnings from oil look like peanut.

    Without disputation, it is safe to say that in the global corporate matrix, Nigeria telecom has consistently been numbered among the best, often ranked with those of some Western economies. The impact of this growth stretches beyond achieving digital inclusion and connecting the unconnected; it has helped to galvanise other sectors. Just for once imagine what would have become of the actors and players in the nation’s youth-dominated entertainment sector. Players in music and moviedom now sell their content via mobile platforms out of the reach of pirates; they have become the faces and brand ambassadors of telecom service providers and their services; Nigerian music has become our quintessential caller tunes and putting money directly in the pockets of the artistes.

    The impact of Nigeria telecom is felt most when you are attending international ICT forums. You will feel proudly Nigerian to hear the encomiums poured on the nation’s telecom regulator by globally renowned icons in the sector, including heads of governments. It is a zero to hero story; it makes me feel proudly Nigerian in the international circuit and I relish every moment of it.

    • Ojobo writes from Abuja.
  • Agency warns telecoms contractors

    The General Manager, Lagos State Infrastructure Maintenance and Regulatory Agency (LASMIRA), Mr. Babajide Odekunle, has warned contractors handling ongoing infrastructure projects for telecoms firms in the state to display Project Information Board.

    In a statement at the weekend, he urged all affected firms to comply with the directive by reverting to LASMIRA’s office.

    “All ongoing construction works of telecoms infrastructure, including towers, base transmission stations (BTS), parabolic antennae as well as tar cut for fibre optic cables must display a Project Information Board on site.

    “Consequently, all construction activities must ensure compliance with this directive by reverting to the office of LASMIRA at Agindigbi to procure the Information Project Board,” the statement read, adding that it is important for the firms to comply as the directive is with immediate effect.

    He urged all the members of the public to ensure compliance by supporting and cooperating with the government as the move is in line with the state’s government to serve the people better.

  • Telecoms sector investments to hit $166b, says Shittu

    Telecoms sector investments to hit $166b, says Shittu

    The Minister of Communications Technology, Mr Adebayo Shittu yesterday in Abuja said investment in the mobile telecoms industry would hit $166billion and create over  6.1 million jobs by year 2020.

    According to him 2.7 million direct jobs would be created, while another 3.4 million indirect jobs would also come from the sector.

    Mr Shittu who spoke while declaring open the” 2015 Emerge Tech Summit” in Abuja said, the mobile industry employed two million people directly as at last year, noting that by 2020 an additional 700, 000 jobs would be generated by the sector.

    He said: “By 2020, it is expected that the mobile market would be worth $166 billion  or N33 trillion  and this represents eight per cent of the region’s GDP (gross domestic product) as opposed to 5.7 per cent of GDP in 2014.

    “At the end of 2014, Nigeria alone had about 136 million registered lines from the four major operators ( Etisalat MTN, Glo and Airtel). Nigeria telecom operators accounted for 35 per cent of the total Foreign Direct Investment (FDI) into Nigeria in 2014 alone.”

    Mr Shittu said following the commitment of the present administration to invest massively in infrastructure facilities as a way of creating jobs for the youths,  the ball is now in their courts to “galvanise their lofty ideas into profitable ventures in ICT, web development, mobile applications, software, internet security, cloud computing and microchip processing developers.”

    Mr Shittu reiterated President Muhammadu Buhari-led administration’s commitment to build an all-inclusive “political and economic institutions that provide the driving wheels for emerging businesses and startups.”

    He said this is the reason the government considered Emerge Tech Platform critical to the development of the nation.

    In his remarks, the Executive Vice Chairman of the Nigerian Communications Commission, Professor Umar Danbatta said the commission would not relent in its efforts to ensure the delivery of quality service to subscribers and urged all stakeholders in the industry to ensure that their activities and operations are in line with international best practices and standard.

  • Strive Masiyiwa: If I started again I’d do  agriculture, says telecoms tycoon

    Strive Masiyiwa: If I started again I’d do agriculture, says telecoms tycoon

    Zimbabwean tycoon, Strive Masiyiwa, made his money in the mobile telecoms business, but if he were to start all over again, he would bet on agriculture.

    Speaking at the opening of this year’s African Green Revolution Forum (AGRF) in Zambia’s capital, Lusaka, Masiyiwa made a case for the opportunities in the agriculture industry.

    The Zimbabwean billionaire is chairman of the Alliance for a Green Revolution in Africa (AGRA), an organisation set up in 2006 to support smallholder farmers with the goal of reducing poverty and hunger.

    Masiyiwa noted that Africa’s food market would be worth US$1tr in just 15 years, citing a 2013 report by the World Bank.

    According to a report launched at the forum, Africa currently spends more than $60b on food imports each year, thereby benefiting producers outside the continent.

    “Oh I wish I was starting again. I wouldn’t do telephones. I would go into agriculture,” he said.

    Masiyiwa founded Econet, a diversified telecommunications company with operations and investments in Africa, Europe, South America and Asia. His other business interests include financial services, insurance, renewable energy, bottling for Coca-Cola and hospitality ventures – all of which have made him one of the most wealthy and respected business people in Africa.

    “Twenty years ago, the idea that people could have their own (mobile) phone was almost as ludicrous as the idea that Africa will feed the world. But 20 years from now, this continent will feed the world,” Masiyiwa predicted.

    A decade ago, Masiyiwa noted, it was almost impossible to talk about agriculture in Africa beyond simply food security. Millions of people across the continent were facing hunger on a daily basis, even starvation.

    “When you mentioned the words food and agriculture, often we spoke about hunger. I cannot say to you the hunger has gone away – but what I can say to you today is that we are beginning to address this issue. We are beginning to move agriculture forward.The green revolution of Africa… has indeed, started.”

     

    Involving the youth

    Masiyiwa urged stakeholders to connect the bulging youth population with the continent’s vast agricultural resources.

    This year’s Africa Agriculture Status Report: Youth in Agriculture in Sub-Saharan Africa, launched at the forum, noted that young people can be the engine behind the development of new agricultural enterprises in farming research, processing, packaging, and retailing of food. However, it warns most of Africa’s under-25 population are pessimistic about farming due to a lack of land, credit, quality farm inputs and machinery.

    “Africa has the largest, most vibrant group of young people – yet we have a need to create jobs even today for over 250 million (of them). Yet we have over 60 per cent of the world’s unutilised arable land. There must be a way to connect these two dots,” said Masiyiwa.

    “African youths have the energy of the world. We have to equip them with the right skill… with the tools… with the markets. They are smart, and they are not just going to go out and work the land for nothing – as we did in yesteryears •Culled from www.howwemadeithappeninafrica.com

     

  • Gwandu, others discuss 5G at global telecoms forum

    Mr Bashir Gwandu, a former acting Executive Vice Chairman  (EVC) and Executive Commissioner, Nigeria Communications Commission (NCC) was  one of the chief presenters at a two-day conference  organised last week by the Wireless World Research Forum to discuss challenges and implementation in the new generation of communication technology, the 5G, which proposes a total connected  life.

    It provided a platform to discuss global standardisation, global co-operation and interoperability, looking at how a user-centric approach can be used to identify and overcome the obstacles and challenges connected to a 5G future.

    Presentations were made by some industry leaders and experts, and specific sessions for this year’s event included:  Building a Globally Agreed Vision for 5G Development and Deployment, Creating the 5G Architecture, Overcoming the Obstacles to 5G Deployment, Revolutionary New Use Cases and Implications for Industry, New Business Models and Commercial Opportunities Across Different Sectors (using the Automotive Industry as a sector case study).

    Some of the features expected of the 5G as raised in the conference includes very low sub-millisecond round-trip latency (delay) of 5G signal, Better security to avoid hacking, better location identification, ultra-broadband speed of over 10Gbps, distributed content and processing, much better coverage and availability, low power consumption, high-order Mimo antenna systems, use of sub-6GHz or the spectrum between 6GHz and 100GHz, and whether or not the network should evolve from the 4G-LTE or simply new type of network, etc. Projected applications include machine to machine to people communications, autonomous cars and robots, and super wireless cloud computing etc.

    The 5G has already been tested inJapan by Huawei and NTT DOCOMO using sub-6GHz bands and in a public place, unlike previous experiments, which are usually conducted in a lab.

    The carrier managed to reach peak speeds of 3.6 Gbps where as the fastest average 4G LTE speeds come from Spain at 18 Mbps.

  • Rural inaccessibility to slow down telecoms sector in Africa

    Africa’s fast-growing mobile phone subscription rate is expected to slow sharply in the next five years, a development that has surprised some stakeholders closest to the industry, Reuters reports in eNCA.

    African mobile subscriptions grew 13 per cent from 2010 to 2015, and they’ll continue to grow, but slower — at an expected rate of six per cent from 2015 to 2020 — according to a new report by global industry body Global System for Mobile communications Association (GSMA). That six-per cent growth will likely add 135 million subscribers, ITNewsAfrica reports.

    The report says the slowdown will be partly due to lack of commercial logic in setting up network coverage in some rural areas, where more than half the population lives, Reuters reports.

    The slowing subscriber growth underscores the existence of significant barriers to the take-up of mobile services, according to ITNewsAfrica. In addition to a lack of business confidence in rural areas, these include cost, coverage, income levels and technical literacy.

    Sub-Saharan Africa bypassed Latin America for unique subscribers in 2014, becoming the world’s third-largest growth region after Asia Pacific and Europe. It now accounts for 10 percent of the global subscriber base, ITNewsAfrica reports.

    It’s not economically viable for mobile phone companies to deploy their networks in some areas — especially remote, rural communities — because of low spending power of people living there, said Mortimer Hope, GSMA’s Africa director.

    “I am bit surprised by this development,” Hope told Reuters. “I expected strong growth to continue because the penetration rate in Africa is still well below 100 percent.”

    Expect more mergers and acquisitions as competition heats up and subscription rates go down in African mobile markets, Hope said.

    “Smaller players don’t have the economies of scale to drive their prices down and compete for long periods, so you’ll probably see some consolidation in the market,” he said.

    Recent M&A activities include United Arab Emirates’ Etisalat selling Zantel, its struggling Tanzanian mobile phone business, to Sweden’s Millicom in June.

    South Africa’s Vodacom bought fixed-line operator Neotel, which struggled to compete against larger rival Telkom.

    By 2020, more than 500 million people — about half the African population — will have subscribed to a mobile service compared with the global average of almost 60 percent, according to the GSMA report.

    Mobile regulators and operators must act to reduce barriers to mobile uptake so the unconnected can get the benefits of mobile.

     

    Between now and 2020, 40 per cent of the new subscribers are expected to come from Ethiopia and Nigeria, two of the most populous countries in the region. Mobile penetration is now 23 per cent in Ethiopia and 31 per cent in Nigeria.

    Other countries expected to have strong subscriber growth include Cameroon, Kenya, Mozambique, Tanzania and Uganda.