West African Mobile Communications Market has earned revenues of $12bn in 2008 and is estimated to reach $22.6bn in 2015, growing at a compound annual growth rate (CAGR) of 9.4%, according to new analysis from business research and consulting firm Frost & Sullivan.
The research covers technologies including 2G (CDMA/TDMA/GSM), 2.5G (GPRS), 3G (CDMA 2000/WCDMA), and 4G (fully IP-based integrated system).
Birgitta Cederstrom, ICT programme manager at Frost & Sullivan, said: "Fixed-line penetration in West Africa is considerably low at an average of about 2% across the region.
"This is because fixed-line communications services are usually provided through a government-owned incumbent, where the services tend to be limited, of poor quality, and unreliable. Mobile communications services are an attractive alternative and offer a wider range of options and services."
The firm said that liberalisation policies and favourable regulatory conditions have encouraged the entry of new mobile operators with an extensive offering of products and services, targeted at different market segments. But, the global economic downturn along with price-based competition in the West African region has led to average revenue per user (ARPU) decline year-on-year.
The company said that this declines in ARPU has forced mobile operators to find alternative means of differentiating themselves in a competitive environment. The introduction of unified licensing regimes or global licenses operators has paved the way for operators to provide converged services.
Frost & Sullivan said that the emergence of advanced IP technology is enabling the provision of data, voice, broadcasting, fixed, and mobile services over one network and is creating opportunities for bundled service offerings.
In addition, operators are expanding their product portfolios and gradually positioning themselves as converged services providers, more in order to offset the decline in voice airtime sales, which has historically constituted the bulk of their revenues, the firm said.
Birgitta Cederstrom, ICT programme manager at Frost & Sullivan, said: "Operators are mitigating the decline in voice revenues due to price based competition by providing diversified product portfolios. Additionally, they should provide value-added service offerings targeted at different market segments to spur further growth."
