Research Overview

This Frost & Sullivan research service titled Selected African Fixed Telecommunications Operator CAPEX Trends provides insight into the level of capital expenditure that currently characterises the African telecommunications market. The research service regards selected countries within the continent and highlights the most significant capital projects. It also examines those factors that drive and restrain expenditure in the African telecommunications market. In this research, Frost & Sullivan's expert analysts thoroughly examine WiMAX, fixed line infrastructure and telecommunications networking equipment.

Technologies

The following technologies are covered in this research:

• WiMAX
• Fixed line infrastructure
• Telecommunications networking equipment

Market Overview

Undersea Cables Give a Boost to African Telecommunications Market

The priority given to infrastructure investment in most African countries has marked a watershed in the region’s telecommunications market. There are a number of projects underway and in the pipeline that will see significant development within the telecommunications space. Perhaps the most important activity in this regard involves undersea cables. These cables are central to the expansion of telecommunications services throughout Africa; although there are misgivings about their huge costs.

The introduction of the undersea cables will help provide connectivity in the underserved East African coast. "Despite their significance to the development of the telecommunications industry, the undersea cable projects remain restrained by political disagreements and policy uncertainties on issues such as cable ownership and project control," says the analyst of this study. "Governments, regulatory authorities, network operators and other key stakeholders have to reach a consensus regarding strategies and ensure that the cables are landed in as short a time as possible."

Investment Opportunities Abound in the African Fixed Telecommunications Space

There are opportunities for partnerships between industrial companies and the telecommunications sector, considering oil and gas as well as mining projects are heavily dependent on telecommunications. These partnerships can help telecom operators share their expenditure burden as well as aid in the establishment of high-quality infrastructure for use by the industrial companies as well as the local communities. It is a suggested means for industrial companies to fulfil their social responsibility requirements.

The Nigerian Communications Commission’s (NCC’s) demand that operators radically improve their services is also likely to boost investments in telecommunication infrastructure. Since the domestic telecommunications sector has not been able to match strides with the global sector due to its poor service quality, the NCC has commanded operators to cease advertising their services until they meet regulatory standards. "This will necessitate increased expenditure on infrastructure and present an opportunity to equipment suppliers," notes the analyst. "Network expansion and upgrade is likely to be the main priority for most operators."