Africa to become a telecoms goldmine

Next generation long-term evolution (LTE) technology will be the driving force behind the further development of Africa’s broadband penetration, as African-focused telecommunications companies realise the incredibly growth the continent has made in the last couple of years.

With a fast-growing telecoms market, Africa will be the place to invest in (image: stock.xchng)

“As far as telecoms technologies are concerned, Africa has been moving very fast over the past five years, catching up very rapidly with the latest mobile technologies,” Thecla Mbongue, an analyst at telecoms research firm Informa, told Reuters.

LTE, also known as 4G, has a better signal than the current 3G technology, which means that companies can roll out their networks in rural areas where signal was previously an issue – which will be critical to connect the whole of Africa.

“With some basic smartphones now selling for as little as $50, operators see fast connections as the main edge in the race to tap increasingly tech-savvy users. Pan-African operators MTN and Vodacom are piloting the technology in South Africa, and Kenya’s biggest player, Safaricom, is also testing in its market,” Reuters wrote.

According to Ericsson’s head for sub-Saharan Africa Lars Lindén, it’s only a matter of time before it becomes the norm, and added that Ericsson is in talks with MTN, Vodacom, and Bharti Airtel. “It’s a very hot topic on the agenda. The question is who will be the first one out and in what market? Sooner or later everyone will jump on the train and it will become part of the telecommunications landscape”.

Charlie Fripp – Acting Online editor