New York, July 05, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Africa Telecom Towers and Allied Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06472491/?utm_source=GNW
With the outbreak of COVID-19, the telecom industry has witnessed a significant increase in demand for internet services due to a major chunk of the population staying at home and remote working conditions. The increase in people working from home has led to an increase in demand for downloading, online video viewing, and communication through video conferencing, all of which are leading to increased network traffic and data usage.
Key Highlights
The telecom tower industry has drastically evolved over the past decade. The core towerco proposition and business models have been successfully adapted to match the demands of new markets in Africa. Many towercos are anticipated to hunker down in their core building business over the forecast period, buying and leasing vertical real estate, and such towercos may still see plenty of 5G antenna overlaid onto their towers.
As per the Nigerian Communications Commission, as of January 2021, the number of third and fourth-generation telecom towers deployed in Nigeria has grown by 73.2%. Also, global tower companies are expanding their presence in the region, through strategic collaborations, due to the growing number of opportunities presented.
The emergence of KaiOS and its partnerships with operators across Africa is helping overcome the affordability barrier for low-income users. The free resources offered, such as the ’Life’ app, also help new users develop digital skills and understand how the internet can be relevant. Such initiatives are expected to boost internet penetration in these countries significantly.
Several initiatives by telecom operators and other organizations, especially in low and middle-income countries, are expected to spur growth in the rural areas as the residents of these areas gain increased access to internet connectivity.
Furthermore, with businesses going mobile and adopting new concepts, like BYOD, to increase employee interaction and ease of use, it has become essential to provide a high-speed and quality network. The organizations have been looking forward to adopting BYOD aggressively in their operations, fueling the market growth over the forecast period. Furthermore, development in cloud-based services for mobile users and the roll-out of 4G LTE services worldwide have increased the investment into networks by carriers, which drives the demand for telecom towers.
The increasing emphasis on improving internet connectivity to rural areas is one of the major factors stimulating the deployment and improvisation of the telecom infrastructure in these areas, thereby aiding the market’s growth. Smartphone penetration, raising awareness, increasing penetration of digital technologies, and investments from several organizations and governments have been increasing the adoption of internet connections in the region.
Africa Telecom Towers & Allied Market Trends
Optical Fiber Market is Expected to Grow Significantly During the Forecast Period
The telecommunication and networking market witnessed a massive surge in demand in the region. The emergence of IoT in cloud computing and the demand for 5G networks are driving increased usage of optical fibers in a wide variety of applications: business, government, industrial, academic, and cloud servers in public and private networks.
As per CommsUpdate, there was an interval of just three years between launching 3G and 4G services in Algeria, leading to issues. While all three major operators - Djezzy, Mobilis, and Ooredoo - have extended their coverage to all 48 provinces, they all received penalties from the regulator in 2020 for the poor quality of their services.
Further, as per the Nigerian Communications Commission, as of January 2021, fiber optics cables have expanded by 16.4 % in the last five years. Also, according to IFC, a total of 1.1 million km of fiber optics have been installed in Africa, of which 50% have been deployed by private mobile network operators (MNOs). Moreover, about 40% of all fiber optic cable in Africa, a staggering 450,000 kilometers, is publicly owned. This includes government networks, state-owned enterprises (SOEs), and utilities.
The region has a developing telecom infrastructure, with growth encouraged by supportive regulatory measures and by government policies aimed at delivering serviceable internet connections across the region. Government-funded efforts, including the Universal Service Telecommunications (UTS) program, continue to ensure that fixed-line infrastructure is extended to underserved areas. Thus the slow growth in the number of fixed-telephony connections should be maintained during the next few years.
Companies are getting into various partnerships to provide better services while controlling operating costs. For instance, during the beginning of 2021, Ooredoo Algeria deployed Nokia’s cloud-native Core software to strengthen its network performance and reliability cost-effectively and strategically positioned itself to launch new services to meet customer needs. This deployment is likely to improve the digital ecosystem of the country further.
The infrastructure is based on a terrestrial fiber-optic network coupled with undersea cables, offering secure connectivity abroad from West Africa. This investment aims to support the digital ecosystem and meet the region’s growing needs for connectivity.
Telecom Tower Market to Grow Significantly during the Forecast Period
The core towerco proposition and business models have been successfully adapted to match the demand from new markets in Africa. Many towercos are anticipated to hunker down in their core business of building, buying, and leasing vertical real estate over the forecast period. Such towercos may still see plenty of 5G antenna overlaid onto their towers.
As per the Nigerian Communications Commission, as of January 2021, the number of third and fourth-generation telecom towers deployed in Nigeria has grown by 73.2%. Also, global tower companies have been expanding their presence in the region, through strategic collaborations, due to the growing number of opportunities presented.
In January 2020, American Tower acquired Eaton Towers in a deal that included towers across five African countries. While American Tower already had a presence in Africa, the acquisition was a significant deal, demonstrating the types of investment being made in the region, particularly in the tower market.
According to estimates by TowerXchange, there are roughly 25,767 towers in South Africa, serving 97mn SIMs, making it one of Africa’s best-covered markets. Five MNOs operate within the South African market, mainly MTN, Vodacom, Telkom, Cell, and C-and Rain. Cell C is in the process of shutting down its network and switching to a roaming agreement with MTN. They have slowly reached a point of bankruptcy since the sale of their portfolio to American Towers.
Furthermore, with businesses going mobile and adopting new concepts like BYOD to increase employee interaction and ease of use, it has become essential to provide a high-speed and quality network. The organizations are looking forward to adopting BYOD aggressively in their operations, thereby fueling the market growth over the forecast period. Further, growth in cloud-based services for mobile users and the roll-out of 4G LTE services worldwide have increased the investment into networks by carriers, which drives the demand for telecom towers.
Also, the increasing emphasis on improving internet connectivity to rural areas is one of the major factors stimulating the deployment and improvisation of the telecom infrastructure in these areas, thereby aiding the market’s growth. Smartphone penetration, raising awareness, increasing penetration of digital technologies, and investments from several organizations and governments have been increasing the adoption of internet connections in the region.
Africa Telecom Towers & Allied Industry Overview
The African Telecom and Allied market is moderately competitive and consists of many global and regional players. These players account for a considerable market share and focus on expanding their client base globally. These players focus on research and development activities, strategic alliances, and other organic & inorganic growth strategies to stay in the market landscape over the forecast period.
March 2022 - Helios Towers, the independent telecommunications infrastructure company, announced the acquisition of Airtel Africa’s passive infrastructure company in Malawi, adding 723 sites to its portfolio.
January 2022 - ZESCO Limited and Copperbelt Energy Corporation PLC signed an agreement to make new power supply and transmission arrangements. The negotiations, which started on January 17, 2022, are expected to replace the bulk supply agreement that expired on March 31, 2020.
Additional Benefits:
The market estimate (ME) sheet in Excel format
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