NAIROBI, Kenya, 30 July 2024 -/African Media Agency (AMA)/- The African telecommunications market has witnessed significant consolidation over the past decade, characterised by mergers, acquisitions and closures such as Telecel’s acquisition of MTN’s operations in Guinea-Bissau and Guinea Conakry; as well as its acquisition of Vodafone Ghana.
According to Robert van Breukelen, CEO of Itemate Solutions, these developments come as mobile financial services in Africa have been growing with an estimated 435 million (9% YoY increase) active mobile money accounts by the end of 2023. “Larger and more established telcos are focusing on larger markets, diversifying into mobile financial services such as banking, lending, remittances, insurance and mobile money. This creates a huge opportunity for emerging telcos to expand their footprint and make a real contribution to digital transformation and local GDP in their respective regions.”
Targeting underserved rural markets
Large telecommunications companies tend to focus on digital, enterprise and high-end customers in densely populated areas, allowing emerging telecommunications companies to target low-end market segments in rural areas, including prepaid customers with mobile phones. In sub-Saharan Africa, about 66% of mobile connections are prepaid, and mobile phones account for nearly half of all mobile devices.
But emerging telcos face challenges such as brand loyalty and infrastructure costs, according to van Breukelen. Many of Africa’s most recognized brands are telcos: MTN ranked 2nd and Safaricom/Mpesa 4th in the 2023 African Most Admired Brands report. “This ranking highlights the difficulty of entering a market where customer loyalty is strong,” van Breukelen says. “The high costs associated with rolling out 5G networks are also a significant barrier.”
Government support and regulatory benefits
However, all is not lost and Van Breukelen says that increasingly, government interventions are also playing a crucial role in strengthening emerging telecom operators. “Governments could have a stake in the telco or offer preferential pricing and regulatory support to promote digital development and inclusion that can be used to help smaller players increase their market share,” he says.
Meeting the needs of a diverse customer base
Africa, and particularly smaller emerging markets in Africa such as Rwanda and Ethiopia, are home to a diverse customer base, ranging from 5G-enabled metros to sparsely populated rural areas. “Improving internet access in rural areas and expanding mobile use cases that meet the needs of a diverse population is critical,” says Van Breukelen, “but it starts with collecting and leveraging rich customer data that will inform the telco where it needs to tailor its services to better meet demand.”
“Emerging telcos are uniquely positioned to understand and meet the needs of their diverse customer bases. Their agility and customer-centric approach allows them to quickly adapt to changing market demands and deliver tailored solutions,” says van Breukelen. As they continue to evolve and adopt cutting-edge technologies, emerging telcos are poised to not only meet but exceed customer expectations, drive growth and enable a more connected and inclusive future.
Distributed by African Media Agency pour Itemate Solutions.
About Itemate Solutions
Itemate Solutions is a leading provider of digital solutions and customized software platforms, serving clients in ten countries across Africa and the Middle East for over 18 years. Our mission is to provide reliable and cutting-edge digital solutions that increase our clients’ customer base in a cost-effective manner.
Source : African Media Agency (AMA)
2024-07-30 14:34:26
#Evolution #Telecommunications #Sector #Challenges #Opportunities #Emerging #Suppliers #
