October 1, 2010 | Jeffrey Hill
More than a hundred market participants in the east African region are offering Internet connectivity and application services as the introduction of undersea fiber-optic cables has dramatically boosted the demand for broadband Internet in East Africa, according to a Frost & Sullivan report released Sept. 30.
The report, “East African Broadband Markets Tracker,” projects that fixed-wireless broadband access will reach its maturity in the next two to three years while 3G mobile broadband will continue to drive market growth.
“Mobile operators in East Africa have held major market shares in broadband subscription due to the markets increasing mobile subscriber base in the last three years. The cost of bandwidth, computers, handsets, and other customer premise equipments is expected to reduce moderately, further fuelling the service uptake in the region for the next seven years,” the report said.
Frost & Sullivan suggested that service providers increase their marketing capabilities to succeed as volatile foreign exchange market developments may reduce investor confidence to fund projects in East Africa. “The small market size in terms of subscribers and revenues does not attract foreign funds, slackening market growth. Service providers should develop a phase-by-phase market entry plan by adjusting business models and repositioning themselves by offering services targeted at different customer groups.”
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