Mozambique Mobile lucrative and set to boom soon - Research and Markets

Details: Category: Trends & Forecasts; 11 February 2010; 10755 views

Mozambique is set to become an attractive and lucrative market for for mobile investors, according to Mozambique Mobile Communications Market, a new report from Research and Markets. The low mobile penetration rate is a very tempting base on which to build business...

Research and Markets has added Frost & Sullivan's new report Mozambique Mobile Communications Market to its range. The report is optimistic when it comes to future predictions: “The recent introduction of foreign companies and expatriates with high incomes is boosting the demand for more sophisticated communications services driving the country to invest in the development of its infrastructure.”

For the authors, the mobile market in Mozambique is very much at development stage and there is plenty of room for growth; both mobile operators are investing in infrastructural enhancements (a third operator is expected to enter the market soon.) The arrival of SEACOM and EASSy will boost data capacity and will link the region to the international network. Sectors such as agriculture and commodities are attracting various companies into the country and increasing the demand for advanced enterprise solutions.

Only 16% of the population communicates with mobile phones and this number is likely to more than quadruple in the next seven years. Companies that invest in this market are likely to see a very profitable return.

Mozambique Mobile Communications Market provides a strategic analysis of the mobile communications market in Mozambique, detailing key forces impacting the growth of the market and providing market forecasts for major customer verticals, industry best practices, and market opportunities. In addition, recommendations are provided on how to capitalise on the market opportunities. Frost & Sullivan's expert analysts thoroughly examine GSM, terrestrial and submarine fibre-optic cables, IP/Multi-Protocol Label Switch mobile backhaul network, and converged infrastructure.

The developing mobile market in Mozambique at present has only two operators catering to its rising demand for mobile services. Large investments are being made in infrastructure development, with the enterprises segment having the maximum growth potential due to the increased number of companies opening sites in the country, especially in remote areas. Submarine cables are being deployed to provide global connectivity as well as improve local and international traffic.

"Mozambique is a promising country in various sectors," says the analyst of this research. "The recent introduction of foreign companies and expatriates with high incomes is boosting the demand for more sophisticated communications services driving the country to invest in the development of its infrastructure."

Substantial improvements in infrastructure and regulation are expected by 2012 and the market in Mozambique is likely to reach its full potential by 2014. Currently, Mozambique has only two operators and five key vendors. There are several opportunities for companies interested in expanding to remote areas and there is growth potential for companies that offer optimised solutions for infrastructure as a way to reduce the capital and operational expenses of operators.

Several factors are hampering market growth, eg, inadequate transportation system, unreliable power supply, natural disasters such as floods and droughts, and the presence of land-mines. Companies should effectively address these issues to succeed in this geographic area. "The current global economic downturn has affected Mozambique indirectly, as the demand for agricultural products and commodities has reduced...However, such challenges are projected to reduce in intensity over the next few years even as demand is set to rise."

In all, Mozambique has a very high potential for growth. The fact that only 16% of the population currently utilises mobile services is a real incentive. The network quality is good and the much-anticipated roll-out of the submarine fibre-optic cables will represent an advance in data traffic and capacity. "Companies should continue to invest in the extension of the network to rural areas to enable prices to reduce...Despite the challenges, the future looks bright for Mozambique’s mobile communications market."

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