Trends & Forecasts

AME’s Mobile Broadband Adoption will Grow Faster than Global Average Over Next Five Years

Growth of broadband in Africa and the Middle East will be driven by mobile broadband, due largely to poor wireline services and conscientious branding from mobile operators...

Growth of broadband in Africa and the Middle East will be driven by mobile broadband, due largely to poor wireline services and conscientious branding from mobile operators, according to Pyramid Research. The company estimates that the subscriber total across these regions will increase at a CAGR of 34 per cent to reach roughly 38 million by 2014 – a slightly faster rate than the global average.

This assessment is based on an examination of the current and forecast broadband landscape across AME, in terms of subscribers and revenue, as well as the technologies that will enable market growth, both mobile and fixed. Three key markets are identified as being representative of various stages of development: the UAE, which exemplifies the most developed parts of AME; Nigeria, which represents the underdeveloped, sub-Saharan region; and Turkey, which represents the region’s middle-income markets.

“We expect broadband penetration in AME to grow at a CAGR of 20.4 percent from 2009 to 2014, despite the region’s current financial, educational, and regulatory obstacles”, notes Hussam Barhoush, Senior Analyst at Pyramid Research. Furthermore, AME is outpacing all developed regions in terms of growth in adoption of wireless technologies. “In higher-income countries, such as the UAE, we believe that growth will be driven by both mobile and fixed broadband. As for poorer countries with weak fixed-line infrastructure, wireless technologies will power future growth,” he says.

“Fixed broadband providers in AME face the particular challenge of weak and limited coverage, especially in rural areas,” says Barhoush. “This allows competition from other technologies, such as 3G and WiMax. ADSL is currently the main fixed broadband connection method used in the region.” However, we believe that other technologies, such as FTTx and WiMax, will take as much as 17 percent of subscriptions by 2014.

More info:

www.pyr.com



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