BUSINESS TECHNOLOGY MEDIA FOR AFRICA

Africa’s top four technology predictions for 2014

Africa’s top four technology predictions for 2014
Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
16 Jan 2014

International communications research firm Pyramid Research has released its report on the top global technology trends and predictions for 2014 with further insights on Africa and the Mideast.

The report, titled “Pyramid Research Predictions 2014: Global and Regional Trends in the Information, Communications and Technology Industry”, was written by Pyramid’s team of research analysts and consultants.

Each prediction is supported by what the organisation says is fact-based analysis and has been arrived at through extensive discussions among analysts and experts.

Pyramid Research managing director Daniel Amparán said they anticipate 2014 to be a year of transformation.

And referring to the Pyramid Research report, ITWeb Africa has compiled a list of the top four predictions expected for Africa and the Middle East.

1. Pyramid forecasts that by the end of 2014 almost one in every three mobile subscriptions in Africa and the Middle East will be on 3G or more advanced networks. The research firm has outlined that network modernisation is expected to continue as the number of LTE subscriptions in the region is expected to grow by 300% to surpass 10 million.

2. Mergers and Acquisition (M&A) activity is expected to intensify in Africa and the Mideast this year as a result of the dominance of pan-regional operators over smaller ones. According to the research firm, small operators in overcrowded African markets cannot sustain competition and are vulnerable to network investments. Therefore, the smaller players could lag behind their larger counterparts.

"Any market in Africa with more than four mobile operators is a candidate for M&A activity. Such markets are mostly found in eastern and central Africa (e.g. DRC, Tanzania, Uganda and Kenya) and West Africa (e.g. Ghana, Nigeria)," reads the Pyramid report.

3. As long-term evolution (LTE/4G) broadband services gain traction, Pyramid Research expects five more African countries to launch LTE in 2014. So far African countries that have launched LTE services include Angola, South Africa, Namibia, Mauritius, Tanzania, Uganda, Nigeria and Zimbabwe.

“In 2014 we expect at least five more countries to be added to the list of markets with commercial LTE broadband services bringing the total to 15 countries with LTE. The most likely candidates for these additions are DRC, Botswana, Rwanda, Zambia and Kenya,” the report read.

4. In addition to the rumours that US on-demand internet streaming service Netflix has held talks with South Africa’s fixed line operator Telkom about launching its services in the country, Pyramid Research also believes that the service could launch in Africa in 2014. According to the research report Netflix could launch first in South Africa, Turkey or the United Arab Emirates (UAE) in the region.

“We predict Netflix to expand into the Middle East and Africa in 2014, to Turkey, South Africa and/or the UAE, as these countries have the characteristics needed for the Netflix service to flourish,” it is stated in the report.

The report concludes, “We believe that South Africa is on Netflix’s radar not just because of the country’s improving broadband infrastructure and pent-up demand for video content but also because of the ease of deployment there.”

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