BUSINESS TECHNOLOGY MEDIA FOR AFRICA

'Only 3.6% of Africa's telecom subscribers use fixed-lines'

'Only 3.6% of Africa's telecom subscribers use fixed-lines'
Staff Writer
By Staff Writer, ITWeb
20 Oct 2014

Fixed-line communication services only hold a 3.6% share of Africa's total telecoms market.

This is according to research firm Frost & Sullivan, which says mobile communications have captured 96.4% of the continent's subscriber market.

Frost & Sullivan says Africa's low take-up of fixed-line services could be attributed to state-owned companies dominating the continent's fixed line market.

"The rationale is that fixed-line communication services are offered solely by state-owned entities across African countries with limited funds for infrastructure development and investment," says Frost & Sullivan.

"Furthermore, a lack of competition within the fixed-line market has resulted in little motivation to improve services and customers, therefore, choose to communicate through mobile devices rather than fixed-line modes," says the research firm.

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Africa's mobile phone market has boomed in the last decade as affordable prepaid services in particular have taken hold on the continent.

Mobile phone body, the GSMA, forecasts that the total number of unique subscribers in Africa will reach 346 million by 2017.

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