With a telecom penetration rate of 205.4% Seychelles has shot to the top of the most developed telecommunications markets in east Africa claims a study by Frost & Sullivan.

The report, titled The Telecommunications Market in East Africa: Key Fixed and Mobile Market Indicators, has identified Kenya (with74.2%) and Sudan (at 69.9%) as among the front-running countries in terms of telecommunications penetration rates.

"The most-developed telecommunications countries in terms of penetration rates in East Africa are Seychelles, Kenya and Sudan," said Frost and Sullivan in the executive summary of the report.

It said key trends in the east African telecommunications market included the growing integration of "telecommunications, banking and insurance industries". This was "redefining the business models of telecommunications providers" in the region and leading to expansion and further development of strategies.

Land-locked countries in the region such as Rwanda and Uganda had also undergone rapid development in the sector. This had "shown that geographical location" was not a "barrier to telecommunications development"

In the mobile money sector, Kenya was identified as having the most developed mobile money market compared to other regions. However, southern Africa and west Africa are also gaining traction, with massive mobile money developments in the regions.

"China's growing interest in Africa has led to increasing foreign investments, especially in the form of infrastructure development, and this is evident across East Africa," stated Frost & Sullivan analysts.