Telecom firms need to become more service-centric rather than network-focused in Africa, says Nick Jotischky, principal analyst for Informa Telecom.

Jotischky, who conducted the opening keynote address at AfricaCom in Cape Town, South Africa, spoke briefly about maximising digital service opportunities in Africa.

He noted that as a result of the likes of Africa’s fast-growing middle class and an increasing take-up of smartphones, demand for digital services such as entertainment online is rising.

According to an Informa Telecom survey, data has made up 14% of telecoms’ revenues in 2012 while smartphone penetration was at 11% at the end of last year.

“Consumers in Nigeria are planning to increase their spending on mobile services,” said Jotischky referring to the country’s mobile market, which has over 100 million subscribers.

Challenges that the telecoms market needs to overcome to deliver more on services in Africa, though, include a lack of backhaul capacity, regulatory inaction, and the slow roll-out of 3G, 4G services, says Jotischky.

He added that one in three telecom executives also think that not enough is being done to implement mobile services in rural areas.

Nevertheless, Jotischky said “the African telecom exec is in a confident mood well into 2013.”

AfricaCom is a gathering of digital players on the continent. The conference takes place 12-14 November in Cape Town, South Africa.