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‘Half of Africa to be covered by LTE in 2018’

By , Editor, ITWeb Africa
Africa , 06 Feb 2014

‘Half of Africa to be covered by LTE in 2018’

Around 50% of Africa’s population is forecast to be covered by LTE networks by the end of 2018.

This is according to ABI Research, which says that LTE base station deployment is expected to experience a compound annual growth rate (CAGR) of 40% over the next five years.

In turn, ABI predicts this could result in the number of African LTE cellular subscriptions multiplying at a CAGR of 128% to surpass 50 million by the end of 2018.

The research firm -- which has offices in the US, Europe and Asia -- notes that “nearly half” of these subscriptions are expected to be able to use VoLTE services. VoLTE refers to Voice over LTE services.

Thus far, LTE networks have been launched in African nations Angola, Namibia, South Africa, Zimbabwe, Nigeria, Zambia, Liberia, Mauritius, Tanzania and Uganda over the last two years.

“What makes this exponential subscription growth possible is the increasing affordability of LTE handsets a few years down the road,” notes Jake Saunders, vice president and practice director for ABI.

“LTE handset shipments will increase by 75% annually on average in the next five years. Given the poor fixed-line infrastructure, people will depend on the wireless network for internet access. There is a strong business case for mobile operators to roll-out LTE early to take advantage of the opportunity,” adds Saunders.

However, ABI -- which has offices in the US, Europe and Asia -- stresses that a digital divide could emerge with regard to LTE roll-outs in Africa owing to mixed network deployment strategies.

“Part of the underlying reason for this digital divide is the different types of initiatives driving LTE roll-out,” comments Ying Kang Tan, a research associate.

“We expect wholesale or shared networks such as the joint venture between the Rwandan government and Korea Telecom and the public-private partnership proposed by the Kenyan government to spur LTE deployment.

“While the public-private partnership has stalled, the government is considering a spectrum sharing agreement to resolve the matter. Other initiatives such as a pure LTE operator, Smile, will also introduce new dynamics into the wireless market,” adds Tan.

Lack of spectrum is holding back the roll-out of LTE in markets such as South Africa. The likes of Vodacom, for example, is ‘refarming’ its 1 800 MHz spectrum to provide LTE offerings.

A key factor that is holding back allocation of spectrum in a country such as South Africa has been the delayed implementation of digital television migration, which is planned to open up more frequencies.

Furthermore, LTE networks that have been rolled out in Africa thus far, for example, also predominantly exist in urban areas such as Johannesburg and Lagos.

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