Conclusion: The African communications growth story can no longer be viewed as a frontier opportunity as more and more players from developed markets enter the African market.

Rather, the market is showing signs of greater maturity reflected by, amongst other: (i) increased competition; (ii) reducing gross margins; (iii) declining ARPUs; (iv) greater complexity of product offering and mobile payment services; (v) active attempts by incumbent mobile and fixed-line operators to expand into other parts of the value chain; and (vi) the emergence of infrastructure sharing models. While subscriber growth remains superior to other regions, with significant pent-up demand remaining, these changes in the communications landscape is forcing operators to rethink their strategies and focus on the next wave of growth.

Significantly, there have been a number of major developments that will catapult the African communications market into another league from both a cost and bandwidth perspective. These include the arrival of new international submarine fibre optic cables such as Seacom connecting the East African seaboard to international submarine fibre networks and the accelerated liberalisation of African communications markets.

View the full report

African Satellite Program will Launch Intelsat New Dawn by Late 2010

Pembroke, Bermuda, and Johannesburg, South Africa, 9 December 2008.

Intelsat, Ltd., the world’s leading provider of fixed satellite services, today announced a joint venture with a South African investor group led by Convergence Partners that will utilize project financing to build and launch a new satellite into the 33 East orbital location, ideally positioned to serve the African continent. The satellite, to be called “Intelsat New Dawn,” will feature a payload optimized to deliver wireless backhaul, broadband and television programming to the continent and is expected to enter service in early 2011. The satellite will be operated and marketed as part of the global Intelsat fleet.

Africa has been one of the fastest growing regions for fixed satellite services in recent years, fueled by demand for critical infrastructure from communications providers and television programmers. Wireless telecom operators, broadband service providers, corporate network service providers and direct-to-home television operators have experienced growth along with the economic development of the region. The New Dawn joint venture was established to provide solutions for African communication needs, and is expected to deliver new capacity for voice, wireless backhaul, Internet and media applications.

View the full Statement

SEACOM Closes Financing, Starts Full Construction of Undersea Fiber Optic Cable

Transcontinental Investment Boosts South and East African Economic and Social Development with High Capacity Link to India and Europe

African investors have taken a significant majority stake in SEACOM’s undersea broadband cable, joining hands with an international partner to link southern and east Africa with India and Europe in a massive technological boost to economic and social development on the continent.

The equity and debt facilities for the entire project costs have been unconditionally committed for the construction of the state-of-the-art cable from Mtunzini in South Africa to Mumbai in India and Marseille in France via Mozambique, Madagascar, Kenya, and Tanzania.
“This is a major milestone”, stated SEACOM President, Brian Herlihy “The construction of a new submarine fiber optic network will pave the way for a data revolution that intends to follow the explosive growth of the mobile industry in Africa. A shift from a primary voice market to a primary data market will be a catalyst to increasing worker productivity, creating better access to e-eduction and the growth of service industries such as call-centres, BPOs and research centres in Africa.
SEACOM has already invested more than $10 million in the marine survey and engineering of the cable. The advance start has enabled SEACOM to maintain its ready for service date of June 2009. Actual production of the high-tech cable and undersea repeaters start next week.”

View the full Statement