ABI Research has announced that LTE networks will cover 50% of African population by 2018 and LTE base station deployment will rise to a CAGR of 40% over the next five years.
It added that LTE network population coverage will not be homogenous across Africa with countries such as Angola and Namibia nearing the halfway point already while wealthier nations like Botswana and Gabon have yet to deploy the advanced technology.
“Part of the underlying reason for this digital divide is the different types of initiatives driving LTE roll-out,” commented Ying Kang Tan, 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.”
“What makes this exponential subscription growth possible is the increasing affordability of LTE handsets a few years down the road,” noted Jake Saunders, VP and practice director.
“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.”