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African Mobile growth hit by High Handset Costs
May 12, 2006
In spite of a remarkable development in the mobile phone services market in Africa and a potential for further growth (as there is still 50 percent of Sub-Saharan African region that can be covered by the mobile industry), obstacles exist in the way of the future expansion of the industry. The main obstacle is the unaffordable cost of mobile handsets.
Unlike their counterparts in United States and Europe, the mobile handset are not generally subsidized by the mobile operators in Africa. Therefore only few of the rural Africans find this gadget affordable for them.
A solution to this was found in 2004 when African mobile majors got together and invited international handset makers to bid for contract to supply as many as 6 million handsets for less then $40 each. This contract was won by Motorola, which started to deliver handsets in April 2005.
However, the onset of low priced handsets posed another hurdle to widespread adoption of cell phones. This was the high tariff imposed on products and services by many African governments. Hence increased the tax burden on consumers as the taxes and duties on cell phones and mobile services increased, Had the prices of handsets been lower, it would have meant lower tax burden for the buyers.
In their recent market research report, “African Mobile Handset Market Analysis (2006-2009)” RNCOS’ analysts predict that the region would witness an increased mobile penetration of around 15% at the end of 2005 to a high of 45% by 2011 end.
The report presents a section, which gives a complete overview, key facts & numbers related to the mobile market in Africa. Also, key players in this sector, which include Ericsson, Alcatel, Sony Ericssion, Nokia, Siemens, NTT Docomo, Samsung, Infineon Technologies, RF Micro Devices, Mitsubishi Electric, Panasonic, CelTel Zambia, Safaricom, and AT & T Wireless etc.
The report also covers an economic perspective and number of operators in both sections – Mobile Device and Handset in the world market. These span for countries like Algeria, Egypt, Morocco, Kenya, Zambia, Nigeria and South Africa. The prediction about the service providers and market facilitates manufacturers to help in estimating the future trends in the Mobile Industry in Africa.
The market research report provides an in-depth analysis on the developing market for world mobile industry, their technologies and influence on the market.
For more information visit: http://www.rncos.com/Report/IM033.htm
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