3G and WiMAX to Drive Broadband Services Growth in AME

July 12, 2010

In rural areas in the Africa and Middle East (AME) region where there is weak fixed line infrastructure, WiMAX and 3G broadband will drive future growth. This is what I have shown in the Pyramid Research AME  Insider 3G and WiMAX to Drive Broadband Services Growth Through 2014.

AME has the lowest broadband penetration rates in the world. However, in terms of forecast subscriber growth rates, AME represents an attractive opportunity. Furthermore, AME is outpacing all developed regions in terms of growth in adoption of wireless technologies.  

We expect broadband penetration in AME to be driven primarily by slow but steady economic growth and the region’s favorable demographic environment, in which more than 40% of the population is under the age of 15. The growth will be driven by wireless technologies, such as WiMAX and 3G, in order to compensate for the weak wireline infrastructure.

Furthermore, the ongoing submarine cable projects in Africa will increase the Internet bandwidth of the region. The cables will improve competitiveness in the AME region because they will allow for the stratification of broadband services to the end users across the continent. For more context, see our companion Insider, New Undersea Cables Help Boost Africa’s Broadband Prospects. 

— Hussam Barhoush, Senior Analyst, AME