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Cambridge, Massachusetts - July 19, 2010 - Driven by improvements in the terrestrial backbones and last-mile networks, the new undersea cables surrounding Africa will boost the broadband penetration rate from 3.2 percent in 2010 to 6.8 percent in 2015, according to a new report from Pyramid Research (www.pyr.com).
New Undersea Cables Help Boost Africa’s Broadband Prospects analyzes the factors related to the new undersea cables that will be instrumental in the growth of broadband adoption and revenue in Africa, specifically how variations in the state of domestic terrestrial networks in the regions where these cables land can impact potential operator revenue and broadband penetration rates among end users. It examines the effects of competition, regulations, and pricing strategies across the undersea cable suppliers as they enable small or large operators/service providers and create different market dynamics. The 17-page report provides scenarios of how the AME markets can grow in terms of broadband adoption and revenue under different prices and different market reactions to price reductions. Download an excerpt here. Purchase the report here.
New undersea cables will drive the growth of total broadband users in Africa from 40 million in 2010 to 92 million in 2015 at a CAGR of 18 percent, while revenue will increase at a CAGR of 16 percent in the same period to US$20 billion, notes Kerem Arsal, Analyst at Pyramid Research, and author of this report. During the forecast period, WiMax will take center stage in the coverage for the last-mile access and its access lines. “We predict that WiMax will grow at a CAGR of 30 percent between 2010 and 2015; we also foresee similar trends in mobile broadband, particularly in the data cards/modems,” says Arsal.
"Many African telecom markets have the potential to improve their poor broadband penetration rates and limited revenues and transform their competitive structures,” Arsal claims, “however, there is still much work to be done by the players across the telecom value chain if they wish to take full advantage of this opportunity.” Tiered pricing strategies designed by undersea cable operators for smaller capacities and shorter durations, such as that announced by EASSy (Eastern Africa Submarine Cable System), will improve competitiveness in the AME region. Growing broadband access will also need end-user devices that can exploit the available bandwidth.
New Undersea Cables Help Boost Africa’s Broadband Prospects is part of Pyramid Research's Africa/Middle East Telecom Insider report series. Download an excerpt of this report. This report can be purchased online here contacting info@pyr.com.
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About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries - a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry's most comprehensive market data, trusted research and insightful technology analysis.
About Light Reading
Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and event focused company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technological and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, and TelcoTV Asia, Ethernet Expo New York and Ethernet Europe, and The Tower Summit @ CTIA, as well as focused one-day events tailored for cable, mobile, and wireline executives in the US, Europe, India, and China. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.
About UBM TechWeb
UBM TechWeb (http://www.ubmtechweb.com/)), the global leader in technology media and business information, enables people and organizations to harness the transformative power of technology. Through its core businesses - media solutions, marketing services, and professional information - UBM TechWeb produces the most respected and consumed brands, applications, and services in the technology market. More than 14.5 million business and technology professionals (CIOs, IT and IT Support managers, Web and digital professionals, software and game developers, government decision makers, telecom providers and business executives) actively participate in UBM TechWeb’s communities. UBM TechWeb brands include: global face-to-face events such as Interop, Game Developers Conference (GDC), Web 2.0, Black Hat, and VoiceCon; large-scale online networks such as InformationWeek, Light Reading, and Gamasutra; research, training, and certification services, including HDI, Pyramid Research, and InformationWeek Analytics; and market-leading magazines such as InformationWeek and Wall Street & Technology. UBM TechWeb is part of UBM, a global provider of media and information services for professional B2B communities and markets.
Press contact:
Jennifer Baker
+1 617 871-1910
jbaker@pyr.com
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