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The Future of African Bandwidth Markets

The Future of African Bandwidth Markets

Market Study
Published: March 2017
Pages: 100
Research from: Xalam Analytics
Sector: Broadband & Fixed

From: GBP 1154.00
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The African international capacity market has entered a new era, a new phase that comes after a period of dynamic growth between 2010 and 2015, and follows a miserable decade of bandwidth scarcity between 2000 and 2010.

Things are different in 2017. Today’s African international capacity market is facing a seminal challenge to its economic structure, a paradoxical predicament at a time when Internet traffic is booming across the continent. The dynamics behind these changes and their implications for market players and investors are at the heart of The Future of African Bandwidth Markets report.

There is much to assess. Our research says Africa’s international capacity demand profile looks excellent. The headline number of broadband connections in Sub-Saharan Africa has grown 10x between 2010 and 2016 and should hit close to 300m by 2020. African demand for international capacity has been doubling every two years and will double again between 2016 and 2020.  This market, unquestionably, will continue to need international bandwidth – and lots of it.

International capacity supply has been growing too. Between system upgrades, new cable rollouts and technology improvements, African international cable capacity will reach twenty times 2010 levels -and almost four times 2016 levels by 2020.

If the 2000-2010 decade was a decade of bandwidth scarcity, the 2015-2020 period will be a phase of African international bandwidth abundance. How will the marketplace handle this bandwidth bonanza?

An Unprecedented View into African International Capacity Markets and Models

The most comprehensive independent report available on African international capacity markets and part of Xalam Analytics’ “Future of the African Internet Series”, The Future of African Bandwidth Markets provides an unprecedented view into African international capacity demand, supply, key players, pricing and evolving business models.

It explores key questions such as the size of demand, the impact of capacity oversupply, the economic viability of proposed cable systems (SACS, SAIL, Liquid Sea, etc.), the future of African pure play capacity models, the impact of new wholesale capacity disruptors such as Angola Cables and Djibouti Telecom, how much lower international capacity price points can go, the impact of IXPs, which players will control African international capacity in 2020 and more.

A reference report for all players and investors in the African international bandwidth market.


Sample Key Points Explored in the Report
The insights derived from that our research on African international capacity markets are distilled in this report, covering critical key questions and points, including:

Why we’re projecting African international capacity demand requirements to double by 2020;
Why we are projecting equipped subsea cable capacity to double from 2016 levels by 2020;
Why African capacity surplus volumes are actually trending upwards despite a market that is already nominally oversupplied;
Why we say that despite oversupply at macro level, only one market has a true bandwidth glut, a third of SSA markets have a bandwidth deficit and bandwidth is being rationed in almost a fifth of African markets;
Why there is a deepening divide on African capacity pricing – with material long term implications
Why we still see a solid case for building out new capacity – despite the fact that bringing in new international capacity into Africa does indeed look like overkill;
Why we say that in an era of bandwidth abundance, the business case for stand-alone, single promoter pure play international wholesale carriers will probably no longer be viable in Africa – We don’t expect any more Seacoms
Why we say Angola Cables ambition to be a global first tier carrier is credible – but will not be simple
Why we say Djibouti Telecom’s strategic moves may be the smartest set of bets we’ve seen by an African operator in a long time;
Who, of Angola Cables, Camtel Cameroon, Djibouti Telecom and Telecom Namibia will do most to disrupt the African international capacity market, and why;
And more..

Markets Covered with Good Depth:
The core analysis of the report is driven by insights and data generated primarily from these markets;
We provide a top level view of key international cables and routes, along with market dynamics;
Country-focused profile, key trends, projections and other analysis: 
Burkina Faso
Ivory Coast
South Africa

Other Markets Covered:
The core analysis of the report is driven by insights and data generated from these markets;
At a minimum, some top line numbers and projections are provided in specific tables;
Key trends and dynamics explored, but no specific country profiling 

Companies Mentioned:
Camtel Cameroon
Djibouti Telecom
Angola Cables
Telkom SA
PCCW Global
Orange Group
Liquid Telecom
MTN Group
Vodafone Group
Telecom Namibia
Maroc Telecom
Benin Telecoms
Expresso/Dolphin Telecoms

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