Special report compiled by Analysys Mason for the IAD Summit 2014

1. analysysmason.com
DELIVERING SERVICE
EXCELLENCE IN AFRICAN
TELECOMS
GLOBALADVISERS
ONTELECOMS,MEDIA
ANDTECHNOLOGY

2. 2
CONTENTS
Introduction p3
Telecoms: it is all about the experience p4
Lifting barriers to internet connectivity
in Africa p6
Mobile internet survey in the Middle
East And Africa 2013 reveals heavy
usage and high expectations p8
Opex transformation: a recipe for
lasting performance improvement p10
Monetising LTE services: developing
new revenue streams through
differentiation and innovative pricing p12
African mobile operators : improving
returns through consolidation p14
South Africa’s national broadband targets
seem ambitious compared with European
benchmarks p16
Meeting DSO deadlines: what are the
international lessons for Africa and
similar regions? p18
About Analysys Mason p20
Analysys Mason expertise in Africa p21
Analysys Mason Research p22
Subscribe to our services p23

3. 3
INTRODUCTION
As African markets mature and the limitations of traditional
price/coverage models become increasingly exposed,
telecoms operators are shifting towards service excellence as a
means of sustainable competitive advantage. This key issue is
the theme for this year’s Innovation Africa Digital Summit.
There is a wide variety of service delivery models that claim to improve customer experience, IT platforms that
aim to better manage customer information and network technologies that promise to deliver higher QoS.
The challenge for operators is to select the best end-to-end path to service delivery excellence that provides
measurable improvements to commercial performance while delivering a strong return on investment.
Analysys Mason has been delivering strategic and operational advice to telecoms operators, regulators and
investors worldwide for 30 years, and is proud to once again be contributing to the Innovation Africa Digital
Summit. Our team will be hosting workshops and moderating panels on subjects such as customer
experience, digital inclusion and connecting communities, and we look forward to lively discussions in these
forums and throughout the summit.
Members of our team share some of their thoughts and insights on important trends and issues affecting
African telecoms now and in the future. Themes of the articles include:
• Customer experience
• Lifting barriers to internet connectivity
• Results from our MEA Mobile Internet Survey
• Opex transformation
• Monetising LTE services
• Consolidation in Africa
• National broadband targets
We hope that you find these opinion pieces and expert commentaries of interest and value. We welcome
your feedback and encourage you to contact the authors directly if you would like to discuss any of the points
they have raised, or are looking to understand how a specific issue or trend will affect your business. To find
out more about our experience and services, please visit www.analysysmason.com.
We look forward to working with you.
EDWIN GRUMMITT
Partner and Head of MEA
Analysys Mason

4. 4
TELECOMS: IT IS ALL ABOUT
THE EXPERIENCE
Competition in the telecoms industry is threatening
to intensify the pressure on the traditional revenue of
established communications service providers
(CSPs). This article discusses the importance of
improving the customer experience and the lessons
that can be learned from the airline industry.
You board a flight to return home. Before take-off,
you are offered a drink and some snacks. The plane
takes off, but you don’t even notice because you are
watching that movie you missed last month in the
cinema. After 20 minutes, a member of the highly
efficient cabin crew offers you a delicious meal.
Later, when you are informed that the plane is about
to land according to schedule, you are surprised at
how quickly the trip went. The whole flight
experience was designed to please the senses. After
a few flights, you start to associate the airline with
high-quality customer service. Next time you are
booking a trip and the name of that airline shows up
in the list, you will instinctively select it, overlooking
the hefty price premium you will be paying compared
with the cheapest option. You will be paying for the
customer experience, and you will not be alone.
Many will do the same, feeding the profits of the
companies that strive to please you.
The liberalisation of the airline industry led to its
commoditisation, driven by the appearance of several
low-cost airlines. The price pressure that this caused
reduced the margins of established airlines, leaving
them with no alternative but to differentiate through
customer experience. The successful ones have done
so, and manage to retain a price premium despite
offering a commoditised service. The ones that did
not, mostly state-owned companies, struggle or have
vanished. Telecoms operators are in a very similar
situation. More competition is driving a significant
price reduction, eroding margins and forcing CSPs to
improve efficiency. OTT players threaten to have the
same impact on the traditional revenue of
established operators as low-cost airlines had in the
airline industry. However, the potential to
differentiate exists and examples from other
industries can offer some guidance.
Although large numbers of CSPs’ subscribers are
price sensitive, the value is typically concentrated in
a small proportion of high-value customers. Above
all, these customers are looking for a problem-free,
enjoyable telecoms experience. When subscribing to
a service, customers want their CSPs to guide them
in the process, speak the same language and allow
for service experimentation. Once subscribed,
customers want to be able to quickly and easily
access the services and activate additional services
with the minimum hassle possible. Customers
should never need to contact the CSP to solve
problems, but if they do, the customer support
should be readily available and knowledgeable.
It seems simple, but a good customer lifecycle
experience is hard to design and implement.
However, it does not need to be expensive. In another
recent article, Mike Pearson, Partner, Analysys
Mason, discusses a real case of a telecoms operator
that improved the experience for its customers and
reduced its costs.
If telecoms operators are to improve the experience
of their customers, they must make a concerted and
cross-functional effort. Commercial and technical
departments should work together and the right
incentives should be in place to ensure that the
organisation is focused on the same final goal.
Roughly speaking, implementing a good customer
experience involves five steps.
• Understand the pain points: The starting point of
this assessment should be customer perception,
but this can be misleading. Is your call centre
CARLOS PINTO
Principal
Differentiating through customer experience should go beyond
addressing the reasons for dissatisfaction – it needs to create
motives for delight.

5. 5
really that good, or do customers think it is good
because they have low expectations? A mix of
customer perception, competitor benchmarking
and internal quantitative measurements need to
be part of this assessment.
• Identify the root cause of the problem: This
requires a detailed internal analysis, examining
KPIs and processes to understand where a gap
exists. If your customers perceive that you are
overcharging, the cause could be anything from an
issue with the BSS to a miscommunication by the
sales team.
• Quantify the impact of the problem in order to
understand how much it is worth investing to solve
the it: Improving customer experience improves
price premium and margins, but also requires
investment. Ensuring a positive return on these
investments is a key part of the overall
performance improvements.
• Solve the problem: A proper workplan and
resources with the right incentives need to be put
in place. Having the right KPIs is essential to
ensuring that the impact of the transformation is
quantifiable. Involving the whole company is also
vitally important – changing only a part of the
customer experience will not be enough. It only
works if it all works.
Obviously, not having dissatisfied customers is
different from providing a differentiated customer
experience. Differentiating through customer
experience should go beyond addressing the reasons
for dissatisfaction – it needs to create motives for
delight. This is where the real challenge lies, but the
process is similar – assess the customer lifecycle,
identify improvement potential, implement and
quantify impact.
CSPs are very focused on avoiding commoditisation
and margin squeeze by adding value-added services
to their propositions. That is needed, but, as with
airlines, the best value-added service CSPs can give
to customers is an excellent customer experience.
For more information, please contact Carlos Pinto,
Principal, at carlos.pinto@analysysmason.com.
“Although large numbers of CSPs’ subscribers are price sensitive, the value is typically concentrated in
a small proportion of high-value customers.”

6. 6
LIFTING BARRIERS TO INTERNET
CONNECTIVITY IN AFRICA
Analysys Mason recently conducted a study on the
progress of the Internet in Africa, in order to identify
barriers to more widespread access to the worldwide
information super highway. Over the course of a few
months, we examined prices, spoke to stakeholders
in the public and private sectors across the
continent, and examined what differentiated
successful countries from the rest.
In simple quantitative terms, such as the Internet
bandwidth available to African countries, significant
improvements to Africa’s Internet connectivity have
taken place in the last five years. Enormous
investment in telecoms infrastructure has
characterised these improvements, particularly in
terms of intercontinental connectivity and terrestrial
fibre networks. However, these infrastructure
investments are necessary, but not sufficient, to
improve Internet access services experience for
users in Africa.
Our study found that in many countries constraints
on key inputs still hold back the development of
Internet access services, notably in relation to the
terrestrial connectivity between the submarine
cables, the Internet exchange points (IXPs), the
‘last-mile’ access infrastructure – whether fixed or
wireless – and the Internet service providers (ISPs)
that deliver access to end users in Africa. Policy
remedies are required to maximise the effectiveness
of new investments and attract new ones.
The pricing of Internet access services for end users
is one of the strongest measures of a successful
policy environment, for two reasons. First, low prices
themselves are evidence of a competitive market that
is relatively free of bottlenecks that could raise the
cost of providing services. Second, low prices
generate a virtuous circle: lower prices attract more
users, which increases scale and reduces unit costs,
thereby increasing the utility of the Internet to
citizens and businesses. This in turn further reduces
prices for end users and encourages greater and
more diverse use of the Internet. Based on data
shown in Figure 1, countries in Eastern Africa
(Kenya, Rwanda, Tanzania and Uganda) are achieving
the best outcomes by this measure.
Countries with higher prices and lower Internet use
tend to be characterised by clear barriers within the
sector, generally related to regulation and policy,
such as a monopoly on the international gateway, a
state-owned incumbent, or regulatory roadblocks in
deploying long-distance and/or cross-border
infrastructure. Other countries, even those with low
prices or high usage, could do better still, and in
particular could achieve more widespread benefits
from the Internet if they removed roadblocks,
promoted investment and services, and offered
high-level political vision and leadership.
Recommendations
The recommendations in Analysys Mason’s report
are presented in terms of solutions that can offer
one of the following three types of improvement.
• Removing roadblocks. Policy makers should
remove roadblocks that deter investment in and
use of terrestrial fibre, including lack of
liberalisation; high cost of licences; challenges
accessing rights of way for deployment within
countries and across borders; and high taxes on
equipment and services.
• Promoting investment. Governments should
promote private-sector investment in
infrastructure to the greatest extent possible,
offering regulatory certainty to give confidence to
investors and allowing or promoting
infrastructure-sharing in order to reduce costs.
Recent infrastructure investments in Africa are necessary, but not
sufficient, to improve Internet access services experience for users
in Africa.
STEPHEN SALE
Principal Analyst
ROBERT SCHUMANN
Principal

7. 7
Where private-sector investment is not likely,
governments may need to use their own resources
– financial and infrastructural – to ensure services
are delivered, potentially using public-private
partnerships (PPPs).
• Leading at the highest levels of government.
Development and usage of communications
infrastructure should be made a high-level priority,
with an agency invested with oversight of all
aspects of the value chain, including research and
innovation, taxation, state investments in
infrastructure and/or operators, and regulation.
Such an agency should have the authority to
address any conflicts within the government that
result in roadblocks or reduced investment.
Note: This Insight is based on a study commissioned
by the Internet Society (ISOC), a non-profit organisation
that provides leadership in Internet-related standards,
development and policy, and is a key independent
source on these issues. The study, entitled Lifting
barriers to Internet development in Africa: suggestions
for improving connectivity, is available at www.
analysysmason.com/Research/Content/Reports/
Internet-development-Africa-May2013/.
Through our new office in Johannesburg, Analysys
Mason is well placed to work with governments or
operators throughout Africa to identify and address
barriers to Internet connectivity.
For more information, please contact Robert Schumann,
Principal, at robert.schumann@analysysmason.com
Figure 1: Average price per GB of traffic for low-, medium- and high-usage Internet access bundles,
selected African countries [Source: Analysys Mason, Google, Telegeography, 2012]
“In simple quantitative terms, such as the Internet bandwidth available to African countries,
significant improvements to Africa’s Internet connectivity have taken place in the last five years.”
0 20 40 60 80 100 120
Kenya
Tanzania
Uganda
Rwanda
Malawi
South Africa
Zambia
Mozambique
Namibia
Botswana
Zimbabwe
Gambia
Cote d'Ivoire
Ghana
Nigeria
Cameroon
Senegal
Average price (USD per GB)
No data
Western
Africa
Southern
Africa
Eastern
Africa
Usage:
High
Medium
Low

8. 8
MOBILE INTERNET SURVEY IN THE
MIDDLE EAST AND AFRICA 2013
REVEALS HEAVY USAGE AND HIGH
EXPECTATIONS
Analysys Mason recently conducted primary research
with mobile Internet users in six countries in the
Middle East and Africa (MEA): Egypt, Kenya, Nigeria,
Saudi Arabia, South Africa and the UAE. We asked
them about their Internet access, decision criteria for
selecting operators and handsets, and their usage of
over-the-top (OTT) services and other apps. This
Insight article presents a sample of the survey results.
The survey was conducted during November 2012–
January 2013, in association with On Device Research.
Mobile is the main channel to the Internet in the six
surveyed countries in MEA
About 87% of survey respondents indicated that they
use their mobile as the main means to connect to
the Internet. The prevalence of mobile over fixed for
Internet access in all of the surveyed countries
shows the important role played by mobile in
extending online access to previously unserved or
underserved groups. This proportion is slightly lower
in Saudi Arabia and the UAE where fixed broadband
is more available than it is in Kenya and Nigeria. In
fact, we observed a reverse correlation between the
level of fixed broadband penetration and the
proportion of respondents who use their mobile as
the main means to connect to the Internet.
Surveyed mobile Internet users in MEA have a
great appetite for online services
Despite the limited access to capable devices such
as smartphones, and fast mobile networks such as
3G, survey respondents showed a high take-up of
non-traditional communication services.
Smartphone users are more likely to use OTT
communication services than feature phone users,
but as the results show, the difference between the
two segments is not huge. Surprisingly, three-
quarters of feature phone respondents also accessed
OTT services, which are often SMS-based.
In terms of the most commonly used apps, we found
that worldwide usage trends are repeated in the
Middle East and Africa. Social network sites come
first, followed by email and instant messaging. VoIP
and videoconferencing come last in MEA, but around
a third of users in Saudi Arabia and UAE indicated
they used these services. These countries have a
high proportion of foreign residents and
smartphones and Wi-Fi is widely available (which is
important because these services are generally
blocked over cellular networks in Saudi Arabia and
UAE). VoIP and videoconferencing services were
much less popular in the Sub-Saharan African
countries (Kenya, Nigeria and South Africa) than in
the Middle East and North African countries (Egypt,
Saudi Arabia and the UAE).
People in MEA are new to the mobile Internet, but
they are demanding
Like in other regions of the world, mobile Internet
users in MEA have high expectations despite their
relative newness to Internet services. Nearly all our
survey respondents (both feature phone and
smartphone users) selected 3G/4G support as the
most important criteria when selecting a handset –
indicating their awareness and understanding of the
improved Internet experience afforded by 3G/4G
networks. Affordability was the second-most
important criteria – particularly in Sub-Saharan
Africa. Handset design and features were ranked
relatively high when cited, which was less frequently
than 3G/4G support and affordability.
Price is the main deterrent to consumers’
aspirations to acquire smart devices
More than 20% of respondents indicated that they
have a tablet. The UAE and Saudi Arabia had the
highest penetration levels – nearly 40% of
respondents have a tablet. This contrasts with only
Mobile Internet users in MEA have high expectations despite their
relative newness to Internet services: nearly all our survey
respondents selected 3G/4G support as the most important criteria
when selecting a handset.
STEPHEN SALE
Principal Analyst
KARIM YAICI
Analyst

9. 9
7% and 8% in Kenya and Nigeria respectively.
Smartphone users are more likely to own a tablet.
These country differences are mostly due to disparity
in purchasing power, access to Wi-Fi and prior
experience accessing the Internet on more-capable
devices. Overall, two-thirds of respondents in MEA
indicated that the high price of tablets is the main
reason for not owning one.
1
Question: Do you use over-the-top voice or messaging
services on your mobile phone (for example, Skype, WhatsApp,
BlackBerry Messenger, MSN Messenger, iMessage,
Facebook)?; n = 4250.
For more information, please contact Karim Yaici,
Analyst, at karim.yaici@analysysmason.com
“More than 20% of respondents indicated that they have a tablet. The UAE and Saudi Arabia had the
highest penetration levels – nearly 40% of respondents have a tablet. This contrasts with only 7% and
8% in Kenya and Nigeria respectively.”
Figure 1: Usage of OTT services, by handset type, the Middle East and Africa
[Source: Analysys Mason, 2014]1
0
5
10
15
20
25
30
35
Percentageofconnections
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Percentageofusers
ong term
Chile(Aug-12)
2555–2570
2675–2690
China Mobile
Hong Kong
China Mobile
Hong Kong
0
20
40
60
80
100
120
140
160
EMAP
LATAM
MENA
SSA
NA
CEE
DVAP
WE
Global
Revenuegrowth(USDbillion)
74%
85%
26%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Feature phone Smartphone
Percentageofrespondents
No
Yes

10. 10
OPEX TRANSFORMATION: A RECIPE
FOR LASTING PERFORMANCE
IMPROVEMENT
Operators in emerging and mature markets
increasingly face a common challenge: as the
competitive environment shifts from a period of one
or a few operators to a market with multiple
challengers and only modest growth through new
subscriber acquisition, improvements in
performance must increasingly come from within.
After operators have trimmed capex, they have to
address perhaps the most delicate question of all:
how to best trim opex?
Effective root-cause analysis is essential to opex
transformation
The traditional starting point has been opex
benchmarking, whereby operators assume that any
area in which they are above the peer benchmark is
an area where they should cut cost. This sounds
logical and sensible, but unless repeated cost cutting
is combined with performance improvement, you
may replace a cost problem with a quality problem,
as some budget operators have learned the hard
way. Next came the era of process improvement,
whereby each process is meticulously mapped and
then improved upon – often by advisors.
Unfortunately, organisations seldom behave
according to prescribed processes, and any process
designed for a particular business task quickly
becomes outdated. More importantly, many
opportunities for organisational improvement are not
process-related at all so, in isolation, this method
risks missing the mark.
Analysys Mason has fine-tuned a methodology for
lasting opex performance improvement as a result of
recent client work, building on experience we have
gained over the past two decades. This methodology
is holistic at its very core. It is centred on a root-
cause analysis that looks broadly at multiple
elements of an organisation, including its people,
processes, services, systems, incentives and key
performance indicators (KPIs). Cost benchmarking
and process mapping may support the overall
diagnostics and improvement programme, but these
aspects are only two of many means to an end. The
reason for this is simple: just as an overly simplistic
medical assessment may lead to the wrong
diagnosis and a course of treatment that could harm
the patient, a narrow cost or process focus could
result in misguided efforts to transform opex that fail
to deliver the desired effect – and may even be
harmful to the operator.
Effective root-cause analysis begins with an open
mind, no assumptions, and an active and creative
approach by experienced professionals. By posing
questions to an organisation’s frontline and back-office
staff and complementing these views with verdicts
from customers and other stakeholders, symptoms of
problems can be traced back to their original source
– which might not be obvious at first. Quite often, we
find that the causes of high costs are upstream from
the symptoms in an operator’s value chain.
For example, in recent work on customer care units,
we have found that high costs are as likely to stem
from complexities in the product portfolio as from
inefficiencies in the customer care units themselves.
In such cases, a simple cost benchmarking exercise
might result in arbitrary headcount reductions in
customer call centres to reduce costs, without
addressing the underlying causes of those costs.
By contrast, an effective root cause analysis would
identify the source – that is, abnormally high call
volumes – and address these first. Any efficiency
improvements in the contact centres themselves
would then come as an added bonus, and the
combination of these measures could lead to both
cost savings and quality improvements.
Analysys Mason has fine-tuned an approach to bringing lasting
benefits from opex transformations, reducing opex by 10% or more
while making your organisation stronger, faster and less error prone.
ERIK ALMQVIST
Partner, Global Head of
Operational Consulting

11. 11
When we have identified the actual root cause, we
can help design a programme for resolving or
removing it. Thus, rather than treating many
symptoms, the cure focuses on the root causes
where, over time, it will have a more-lasting effect. It
is also easier to secure the organisational buy-in that
is essential to the programme’s success because it
targets root causes rather than false cost cuts that
might backfire, and the organisation has been
involved from the outset. The solutions suggested
will typically encompass a broad spectrum of
organisational aspects – such as people, processes,
services, systems, incentives and KPIs – which
radically improves their chances of success.
Case study: our holistic approach identified a
potential 10% reduction in opex for an operator
in Africa
In a recent case for an African mobile network
operator (MNO), we identified an annual opex savings
potential of 10.5%. The MNO had been experiencing
a period of rapid growth since its inception, but was
anticipating an increase in competition as the market
saturated. As a result, operational excellence would
be essential to improving the company’s financial
performance. With this objective, the MNO entrusted
Analysys Mason with the task of identifying areas for
driving operational efficiency and reducing opex.
As a starting point, we identified key functions within
the organisation and associated driver costs. We
then benchmarked the identified functions with a set
of global, regional and local peer operators. The peer
group for benchmarking was carefully selected
based on economic, environmental, market and
operator-related parameters to ensure comparison
between like-to-like operators. We deliberately
constructed an index that included many successful
competitors in the peer group, to make it easier to
identify savings areas. This helped our client to
recognise areas (structural, tactical and strategic)
where real improvements can be made.
In parallel to the qualitative evaluation, we carried
out an extensive root-cause analysis to identify true
sources of inefficiencies that led to the identified
performance gaps. As part of this process, the
Analysys Mason team conducted discussions with
more than 70 personnel within the organisation,
including CxOs, functional heads and other
important team members across various
departments.
This helped us in developing recommendations
across different functions to improve the MNO’s
operational efficiency and financial performance.
There were multiple addressable factors for this
operator, but the largest savings stemmed from
energy use, procurement consolidation, customer
care efficiency, product portfolio consolidation and
reduction in leased-line costs. The sum of these
factors added up to more than 10% on an annual,
recurring basis (see Figure 1).
Specific factors may vary by operator, but the holistic
methodology of combining traditional benchmarking
and process efficiency measures with thorough
root-cause analysis acts as guarantee for clients to
arrive at both short-term results and real long-term
improvements in efficiency. Finally, a recipe for
lasting opex improvement has arrived.
For more information, please contact Erik Almqvist,
Partner, Global Head of Operational Consulting,
at erik.almqvist@analysysmason.com
“Analysys Mason has fine-tuned a methodology for lasting opex performance improvement as a result of
recent client work, building on experience we have gained over the past two decades.”
8%
21%
13%
32%
79%
47%
0%
25%
50%
75%
3Q 2013 3Q 2016
PercentageofARPC
Connectivity services
Application services
Other services
Net new
subscribers
Customer
lifecycle
Profit
Loss
Sell more
products
and services
Keep customers longer
Customer
acquisition
Time
9
Increasing softw
Legacy IN
IMS
architecture
Telecoms
application
servers
(TAS and
NG-IN)
Policy
control
ng
1
OPEX reduction (standalone effect)
100.0% 5.6%
1.0% 1.1% 1.0% 0.4% 1.4% 89.5%
Full
effect
OPEX
Deployment
of alternative
energy
solutions
Reduction
in leased
line cost
Portfolio
consolidation
Customer
care
efficiency
improvement
Focus on
lower cost
recharge
solution
After
savings
Procurement
consolidation
-10.5%
1.1 1.2 2 3 4 5
Figure 1: Identified cost savings for an MNO in Africa
[Source: Analysys Mason, 2014]

12. 12
MONETISING LTE SERVICES:
DEVELOPING NEW REVENUE STREAMS
THROUGH DIFFERENTIATION AND
INNOVATIVE PRICING
The experience of MNOs in countries such as South
Korea show that LTE can add value to a business
and have a positive impact on ARPU and share prices
– when more than 28% of an MNO’s subscriber base
has an LTE connection, operator share prices
consistently outperform the index. This article
examines how MNOs are experimenting with
services, segments and pricing in order to monetise
LTE offerings, and draws on our experience of
working with operators worldwide.
MNOs must differentiate LTE services from those
of 3G
LTE operators can begin to monetise LTE services by
offering four categories of service to established and
new segments of subscribers (see Figure 1).
Enhanced data for consumers is a key selling point
for LTE
Operators can use the rich data experience of LTE to
sell more data and develop new revenue streams.
Video streaming providers such as Netflix alter the
quality of video according to available bandwidth – so
a 6-minute clip on LTE would consume 80MB
compared with 27MB on 3G, thus driving usage.
Operators are also bundling content with LTE or
top-tier plans, enabling new revenue streams – for
example, EE in the UK uses its film service (EE Film)
to monetise data and receives sales commissions
from video-on-demand provider FilmFlex.
VoLTE (+ RCS) allows operators to offer integrated
voice, video and instant messaging (IM) services
with the added benefit of mobility
VoLTE (+ RCS) will probably develop as a hybrid
service for operators. They will be able to sell more
IM and video data, a market that over-the-top (OTT)
players currently dominate. Additionally, 4G networks
can address the mobile opportunity for HD voice and
integrated services, and even drive usage away from
Wi-Fi, thus generating new revenue.1
South Korea
Telecom’s VoLTE service is taken by about 50% of the
operator’s LTE subscribers.
Enterprise solutions can benefit from enhanced
data services
Enhanced enterprise LTE solutions such as
videoconferencing on-the-go and remote access to
business applications can drive data consumption.
Verizon Wireless is one of many LTE operators that
offers 4G mobility applications and solutions for
SMEs and enterprise customers. A survey shows that
67% of US businesses using LTE believe that it has
resulted in increased productivity.2
LTE can also provide connectivity as a substitute to
fixed networks
It is possible to use LTE with a 4G router to offer
connectivity to the home and SME broadband
segment, which could be a new revenue stream for
operators. For example, UK Broadband’s ‘now
broadband’ service is offering connectivity using LTE
+ 4G routers. This use of TD-LTE as a substitute for
fixed networks could be an interesting solution in
emerging markets.
Wholesale solutions may emerge as an attractive
opportunity for operators
Because LTE network latency is lower than 3G,
operators can develop new revenue streams by
selling bandwidth for wholesale services (such as
utility and M2M services). Verizon is at the forefront
of this with projects in sectors such as education.
ROHAN DHAMIJA
Head, India and South Asia
LTE is the latest telecoms industry buzzword – mobile network
operators (MNOs) have launched more than 200 live LTE networks in
100 countries.

13. 13
Figure 1: LTE services by user and product segments
[Source: Analysys Mason, 2014]
Spectrum licences and
overall corporate direction
External
wholesale
Internal wholesale
Retail and other user
segment activities
Network deployment and
operations
Wholesale
purchase
MVNOs
Resellers
Fixed and broadband
Internetoperators
Smaller or partner MNOs
M2M aggregators
Industry suppliers
Revenue sources
Corporate divisions of other companies
Urban: Wireless Urban: Fixed
(Home)
Urban: SME
Consumer segment
Urban: Enterprise
Corporate and government segment
VoiceData
Rural: Government
Opportunity to provide
connectivity for home
broadband (urban and non -
urban) and SMEs
700MHz 1800MHz 2300/2600MHz Suitability of the frequency band for the service:Key:
Enhanced mobility
applications
Such as videoconferencing,
telepresence, large file
transfers, real-time remote
access to business apps, rich
media collaboration
3
Utility
solutions
Such as
healthcare,
education,
agriculture
b
4
Enhanced data on the go
Such as video streaming or
download, TV, online gaming,
music and entertainment
Enhanced
data at home
Such as VoD, online
gaming, music and
entertainment
VoLTE and add-on features
Add-on features for consumer segments include RCS messaging
Add-on features for SMEs include video conferencing
1
2
M2M and
wholesale
connectivity
Such as remote
fleet tracking,
m-health, smart
home
a
Pure
wholesale
Such as
service
provision to
VoIP
providers
c
New services and segments that can be addressed with LTE
Poor Very good
Pricing is determined by LTE positioning relative
to 3G
If positioned as a value-added service with clear
benefits (such as guaranteed speeds or premium
content), then a pricing premium can be introduced.
However, if positioned as a mass-market service (also
used to decongest 3G networks) a premium is not
advisable. Pricing premiums can also be applied in
low-competition scenarios – although they will have
to be removed eventually (for example, in the UK).
MNOs can also experiment with bundling. Data
sharing across devices is being offered, with the aim
of monetising devices (such as tablets) otherwise
lost to Wi-Fi. Tethering strategies are evolving, as
operators try to monetise tethering by allowing it at
as part of premium or top-tier plans. Fixed–mobile
converged offerings are available and aimed at
increasing revenue and reducing churn.
Overall, LTE strategies are continuing to evolve and it
is too early to identify winners. Successful
monetisation strategies will need to focus on offering
differentiated services with flexible and usage-
friendly pricing models.
Analysys Mason is working with operators on 3G and
LTE network and commercial launch strategies in
developed and emerging markets.
1
A survey of 4G users in the UK found that since using 4G,
43% of users use fewer or no public Wi-Fi hotspots.
2
A survey of 256 US businesses that use LTE, Arthur D. Little.
For more information, please contact
Rohan Dhamija, Head, India and South Asia,
at rohan.dhamija@analysysmason.com.
“MNOs can also experiment with bundling. Data sharing across devices is being offered, with the aim of
monetising devices (such as tablets) otherwise lost to Wi-Fi.”

14. 14
AFRICAN MOBILE OPERATORS:
IMPROVING RETURNS THROUGH
CONSOLIDATION
Many observers think that mobile network sharing is rare in Africa,
but this is not the case.
The mobile telecoms industry in Africa has
burgeoned in recent years, but slowing revenue
growth, increasing costs and shareholders
demanding returns are forcing operators to consider
the next wave of investment. This article examines
their options and suggests that lessons can be
learned from operators in other parts of the world.
Mobile penetration has grown dramatically in Africa
during the past 5 years, from 29% to 69%. According
to GSMA Intelligence, 358 million people on the
continent are now connected. This growth has been
driven by the issue of new licences: the average
number of GSM licences in African countries is
currently 3.8, and at least 13 countries have four or
more GSM operators (see Figure 1).
This glut in mobile networks helped to drive the
African mobile industry to mass-market adoption.
Low tariffs from many operators competing for
customers enabled the industry to grow quickly, but
the days of ‘land grab’ are now limited. Operators
need to consider the next wave of investment – with
slowing revenue, increasing costs and shareholders
demanding returns, M&A is a likely option.
Mobile operator M&A has occurred in Europe – for
example, T-Mobile and Orange merged their UK
operations under the single ‘EE’ brand. In Africa,
Bharti Airtel’s takeover of Warid Telecom in Uganda
is possibly the clearest message yet that M&A is a
perfectly viable consolidation strategy, one clearly
recognised by Charles Mbire, Chairman of MTN
Uganda: “Uganda is a market for at best two
companies ... I think there will be consolidation. The
anarchy in the market has to stop. Out will come realism,
real prices and then we can invest much more.”1
However, M&A is extremely difficult. The model is not
fully proven in the mobile telecoms market, where
dual brand issues are strong enough to negate all
operational benefits. M&A often happens too late,
when both operators are in deep trouble and
shareholders are forced to take radical action.
Regulators are wary of allowing M&A activity
because it can completely remove a competitor from
the market – a competitor that helps keep prices low
for consumers. Furthermore, it can create a
spectrum ‘giant’, which also generates regulatory
issues. The Uganda deal was quick to win approval
from the national regulator, but many others may be
more reluctant to see their hard-fought competitive
market reduced to a duopoly through M&A. The
industry needs another solution – and that is
network sharing.
African operators are already passive network
sharers. Tower deals in Africa are common: 20 deals
have been completed throughout the continent.
However, as passive network expansion slows and
operators focus on network capacity, equipment
refreshes and new technologies, the benefits of
passive sharing become limited, which is where
active sharing becomes necessary. Active network
sharing is a much more complex topic than tower
sharing. Active networks are vital to mobile operators
and are the revenue-generating assets that define it
as an operator. Sharing such assets with a
competitor is still relatively uncommon and only a
few CEOs/CTOs in Africa have first-hand experience.
Operators in Australia and Sweden were in the first
wave of 3G network-sharing deals in the early days of
3G roll-out, partly because of the nature of their
geographies – large, sparsely populated areas make
the economics of active network sharing very
attractive. Since then, more than 40 network-sharing
deals have been announced in Europe alone.
What can Africa learn from this wealth of network-
sharing experience?
STEPHEN SALE
Principal Analyst
EDWIN GRUMMITT
Partner

15. 15
• Sharing deals can be struck and successfully
executed, so executives do not need to be afraid
of them. Large groups, such as Vodafone and
Orange, have been involved both in active sharing
and in Africa, so these companies will lead the way
in understanding the benefits and the processes.
• The most proactive operator often gets the best
deal. When a network-sharing deal between two
operators has been struck, then the remaining
operators in that country are obliged to respond.
An operator that actively engages with its best
partner and is first in securing a deal, develops a
real competitive advantage.
• Regulators and competition authorities need to
be cognisant of the value of active network
sharing. M&A can deliver greater benefits to the
operators, but the competitive impact on the
market should not be ignored. Regulators should
be aware of the different network-sharing models,
the impact on spectrum and how a transaction can
best be used to improve the overall market – a
particularly relevant point, given that the current
regulatory model of issuing new licences to increase
competition will not work in maturing markets.
Consolidation in Africa will happen – it is just a
matter of timing. Proactive operators can drive that
consolidation through M&A and network sharing,
and by matching strategies with market position and
regulatory approval. Sitting back and waiting for the
returns to roll in is no longer an option. Only
proactive business leaders will be winners in the now
inevitable network consolidation across Africa.
1
Thompson Reuters (New York, NY, 2013), MTN Uganda eyes
domestic takeovers after rivals’ tie-up. Available at http://www.
reuters.com/article/2013/05/01/mtn-uganda-ma-
idUSL6N0DI1JI20130501.
For more information, please contact
Edwin Grummitt, Partner, at
edwin.grummitt@analysysmason.com
“Mobile penetration has grown dramatically in Africa during the past 5 years, from 29% to 69%.
According to GSMA Intelligence, 358 million people on the continent are now connected.”
Note: Countries coloured red, orange and yellow all face intense competition.
Number of operators
present in market
5+
4
3
0-2
INCREASINGLIKELIHOOD
OFCONSOLIDATION
100
85
70
55
40
25
Figure 1: Number of mobile operators present by country, Africa
[Source: Analysys Mason, 2014]

16. 16
SOUTH AFRICA’S NATIONAL
BROADBAND TARGETS SEEM
AMBITIOUS COMPARED WITH
EUROPEAN BENCHMARKS
South Africa’s government has published an
ambitious national broadband plan to position the
country as a leader in broadband connectivity. The
National Broadband Policy, Strategy and Plan,
referred to as ‘South Africa Connect’, seeks to
ensure that all South Africans have basic broadband
access by 2030 and that 50% of South Africans have
access to 100Mbps broadband speeds by 2020.
This Comment analyses whether these targets
are realistic.
South Africa Connect is a bid to re-establish a
regional broadband leadership position
South Africa Connect is intended to reinstate South
Africa’s status as the continental leader in broadband
and Internet. Broadband connectivity is vital in
supporting South Africa’s economic development,
but the targets set out in the plan must be realistic to
ensure the most appropriate technical solutions,
commercial models and financing options can
be identified.1
It is likely that the targets relating to schools, health
facilities and government facilities will be achieved
as a by-product of any network roll-out initiatives
designed to achieve the general population
penetration targets.
The definition of broadband access for the general
penetration target is quite unusual: “households
where at least one member had access to or used
the internet either at home, work, place of study or
Internet café”.2
This definition is likely to be
dependent on self-reported access from primary
research surveys, so progress towards the targets
could be more difficult to measure objectively than it
would with a definition based on the number of
broadband subscriptions.
The penetration targets appear ambitious in
comparison with broadband access growth in other
markets
Both the 5–10Mbps and 100Mbps penetration targets
show steep rises in growth and seem ambitious in
comparison with Analysys Mason’s forecast growth
for fixed and mobile broadband penetration in South
Africa and selected benchmarks of first-generation
broadband take-up since launch in European
countries (see Figure 1).
Experience from around the world suggests that
the take-up of 100Mbps services in the first years
following launch is likely to be more gradual than
the steep curve implied by the targets, so it will be
difficult for South Africa will achieve 50% penetration
by 2020. In addition, the broadband penetration
targets are much higher than the take-up of
first-generation fixed broadband in Europe, although
the definition of broadband access may affect
this. This highlights the critical importance of
the elements of the policy that are designed to
stimulate demand.
Significant investment in fixed FTTC networks will
be required to meet the 100Mbps targets by 2020
South Africa will also need to ensure that sufficient
infrastructure is deployed to support the access
speeds specified in the targets. Mobile broadband
services could be used to meet the lower-speed
targets (5Mbps and 10Mbps). South Africa has
widespread 3G coverage and 4G LTE is available,
although spectrum constraints have restricted
coverage and capacity in the short term. However,
even in the long term, 4G LTE is expected to remain a
niche proposition confined to cities, and it could be
difficult to reliably deliver 5–10Mbps via 3G without
significant upgrades and large amounts of spectrum
(for further details, see our South Africa country
African governments are setting ambitious broadband targets to
remain competitive, but it is vital that the targets are realistic to
ensure they can be delivered on time and within the governments’
financial means.
STEPHEN SALE
Principal Analyst
IQBAL BEDI
Principal

17. 17
report). As suggested in the policy, a national
wholesale open access wireless network (based on
4G LTE) may be necessary to deliver the speed
targets of 5Mbps and 10Mbps.
In order to deliver speeds of 100Mbps by 2020, some
form of fixed network will be required. A fibre-to-the-
home (FTTH) network would be able to comfortably
deliver these speeds, and provide a good foundation
for delivering 1Gbps to schools and health facilities.
FTTH networks are very expensive to deploy because
of the costs incurred in building the fibre access and
in upgrading the core network. Fibre to the cabinet
(FTTC) provides a more cost-effective option for
South Africa because it avoids the cost of building
the fibre access network. However, in areas where
there is just a single copper pair connecting each
home, 100Mbps will only be possible for those homes
located very close to the cabinet or in densely
populated areas.3
Therefore, achieving these targets
based on FTTC networks will be challenging without
further investment in FTTC networks.
It is understandable that governments set ambitious
broadband targets. However, over-ambitious targets
may be detrimental to the success of the
programme. South Africa needs to set realistic
targets that take into consideration the forecast
broadband penetration in other countries and the
availability of current- and next-generation
broadband infrastructure in the country. This will
ensure that South Africa has a good chance of
financing and implementing its national broadband
network, helping to realise the full potential
economic benefit of the programme, and to reinstate
South Africa’s status as a regional broadband leader.
1
See South Africa Connect: Creating Opportunities, Ensuring
Inclusion: South Africa’s Broadband Policy, December 2013”.
2
Department of Communications (Pretoria, South Africa,
2013), South Africa Connect: Creating opportunities, ensuring
inclusion. Available at www.gov.za/documents/download.
php?f=205142.
3
100Mbps via vectoring is only possible over line lengths of
less than 400m, which is likely to include less than 50% of
homes. For further details, see Analysys Mason’s study Policy
orientations to reach European Digital Agenda targets.
For more information, please contact
Iqbal Bedi, Principal,
at iqbal.bedi@analysysmason.com
“South Africa will also need to ensure that sufficient infrastructure is deployed to support the access
speeds specified in the targets.”
stomer
ecycle
ers longer
Increasing software control in the network
Legacy IN
IMS
architecture
Telecoms
application
servers
(TAS and
NG-IN)
Cloud
computing
(IaaS, PaaS
and SaaS)
SON
NFV
SDN
Policy
control
11
1
9.5%
After
savings
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2005 2010 2015 2020 2025 2030
Percentageofthepopulation
South Africa’s fixed and
mobile broadband penetration
Data and forecast
Estimate
5–10Mbps
100Mbps
South Africa’s National
Broadband Plan targets
by access speed
High range
Low range
European benchmarks1
2
Figure 1: Fixed and mobile broadband penetration rates and targets in South Africa, and benchmarks
for penetration in European countries, 2000–2030 [Source: Analysys Mason, 2014]

18. 18
MEETING DSO DEADLINES: WHAT ARE
THE INTERNATIONAL LESSONS FOR
AFRICA AND SIMILAR REGIONS?
The Tanzanian government commenced the
switch-off of analogue terrestrial TV signals on 31
December 2012. It is the second country to make this
move in sub-Saharan Africa, following Mauritius’s
analogue switch-off on the remote island of
Rodrigues in 2012. Tanzania’s experience offers the
first insight into what might await African countries
as they move to digital terrestrial television (DTT)
broadcasting to try and meet the agreed deadline of
June 2015: queues of viewers at set-top box
distribution centres immediately after switchover,
and an appeal from the broadcasters to bring
analogue broadcasting back. In this article, we
reflect on approaches and outcomes of digital
switchover (DSO) campaigns in other parts of the
world that might provide lessons for Africa and other
regions that are planning DTT/DSO.
As experience from other countries throughout the
world suggests, the approach to DSO is generally
tailored to each country’s specific circumstances.
The following examples provide an interesting
perspective on the approaches taken and resources
required for DSO:
• ”Super planning” from government and strong
stakeholder investment in the UK and Australia
thoroughly dealt with perceived risks.
• Spain had a smooth successful switch-off and
minimised investment with the use of volunteers to
help households at risk of missing the switchover.
• Croatia, Slovenia and Serbia have adopted a much
lighter approach and committed less investments
in a smaller geographic and market scale.
UK
The switchover in the UK was completed without
fuss: the curtains were quietly drawn on the
analogue TV age at the end of 2012. The approach
was characterised by strong leadership from
government, extensive stakeholder commitment, and
substantial investment from all quarters:
government, public and commercial broadcasters,
and transmission companies.
From the very start, the UK process was emblematic
of a gold-plated approach to digital switchover. An
extensive period of collaboration of seven years
between government and industry prepared the
market for the transition. Competing free and pay-TV
platforms drove take-up years in advance of the
switch. The BBC-inspired “Freeview” platform
offered consumers a new way to access a broad
range of digital content for a limited initial
investment and new channel providers an alternative
way to reach a wide audience.
Digital UK was established in April 2005 to lead the
implementation of DSO with a budget in the region of
GBP200 million (EUR233 million), substantially
funded by the BBC. There followed an intensive
period of meticulous technical planning and
preparation, and the creation of a saturation
advertising campaign.
Support was provided for vulnerable citizens with
GBP600 million (EUR699 million) set aside from the
BBC’s funding to establish the Help Scheme. Digital
UK worked with the voluntary sector to provide
practical hands-on advice within the community. The
UK switchover commenced in October 2007 and was
completed on time and well under budget in late
2012. At the end, GBP300 million (EUR350 million) of
the Help Scheme funding was not needed and was
returned to the government.
LLUÍS BORRELL
Partner
Digital switchover is not a technological activity, it is about changing
consumer behaviour

19. 19
Australia
The Australian switchover is well advanced, with
completion due by the end of 2013. Slower to start
than the UK, the government drew heavily on the
experience from the UK and other countries,
tailoring the approach to its unique geography and a
broadcasting sector dominated by competitive
advertising-funded broadcasters.
The Digital Switchover Taskforce was established in
August 2007. After a period of consultation with
industry, the timetable was set to deliver switchover
on a regional basis over the period 2010–13.
Funding of almost AUD1 billion (EUR787 million) was
set aside from the federal budget for communication,
assistance for vulnerable citizens, broadcaster
subsidies and the establishment of a new satellite
broadcasting platform.
The degree of planning and preparation came close
to that of the UK. The switchover is progressing well,
on time and on budget. In common with the UK,
commentators and politicians in Australia applauded
the smooth implementation. In both cases, however,
questions have been raised about the time taken and
the amount of funding set aside, suggesting some
stakeholders thought the process was overplanned.
Spain
Spain also had a smooth successful switch-off in
2010 after having re-launched its DTT in 2005. It
created Impulsa TDT to coordinate key stakeholders’
efforts towards switch-off with government efforts,
and these activities ran for a little over two years
(end of 2007 to beginning of 2010). Impulsa TDT’s
objective was to promote DTT and the development
of the transition process, which it broke down into
the following tasks:
• promote DTT take-up
• define and propose action plan
• design and develop an institutional
communications plan with a view to ensuring the
most complete information for users
• develop a DTT Observatory to monitor the
transition process
• offer a forum for debate, recommendation and
action to its members on all related matters
• represent the legitimate interests of members in
front of national, European or international
institutions
• promote a regular exchange of information
between its members in different areas of interest
related to DTT.
A particular campaign was devised for multiple-
occupancy dwellings, which are the most common
type of housing in Spain, with a major focus on
ensuring that antennas were adapted in such
buildings. Investment to provide assistance for
households at risk was also minimised with the use
of volunteers. In the end EUR68 million was spent on
advertising and communications, EUR60 million on
extending DTT coverage through regional
governments, and Impulsa TDT had a relatively small
staff of 3-4 people. Through this, it has been
estimated that 10 000 companies were mobilised and
EUR12 billion was invested in the wider industry.
Croatia, Slovenia and Serbia
Other countries have adopted a more relaxed
approach and completed switchover relatively quickly
and without major issues. Digital switchover in Croatia
was completed at the end of 2010, a little less than
two years after the DTT platform was fully operational.
Slovenia completed its digital switchover in 2011,
again within a short timeframe and with considerably
less investment than the UK and Australia.
Planning for switchover in Serbia is now well
advanced with a DTT signal available to some 50% of
the population.
Arguably those countries that have switched later or
are planning to do so have been able to learn from
those countries that switched earlier. The risks are
known and the attitude of the public better
understood. In addition the market scale is in most
cases much smaller than the UK and the
geographical scale is far short of that of Australia.
Conclusion
Digital switchover could be relatively quick when the
terrestrial platform has limited presence but could
take two to five years if the country is larger and
terrestrial is the most important broadcast platform.
A phased, regional approach to switch-off is used in
most cases but a national approach could be used in
very small countries. However what is clear from
experience in other countries is that digital
switchover is not primarily a technological activity, it
is about changing consumer behaviour.
Outside South Africa and Nigeria – which may pose
unique DSO challenges – there are estimated to be
fewer than 40 million TV households in sub-Saharan
Africa. To put this in context, this total is about
double the total number of TV households in UK. It is
likely that a pragmatic communications strategy, not
as rushed as Tanzania but less thorough than in the
UK and Australia, will suit most of those countries
although specific conditions will need to be taken
into account: consumers at risk, the commitment of
key stakeholders, and the ability of the local public
service broadcasting/government to invest and lead
the process. However, administrations will need to
develop appropriate communications strategies soon
if they are to meet the agreed deadline, minimising
disruption to consumers and ensuring a smooth
transition for the good of their citizens and
broadcasting ecosystems.
For more information, please contact
Lluís Borrell, Partner, at
Lluis.Borrell@analysysmason.com
“As experience from other countries throughout the world suggests, the approach to DSO is generally
tailored to each country’s specific circumstances.”

20. 20
Analysys Mason is the world’s premier advisor on telecoms, media and technology (TMT).
Through our global presence and local perspective, we deliver strategy advice, operations
support and market intelligence to regulators, operators, financial institutions, vendors and
other market players around the world.
ABOUT ANALYSYS MASON
Analysys Mason contacts:
Edwin Grummitt, Partner
edwin.grummitt@analysysmason.com
+27 10 596 8000
Robert Schumann, Principal
robert.schumann@analysysmason.com
+27 10 596 8000
Consulting Research
For more than 25 years, our consultants have been
bringing the benefits of applied intelligence to enable
clients to make the most of their opportunities.
Our clients in the telecoms, media and technology (TMT) sectors
operate in dynamic markets where change is constant. We help
shape their understanding of the future so they can thrive in these
demanding conditions. To do that, we have developed rigorous
methodologies that deliver real results for clients around the world.
Our focus is exclusively on TMT. We support multi-billion dollar
investments, advise clients on regulatory matters, provide spectrum
valuation and auction support, and advise on operational
performance, business planning and strategy. Such projects result
in a depth of knowledge and a range of expertise that sets us apart.
We look beyond the obvious to understand a situation from a client’s
perspective. Most importantly, we never forget that the point of
consultancy is to provide appropriate and practical solutions. We
help clients solve their most pressing problems, enabling them to
go farther, faster and achieve their commercial objectives.
Analysys Mason’s research service covers consumer and
enterprise services, as well as the software, infrastructure
and technology underlying those services.
The division consists of a specialised team of analysts, who provide
dedicated coverage of TMT issues and trends. Our experts
understand not only the complexities of the TMT sectors, but the
unique challenges of companies, regulators and other stakeholders
operating in such a dynamic industry.
Our research programmes cover the following five key areas:
• consumer services
• enterprise services
• network technologies
• telecoms software
• regional markets.
Our programmes offer a mixture of qualitative and quantitative
market intelligence. The result is an essential resource for strategic
planning, investment, marketing and benchmarking.
We also deliver tailored research that addresses specific business
needs for a wide range of organisations.

21. 21
5
Completed assignments Completed assignments Completed assignments
Transaction support Regulatory projects Strategy and marketing projects
5000
6000
7000
8000
9000
10000
11000
12000
13000
Before audit After first
reconfiguration
After second
reconfiguration
NumberofstableADSLlines
VDSL upgrade of
copper network
…with x2 access
capacitydensity
in VDSL
LTE upgrade of
3G network
…with x2 access
capacitydensity
in LTE
Monthlycostpercustomer
Towns and cities Rural areas
1
2
3
4
250
on)
80% 100%
DSL
HSPA
FTTC
HSPA+
FTTH
WiMAX
LTE
South Africa
Poland
Singapore
Malaysia
25%
30%
35%
40%
45%
hareofrespondents
4GtabletSIM)
PPoland
Singapore
MMaaallaayyssi
Fixed
substitution?
6.4%
5.9%
2007-08
35
34
42
37
28 28
2008-09 2009-10 2010-11 2011-12 2012-13
75
80
77
95
76
64
38
18
200720062005200 24 0092008 20112010
We have completed 170 projects in Africa in the past 5 years
Consulting assignments in Africa
ANALYSYS MASON EXPERTISE IN AFRICA
We have a significant track record in the region
Consulting assignments by country over the last five years

22. 22
ANALYSYS MASON RESEARCH
The Middle East and Africa research programme
Analysys Mason’s MEA research programme offers clients critical data and insight into the opportunities
and challenges of this telecoms market, and benefits from the on-the-ground support and resources of our
offices in Dubai and Johannesburg.
Programme highlights
• Analysys Mason provides comprehensive analysis of the key
issues affecting all parts of the telecoms value chain in the Middle
East and Africa. We will be covering critical industry issues, including:
• content and apps strategies in the MEA region: innovative
approaches and impact on operator success
• building customer loyalty in prepaid/emerging markets:
operator strategies for building loyalty in heavily prepaid and
multiple-SIM environments, including segmentation, promotions
and bundling
• enterprise connectivity services in Africa: competitive landscape,
end-user demand drivers, key challenges and market outlook
• consumer mobile Internet usage, mobile services spending and
preferences
• infrastructure sharing: the impact of, and strategies for,
infrastructure sharing for operators in the MEA region
• fibre connectivity: overview of fibre buildout in the region,
including drivers for expanding capacity requirements, the impact
of increased connectivity on pricing, and services and adoption.
Programme deliverables
Programme Lead Analyst: Karim Yaici
Karim is the lead analyst for The Middle East and
Africa research programme. His primary areas of
specialisation include mobile operators’ VAS
strategies in developing markets, next-generation
communications technologies and mobile devices. Prior to joining
Analysys Mason, Karim worked with Informa Telecoms & Media,
at the Centre for Communication Systems Research (CCSR) and
at Vodafone. He is based in our Dubai office.
Geographical coverage
Analysys Mason’s The Middle East and Africa regional research
programme provides operational KPIs for fixed, mobile and
broadband players in, as well as country reports for, 15 key countries:
The programme also provides regional-level forecasts for two
sub-regions:
• the Middle East and North Africa (MENA)
• Sub-Saharan Africa (SSA).
Market data
Analysys Mason’s The Middle East and Africa regional research
programme provides the following key data and five-year market
forecasts, which are updated on an annual basis:
Mobile
- subscribers and mobile penetration split by
• contract type (prepaid/contract) and technology generation
• connection type (handset, mobile broadband and M2M).
- handsets
• split by type (smartphone and non-smartphone)
• penetration rate.
- service and retail revenue
• split by contract type (prepaid/contract)
• split by service type (voice, messaging data, mobile broadband,
M2M, handset data and interconnect)
• as a percentage of GDP
• per capita.
- service ARPU split by
• contract type
• service type (handset voice and handset non-voice).
- traffic – total network voice traffic, outgoing voice traffic.
Broadband
- connections by technology (DSL, cable, fibre and other)
- retail revenue by technology (DSL, cable, fibre and other).
Fixed
- connections by service type (voice, dial-up and IPTV)
- service and retail revenue by service type (voice, dial-up,
broadband, IPTV and business network services)
- outgoing voice traffic.
Research programme deliverables: The Middle East and Africa
Deliverable type
Gain direct access to cutting-edge analysis with our research
programme analyst hours – in your subscription
Indicative number
(over 12 months)
Reports: forecasts, quantitative modelling and survey
reports, with in-depth analyses of critical topics
Viewpoints: targeted analyses of key industry issues
and players in the form of case studies, best practice
studies or forecasts of specific services
Country reports: comprehensive overviews of the
telecoms and media landscape, including regulation
and market outlook
Comments: informed opinion on industry
developments in the region
- 2 regional forecast reports
(updated twice a year)
- 2 strategic reports
6-8
15
10-12
• Algeria
• Egypt
• Ghana
• Israel
• Kenya
• Kuwait
• Morocco
• Nigeria
• Qatar
• Saudi Arabia
• South Africa
• Sudan
• Tanzania
• UAE
• Uganda.
For more information and the latest
published content:
analysysmason.com/mearesearch

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