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The Africa Telecom Towers and Allied market is expected to register a CAGR of 4.73% during the forecast period (2021-2026). With the outbreak of COVID-19, the telecom industry has witnessed a significant increase in demand for internet services due to a major chunk of the population staying at home and remote working conditions. The increase in people working from home has led to an increase in demand for downloading, online video viewing, and communication through video conferencing, all of which are leading to increased network traffic and data usage.
- The telecom tower industry has drastically evolved over the past decade. The core towerco proposition and business models have been successfully adapted to match the demands of new markets in Africa. Many towercos are anticipated to hunker down in their core business of building over the forecast period, buying and leasing vertical real estate, and such towercos may still see plenty of 5G antenna overlaid onto their towers.
- As per the Nigerian Communications Commission, as of January 2021, the number of third and fourth-generation telecom towers deployed in Nigeria has grown by 73.2%. Also, global tower companies are expanding their presence in the region, through strategic collaborations, due to the growing number of opportunities presented.
- The emergence of KaiOS and its partnerships with operators across Africa is helping overcome the affordability barrier for low-income users. The free resources offered, such as the ‘Life’ app, also help new users develop digital skills and understand how the internet can be relevant. Such initiatives are expected to boost internet penetration in these countries significantly.
- Moreover, in Jun 2020, MTN SA launched 5G with 150 sites across several spectrum bands in Johannesburg, Cape Town, Pretoria, Durban, Bloemfontein, Centurion, Port Elizabeth, and a few more towns. MTN also plans to scale up to more than 1000 sites upon the allocation of a 3.5GHz spectrum.
- Also, the increasing emphasis on improving internet connectivity to rural areas is one of the major factors stimulating the deployment and improvisation of the telecom infrastructure in these areas, thereby, aiding the market's growth. Smartphone penetration, raising awareness, increasing penetration of digital technologies, and investments from several organizations and governments have been increasing the adoption of internet connections in the region.
Scope of the Report
Telecom Towers Market: The study tracks the installed base of telecom towers across Africa. The study provides a market breakdown by fuel type, ownership and region. Market dynamics, market attractiveness and key developments are covered as part of the study. Optical Fiber Market: The study tracks the total inventory of operational fiber-optic networks across Africa. Power Market: The study tracks the revenue opportunity for power suppliers in Africa.
Key Market Trends
Optical Fiber Market is Expected to Grow Significantly During the Forecast Period
- The telecommunication and networking market witnessed a massive surge in demand in the region. The emergence of IoT in cloud computing and the demand for 5G networks are driving increased usage of optical fibers in a wide variety of applications: business, government, industrial, academic, and cloud servers in public and private networks.
- As per CommsUpdate, there was an interval of just 3 years between launching 3G and 4G services in Algeria and this has led to issues. While all three major operators - Djezzy, Mobilis, and Ooredoo - have extended their coverage to all 48 provinces, they all received penalties from the regulator in 2020 for the poor quality of their services.
- Further, as per the Nigerian Communications Commission, as of January 2021, fiber optics cables have expanded by 16.4 % in the last five years. Also, according to IFC a total of 1.1 million km of fiber optics have been installed in Africa, of which, 50% have been deployed by private mobile network operators (MNOs). Moreover, about 40% of all fiber optic cable in Africa, a staggering 450,000 kilometers, is publicly owned. This includes government networks, state-owned enterprises (SOEs), and utilities.
- The region has a developing telecom infrastructure with growth encouraged by supportive regulatory measures and by government policies aimed at delivering serviceable internet connections across the region. Government-funded efforts, including the Universal Service Telecommunications (UTS) program, are continuing to ensure that fixed-line infrastructure is extended to underserved areas, and thus the slow growth in the number of fixed-telephony connections should be maintained during the next few years.
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Telecom Tower Market to Grow Significantly during the Forecast Period.
- According to estimates by TowerXchange, there are roughly 25,767 towers in South Africa, serving 97mn SIMs, making it one of Africa’s best covered markets. Five MNOs operate within the South African market, mainly MTN, Vodacom, Telkom, Cell C-and Rain. Cell C is in the process of shutting down its network and switching to a roaming agreement with MTN. They have slowly reached a point of bankruptcy since the sale of their portfolio to American Towers.
- Furthermore, with businesses going mobile and adopting new concepts like BYOD to increase employee interaction and ease of use, it has become essential to provide a high speed and quality network. The organizations are looking forward to adopting BYOD aggressively in their operations, thereby fueling the market growth over the forecast period. Further, growth in cloud-based services for mobile users and the roll-out of 4G LTE services worldwide have increased the investment into networks by carriers, which drives the demand for telecom towers.
- The increasing emphasis on improving internet connectivity to the rural areas is one of the major factors stimulating the deployment and improvisation of the telecom infrastructure in these areas, thereby, aiding the market's growth. Smartphone penetration, raising awareness, increasing penetration of digital technologies, and investments from several organizations and governments are increasing the adoption of internet connection in the region.
- Improved internet access and internet connectivity help raise the standard of living for people living in rural areas, limiting the need to migrate to cities. However, the COVID-19 pandemic, together with already persistent high levels of poverty and inequalities, are certain factors hindering the penetration of internet connectivity in rural regions. The pandemic has also proven that adopting new and advanced technologies can enable rural populations to flourish by bridging the rural-urban divide.
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The Africa Telecom and Allied market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their client base across the globe. These players focus on the research and development activities, strategic alliances, and other organic & inorganic growth strategies to stay in the market landscape over the forecast period.
- March 2021 - Airtel Africa sold its telecoms tower companies in Madagascar, Malawi, Chad, and Gabon to Helios Towers. Over the four markets, Airtel has 2,227 existing sites and, upon completion, the deal will push Helios Towers to become the largest independent telecommunications infrastructure company in each of Malawi, Chad, and Gabon. The partnership between Helios and Airtel together seeks to improve mobile connectivity and infrastructure across Africa.
- May 2020, Maroc Telecom signed a deal worth AED 10 billion (USD 1 billion) with the Moroccan government to develop telecoms infrastructure over the next three years. Although 5G concessions have not been planned, the government’s telecoms sector development plan for 2019-2022 considers the future licensing of 5G. Maroc Telecom has also been trialing the technology in partnership with Ericsson.
- December 2020 - Mozambique’s EDM secured up to USD 200 million from the U.S. International Development Finance Corporation and up to USD 50 million from OPEC for the development of its Central Térmica de Temane Project. Similar investments across the region are expected to boost the power market in the forecast period.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 African Telecom Towers Market
3.2 African Optical Fiber Market
3.3 African Power Market
4. AFRICA TELECOM TOWERS MARKET
4.1 Market Overview (Including Impact of COVID-19 on the Market)
4.2 Market Segmentation
4.2.1 By Ownership
126.96.36.199 Operator Owned
188.8.131.52 Joint Venture
184.108.40.206 Private Owned
220.127.116.11 MNO Captive
4.2.2 By Fuel Type
4.2.3 By Country
18.104.22.168 South Africa
22.214.171.124 Rest of Africa
4.3 Competitive Landscape
*List Not Exhaustive
4.3.1 Company Profiles
126.96.36.199 IHS Towers
188.8.131.52 American Tower
184.108.40.206 Helios Towers
4.4 Market Outlook
5. AFRICA OPTICAL FIBER MARKET
5.1 Market Overview (Including Impact of COVID-19 on the Market)
5.2 Competitive Landscape
*List Not Exhaustive
5.2.1 Company Profiles
220.127.116.11 MTN Group
18.104.22.168 Maroc Telecom
5.3 Market Outlook
6. AFRICA POWER MARKET
6.1 Market Overview (Including Impact of COVID-19 on the Market)
6.2 Market Segmentation
6.2.1 By Type
6.2.2 By Generation Source
22.214.171.124 Other Generation Sources
6.2.3 By Country
126.96.36.199 South Africa
188.8.131.52 Rest of Africa
6.3 Competitive Landscape
*List Not Exhaustive
6.3.1 Company Profiles
184.108.40.206 Eskom Holdings Limited
220.127.116.11 ZESCO Limited
18.104.22.168 Egbin Power PLC
6.4 Market Outlook
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Frequently Asked Questions
What is the study period of this market?
The Africa Telecom Towers and Allied Market market is studied from 2018 - 2026.
What is the growth rate of Africa Telecom Towers and Allied Market?
The Africa Telecom Towers and Allied Market is growing at a CAGR of 4.73% over the next 5 years.
Who are the key players in Africa Telecom Towers and Allied Market?
Helios Towers , IHS Towers, American Tower, MTN Group, Telkom SA SOC Limited are the major companies operating in Africa Telecom Towers and Allied Market.