Africa Telecom Towers & Allied Market Size
| Study Period: | 2018 - 2028 |
| CAGR: | 4.63 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Telecom Towers & Allied Market Analysis
The African Telecom Towers and Allied market is expected to register a CAGR of 4.63% during the forecast period (2022-2027). 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 building business 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.
- Several initiatives by telecom operators and other organizations, especially in low and middle-income countries, are expected to spur growth in the rural areas as the residents of these areas gain increased access to internet connectivity.
- 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 have been looking forward to adopting BYOD aggressively in their operations, fueling the market growth over the forecast period. Furthermore, development 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 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.
Africa Telecom Towers & Allied Industry Segmentation
The scope of the study focuses on the market analysis of the African Telecom Towers and Allied Markets. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem. The scope of the report encompasses market sizing and forecast for segmentation by ownership type, fuel type, country for the telecom market, power type, generation source, and country for African Power Market.
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Africa Telecom Towers & Allied Market Trends
This section covers the major market trends shaping the Africa Telecom Towers & Allied Market according to our research experts:
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 three years between launching 3G and 4G services in Algeria, leading 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, continue to ensure that fixed-line infrastructure is extended to underserved areas. Thus the slow growth in the number of fixed-telephony connections should be maintained during the next few years.
- Companies are getting into various partnerships to provide better services while controlling operating costs. For instance, during the beginning of 2021, Ooredoo Algeria deployed Nokia's cloud-native Core software to strengthen its network performance and reliability cost-effectively and strategically positioned itself to launch new services to meet customer needs. This deployment is likely to improve the digital ecosystem of the country further.
- The infrastructure is based on a terrestrial fiber-optic network coupled with undersea cables, offering secure connectivity abroad from West Africa. This investment aims to support the digital ecosystem and meet the region's growing needs for connectivity.
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Telecom Tower Market to Grow Significantly during the Forecast Period
- The core towerco proposition and business models have been successfully adapted to match the demand from new markets in Africa. Many towercos are anticipated to hunker down in their core business of building, buying, and leasing vertical real estate over the forecast period. 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 have been expanding their presence in the region, through strategic collaborations, due to the growing number of opportunities presented.
- In January 2020, American Tower acquired Eaton Towers in a deal that included towers across five African countries. While American Tower already had a presence in Africa, the acquisition was a significant deal, demonstrating the types of investment being made in the region, particularly in the tower market.
- 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, and 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.
- 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.
To understand geography trends, Download Sample Report
Africa Telecom Towers & Allied Industry Overview
The African Telecom and Allied market is moderately competitive and consists of many global and regional players. These players account for a considerable market share and focus on expanding their client base globally. These players focus on research and development activities, strategic alliances, and other organic & inorganic growth strategies to stay in the market landscape over the forecast period.
- March 2022 - Helios Towers, the independent telecommunications infrastructure company, announced the acquisition of Airtel Africa's passive infrastructure company in Malawi, adding 723 sites to its portfolio.
- January 2022 - ZESCO Limited and Copperbelt Energy Corporation PLC signed an agreement to make new power supply and transmission arrangements. The negotiations, which started on January 17, 2022, are expected to replace the bulk supply agreement that expired on March 31, 2020.
Africa Telecom Towers & Allied Market Leaders
Helios Towers
IHS Towers
American Tower
MTN Group
Telkom SA SOC Limited
*Disclaimer: Major Players sorted in no particular order
Africa Telecom Towers & Allied Market News
- March 2022 - Helios Towers, the independent telecommunications infrastructure company, announced the acquisition of Airtel Africa's passive infrastructure company in Malawi, adding 723 sites to its portfolio.
- March 2022 - MTN SA Group and Rakuten Symphony signed an (MoU) to conduct live 4G and 5G OpenRAN trials in South Africa, Nigeria, and Liberia. The preparations will start in 2022 and combine RCP technology with advanced automation and autonomous network capabilities with one of Africa's top brownfield operators.
Africa Telecom Towers & Allied Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET SEGMENTATION
4.1 Africa Telecom Towers Market Overview
4.2 Market Segmentation
4.2.1 By Ownership
4.2.1.1 Operator Owned
4.2.1.2 Joint Venture
4.2.1.3 Private Owned
4.2.1.4 MNO Captive
4.2.2 By Fuel Type
4.2.2.1 Renewable
4.2.2.2 Non-Renewable
4.2.3 By Country
4.2.3.1 Algeria
4.2.3.2 Nigeria
4.2.3.3 South Africa
4.2.3.4 Tanzania
4.2.3.5 Morocco
4.2.3.6 Rest of Africa
4.3 COMPETITIVE LANDSCAPE
4.3.1 Company Profiles
4.3.1.1 IHS Towers (IHS Holdings Ltd)
4.3.1.2 American Tower Corporation
4.3.1.3 Helios Towers
- *List Not Exhaustive
4.4 Market Outlook
5. AFRICA OPTICAL FIBER MARKET
5.1 Market Overview
5.2 Company Profiles
5.2.1 MTN Group
5.2.2 Telkom
5.2.3 Maroc Telecom
- *List Not Exhaustive
5.3 Market Outlook
6. AFRICA POWER MARKET
6.1 Market Overview
6.2 Market Segmentation
6.2.1 By Type
6.2.1.1 Generation
6.2.1.2 Distribution
6.2.2 By Generation Source
6.2.2.1 Renewable
6.2.2.2 Hydro
6.2.2.3 Other Generation Sources
6.2.3 By Country
6.2.3.1 Algeria
6.2.3.2 Nigeria
6.2.3.3 South Africa
6.2.4 Company Profiles
6.2.4.1 Eskom Holdings Soc Limited
6.2.4.2 ZESCO Limited
6.2.4.3 Egbin Power PLC
- *List Not Exhaustive
6.3 Market Outlook
Africa Telecom Towers & Allied Market Research FAQs
What is the study period of this market?
The Africa Telecom Towers and Allied Market is studied from 2018 - 2028.
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 4.63% 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.
Africa Telecom Towers and Allied Industry Report
Statistics for the 2023 Africa Telecom Towers and Allied market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Telecom Towers and Allied analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Africa Telecom Towers and Allied Report Snapshots
