9 November 2009

Report forecasts more mobile competition in Africa

By Andualem Sisay in Addis Abeba, Ethiopia

There will be more competition in mobile markets across Africa while many mobile operators will be vulnerable to acquisition over the next five years, forecasts a new report.

Even though many late entrants struggle to establish a sustainable business where three or more networks are already in operation, the mobile market growth continues in the regions as new licenses will be made in Africa, according to the report prepared by Pyramid Research.

The average number of operators per country has increased from 2.68 to 3.73 between 2005 and 2009, and some markets have seen even more dramatic increases. In Tanzania, for instance, Dovetel in June 2009 became the seventh mobile carrier that is operational in the country; an eighth may appear during 2010.

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