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Competition will allow operators to enjoy East Africa's growth opportunities if they get the basics right, say participants at East Africa Com in Tanzania
The mood was upbeat in Dar es Salaam (Tanzania) this week, where over 450 telecommunications executives gathered for East Africa Com, their annual event in the region. The conference and exhibition brought together the leaders of the region's stakeholders to discuss the commercial and technology strategies to maximise growth and improve services for users. From the debates that took place over the two days, it was clear that East Africa is one of the continent's most dynamic markets.
The conference started on Tuesday with a plenary including some of the region's major operators and investors. The message from the main speakers' presentations was that growth opportunities can be great in East Africa, for those who know how to grab them. Most markets in the region experience high GDP growth, and favourable market and regulatory conditions. Host country Tanzania was presented as one of the most attractive of them, with 7% GDP growth, stable political conditions, dynamic operators and a low penetration level which leaves room for growth. After an opening address by Vitalis Olunga, Chairman of GSM Africa, Bashar Arafeh opened the keynote session. As Celtel International/Zain’s COO for the East Africa region, he explained the importance of East Africa in the group's strategy to become a global operator. He was followed by Dietlof Mare, CEO of Vodacom Tanzania, who described the key success factors for Vodacom’s leadership in the market: building quality networks (including 3G/HSPA and WiMAX in the main cities for corporate customers) and developing services that meet the customers’ needs (such as the M-Pesa payment service, which should be launched in Tanzania at the end of the month). Both speakers mentioned competition and the resulting price decline as a major challenge in the markets. Mr Mare pointed out that new players dropping prices affect long term profitability and the investment level necessary for future network deployment in a market. Mr Arafeh, on the other hand, welcomed the entry of two new operators in Uganda. One of them, Warid Telecom, was represented by its CEO Zul Javaid, who described its entry strategy. His key points echoed what his colleagues mentioned throughout the event: good brand positioning, good coverage and good quality of networks, as well as a great (mostly local) workforce. Other topics discussed in the plenary were regulatory strategies (with a representative of Tanzania's regulator TCRA describing the unified licensing process) and interconnection issues.
The second day included two parallel streams. Stream A looked at the technologies available to improve networks. The first part was dedicated to the technologies available for the provision of advanced services, with a look at GSM and its evolution (with a presentation from the UMTS Forum by Jean-Pierre Bienaimé), CDMA (with the participation of William Hearmon from the African CDMA Forum), and the opportunities created by combining technologies such as WiMAX, VSAT, WLAN etc. Speakers and participants also discussed the challenges of cost-effectively deploying networks to improve coverage. Eng Ahmed Dirie from Golis Telecommunications Company (Somalia), described the benefits and principles for outsourcing for network optimisation. Stream B was more customer-focused, with a look at the new services to address specific segments and increase ARPU. Dylan Lennox, Managing Executive - New Technologies at Vodacom Tanzania described the services offered by the company (including internet access and data bundles). He was followed by Zantel's Noel Herrity, whose message was to keep things simple to attract a loyal customer base. Other speakers looked at the potential for services targeted at specific customer segments, such at the low-end customers, or those with disabilities.
Over 25 different operator companies were present at the event, with a full representation of the telecommunications value chain: GSM, CDMA, fixed-line, wireless broadband, cable and satellite operators, as well as equipment vendors, regulators, investors, consultants and more. Participants represented the region's most dynamic markets (Tanzania, Kenya, Uganda, Sudan) as well as neighbouring markets such as South Africa and Zambia, and companies based in other regions interested in learning from East Africa's experience or doing business in the region.
East Africa Com will take place again in 2009 on 1st and 2nd April. For more information, please visit our website www.comworldseries.com/eafrica
NOTES FOR JOURNALISTS
East African Telecoms Market Overview:
Mobile subscriptions grew by 67% in Eastern Africa over the twelve months to September 2007. The sub-region recorded the highest growth in Africa over that period. In comparison, the continent’s growth rate was 44%. Informa Telecoms & Media forecasts 54 million subscriptions by 2012 in Eastern Africa, a 73% growth since end of 2007.
Voice remains the major telecommunications service used in Eastern Africa but the data segment is also in expansion, fuelled by converged licensing frameworks and the deployment of technologies other than GSM. Mainly used by incumbent fixed line companies such as Telkom Kenya, Sudani or TTCL (Tanzania), CDMA networks cover most markets. WCDMA/HSDPA was pioneered in 1Q07 by Vodacom in Tanzania and then launched in November 2007 in Uganda by Uganda Telecom. As at end of 2007, WiMAX was available in Kenya, Tanzania, Uganda and Rwanda. As in the mobile voice industry, the ISP market is undergoing consolidations. In 2007, South African groups Telkom and Mweb (Naspers) acquired respectively Africa Online and Afsat. Africa Online is present in 8 markets, including 3 East African countries, while Afsat has subsidiaries in Kenya, Uganda, Tanzania and Nigeria.
East Africa is dominated by 3 of the continent’s most dynamic markets (Kenya, Tanzania and Uganda), and by the presence of Africa’s 2 largest telecom groups: Celtel International (part of Zain, the new brand for MTC), and MTN. Overall there are fixed and mobile 37 operators (including new ones in Uganda and Kenya) in the region, plus over 20 internet service providers (ISPs).
About East Africa Com:
Following on the success of GSM>3G East & Central Africa, the 2008 event focused on the specific issues in the East Africa region and broadened its scope to include the whole telecoms value chain, including mobile operators (GSM and CDMA), fixed-line operators, internet service providers, as well as regulators, investors an telecom solutions providers.
Over two days, East Africa Com was the meeting place for the key stakeholders in the region’s telecoms market. Over 450 telecommunications professionals met to debate the future of the sector, and networked with colleagues & international experts.
This event is supported by the GSM Association, the UMTS Forum and the Dotmobi Advisory Group.
About Informa Telecoms & Media:
Informa Telecoms & Media is the leading provider of business intelligence and strategic marketing solutions to the global telecoms and media markets.
Driven by constant first-hand contact with the industry our 90 analysts and researchers produce a range of intelligence services including news and analytical products, in-depth market reports and datasets focused to technology, strategy and content.
Informa Telecoms & Media also organises more than 125 annual events, attended by more than 70,000 executives. In addition to the Com World Series, our events cover subjects as diverse as fixed and mobile operator strategy, technology, TV, mobile music and games.
Contacts:
For more information on the event, how to attend and media support, please contact Veronika Pete on veronika.pete@informa.com or tel: +44 20 7017 5818
For more information on the programme, please contact Julie Rey on Julie.rey@informa.com or tel: +44 20 7017 5394
