Africa Telecom Towers and Allied Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

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The Africa 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 telecommunications industry has seen a significant increase in demand for internet services due to a large portion of the population staying at home and remote working conditions.

New York, April 22, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Africa Telecom Towers and Allied Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https: // www.reportlinker.com/p06271920/?utm_source=GNW
The increase in the number of people working from home has led to an increase in the demand for downloading, watching online videos and communicating via video conferencing, which leads to increased network traffic and data usage.

Highlights
The telecommunications tower industry has evolved significantly over the past decade. towerco’s core proposition and its business models have been successfully adapted to meet the demands of new markets in Africa. Many towercos are expected to focus on their core construction business during the forecast period, buying and leasing vertical real estate, and these towercos may still see many 5G antennas superimposed on their towers.
According to the Nigerian Communications Commission, in January 2021, the number of third and fourth generation telecom towers deployed in Nigeria increased by 73.2%. In addition, global tower companies are expanding their presence in the region, through strategic collaborations, due to the increasing number of opportunities presented.
The emergence of KaiOS and its partnerships with carriers across Africa is helping overcome the affordability hurdle 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 significantly boost Internet penetration in these countries.
Several initiatives by telecom operators and other organizations, particularly in low- and middle-income countries, are expected to spur growth in rural areas as residents of these areas have increased access to internet connectivity.
Additionally, with businesses going mobile and adopting new concepts, like BYOD, to increase employee interaction and ease of use, providing a high-speed, quality network has become essential. Organizations have been looking forward to aggressively adopting BYOD in their operations, fueling the growth of the market over the forecast period. Additionally, the growth of cloud-based services for mobile users and the rollout of 4G LTE services globally have increased the investment in networks by carriers, which is driving the demand for telecom towers.
The growing emphasis on improving internet connectivity in rural areas is one of the major factors driving the deployment and improvisation of telecommunications infrastructure in these areas, thus contributing to the growth of the market. Smartphone penetration, awareness, growing penetration of digital technologies, and investments by several organizations and governments have increased the adoption of internet connections in the region.

Main market trends

The fiber optic market is expected to grow significantly over the forecast period

The telecommunications and networking market has witnessed a massive increase in demand in the region. The emergence of IoT in cloud computing and the demand for 5G networks is driving the increased use of fiber optics in a wide variety of applications: commercial, government, industrial, academic and cloud servers in public and private networks.
According to CommsUpdate, there was only a 3-year gap between the launch of 3G and 4G services in Algeria, which led to problems. While the three main operators – Djezzy, Mobilis and Ooredoo – have extended their coverage to all 48 provinces, they have all received sanctions from the regulator in 2020 for the poor quality of their services.
Furthermore, according to the Nigerian Communications Commission, as of January 2021, fiber optic cables have grown by 16.4% over the last five years. In addition, according to IFC, a total of 1.1 million km of optical fiber has been installed in Africa, 50% of which has been deployed by private mobile network operators (MNOs). Moreover, about 40% of all fiber optic cables in Africa, or a staggering 450,000 kilometres, are owned by the state. This includes government networks, state-owned enterprises (SOEs), and utilities.
The region has a developing telecommunications infrastructure whose growth is encouraged by supportive regulatory measures and government policies aimed at providing usable Internet connections throughout the region. Government-funded efforts, including the Universal Service Telecommunications (UTS) program, continue to ensure that landline infrastructure is extended to underserved areas, and so the slow growth in the number of landline connections is expected to be maintained over the next few years. years.
Companies enter into various partnerships to offer better services while controlling operating costs. For example, in early 2021, Ooredoo Algeria deployed Nokia’s cloud-native Core software to cost-effectively boost its network performance and reliability and strategically position itself for the launch of new services that meet customer needs. This deployment is likely to further improve the country’s digital ecosystem.
The infrastructure is based on a terrestrial fiber optic network, coupled with submarine cables, providing secure connectivity abroad from West Africa. This investment aims to support the digital ecosystem and responds to the growing connectivity needs in the region.

The telecommunication tower market is expected to grow significantly over the forecast period

towerco’s core proposition and business models have been successfully adapted to meet the demand of new markets in Africa. Many towercos are expected to focus on their core business of building, buying and leasing vertical real estate during the forecast period. These towercos can still see many 5G antennas superimposed on their towers.
According to the Nigerian Communications Commission, in January 2021, the number of third and fourth generation telecom towers deployed in Nigeria increased by 73.2%. Additionally, global tower companies have been expanding their presence in the region, through strategic collaborations, due to the growing number of opportunities presented.
For example, in January 2020, American Tower acquired Eaton Towers in a deal that included towers in five African countries. While American Tower already had a presence in Africa, the acquisition was a significant deal, demonstrating the types of investments being made in the region, particularly in the tower market.
According to TowerXchange estimates, there are approximately 25,767 towers in South Africa, serving 97 million SIM cards, making it one of the best covered markets in Africa. Five MNOs operate in 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 the point of bankruptcy since selling their portfolio to American Towers.
Additionally, with businesses going mobile and adopting new concepts like BYOD to increase employee interaction and ease of use, providing a high-speed, quality network has become essential. Organizations are eager to aggressively adopt BYOD in their operations, thereby fueling the growth of the market over the forecast period. Additionally, the growth of cloud-based services for mobile users and the rollout of 4G LTE services globally have increased the investment in networks by carriers, which is driving the demand for telecom towers.
Furthermore, the growing emphasis on improving internet connectivity in rural areas is one of the major factors driving the deployment and improvisation of telecommunications infrastructure in these areas, thus contributing to the growth of the market. Smartphone penetration, awareness, growing penetration of digital technologies, and investments by several organizations and governments have increased the adoption of internet connections in the region.

Competitive landscape

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 of the market and are focused on expanding their customer base across the globe. These players are focusing on research and development activities, strategic alliances, and other organic and inorganic growth strategies to stay in the market landscape during the forecast period.

March 2022 – Helios Towers, the independent telecommunications infrastructure company, announced the acquisition of Airtel Africa’s passive infrastructure business in Malawi, adding 723 sites to its portfolio.
January 2022 – ZESCO Limited and Copperbelt Energy Corporation PLC signed an agreement to make new arrangements for power supply and transmission. The negotiations, which began on January 17, 2022, are expected to replace the bulk supply agreement that expired on March 31, 2020.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
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