FEATURE : TELECOMMUNICATIONS
Telecommunication incumbents who cannot offer digital connectivity and cannot leverage digital platforms for their operations will find themselves increasingly irrelevant .
The high cost of connected devices and connectivity is a primary inhibitor inside Africa . Internet adoption inside South Africa is at only 54 %, while connectivity costs are among the highest in emerging markets .
These inhibitors stall the adoption growth and limit the potential market for digital services reducing the return on investment for service providers and other small and medium businesses . This also drives the digital divide if it is not addressed in sufficient time .
The situation will be heightened by a widening gap in digital literacy between the population with access to the Internet and the one with lower access .
Digital transformation impacts all countries and all industries , and the telecommunication industry and service providers are no exceptions . Smartphones , connected devices , improved wireless and wired networks are making the business , urban and young population connected and demanding for more and better services . Pricing and regulations also need to be reviewed and updated .
To remain relevant , the African telecommunication industry needs to transform itself to become more digitally relevant and differentiate from its legacy offerings . The traditional telecommunication market with its legacy offerings of airtime and scratch cards is becoming less relevant , especially in markets where cloud hosting is successfully being adopted .
Telecommunication operators are being challenged into rebuilding their services . Telecommunication service providers are being compelled to make significant changes in the backhaul infrastructure to evolve their business offerings and compete in the market .
Telecommunication players inside Africa now face challenges about where to invest in order to drive returns from digital offerings that align with their existing business .
Investments need to open opportunities for both businesses and consumers to leverage into , improving their ability to function , and thus generate returns for the telecommunication players . Telecommunication players need to adopt a strategy of protecting their traditional revenue streams while also offering new services to offset ongoing revenue losses .
Over half of all website traffic in Africa comes from mobile devices . This is prime reason for the telecommunication industry in Africa to manage the expectations of its existing loyal users .
Statista has reported that African countries have the lowest Internet penetration rate of 39 % compared to the global average of 60 %. These results suggest a significant difference in Internet access between rural and urban areas , with smartphones being used in rural areas 200 % more than in urban areas .
Transformation of African telecommunication industry
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