Africa’s tantalising opportunities: Ten African cellular markets to add 121 million subscriptions by 2016, growing at a compound annual rate (CAGR) of 14%.

In a new research report, the Arab Advisors Group (AAG) in cooperation with Pursuit Mode Initiatives FZE analysed the sub-Saharan Africa cellular landscape. The research report focuses on ten African markets with ample room for growth. These countries are Democratic Republic of Congo, Ethiopia, Ghana, Ivory Coast, Madagascar, Mozambique, Senegal, Tanzania, Zambia, and Zimbabwe. The cellular adoption in the aforementioned markets grew at an outstanding CAGR of 27% between 2009 and 2011. AAG projects the upcoming growth in cellular adoption to continue to grow at a CAGR of more than 14% between 2012 and 2016.

The aggregate cellular penetration rate of the ten sub-Saharan countries in focus stood at 42% at the end of 2011. On a country level, the cellular penetration rates ranged from 16% up to 85%. AAG projects the combined cellular growth of subscriptions in the selected countries to exceed 121 million during the forecast period ending 2016, translating to an aggregate penetration rate of 77% by the end of the period. Total cellular revenues of the ten countries reached US$9 billion in 2011. AAG projects revenues to grow at a CAGR of 10% during the forecast period. AAG’s projections take into consideration various factors including the current and projected economic and political landscape, historical cellular growth, cellular coverage, 3G investments, upcoming cellular licences, and operators’ strategies.

The growth potential of the emerging economies of sub-Saharan Africa has attracted global and regional investors. Africa’s cellular markets have been growing at stellar rates recently. In order to shed light on Africa’s growth prospects, AAG in cooperation with Pursuit Mode Initiatives FZE prepared a research report, Untapped Potential: Africa’s Remaining Growth Markets in Focus.

The report starts with a general overview of these markets, digs deeper into the specific market dynamics on a country level, profiles and analyses the pan-African mobile players operating in these markets, and identifies the emerging trends in the cellular sector in sub-Saharan Africa. Finally, the report concludes by identifying the main investment opportunities.

The new report, “Untapped Potential: Africa’s Remaining Growth Markets in Focus” was published by AAG on August 1, 2012. This report can be purchased from AAG or Pursuit Mode Initiatives FZE for only US$4,000. The 128-page report, which has 109 detailed exhibits, provides an invaluable overview of the growth and investment opportunities in sub-Saharan Africa’s cellular markets.

Contact Karl Hougaard at Karl@comm.ae or on +971 50 400 1220 for further details and purchase enquiries

Zain Group today reported its consolidated financial results for the half-year ended June30 , 2012, which reflected revenues of KD663.5 million (US$2.38 billion), up 0.6 per cent year-on-year. Net income for the half was also flat at KD141.9 million, also up just 0.6 per cent year-on-year.

The operator counted 41.4 million consolidated active subscribers at the end of June, an increase of 1.8 million users or five per cent over the 39.6 million counted at the same time last year. By way of comparison, Zain added 5.4 million new active subscribers over the 12 months to end-June 2011.

In terms of quarterly performance, Zain Group added 1.1 million subscribers in Q212, up from 40.3 million at the end of Q112. Consolidated revenues for the quarter amounted to KD337.5, up four per cent year-on-year, while net income amounted to KWD70.9, up one per cent year-on-year.

Research In Motion (RIM) has launched a LTE variant of its BlackBerry PlayBook tablet with built-in support for cellular networks.

"We’re excited to bring customers the first BlackBerry PlayBook tablet with support for 4G LTE networks," said David J. Smith, executive VP, Mobile Computing at RIM.

The LTE BlackBerry PlayBook tablet is also enterprise ready. It can be managed with BlackBerry Mobile Fusion and includes BlackBerry Balance technology, which allows a user to use a BlackBerry PlayBook for both work and personal purposes by keeping business information secure and separate from personal information.

The LTE BlackBerry PlayBook tablet will come with 32GB of memory storage and will be available from Bell, Rogers and Telus in Canada on August 9, 2012.

Additional variants of the BlackBerry PlayBook tablet supporting various cellular networks are expected to be available in the coming months from carriers in the USA, Europe, South Africa, Latin America and the Caribbean.

Virgin Mobile South Africa announced the closing of 30 of its 38 retail stores in the country as it looks to refocus its marketing efforts. The initiative has already commenced and is expected to conclude during the first half of 2013.

The MVNO in South Africa merged its operations with Dubai-based Friendi Group, which is led by Mikkel Vinter. Together the two MVNOs are known as Virgin Mobile Middle East and Africa (VMMEA), and the company said the aim of the changes is to deliver an improved and differentiated customer experience by leveraging VMMEA best practice and investment in improved systems and processes.

Virgin Mobile South Africa will convert the eight remaining stores from sales focused franchise stores into full service stores offering its entire range of products and services including sales, renewals, upgrades and customer service and advice.

The company will also be offering online sales and service through a new improved website and is exploring new, alternative sales channels.

Vinter had suggested that changes would be made in South Africa in order to bring the company to profitability in that market. Speaking to Comm. in June, Vinter said: “Yes, there are still losses at Virgin Mobile South Africa, but I think what is required are some structural changes and tweaks, which I believe can turn the operator around quite quickly.”

“Virgin Mobile South Africa is a good business with a large pool of talented individuals; it is a real asset to VMMEA,” Vinter said. Virgin Mobile South Africa employs approximately 250 staff and it was announced at the time of Friendi Group’s arrival, that the company’s CEO, Steve Bailey is stepping down, to be replaced by a “highly experienced candidate.”

Telenor’s Indian arm Uninor has confirmed it will auction its assets ahead of a September 7 deadline to shut its operations – despite the move being strongly opposed by its local Indian partner.

Uninor’s licences were among the 122 revoked by the Indian Supreme Court in February; Telenor now wants to wind down the venture in time to bid as a new entity in the forthcoming re-auction of the cancelled spectrum.

Telenor owns 67.25 per cent of Uninor, while partner Unitech holds the remainder. The two firms have been at loggerheads for some time.

According to a Financial Express report, Uninor said in a statement that the auction of its assets will allow the company to generate the maximum possible returns for its creditors and secure the future of Uninor’s customers, employees and business partners in the hands of new ownership.

However, Unitech blasted the move “illegal.”

“Unitech has dissented and vetoed on Uninor’s proposal to auction assets. The auction notice of Uninor can best be termed as illegal,” a Unitech spokesperson said, hinting that it would resort to legal action if Uninor went ahead with the plan.

Uninor has published newspaper advertisements calling for potential bidders to express their interest by August 6.
The notice says that a reserve price in the auction has been set at INR40 billion (US$909 million) “based on an independent valuation carried out by the company (Uninor) through two independent valuers, Deloitte and KPMG.”