According to ABI Research, about 50 per cent of African population will be covered by the long term evolution (LTE) networks by 2018, as LTE base station deployment is expected to grow at a compound annual growth rate (CAGR) of 40 per cent over the next five years.
Further, LTE subscriber base in Africa is forecast to grow at a CAGR of 128 per cent to reach over 50 million at the end of 2018. About 50 per cent of the subscribers will be using voice over LTE (VoLTE) services. The research firm states that the key growth driver for the LTE market in Africa is the increasing availability of LTE-based affordable handsets. The LTE-enabled handset shipment is projected to increase by 75 per cent annually on average in the next five years. Further, given the poor fixed-line infrastructure, users will rely upon wireless network for accessing internet services. ABI Research points out that there is a strong business case for the operators to roll-out LTE on priority basis to take advantage of the business opportunities presented by growing number of internet users.
As per the research firm, LTE network coverage will not be homogenous across the region. A few countries such as Angola and Namibia are already in the advance stages of establishing LTE-based network whereas countries including Botswana and Gabon are yet to deploy these networks. Going forward, ABI Research expects wholesale or shared networks such as the joint venture between the Rwandan government and Korea Telecom and the public-private partnership proposed by the Kenyan government to enhance LTE deployment in the region.
