Ericsson releases MEA Mobility Report 2017

Ericsson, a global leader in communications technology, has recently released its 'MEA Mobility Report 2017', which sheds light on the telecommunications landscape in the Middle East and Africa. The report highlights a substantial move towards broadband and data services in the region over the next five to six years, with projected growth rates exceeding 46%. This surge in data consumption is accompanied by a notable transition in investment strategies among telecom operators, aligning their focus towards data-centric offerings. Jonathan Adams, Head of South and East Africa at Ericsson, joined CNBC Africa to delve into the key findings of the report. The conversation delved into the challenges and opportunities presented by this shifting paradigm in the African telecommunications industry. One of the primary concerns raised during the discussion was the affordability of data services, particularly in rural areas where the average GDP is below $1,500. Adams emphasized that as data volumes increase, African operators are beginning to adjust their pricing strategies to make data more accessible to a broader segment of the population. Furthermore, regulatory policies are being implemented to facilitate network infrastructure expansion into rural regions, making connectivity more feasible for underserved communities. Adams also highlighted the rapid adoption of smartphones and data usage among the continent's youthful population, underscoring the burgeoning digital lifestyle embraced by African consumers. The conversation then shifted to the role of affordable smartphones in propelling the data revolution in Africa. Reference was made to Apple's initiatives in offering budget-friendly devices to capture emerging markets. Adams acknowledged that lower-priced handsets from Asian manufacturers are driving significant market stimulation, enabling a wider demographic to access data services. Ericsson's report projects a remarkable 56% growth in LTE penetration by 2023, attributing this uptrend to the rapid adoption of technology, coupled with the affordability and availability of compatible devices. Telecom operators are leveraging LTE networks to differentiate their service offerings, providing customers with high-speed connectivity and attractive data packages. A key highlight of the report is the forecasted rise of the middle class in sub-Saharan Africa, expected to reach 56% by 2030, up from the current 34%. This socio-economic shift signifies a transition towards higher data consumption and advanced internet platforms such as 5G and LTE. Adams expressed optimism about the continent's future, emphasizing the transformative potential of 5G technology in enabling the Internet of Things and enhancing connectivity across various industries. With Africa poised for exponential subscriber growth and increased digital adoption, the telecommunications sector is primed for innovative advancements and enhanced service offerings.