Could Ovum’s new forecaster data service really provide a complete view of a market? Well, the company has released some interesting projections regarding the future of mobile broadband connections in East Africa. The company say its forecaster service has recognised that mobile data will be the key growth driver for the East African telecoms market in the next five years to 2022.
Going into a little more detail about its projections and how they derived, the forecast for mobile broadband (MBB) in Kenya, Tanzania, and Uganda is 112m subscriptions at the end of 2022 (see attached infographic); while the forecast for MBB in all nine East Africa countries is 186m subscriptions at end of 2022.
The company and its forecaster say the growth of mobile broadband will be powered by the increased deployment and upgrade of 3G and 4G LTE networks, as well as a rise in smartphone penetration – which is a result of better affordability.
The new data service also highlights that there has been a sharp rise in demand for broadband services from consumers in the region, which has been fuelled by the ongoing digital transformation. Ovum forecasts that there will be 32m LTE subscriptions in Kenya, Tanzania and Uganda by 2022, while smartphone connections will near 108m.
Research analyst, Middle East and Africa at Ovum, Danson Njue says, “The East African region has made great progress in broadband connectivity over the last few years, and this has unlocked great potential in digital services segment, including mobile financial services, digital media as well as enterprise services. However, the growth in broadband connectivity has also seen a rise in OTT services thereby increasing chances of data revenue cannibalisation for data service providers in the region”