Challenges facing telcos in Africa, concerns around sustainability and profitability, the likelihood of success
For certain analysts, and observers, Africa is the next frontier for growth and expansion for global telecom operators. But what is clear is that, a number of major players have are encountering serious challenges around the profitability of their investments in trying to establish a sustainable and economically viable footprint on the continent.
Beyond exceptional cases like MTN
and Orange that seem mastering the market with specific tailored services and
products, the majority of global telcos are facing poor level of infrastructure;
particularly in relation to electricity supply ( when it comes to deploying and
maintaining top-quality network operations in Africa).
Certainly, this issue consistently
affects the profitability of telcos due to the increased levels of capital and
operational expenditure they must undertake in building and maintaining a
passive telecom infrastructure.
Some global telcos including Etisalat
Group, Bharti Airtel and more have failed to adapt and implement strategies
that have succeeded in other regions. In fact, the majority of global telcos
have been unable to localize their global strategies to suit the unique
operating environments of the African market.
Therefore, certain telcos (Bharti
Airtel, Etisalat Group …etc.) are considering selling some of its African
subsidiaries, largely due to concerns around sustainability and profitability.
DigitalEcono also recalls
that, the operational challenges facing telcos in Africa have driven growth in
the continent's third-party telecommunications infrastructure management
business.
When it comes to streamline
the likelihood of success, DigitalEcono also believes that, telcos wishing to
pursue growth and expansion in the African market must focus inter alia on:
- Developing enterprise products and services that appeal directly to the wants and needs of the local market,
- Tailored strategies that have succeeded in other regions to the specific operating environments they encounter in Africa,