- Boom times for African mobile companies may be coming to an end with growth about to slow down sharply, says industry group GSMA. And that could encourage consolidation.
- Subscriber growth of 13% from the past five years will become 6% in the next five, as Africa faces its own "rural challenge" despite relatively low penetration.
- Low spending power in rural areas means expansion is even more difficult than in the U.S., though not even half the continent's population will have subscribed to a mobile service by 2020, the study says.
- That could drive consolidation so players can achieve economies of scale required to take on that expense. Already dealing: Vodacom (OTCPK:VODAF) bought Neotel to force competition with Telkom (OTCPK:TLKGY +3.9%); Millicom (MIICF -0.7%) bought Tanzania's Zantel from the UAE's Etisalat. Other key players: Orange (ORAN +0.6%), making a major expansion in the region; MTN Group (OTCPK:MTNOY +1.2%), the continent's biggest wireless operator.
- Previously: Orange shuffles Africa/Middle East leadership (Oct. 01 2015)