North African operators face tough competition
15 September 2010 |
Only the smartest operators in the north African telecoms market will survive, as the market becomes filled with new and less valuable subscribers, according to research consultancy Delta Partners.
The region has been growing at a CAGR of 20% between 2007 and 2009, and is expected to grow at a CAGR rate of 7% for the next five years, due to a blend of strong mobile voice, growing demand for mobile broadband and a large youth population. But profitability is expected to shrink, meaing that the region’s players will have to consider carefully where they make future investments.
Governments in north Africa are also promoting competition in the telecoms and ICT sectors, and will have to consider a growing interest in the region from international players that will affect the business models of local players. Morocco, Tunisia and Egypt are progressing towards becoming regional hubs in the ICT sector.
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