Africa's telecoms need framework

Africa's telecoms sector lacks clear and comprehensive legislative frameworks, consultancy Frost & Sullivan has said, reports Times Live.

In a statement, its ICT industry analyst Spiwe Chireka commented on the issues being faced by MTN Nigeria and Vodacom Congo. She said that while the absence of comprehensive legislative frameworks placed multinationals in a vulnerable position, there was an element of "no pain, no gain" in play.

"Nigeria and the DRC are the most lucrative markets in which to operate, but they are also the most difficult.” It was therefore a case of “survival of the fittest and developments such as we have seen concerning MTN and Nigeria, will require a pragmatic approach".

Congo Republic has granted the country's fourth mobile phone operating licence to Equateur Telecom Congo (ETC), a subsidiary of Bahrain-based telecoms provider Bintel, states Arabian Business.

ETC, which will compete with Zain, MTN and Warid for subscribers in the central African nation, says Congo is a key country for the company's African strategy.

On the African continent, ETC already operates in Gabon, the Central African Republic, and Somalia.

Tanzania, Uganda and Rwanda will witness significant growth over the next seven years due to increasing network investments, continuing product innovation, and reduced handset costs, says PR Newswire.

Frost & Sullivan has released a report finding that the East African mobile communications market earned revenues of $2.62 billion in 2008, and estimates this to reach $8.99 billion in 2015.

Frost & Sullivan research analyst Jiaqi Sun says: "East African consumers are spending more on mobile communications due to the low fixed-line network coverage, underdeveloped banking systems, and the current limited availability of inexpensive handsets."