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Africa instrumental in growing GSM

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 19 Jul 2006

Africa has played an important role in growing GSM, and will continue to be instrumental in growing the digital standard for mobile telecommunications even further.

Global Mobile Suppliers Association president Alan Haddan says developing countries have contributed to the growth of GSM and will continue to do so, with 80% of growth over the next few years expected to come from Russia, China, Latin America and Africa.

Since GSM arrived 15 years ago, it has acquired two billion subscribers globally. The first billion took 12 years to accumulate, and the second billion took 30 months, he says.

On the African continent, a third of the population has a mobile phone. SA was one of the first countries outside Europe to adopt GSM, and the first on the continent, says Haddan.

By June last year, the continent had 100 million GSM users, and by May this year another 50 million had been added, he says.

However, Africa is not known for its wealth, and operators say that, as they penetrate the market, average revenue per user (ARPU) drops. Haddan says this should not be seen as an obstacle. "There are plenty of opportunities."

He adds that case studies in the Philippines have shown a mobile operator can be successful with an ARPU of between $5 and $7 a month.

Moreover, as technology improves and more users sign up, operators should see economies of scale from which they can leverage business solutions.

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