SANDTON, South Africa-The wave of liberalization and privatization that has been sweeping the African economic markets has spread to communications, revealing rich untapped potential for future investment.
Cellular markets have been the area’s most dynamic telecoms sectors, with extraordinarily high growth rates and numerous new GSM licenses awarded at unbelievably high prices. The prepaid market has taken cellular by storm, and the Internet is beginning to make inroads in certain countries.
“There has also been a fundamental shift in the strategic approach adopted by African operators, which have acknowledged the considerable challenge and opportunity represented by the Internet, and [they] are making decisions accordingly,” said Mohsen Malaki, senior analyst with U.S.-based Pyramid Research.
Cellular markets already partially liberalized have experienced unprecedented growth and heated competition, with several countries like Morocco injecting greater competition into their mobile sectors by tendering additional licenses.
The market’s growth potential has further been highlighted by the huge fees international investors are willing to pay. The precedent has been set by the record US$1.1 billion license fee paid for Morocco’s second GSM license by the Telef
