Business is getting tougher for operators as a consequence of slowing growth rates, increasing competition and falling ARPUs, and the global economic slowdown according to Mathew Reed from Telecoms.com.
In an attempt to maintain growth rates, operators in the sub region are looking to develop new markets and services. With urban markets becoming relatively mature, they are seeking to add new subscribers in underserved markets, usually in rural areas. Another option for operators is to develop added-value services that will encourage subscribers to spend more on basic voice and text-message services.
Just about everyone in Africa has a phone but not everyone can afford high end services, for example the average monthly income in rural Nigeria is just NGN5,000 (US$34). This point illustrates the gap between what consumers desire and what they can actually afford in Africa.
Mobile networks and operators have to strike this balance and innovate with services that are of real value to these consumers.
