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What Is Behind Telecom Growth in Africa

Published
by
Steven V.
on February 9, 2010
in Emerging Markets and Interconnection
. 0 Comments

Africa has the fastest growing telecommunications industry. But what is driving this growth? A primary driver is undersea cable build outs.

When it comes to cost, cable capacity is significantly cheaper than satellite. This regional growth is also fueled by the demand for high-speed, low latency connectivity. While satellite connections have an average of 600 millisecond delay, cable capacity delivers voice and data communications in less than half the time.

The inherent negative aspects of satellite communications fueled the launch of the SEACOM cable system, the first undersea submarine cable system that connects the African continent to Europe, Asia and India. Through this build out, Tata Communications is able to cost-effectively and efficiently provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India.

The abundance of capacity leads to the creation of a whole new industry for high-speed connectivity from call centers to growing the Internet. To that end, from August 2009 to now, Tata Communications has doubled the entire IP connectivity in Kenya, going from #3 in terms of connectivity to the #1 position.

Parts of Africa already have many attractive elements in place, including an underemployed workforce, good language skills, low labor costs and good time zone locations with European- and Middle Eastern-based companies, which could be harnessed through the proliferation of more connectivity to the rest of the world to support Call Centre, software development, and other similar services.

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