The GSMA which represents the interests of mobile operators worldwide has warned of impeding “capacity and coverage crunch” in terms of available mobile spectrum despite the multi-billion dollars investments over the past five years across the five key markets in the Sub-Saharan Africa region.
The key markets in the Sub-Saharan Africa region including Nigeria netted some $16.5 billion investments over the past five years ($2.8 billion in 2011 alone), mainly directed towards the expansion of network capacity.
The latest report by Deloitte for the GSMA, said with necessary spectrum allocations and transparent regulation, the mobile industry could fuel the growth of 14.9 million new jobs in sub-Saharan Africa between 2015 and 2020.
GSMA however said that “the current amount of spectrum allocated to mobile services in sub-Saharan Africa is among the lowest worldwide. Some countries apportion as little as 80MHz, compared to developed markets where allocation for mobile exceeds 500MHz.”
Tom Phillips, chief government and regulatory affairs officer at GSMA, said it is crucial that government works together with mobile operators to support the industry.
With mobile Internet traffic forecast to grow 25-fold over the next four years, the GSMA said there will be a considerable increase in network congestion unless governments across the region take urgent steps to release new spectrum in line with the recommendations of the International Telecommunication Union’s World Radiocommunication Conference.
“This includes capacity in the digital dividend (700-800MHz) band and the 2.6GHz band, and also liberalising existing licence agreements to allow the deployment of high-speed Universal Mobile Telecommunications System and long-term evolution networks in the 900MHz and 1 800MHz bands.”
The GSMA said the combined aggregated effect of the spectrum release of the digital dividend, 2.6GHz and the re-farming of 1 800MHz, would have a positive impact on job creation.
“An additional 14.9 million jobs could be created between 2015 and 2020 in the key six markets in the region. Mobile industry growth could also generate a GDP increase of $40 billion, representing 0.54% of total GDP, in the region by 2016.”
Chris Williams, Deloitte telecommunications partner, saids in many sub-Saharan African countries, mobile broadband is the only possible route to deliver the Internet to consumers. “However, to maximise the potential gains, governments need to continue to support the development of mobile broadband, notably through the provision of appropriate spectrum.
“The current spectrum allocations across the region lag behind those of developed countries and, unless increased, seem likely to raise costs of provision, challenge investment decisions and increase network congestion.”
