Sub-Saharan Africa Telecommunications Report Q3 2017
BMI View: Customer deepening strategies will be operators' new focus in Sub-Saharan Africa, with mobilebeing the only viable alternative to wireline broadband. Mobile financial services will secure loyalty at thelower end of the market, while e-commerce, music and gaming will secure the middle tier. Video is next tobe pursued, but operators should consider partnerships rather than acquisitions as consumer spendingpower precludes strong growth in premium offerings.
Consolidation will be the dominant theme for 2017, with Orange expanding and rationalising its regionalfootprint, Millicom retreating into a handful of core growth markets and Airtel likely to withdraw fromthe region as quickly as possible.
Operators are also focusing on service development as a means of growing and retaining customer basesas well as increasing monetisation. Vodacom is taking control of Safaricom to push M-Pesa mobilemoney services into new markets and MTN may buy MultiChoice for its revamped video strategy.