5G has long been touted as a key tool to levelling up connectivity on the continent, but is it all it’s cracked up to be?

The digital divide remains a huge issue across Africa, with 74% of the continent’s population remaining unconnected to the internet, according to the GSMA.

“The digital divide in Africa is staggering. The substantial capital expenditure required for 5G deployment means that the return on investment (ROI) is targeted primarily at major towns and metropolitan areas,” says Paul Colmer, EXCO member, Wireless Access Provider’s Association (WAPA). “Paradoxically, this exacerbates the digital divide, especially in outlying regions where the divide is most pronounced, widening the gap even further.”

“While 5G’s primary purpose is certainly not to expand coverage to areas that don’t already have it, it doesn’t have to be one or the other,” reports Abdelkader Najja, managing director Middle East and Africa, BICS. “In some regions where connectivity is more established, 5G promises to open up huge commercial opportunities.

Countries that depend on tourism, like Egypt for example, will need 5G to offer a seamless roaming experience to inbound travellers. Alternatively, regions with a strong enterprise or industry focus will benefit from 5G use cases across industries including logistics, agriculture, or security.”

Select markets throughout Africa, including South Africa, Kenya, and Nigeria, are rolling out 5G networks because the customer bases can afford to purchase these services and finance the costs of building the necessary infrastructure.

“Most of the continent, however, is very price sensitive. In these areas, the goal remains bringing 3G and 4G networks online and giving citizens access to basic online services,” says Vaibhav Magow, vice president, international division, Hughes. “It’s important that reliable connectivity be available to anyone who wants it. Satellite plays a critical role in bridging this gap by backhauling cellular traffic to extend network reach to areas where cable and fibre cannot.”

Money money money
The greatest potential obstacle to consumer 5G adoption and usage in Africa is device cost and availability. According to the GSMA, some 60% of the sub-Saharan African population lives in an area with mobile coverage, but does not use mobile internet, with device affordability the biggest concern.

“The affordability of mobile devices in some parts of Africa is an obstacle to getting paying customers on 4G networks. Unless the price of handsets drops, we expect this to hold true for 5G networks as well,” says Magow.

Very recently we’ve seen an influx of suitable devices on the market at $100, however, this remains well beyond the means of the majority. Moreover, on top of the device cost is 10-30% extra in taxation and duty fees. Many are now calling for an exemption for low-cost devices to enhance uptake and support socioeconomic progress.

Additionally, “given the impact of device affordability on 4G adoption, device financing schemes will likely be necessary to improve affordability,” adds Najja.

Meanwhile, from the MNO viewpoint, Najja reports that the greatest challenge is engaging in 5G investment where the ROI on 4G networks is still not covered: monetisation will be key for this process: “however, the decline in 2G and 3G connections creates an opportunity for network shutdowns and the transfer of resources to 4G and 5G networks.”

“Cost is an issue for both 4G and 5G deployments, but the added costs associated with 5G is the biggest challenge,” agrees Magow. “5G networks need significantly more cell towers compared to 4G networks. While this infrastructure can feasibly be built in big cities with a high density of people, the business case does not hold up in sparsely populated areas. Additional components, like new infrastructure designs and core networks, make 5G even more costly.”

Additionally, “while 5G is technically more energy-efficient than 4G per byte, the power-hungry nature of 5G poses a significant challenge in regions with power shortages and frequent loadshedding, such as South Africa,” says Colmer. And with no solution to grid brownouts and blackouts in sight, power sustainability is expected to remain problematic for the foreseeable.

“The greatest potential obstacle to consumer 5G adoption and usage in Africa is device cost and availability. According to the GSMA, some 60% of the sub-Saharan African population lives in an area with mobile coverage, but does not use mobile internet, with device affordability the biggest concern.”

Rolling out 5G across Africa will also be a big challenge in terms of building out the infrastructure “due to the size of the territory and 5G’s higher bandwidth meaning it has a shorter range than 4G and so requires multiple radio sites to support it,” says Najja. “Since enterprises are the main drivers of 5G Standalone (SA) adoption across

Africa, this means most 5G deployments will be focused on cities and densely populated areas. The rest of the landscape will operate on lower frequencies (reusing 2G/3G) and will offer different 5G coverage, but still 5G.”

Notably, 5G requires a complete change in RAN and the core network: “non-standalone 5G requires an update to the Radio Access Network (RAN) and relies on fully deployed 4G networks, which presents its own set of challenges,” explains Najja. “In contrast, 5G SA demands a complete overhaul of the core networks as well.”
Spectrum, too, has proven a significant limiting factor, with most countries only just beginning to look at policy and spectrum auctions.

“The acquisition of high-demand International Mobile Telecommunication (IMT) spectrum has been a prolonged process, with operators incurring substantial costs,” says Colmer. However, here things are looking up as “more spectrum auctions are anticipated in 2024; and the transition from terrestrial to digital TV has also facilitated the availability of the sub-1GHz band for 5G use.”

5G – the next damp squib?
On the lips of almost every mobile industry professional, 5G is a true stalwart hot topic for operators and service providers. Although constructed around different architecture, 4G and 5G share more similarities than 4G does with 3G.

“5G is more of an evolution and while it offers more advanced connectivity, operators see a lot of additional benefits in more advanced network protocols,” explains Najja.

“It makes 5G networks more efficient with better network provisioning, resource allocation and advanced features like network slicing. This translates into greater cost efficiency which will help deliver faster return on investment for operators and should support further 5G rollout across the operator’s region.”

Further, from a market share point of view, 5G is a fantastic boon for operators: “in markets where there is significant demand for fast, low-latency connectivity, operators with 5G networks can afford to attract consumers with better average revenue per user (ARPUs) and become more profitable,” says Magow. “In the enterprise segment, these operators will also be able to pursue new customers in the professional services vertical that depend on latency-intensive cloud applications to support the flexibility of remote work.”

However, according to Colmer, “operators stand to gain relatively little by prioritising 5G over 4G, aside from retaining clients who still believe in the initial hype surrounding 5G…”

For Africa’s consumers, 5G offers higher quality connections – more speed, more bandwidth, greater reliability: “while in some countries like South Africa or Egypt, there is a growing demand for this, the difference between 4G and 5G is far more significant when it comes to enterprises,” says Najja. “We’ve already seen this play out in other markets around the world – with the benefits and use cases available to businesses driving most of the adoption and growth of 5G SA. Across Africa, 5G could support businesses with its higher data speeds and greater capacity. It will enable the deployment of large-scale IoT solutions and provide low-latency communications for real-time data processing in developing cities and regions. For enterprises and industries, this will mean more efficient operations and the unlocking of new applications and services.”

Colmer, however, remains unconvinced about the achievements of 5G, both on the continent and abroad.

“Initially hyped as a revolutionary technology with claims of transforming self-driving cars, enabling remote robotic surgery, and serving as a catalyst for the Fourth Industrial Revolution (4IR), 5G has faced a reality check in recent years,”

“Initially hyped as a revolutionary technology with claims of transforming self-driving cars, enabling remote robotic surgery, and serving as a catalyst for the Fourth Industrial Revolution (4IR), 5G has faced a reality check in recent years,” opines Colmer. “Many of these grandiose claims are being exposed, particularly given the practical challenges associated with achieving multi-gigabit low-latency connectivity, which is primarily possible using mmWave spectrum (above 26GHz). However, this technology demands high population densities and small cell technology, making it impractical for vast regions. Even in advanced countries like South Korea, 5G has faced setbacks, and in South Africa, LTE remains faster than 5G in many areas.”

Helping society grow
Whatever your view on the specifics of 5G, reliable access to the internet is crucial for creating more connected communities and advancing business growth.

“The narrative of 5G connectivity in Africa is largely driven by original equipment manufacturer (OEM) giants manufacturing the equipment,” says Colmer. “However, meaningful connectivity, in my perspective, revolves around providing affordable access for all. 5G, given its current limitations and expense, may not be the most effective solution in bridging this connectivity gap.”

Najja believes that meaningful connectivity is any technology that can connect communities and create opportunities, regardless of the generation of connectivity this is built on – and not necessarily 5G.

“5G will certainly be a part of this, but it will be a part,” explains Najja. “Some markets across Africa will be better served currently by the older generation networks. Rather than getting lost in the weeds, it’s important to remember the purpose of mobile technology and focus on this mission – to help societies grow stronger by connecting together.”

For sure, satellite will continue to play a vital role in the connectivity ecosystem throughout Africa.

“To drive meaningful connectivity across the continent, three priorities remain,” shares Magow. “For one, operators should look to build greater interoperability into their systems so that network deployment costs can shrink, allowing them to serve more customers. Secondly, governments should reduce fees and taxes associated with installing satellite ground terminals and provide ample funding for community WiFi programs. And finally, the International Telecommunications Union (ITU) should ensure there is enough spectrum available to support networks across the continent.”

Colmer adds that “it’s worth noting that as of now, there are no globally recognised success stories for 5G business cases. As we contemplate the role of 5G in Africa, particularly in the context of the existing digital divide, it’s crucial to question the practicality and genuine benefits it brings to the continent.”

Something worth considering considering the hefty 5G investments announced most days..

West Africa has emerged as the mobile money market’s new powerhouse, according to the GSMA.

In a new report backed by the Bill & Melinda Gates Foundation, the industry group found that global cumulative transaction value grew 14% last year to reach a whopping $1.4 trillion.

The GSMA’s State of the Industry Report on Mobile Money came out the same day Ericsson and Juniper Research published a forward-looking one of their own. They predict that digital wallet transaction value will rocket by 80% by 2028.

West Africa – in particular Nigeria, Ghana and Senegal – is the main driver of growth. The GSMA found that in 2023, more than a third of the world’s newly-registered and active 30-day accounts originated from the region.

Operators in West Africa face more competition from non-MNO mobile money providers, the GSMA said, which is helping to drive the overall market.

In Nigeria in particular, according to a separate report from FXC Intelligence, access to digital payment services has expanded from 21.6 percent of adults in 2010 to 70 percent by 2020. The government played an important role here – its central bank began offering mobile money licences in 2011 and has so far issued 21 of them.

Last year, Nigeria stepped up efforts to promote cashless payments and reduce transaction fees by launching its own domestic card service to compete with Visa and Mastercard.

“Over the years, Sub-Saharan Africa has been a key driver of mobile money’s success, home to almost three-quarters of the world’s accounts,” said GSMA director general Mats Granryd, in the report. “In the past 10 years, West Africa has emerged as a key player with the number of registered mobile money accounts doubling between 2013 and 2023.”

During those 10 years, countries with mobile money services added an estimated $600 billion to their combined GDP, $150 billion of which was in Sub-Saharan Africa.

Zooming out again to look at the global picture, the GSMA said the number of mobile money accounts reached 1.75 billion in 2023, up 12 percent on 2022. The number of active accounts is much smaller, reaching 435 million – a 9 percent year-on-year increase.

The number of adjacent services is also rising steadily.

Nearly half of respondents to a related GSMA survey about the global adoption of mobile financial services said they offered ‘responsible credit’ services in 2023, up from just over 40% in 2022. Similarly, the number of providers offering savings accounts grew to 44% from 39%, while those offering insurance services grew to 23% from 14%.

“Mobile money has demonstrated its potential to transform economies and societies, driving financial inclusion and sustainable development worldwide,” said Ashley Olson Onyango, head of financial inclusion and agritech at GSMA. “As the industry has started to mature, it is also clear that mobile money offers a sound commercial proposition. Between 2022 and 2023 the average revenue per user rose 40 percent, validating the recent investment that the industry has seen.”

The report does highlight several adoption barriers though, the main one being – unsurprisingly – lack of mobile phone ownership. This affects women more than men – globally women are 7 percent less likely than men to own a phone.

Perceived relevance, digital skills, social norms, and trust levels are other hurdles that also need to be vaulted.

“To ensure mobile money remains safe, accessible, and affordable, there is a clear need for governments and regulators to work with financial service providers to launch financial literacy programmes that can empower underserved populations and improve their financial decision-making,” Olson Onyango said.
About the Author(s)
Nick Wood

Nick Wood

Nick is a freelancer who has covered the global telecoms industry for more than 15 years. Areas of expertise include operator strategies; M&As; and emerging technologies, among others. As a freelancer, Nick has contributed news and features for many well-known industry

MTN Group and Huawei signed a Memorandum of Understanding (MoU) for a Joint Innovation Technology Lab, aiming to deepen cooperation in technological innovation. The signing ceremony, which held at MWC Barcelona, Spain was attended by senior delegations from MTN and Huawei.

This strategic partnership will see the creation of an Innovation Technology Lab at MTN Group’s headquarters in South Africa. The lab will serve as a neutral platform for collaboration within the Africa’s digital ecosystem, accelerating the development, deployment and adoption of innovative digital solutions driven across the continent.

Together, the two companies will leverage this initiative to focus their research and development efforts on key areas such as 5G and beyond, Artificial Intelligence, Big Data analytics, cloud computing, and digital financial services. The partnership aims to accelerate the time-to-market of MTN’s products and services while addressing the unique challenges faced in Africa, including improving network coverage in rural areas, enhancing energy efficiency, and affordability.

Additionally, MTN’s operational teams will actively participate in the innovation process, ensuring the solutions developed directly address real-world challenges and drive meaningful digital transformation and sustainable development in Africa.

Group Chief Technology and Information Officer Mazen Mroué expressed his enthusiasm about the partnership stating, “The Joint Innovation Technology Lab is more than a partnership between two companies; it’s an investment in the growth of Africa’s digital ecosystem. We believe that collaboration is essential for developing solutions that truly meet the continent’s needs, and this Lab will pave the way for a more inclusive, sustainable, and prosperous future for Africa.”

Li Peng, Huawei’s Corporate Senior Vice President and President of ICT Sales & Service, said, “Huawei will continue innovating with MTN to ensure they have the products and solutions required to best serve Africa’s unique market. This will not only give MTN a competitive edge in terms of network quality, user experience, and rapid deployment, but also help MTN achieve their own business objectives. We believe that this newly-established lab will help supercharge both MTN’s R&D as well as Africa’s digital economy, bringing more prosperity to the African continent.”

This partnership further demonstrates MTN and Huawei’s shared commitment to shaping Africa’s digital landscape, opening new pathways for innovation and digital inclusion, and economic growth.

MWC Barcelona 2024 will be held from February 26 to February 29 in Barcelona, Spain. During the event, Huawei will showcase its latest products and solutions at stand 1H50 in Fira Gran Via Hall 1.

Source: Huawei

The Federal Government of Nigeria is partnering with the World Bank to raise the $3 billion the country needs to ensure full fiber optic coverage. The partnership was revealed by Bosun Tijani (pic), Minister of Communications, Innovation and Digital Economy, during a meeting with stakeholders in Abuja on Tuesday, February 13.

As part of this collaboration, a National Digital Broadband Fund will be established. The funds raised will be used to deploy approximately 95,000 km of fiber optic cable, in partnership with the private sector. The project is expected to be completed within the next three years.

In December 2023, during an interview on the local television channel Channels TV, Mr. Tijani stressed the need to invest in the extension of the national fiber optic network. The minister then expressed a need for around 65,000 km of optical fiber at a cost of between 1.5 and 2 billion dollars. He also made it his mission to seek partners at the World Economic Forum (January 15-19) to improve Internet connectivity in the country.

Furthermore, the Nigerian Communications Commission (NCC) is campaigning with Nigerian states for the reduction of rights of way in order to facilitate the deployment of optical fiber across the country. Katsina, Nassarawa, Anambra, Ekiti states, as well as the Federal Capital Territory have already taken steps in this direction. The current right of way fee in Nigeria is 145 naira ($0.09) per linear meter.

These various initiatives should not only improve the quality and reduce the costs of telecoms and Internet services in Nigeria, but also extend the reach of these services to millions of additional people. According to the latest statistics from the Nigerian Communications Commission (NCC), Nigeria has 223.2 million mobile subscribers. The country also has 162.06 million Internet service subscribers, of which 90.7 million use broadband.

Source: Agency EcoFin

Nigerian telecommunications company Globacom, owned by billionaire Mike Adenuga (pictured), has reached an agreement with the local subsidiary of South Africa’s MTN to resolve their long-running dispute over interconnection debt. This was announced on Wednesday, January 17, by the Nigerian Communications Commission (NCC), which is acting as a mediator between the two parties.

As a result of this agreement, the NCC decided to suspend Globacom’s gradual disconnection from MTN’s network for a period of 21 days while the two companies resolved any outstanding issues between them. The regulator insists that “interconnection debts must be settled by all operating companies as a necessary element to meet the regulatory obligations of all licensees.”

On 8 January, the NCC authorised MTN to partially disconnect Glo from its telecom network for non-payment of interconnection debts, the amount of which has not been disclosed. The regulator then gave the two parties ten days to find common ground. After this time, it would be impossible for subscribers to make calls to MTN, but they will be able to receive them.

MTN had already partially blocked Glo in July 2019 for non-payment of interconnection fees which amounted to N4.4 billion (USD 5.1 million). The suspension lasted for five days and ended when Glo made a partial payment of N2.6 billion and made commitments to settle the rest of the debt.

The NCC says it is “deeply aware” of the potential impacts that Glo’s partial disconnection from MTN’s network will have on telecom consumers and the operation of the national telecommunications network. The two operators alone have around 146.4 million mobile subscribers for a combined market share of 63.44%, according to the latest statistics from the NCC. The rest of the market is split between Airtel and 9mobile.

Source: Agency EcoFin

Safaricom, Kenyan telco, has approached the government for help in classifying telecommunications equipment as critical infrastructure. This comes in the wake of an uptick in vandalism recorded around the country.

Safaricom CEO Peter Ndegwa highlighted during the unveiling of Kenya’s first device assembly plant that the sector has collectively invested in modern infrastructure that is prevalent across the country.

Vandalism to fibre cables has been one of the primary reasons of frequent Internet and telephony disruptions in some locations around the country.

”We seek your help in categorising telecommunications infrastructure as vital infrastructure to support your government’s aim of building 100.00 km of fibre optic cable across the country,” he said.

”This will allow for further investment to speed up the roll-out of fibre cable across the country,” he added.

The Safaricom CEO’s proposal comes at a time when Kenya’s Information, Communications, and Digital Economy Minister Eliud Owalo is pressing for the passage of a critical infrastructure bill to protect the country’s ICT systems and networks.

The bill, which has been in the works since 2015, aims to defend critical infrastructure from threats like terrorism, espionage, and sabotage.

It recommends severe penalties and prison sentences of up to ten years for anybody caught destroying essential infrastructure. Power lines, fibre optic cables, highways, and data centres are all part of this infrastructure.

In an earlier interview with Kenya News Agency, Owalo stated that the government has invested billions of shillings to build ICT infrastructure, adding that with ongoing last-mile connectivity, emphasis on asset protection is critical for the benefit of all Kenyans.

” The current happenings and vandalism on critical infrastructure, including but not limited to power lines, substations, off-grid generation stations, repeater stations, data centres, roads and related infrastructure, information, communications and technology sector installations, security facilities and oil pipeline infrastructure call for scaling up of efforts and goodwill towards passing the pending Bill into law,” the minister said.

Source: IT Web Africa

The Nigerian government wants to accelerate the development of the country’s digital economy. To achieve this, the executive wants to focus on strengthening the technical capacities of young people.

The Nigerian federal government has signed a billion naira ($1.3 million) deal with telecommunications infrastructure company IHS Towers to build learning communities across the country. The partnership was unveiled on Monday, October 23, by Bosun Tijani, Minister of Communications, Innovation and the Digital Economy.

Under the terms of the agreement, IHS Towers will also pay the salaries of 37 learning community managers for each site over the next three years.

This partnership is part of the Federal Government’s “3 Million Technical Talent (3MTT)” program which aims to train 3 million Nigerians in technical skills over the next three years. Applications for the first phase of the project opened on October 13. It targets 30,000 people who will be trained to use technology to improve various areas, without having to create that technology.

These include digital marketing, project management software, navigating cloud platforms, data analysis and visualization, digital marketing, search engine optimization (SEO) , customer relationship management (CRM), accounting software, graphic design and UX/UI design…

Source: Agence ecofin

Five countries have issued a statement of intent to foster greater collaboration on telecoms matters, the main areas of which appear to be Open RAN, 6G, and China related security concerns.

The Global Coalition on Telecommunications (GCOT) is a sync-up between individual government departments with telecoms in their remit – namely the Department for Science, Innovation and Technology in the UK; the Department of Infrastructure, Transport, Regional Development, Communications and the Arts in Australia; the Department of Innovation, Science and Economic Development in Canada; the Ministry of Internal Affairs and Communications in Japan; and the National Telecommunications and Information Administration in the US.

The goal of the collaboration is to make sure the included countries are all on the same page with regard to policies relating to current and future telecoms technology. Specifically, the coalition will look to:

Increase cooperation and coordination between the GCOT partners on telecommunications, including by improving information sharing with a view to ensuring complementary national approaches
Build broader international consensus on key areas of telecommunications policy in support of our shared objectives
Enable dialogue between policymakers, industry, and academia
Promote innovation and growth opportunities for industry

What this means in practice is that a GCOT steering group is expected to meet twice per year, with one in-person and one virtual meeting every six months, to discuss the listed areas of corporation, the scope of which includes information sharing, joint R&D, funding alignment, the development of standards, skills, supply chain diversification, security, and 6G.

“Ensuring the security, resilience, and innovation of telecommunications networks is a global issue. The international community needs to work together to foster diverse supply chains, secure and interoperable standards, and innovation – including for the development of future telecommunications technologies such as 6G,” reads the announcement.

With regards to sharing information, the most achievable thing for such a group to commence with, the release states:

“We plan to use the GCOT as a forum to exchange information on our respective policy approaches to telecommunications, including telecommunications supplier diversity, future telecommunications, and related security considerations. We also plan to encourage information sharing between our respective testing and research facilities whilst exploring opportunities to reduce challenges around sharing of research and intellectual property management. We further intend to inform the GCOT’s efforts through meaningful engagement with industry stakeholders and to promote sharing of relevant information directly between these actors as they deem appropriate.”

Telecommunications supplier diversity, future telecommunications, and related security considerations can be interpreted as Open RAN, 6G and China, respectively, which are the main hot potatoes in the industry.

The announcement comes hot of the heels of a statement by the European Commission in which it highlighted four technology areas it intends to be more protectionist over. It recommended that member states work with it on risk assessments covering advanced semiconductors, artificial intelligence, quantum technologies, and biotechnologies, and these are just the first of ten sectors it intends to identify.

Neither announcement mentions China by name but that country is consistently the main focus when it comes to conversations about telecoms security in Europe, the US and elsewhere.

At the moment the GCOT has just announced a statement of intention to collaborate more, whether that ends up being a series of joint statements mirroring or replacing those individual government departments put out already, or something entirely more tangible, we will have to wait and see.

MTN Nigeria reaffirms commitment to expand critical infrastructure and promote digital and financial inclusion with government partnerships.

The successful contribution to the Enugu-Onitsha Expressway’s completion under the Road Infrastructure Tax Credit Scheme (RITC) underscores this commitment.

The company remains steadfast in its collaboration with the government to promote widespread broadband access and facilitate financial inclusion through MoMo.

Source: Techh Africa News

ICASA led the auction of South Africa’s broadband telecoms spectrum from March 8 to 17, 2022. The transaction involved six telecoms operators and raised R14.4 billion.

South African telecoms operators have until the end of October to pay fees owed to the Independent Communications Authority of South Africa (ICASA) as part of the spectrum auction held in March 2022. This was revealed by Peter Zimri (photo), ICASA advisor, during the Telecommunications Regulatory Authority’s presentation to the Public Enterprises and Communications Committee of the National Council of Provinces (NCOP).

It was on March 17, 2022 that ICASA finalized the auction sale of broadband telecoms frequency spectrum in which Telkom, Vodacom, MTN, Cell C, Liquid Intelligent Technologies and Rain participated . These operators acquired additional capacities for a total amount of 14.4 billion rand (745.26 million USD at the current rate). Although the initial fees have already been paid by the operators, some payments are still pending.

“  This is because at one point mobile network operators were unable to have all the available frequencies that we auctioned. As of July 31, we have successfully migrated all broadcasters in the band above 694 MHz, so that all available spectrum lots that were auctioned last year are now available to mobile network operators  said Philly Mapulane, Deputy Minister of Communications and Digital Technologies.

After the set deadline, ICASA could sanction the offenders. This could include financial sanctions or withdrawal of the spectrum license.

Failure to pay fees could also slow government investment in the sector. South Africa’s Department of Communications and Digital Technology (DCDT) plans to reinvest R4.4 billion from the broadband spectrum auction into the telecommunications sector.

Source: Agence Ecofin