Africa’s population passes 1 billion mark, set to have a ripple effect on African wireless market

A recent report published by the Population Reference Bureau (PRB), in association with the United States Agency for International Development (USAID), revealed that Africa’s total population passed the 1 billion mark in 2009, growing by 24 million per year. By 2050, Africa’s youth population is expected to reach 349 million, capturing 29% of the global youth population, against 12% today.

These statistics point to the tremendous growth potential of the African wireless market, which currently has 300 million wireless subscribers. That market remains essentially untapped with a low penetration rate (less than 50 percent versus more than 100 percent in some developed countries such as Italy, or close to 90 percent in the US). The African youth population has now become a driving force for the African wireless industry. Teens and young adults tend to be over-represented in mobile data spending and usage. As the average revenue per user (ARPU) increases in the coming years and as carriers upgrade to faster networks and improve coverage (especially in rural areas), the African wireless market is set to experience strong growth.

Many foreign wireless companies (especially those in the US) do not see the African continent as a strategic market. As it gains momentum, and as wireless coverage and infrastructure improve driving African wireless growth, these companies may realize, too late, their mistake.

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Julien Blin is the CEO & Principal Analyst at JBB Research (www.jbbresearch.com), a research and consulting company focusing on the wireless space. He is an experienced former IDC Wireless Analyst. He is frequently quoted by leading and newswires like The New York Times, WSJ.com, Business Week, etc. He specializes in 3G/4G mobile apps/services, network technologies (e.g. LTE, WiMAX), the U.S, Europe, and emerging markets (e.g. Africa, Middle East, South America, and China).

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