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PDAStreet.com > Features > Africa: Fertile and Fallow Ground for Mobile Carriers

Africa: Fertile and Fallow Ground for Mobile Carriers

By Colin Haley
October 7, 2003

There's a story about two salesmen scouting Africa for rival shoemakers.

"There is no market here, no one wears shoes," the first salesman tells his home office. His rival, however, sizing up the same situation, calls to report: "There's tremendous market potential here, no one wears shoes."

While apocryphal, the anecdote illustrates the conflicting views of doing business on the continent.

Advocates of bringing mobile communications services to the region point to large populations and pockets of education as elements needed for market growth. Skeptics contend Africa is too scarred by colonialism, corruption, war, disease and debt to be an attractive consumer market any time soon.

Historically, oil companies, mining and agriculture exporters have managed well enough, and there have been some manufacturing successes. Now, technology companies -- especially mobile telecommunications carriers and suppliers -- are taking a hard look at the continent, especially as markets in the United States and Europe mature.

By the end of 2002, only three countries -- Comoros, Eritrea, and Guinea-Bissau -- did not have access to mobile phone services, according to Paul Budde Communications, an international telecom research and consulting firm. In 30 countries, the number of mobile phones outnumber fixed lines.

The mobile sector is open to competition in 66 percent of the countries with between two and five operators, Budde Communications reported.

 
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