The rapid expansion of mobile telecommunications in Africa is seeing operators turn to innovative technologies in the scramble to reach new areas and grab market share, according to recent industry research. Gateway Communications says that it has seen a huge increase in demand for its turnkey network solutions over the last few months. Gateway controls the design, implementation and management of networks on behalf of mobile operators.
The potential cost savings of network outsourcing were highlighted in a recent report from Pyramid Research, which showed that it could reduce mobile operators' costs by 20 to 25 per cent. The authors predict that operators will increasingly take advantage of outsourcing globally and Gateway says this is particularly true for Africa, where they are driven by the need for cost-effective, rapid network deployment in reaching new subscribers in new geographies.
In an expanding mobile telecoms market the first operator to establish coverage gains a huge advantage over subsequent entrants, because users are signed up to long contracts and there is inertia in moving to new networks. It is imperative, therefore, for operators to roll-out their technology as quickly as possible to beat the competition.
The company's service incorporates the design, installation and management of the physical satellite network. Recent projects have been undertaken in DRC, Burkina Faso, Madagascar, and Kenya. In Zambia its specialist expertise has been used by Celtel to roll out its network over the last six months. Since then it has achieved a market-leading position with 900,000 subscribers and now covers all of the country's 72 districts. Just-released government statistics show that Zambia has experienced "significant growth", which is attributed to the expansion of network coverage, primarily through Celtel's programme.
David Venn, managing director of Celtel Zambia, said "Celtel Zambia had worked with Gateway Communications in Zambia in the initial stages of this project, and their local expertise, bandwidth capacity and technical knowledge enabled the rapid roll-out of our network. In just six months we extended coverage from 35 to all 72 Zambian districts. The project is proving to be a huge success, with subscriber numbers showing strong growth, as rural subscriptions drive further urban subscriptions. Mobile phones are making a huge difference to the lives of African people and both Gateway and Celtel continue to encourage development."
Satellite and microwave are the logical solution for the challenges of reaching new communities in Africa, particularly remote ones, and are the only viable alternative to cable. However, the need to build base stations in a controlled and cost-effective way means that operators are increasingly outsourcing the complex task to specialists.
Commenting on this trend, its chief executive Peter Gbedemah says "The explosive growth in mobile telecommunications is fundamentally changing the way Africans live their lives and run their businesses. There are massive opportunities for operators to grab their share of the market but also great challenges in quickly creating connections where none exist."
Building remote connections is a complicated logistical process that needs to be managed professionally if it is to be achieved on time and cost effectively. Gateway's turnkey solutions cover everything from the design of the most cost-effective technology, procurement, installation and on the ground project management, to the less obvious such as the cost-effective management of the logistics and the ownership of technical equipment. Mr Gbedemah adds:
"Our unique understanding of the diverse and fragmented nature of Africa and our expertise in satellite communications means it is an exciting time for us as we help to build the infrastructure for the future."
Posted to the site on 1st August 2006
Posted to: www.cellular-news.com/story/18590.php