Demand for New SIMs Soars as Africa’s mobile Telecommunications Market Continues to Grow

Frost: The African telecommunications market will continue to experience significant growth as new subscribers sign up and mobile operators introduce new services. Even as promising growth opportunities emerge, SIM suppliers will need to find ways of making their products more cost effective to register substantial growth in the subscribers markets. Moreover, they will need to work on developing reliable, high quality SIM cards.

Africa’s mobile telecommunications sector is booming as the demand for communications increases. In such a competitive industry, SIM suppliers need to maintain high standards of service and quality to ensure client retention.

The need for effective communication has pushed the African mobile telecommunications sector into high growth rates. A lack of fixed line infrastructure means that mobile telephony is the only alternative and the issuance of low denomination prepaid vouchers has made the service more affordable while also supporting wider accessibility.

Two pervasive problems across Africa – poverty and continuing conflict – are having a profoundly negative effect on overall economic growth in the region. These dual trends are affecting the telecommunications sector as well.

Operating in conflict areas is high risk and can be costly. It is essential to measure the risks of Africa against the potential gains.

African mobile operators have needs that are unique to the market in which they operate. For instance, there is an increased emphasis on the production of low cost handsets.

SIM manufacturers need to ensure that they can meet the requirements of operators and provide them with products that are reliable and cost-effective, advises Mc Donald. These are the two most important factors for African mobile users.

The African GSM End User Survey Publ 20061026