An Ovum analyst has said African regulators are failing to assist the rollout of broadband to rural areas, with the spread of broadband set to be the driver of African growth.
Richard Hurst, senior analyst emerging markets at Ovum, told the Annual Broadband Summit regulators needed to rise to the challenge and do more to assist the process.
“It’s fair to say regulators are struggling to understand the best way of going about it, but the high cost of mobile broadband is a damning indictment of their abilities,” he said.
He said there were opportunities to be found in the spread of mobile broadband from urban areas to the hinterland.
“The opportunity still remains, despite the fact there is mobile penetration of 60 to 70 per cent, we believe there is still growth in these markets,” Hurst said.
“The challenge is taking this broadband and moving it into the hinterland, and that’s where the opportunity is.
“Growth markets are maturing. This is the elephant in the room that everybody is talking about. As we move towards a data-dominated world network volumes will rise while costs go up.”
He said Ovum believes operators should seek both more capacity and more coverage in the search for new subscribers.
Rolling out broadband to rural areas was not without its challenges, he added. These include backhaul issues as well as lack of power, radio access and adequate infrustructure.
But Hurst believes these challenges can be overcome for the benefit of African economies.
“Properly nurtured, mobile broadband can be the engine of growth for the African continent,” he said.
