Hello podcast listeners. It's Tuesday, which means there's a new episode of TeleGeography Explains the Internet hot off the press.
Our latest guest is Waheed Adam, Global Board Director of the Mobile Ecosystem Forum and Executive Chairperson at iTouch Messaging Service. He was a fantastic guest who brought a wealth of knowledge—and some really excellent stories—about mobile adoption as infrastructure in Africa.
Punch the play button below if you'd like to hear his chat with host Greg Bryan and Senior Research Manager Patrick Christian.
The trio touches on mobile-first economies, the role of hyperscalers/data centers in Africa, and the future of African telecom.
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Key Takeaways
Mobile technology has served as a crucial substitute for physical wireline infrastructure in Africa.
Due to the vast geography of the African continent and the significant financial burden of deploying traditional wireline infrastructure, especially in less wealthy countries, mobile penetration rates have far outpaced fixed wireline penetration.
In many African countries, mobile penetration rates are above 100%, while fixed wireline penetration is often in the single digits. This rapid adoption occurred because mobile communication, even if initially expensive compared to other regions, offered unprecedented convenience and was cheaper than previous methods for communication and travel.
The invention of prepaid airtime, originating in South Africa to serve the unbanked market, was a key innovation that facilitated wider mobile adoption. Even today, while there is some growth in fiber to the home in urban areas, mobile broadband remains the primary form of internet access, especially in rural and outlying urban zones, often serving as the "last mile" solution even where fiber reaches main areas.
The "mobile-first" economy in Africa has spurred innovation and economic growth.
The reliance on mobile due to the lack of traditional infrastructure has created a laboratory for innovation driven by necessity. A prime example comes from Kenya, where a mobile money solution thrived because the country lacked robust retail banking infrastructure, unlike South Africa where similar initiatives failed. This mobile wallet technology enabled informal traders, such as a woman selling bananas by the road, to accept digital payments and even access microcredits, dramatically increasing business and contributing significantly to Kenya's GDP. These innovations, born out of African needs, have the potential for utility and adoption in other regions globally.
Africa presents an opportunity due to its young, tech-savvy population and growing digital ecosystem.
With a population of 1.4 billion and an average age of 20, Africa has immense potential, with a generation that has grown up in a semi-digital world and readily adopts mobile technology. The continent is increasingly attracting international investment, including innovation hubs and funds, recognizing the opportunity in this young, growing market.
Content providers are also moving in, building data centers and increasing intra-African connectivity, which reduces reliance on international links (like those going to Europe), lowers costs, and improves performance. To fully capitalize on this potential, operators need to shift their focus from immediate profit mandates to sustainability and inclusion, potentially making less profit initially to stimulate the economy for long-term gains. Governments also play a critical role by facilitating policy, streamlining regulations, ensuring timely spectrum allocation, and potentially subsidizing infrastructure to promote growth.
Collaboration among networks, regulators, and other industry players is seen as essential for addressing shared challenges like fraud and driving collective progress.
