EA mobile phone market to experience a period of growth

Intensified competition has meant that monumental amounts have been invested into new infrastructure, but it has also led to an unsustainable price war.

ARPUs in Uganda, which is host to five mobile firms, have already started to fall as competition nips into profits, calling for a realignment in business operations for operators.

Orange Uganda recently selected Alcatel-Lucent to build, operate and manage the Orange Uganda mobile network, by providing technical support, repair, field maintenance, and program management services.

“Our goal is to focus on our core business, and Alcatel-Lucent helps us achieve this by providing a comprehensive maintenance services portfolio, global delivery capability, and strong technical skills we need to help us deliver enhanced services more reliably to our customers,” said Philippe Luxcey, CEO of Orange Uganda.

Similar developments are taking place in Kenya, where a similar infrastructure deal was signed between Zain and Nokia-Siemens.

Frost says Kenya’s growth rate is set to decline as the market nears saturation, with the country expected to enjoy just 17.6 per cent growth in its annual compound growth rate.

Data use has also surged over the last year, with the number of mobile Internet users overtaking those accessing through traditional means in just 12 months.

“Despite tough economic times in the past year, people continue to adopt technology such as mobile browsing especially when it helps them overcome their hardships,” said Jon von Tetzchner, CEO Opera Software.

With players in all markets facing declining ARPUs, Frost recommends adopting data services like mobile Internet access by leveraging the revenue-generating ability of mobile handsets and increasing minutes of service usage.