Inspired by a recent Reuters article on what attracts telecoms operators to African markets, we decided to summarize both the appeal of doing telecoms business in Africa, along with the turn-offs.

The good:

• stiff competition in open markets
• bidding competition among multinational operators based in China, India, Europe
• new cheaper smartphones
• growing corporate market
• promise of mobile
• middle class is growing
• large populations offer scale
• oil-rich nations provide an extra economic base
• post-revolution Libya and Tunisia are in a rapid growth phase

The bad:

• poor infrastructure
• fragmented markets (ie. Africa is a series of countries and not one uniform continent)
• consumers in Africa tend to spend between $1 to $10 per month on telecommunications, far less than in Europe or the U.S.
• high cost of running networks (due to poor infrastructure)
• unpredictable regulation
• limited middle class
• companies are worried about the safety of their employees
• slashed prices for consumers have little impact in terms of how many calls are made or texts are sent