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Gaps for bridge-builders
Telecommunications still offers plenty of opportunity for operators in Africa as only half of the continent's 800m population are connected to a service. In some countries, penetration is as low as 27%. According to the SA Internet Service Providers' Association website, more than 100 of its 157 members are small operators. This means there is competition, but Frost & Sullivan mobile communications analyst Lindsay McDonald says there is still scope in Africa. She believes new operators should target rural areas and poor people who are being left behind by the bigger operators. Former MTN executive Irene Charnley, who helped acquire communications licences in Iran and Nigeria and operations in Côte D'Ivoire, Congo Brazzaville and Zambia, says an important step would be for local banks to strengthen partnerships across Africa, as funding will be needed to drive growth. "We need to make a difference in the next five years. There is room for more co-operation in the business sector in Africa," she says. Charnley's new venture, Smile Telecoms, aims to bridge the digital divide through the provision of easily accessible and affordable communication services. She says the secret to success is building strong relationships and providing suitable technology and products. Building bridges often entails a government's support for a venture, she warns. Charnley agrees that opportunities are "huge" in Africa, but says the needs of companies differ. Some may have to use their relationships with vendors to reduce costs. Smile offers free telephone numbers and voice message boxes to customers, whether they own a handset or not. Customers get a personal identification number. The company already operates in Uganda, Nigeria, Congo and Tanzania. McDonald agrees there are gaps in the huge African market and adds that similar opportunities are now emerging in the Middle East. Closing the gaps left by the big operators could turn out to be rewarding for quality operators.
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