The public WiFi market in sub-Saharan Africa is set to see massive growth on the back of the exponential rise in the number of Internet users and overall broadband services.
Despite investments in 3G and 4G networks, service providers are expected to rely on WiFi to offload some of the data, especially in megacities where networks face heavy mobile traffic congestion.
New analysis from Frost & Sullivan, Strategic Analysis of Public WiFi in sub-Saharan Africa, finds that high mobile Internet penetration rates in South Africa, Nigeria and Kenya offer huge opportunities for WiFi vendors.
“The evolution of several megacities into smart cities in sub-Saharan Africa is laying the foundation for the adoption of smart building and smart grid solutions across the continent,” said Frost & Sullivan Information & Communication Technologies research analyst Lehlohonolo Mokenela.
“As a result, device manufacturers are focusing on the development of WiFi enabled devices for use in smart solutions, quickening the march towards greater WiFi penetration.”
Traditionally, Internet service providers and specialist WiFi providers have dominated the deployment of WiFi hotspots in sub-Saharan Africa, while mobile operators have previously avoided migration due to concerns of it cannibalising mobile data revenues. There are, however, increasing signs of operators turning to WiFi as an alternative opportunity to generate revenue or boost service quality.
Due to a limited hotspot footprint, operators will need to build their own WiFi networks or partner with established WiFi providers. Providing WiFi access in prime locations, such as airports and restaurants, will help improve customer value and reduce subscriber churn.
“In the long-term, operators should consider offering their customers a seamless handover of data access between WiFi and cellular networks,” advises Mokenela. “To that end, they will need to address security, service quality, billing and cost differentials between the networks to ensure a consistent experience for customers.”
