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New Cables Will Kick-Start Africa's New Broadband Era, Pyramid Research Finds
Total broadband adoption
in Africa will increase at a CAGR of 28 percent through 2013 as new undersea
cables boost Africa's international bandwidth, reducing the number of coastal
countries without any cable access from 19 to one, according to a new report
from Pyramid Research (www.pyr.com), the telecom research arm of the Light
Reading Communications Network (www.lightreading.com).

Africa Connects: Undersea Cables to Drive an African Broadband Boom describes
in detail the upcoming evolution of Africa's international bandwidth market,
as five major new cables and a host of smaller ones are deployed and launched
over the next three years. The 15-page report then discusses how this
increase in capacity will affect African broadband end users, driving adoption
of fixed and mobile broadband by reducing tariffs by up to 72 percent.
Finally, it examines how this changed environment will affect African
broadband operators and looks in detail at two key markets, Egypt and Kenya,
to see how their contrasting regulatory environments will affect the impact of
the newly available bandwidth. Download an excerpt of this report here:
http://www.pyr.com/downloads.htm?id=5&sc=PR090309_INSAME1.6

The biggest change to African telecom markets over the next three years will
be invisible. "Twelve new undersea cables planned for launch between third
quarter 2009 and mid-2011 will remove the most serious obstacle that has
historically prevented operators from taking advantage of Africa's great unmet
demand for broadband services," says Dearbhla McHenry, analyst at Pyramid
Research and author of the report. "As a result, the cables will increase
Africa's total international bandwidth from about 6 Tbps to as much as 34 Tbps
and will reduce the number of coastal countries without any cable access from
19 to one," she adds.

"Through the end of second quarter 2009, 40 percent of continental Africa's 47
nations had no direct cable connections at all, forcing operators to rely on
expensive satellite links," McHenry explains. "The combination of heavy
reliance on satellite and monopoly control of local access to undersea cables
meant that prices were also astronomical: Rates for SAT-3, for example, are
about US$4,500 to $12,000 per Mbps per month, which is more than 20 times more
expensive than bandwidth prices in the U.S.," she says.

The quintupling of Africa's international bandwidth will support the upcoming
boom in African broadband adoption by increasing capacity and bringing down
prices for end users. "By early 2011, we expect that more than half of all
African markets will have 3G, while broadband coverage is increasing daily via
both wireless and wireline technologies," McHenry comments. "We forecast that
total broadband adoption in Africa will increase at a CAGR of 28 percent from
2009 to 2013, as increased competition in the international bandwidth market
brings down prices and as new cables support the corresponding increase in
demand."

Africa Connects: Undersea Cables to Drive an African Broadband Boom is part of
Pyramid Research's Africa and the Middle East Telecom Insider report series.
This report is priced at $595 and can be purchased online here:
http://www.pyramidresearch.com/store/ins_ame_090821.htm?sc=PR090309_INSAME1.6
or by contacting Amalia Vega via email at avega@pyr.com.

For more information about Pyramid Research's products and services, please
visit www.pyr.com or contact us at info@pyr.com.

About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries -
a distinction that has remained unmatched for more than 25 years. As the
telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's
most comprehensive market data, trusted research and insightful technology
analysis.

About Light Reading
Founded in 2000, Light Reading (www.lightreading.com) is the leading online
media, research, and focused event company serving the $3 trillion worldwide
communications market. Lightreading.com is the ultimate source for technology
and financial analysis of the communications industry, leading the media
sector in terms of traffic, content, and reputation. Light Reading's research
arms, Heavy Reading and Pyramid Research, provide the most comprehensive
communications research, market data, and technology analysis in close to 100
markets around the world. Light Reading produces nearly 20 targeted
communications events including TelcoTV, Ethernet Expo New York and Ethernet
Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused
one-day events tailored for cable, mobile, and wireline executives. Light
Reading was acquired by United Business Media in August 2005 and operates as a
unit of TechWeb.

About TechWeb
TechWeb (http://techweb.com/aboutus), the global leader in business technology
media, is an innovative business focused on serving the needs of technology
decision-makers and marketers worldwide. TechWeb produces the most respected
and consumed media brands in the business technology market. Today, more than
13.3 million* business technology professionals actively engage in our
communities created around our global face-to-face events, Interop, Web 2.0,
Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light
Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The
Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology
magazines. TechWeb also provides end-to-end services including next-generation
performance marketing, integrated media, research, and analyst services.
TechWeb is a division of United Business Media, a global provider of news
distribution and specialist information services with a market capitalization
of more than $2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM's businesses inform markets and serve
professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated
events, online, print, and business information products. Our 6,500 staff in
more than 30 countries are organized into specialist teams that serve these
communities, bringing buyers and sellers together, helping them to do business
and their markets to work effectively and efficiently. For more information,
go to http://www.unitedbusinessmedia.com.

Media Contact:
Jennifer Baker
+1-617-871-1910
jbaker@pyr.com




SOURCE Pyramid Research

Jennifer Baker, +1-617-871-1910, jbaker@pyr.com
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Reply    Favorite    Flag as Abusive    Posted at: 9/6/2009 12:14:02 PM
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