By Willem Wentzel | Head of Wireless at NEC XON African networks and CSPs want to expand coverage and grow the subscriber base Mobile networks and communication service providers (CSP) in Africa need a cost-effective way to add hundreds of millions more subscribers to their networks. They do not need to add complex new services that demand the nth degree in low latency, high network throughput, and blazing speeds to support use cases that, while they may capture imaginations, offer limited commercial feasibility in Africa. This is why Open RAN adoption is accelerating. It enables cost-effective ways to integrate legacy equipment, integrate existing equipment, and share infrastructure in architectures that enable scalability, development, and innovation. GSMA reports that by the end of 2020 there were 495 million people in sub-Sahara Africa subscribed to mobile services. They expect that to top 615 million by 2025. By their reckoning, 28% will be 4G and 3% on 5G by then, and they will contribute $155 billion in economic value. However, mobile money transactions alone did $490 billion in 2020 already. That level of service is clearly in demand. To serve it, operator revenues are expected to exceed $56 billion on a Capex of $45 billion by 2025. New revenues come from change However, mobile operators and CSP best practice traditionally saw them build their networks using proprietary equipment, usually from a single vendor. It made sense because there were few integration challenges. The considerations, though, are that the approach is expensive, doesn’t always offer the best means for performing a given function, and locks the customer into the vendor’s technology as well as their roadmap. That leaves little opportunity to be agile to shifting market conditions and requirements. It also limits the possibilities for innovation and gaining a march on competitors. While the numbers of mobile subscribers in Africa are impressive, GSMA’s State of the Mobile Internet Connectivity 2020 report showed that one in four Africans still had no network coverage. It’s also interesting to note that the number of cumulative 3G and 4G connections only surpassed 2G connections in 2019, even though 2G was released back in 1991. Technology meets business models In my column on this topic published on ITWeb, I wrote: “Front haul solutions that are based on Ethernet provide a way to integrate 5G with legacy technologies and converge the network from one end to the other. It creates a common backplane across the generational spectrum that extends the usefulness of existing network investments throughout the network, provides an upgrade path, and creates customer growth opportunities.” This capability is enabling Open RAN integration of legacy equipment with a roadmap to 5G and is essentially what prompted Telkom Kenya Limited’s new network rollout announcement late last year. Putting it into practise Mugo Kibati, CEO of Telkom Kenya Limited said in November 2021, “We continue with our long-term terrestrial network expansion plan that is informed by our overall company strategy, which will see us scale up to 80% of our network to 4G, increase our network footprint across the country, and get more Kenyans online.” TLK will expand its coverage, be able to grow the subscriber base, serve more customers, and offer new services. They’re already looking at serving hundreds of learning institutions and medical facilities in addition to their consumer subscriber base. Regardless of which markets they specifically choose to serve, the model facilitates their agility and scalability so that they can tackle the future of Africa’s mobile markets with greater confidence. It’s very similar for many MNOs and CSPs across Africa, expanding coverage, growing the subscriber base, and offering the right level of services to the greatest majority of users. If you’re at a mobile operator or service provider talk to me. We can have a two- to four-hour discovery workshop. You can meet our local and global experts and together develop a picture of your journey to Open RAN. Leave a Reply. |
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30/8/2022
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