Internet News South Africa

African telecoms bet big on next-generation LTE

Reuters reports that Africa-focused telecom companies are betting that next generation long-term evolution (LTE) technology will drive broadband penetration in the world's least developed and fastest growing internet market.

LTE, also known as 4G, allows download speeds more than double those of current 3G technology, better reception in urban areas and coverage of previously hard-to-reach remote areas. The technological advances will be critical in Africa, where most Internet access is via mobile phones.

"As far as telecoms technologies are concerned, Africa has been moving very fast over the past five years, catching up very rapidly with the latest mobile technologies," said Thecla Mbongue, an analyst at telecoms research firm Informa. With some basic smartphones now selling for as little as $50, operators see fast connections as the main edge in the race to tap increasingly tech-savvy users. Pan-African operators MTN and Vodacom are piloting the technology in South Africa, and Kenya's biggest player, Safaricom, is also testing in its market. According to a survey by industry body GSMA, Africa is the fastest-growing mobile phone market and will be home to 738 million handsets by the end of 2012.

The rise of 3G has given millions of Africans internet access for the first time. The World Bank estimates that in Africa a 10 percent rise in broadband penetration is linked to a 1.3 percent increase in economic growth. Speaking to Reuters, Ericsson's head for sub-Saharan Africa Lars Lindén says the company is in talks with MTN, Vodacom, and Bharti Airtel on commercial networks that could go live in 2012. "It's a very hot topic on the agenda. The question is who will be the first one out and in what market?" Lindén said. "Sooner or later everyone will jump on the train and it will become part of the telecommunications landscape," he added.

Read the full article on www.reuters.com.

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