Currently only 60% market potential captured, huge growth potential according to Solon experts
The Sub-Saharan African B2B telecommunications market is expected to grow at 13.1% CAGR over the next five years to a total of $9.9bn in 2019, far exceeding the growth available in B2C markets.
But fixed and mobile operators are leaving $2.2bn of value on the table by either not properly serving SME customers, or not serving them at all, leaving the door open for new competitors to enter the market.
These are the key results of a new white paper by Solon Management Consulting, showing the enormous market potential to be unlocked in Sub-Saharan markets.
Operators must act now: they have to develop their services and operational capabilities to meet the needs of the B2B market segment and make the most of the forecasted growth or risk leaving cash on the table and a valuable market niche open for new competitors. Operators will need to focus specifically on the SME sector which makes up the bulk of the opportunity, representing two thirds of the expected market potential in 2019. Yet today, many operators show significant weaknesses in serving this market segment.
Dan Lerner, Managing Director at Solon, and leader of the firm's Africa business, says: "The growing SME sector is a business area that has been overlooked for a long time by traditional telcos. These clients are often served with B2C solutions or are currently not served at all. To capture the full potential, telco operators need to improve both their products and sales strategy."
The white paper shows five key areas that need to be considered in order to address the full B2B opportunity: 4G, metro fiber, SME focused mobile services, data center space, resale of cloud services.
The findings are based on an in-depth Solon market model covering all of Sub-Saharan Africa which forecasts the B2B market potential (excluding South Africa).
The white paper "African B2B telco $2bn of underserved demand today, growth of 26% p.a. ahead" is available to download: www.solonstrategy.com.
About Solon Management Consulting:
Solon Management Consulting supports companies that are active in the media, entertainment, telecommunications and technology industries. Solon advises leading media and telecoms firms as well as banks and private equity investors. Solon works with clients on the development and implementation of company strategies, creation of new business, performance improvement and capital market transactions. With offices in Munich, London and Warsaw, and together with its US partner Altman Vilandrie Company with offices in Boston, New York and San Francisco, Solon works on projects across Europe and Africa as well as across the Americas.
Contacts:
Contact:
Solon Management Consulting
For further information or an interview with one of the authors,
please contact
Yasmin Aktas: +49 89 210388-0
or yasmin.aktas(at)solonstrategy.com