SBA Communications Telecom Advisory Services released a pioneering white paper titled "The Independent Tower Industry as a key enabler of the development of African telecommunications." This comprehensive document, the first of its kind for Africa, covers 14 African countries and focuses on the relationship between tower deployment and mobile sector performance from 2010 to 2022.
The econometric models consider variables such as 4G coverage, mobile broadband adoption, quality of mobile service, level of competition, and affordability of mobile service.
Authored by a team of industry experts, it explores key aspects of the African wireless industry, including the expansion of 4G and 5G networks, broadband adoption, wireless competition, and wireless capital spending. It also explores the critical role of passive infrastructure sharing in the development of the African wireless telecommunications industry.
"The whitepaper highlights the significant impact of independent tower companies on wireless connectivity in Africa, with countries exhibiting better coverage, use, affordability, and quality of wireless connectivity when there is a larger share of independent tower companies,” explains Dr Raul Katz, one of the authors and president of Telecom Advisory Services.
Key Statistics:
- A 10% increase in the number of independent towers is associated with a 7.82% improvement in mobile affordability.
- Independent tower companies contribute to better 4G coverage and access, with country leaders showing 8.09 percentage points higher coverage than the rest of the countries.
- Improved infrastructure sharing regulation can lead to increased 3G/4G coverage, resulting in an increase in unique mobile broadband users and positive impact on economic indicators.
Benefits of the tower industry
The tower industry plays a key role in the IoT and smart cities market spaces, presenting new opportunities for growth and innovation. The development of an independent tower industry is fundamental for the development of telecommunications in African countries, leading to improved service penetration.
Enhancing the telecommunications sector in Africa requires proactive policies and regulations that incentivise the development of the tower industry. By implementing the recommendations outlined in this white paper African governments can maximise the potential of tower deployment, promote competition, and support the future growth of 5G networks.
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. The Telecom Advisory Services is a consulting firm registered in the state of New York specialising in the development of business and public policy strategies in the telecommunications and digital sectors.
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