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Africa Backbone & Metro Fibre Networks Market 2018: A Reference Report for All Stakeholders and Investors in the African Connectivity and Internet Infrastructure Markets

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Africa Backbone & Metro Fibre Networks Market 2018: A Reference Report for All Stakeholders and Investors in the African Connectivity and Internet Infrastructure Markets

PR Newswire

DUBLIN, Aug. 22, 2018 /PRNewswire/ --

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The "The Future of African Backbone & Metro Fibre Networks" report has been added to ResearchAndMarkets.com's offering.

This report is the outcome of years of accumulated research, data, and insights, provides an unprecedented view into the dynamics underpinning the African terrestrial fibre market. It is also about how, and where to generate investor value in this mishmash of opportunity and risk. And finally, and perhaps, most of all, it is about whether Africa will, at last, solve the mother of all bottlenecks, and what this means for individual countries' ability to partake in the next industrial revolution.

For the past two decades, the availability of affordable terrestrial fibre capacity has been one of the biggest obstacles to the development of the African Internet, a problem so complex few markets have managed to solve it, and many despairingly looked like they never might.

There is now urgency. Long regarded as an established, if not crippling feature in the structure of the African Internet, the terrestrial fibre gap was increasingly looking like a systemic digital development risk. Things are changing. The need to support 4G and FTTH network coverage and prepare for 5G is transforming metro capacity requirements.

Data center operators, cloud providers and global hyperscale Internet companies are upending demand models. Private fibrecos such as Liquid Telecom are building extensive cross-country fibre networks. Others, like Dark Fibre Africa and CSquared, are reimagining African metro fibre models and upsetting traditional pricing approaches. And a wide array of China-funded fibre backbone projects are transforming the African wholesale fibre landscape.

A reference report for all stakeholders and investors in the African connectivity and Internet infrastructure markets.

Executive Summary

  • Other digital infrastructure barriers have been gradually removed; but the terrestrial capacity infrastructure gap has persisted, stubbornly sustaining a growing African digital divide, one that sees 80%-90% of Internet traffic, usage and benefits accrue to urban, coastal cities, while the African interior remains woefully underpenetrated.
  • There is now urgency. Long regarded as an established, if not crippling feature in the structure of the African Internet, the terrestrial fibre gap was increasingly looking like a systemic digital development risk.
  • Things are changing. The need to support 4G and FTTH network coverage and prepare for 5G is transforming metro capacity requirements. Data center operators, cloud providers and global hyperscale Internet companies are upending demand models.
  • Private fibrecos such as Liquid Telecom are building extensive cross-country fibre networks. Others, like Dark Fibre Africa and CSquared, are reimagining African metro fibre models and upsetting traditional pricing approaches. And a wide array of China-funded fibre backbone projects are transforming the African wholesale fibre landscape.
  • This report, the outcome of years of accumulated research, data, and insights, provides an unprecedented view into the dynamics underpinning the African terrestrial fibre market. It is also about how, and where to generate investor value in this mishmash of opportunity and risk. And finally, and perhaps, most of all, it is about whether Africa will, at last, solve the mother of all bottlenecks, and what this means for individual countries' ability to partake in the next industrial revolution.
  • The report explores key questions surrounding the African terrestrial market, including the state of the current infrastructure, the nature and size of leased metro fibre demand, the scale and impact of government debt-funded fibre backbones, the evolution of metro pricing models, and what, at long last, Nigeria needs to do to unleash its considerable fibre potential.
  • A reference report for all stakeholders and investors in the African connectivity and Internet infrastructure markets.

The insights derived from research on terrestrial fibre markets are distilled in this report, covering critical key questions and points, including:

  • Why the buildout of backbones and the densification of the African metro is now a matter of urgency
  • Why African terrestrial fibre economics have historically been so complicated, and what's being done to fix them
  • How African metro geographic economics make the metro fibre case harder
  • Which wholesale metro markets carry the most upside
  • The state of the African fibre infrastructure; how much has been deployed, and by whom
  • The African fibre deficit: how much additional infrastructure the continent needs to meet optimal broadband coverage targets, and which markets have the biggest deficits
  • What is the size of demand for leased metro fibre capacity, and our long term projections
  • What is the impact of global Internet providers on African demand for capacity
  • What is the impact of data centers on metro fibre demand
  • What has been the impact of government backbones on fibre market dynamics
  • The weight of Chinese capital on African fibre buildout
  • Which government backbones are true broadband catalysts - and which run the risk of turning into white elephants
  • What, in our view, governments can do to maximize their backbone investments
  • Who the strongest investment plays are today, in the African terrestrial fibre market
  • What specifically makes Liquid Telecom, Dark Fibre Africa and CSquared stand out in this space
  • Why we say the African terrestrial fibre deficit has indeed been a market failure - but a government failure too
  • Why we say the South African fibre market is ripe for consolidation - and who the acquirers and targets might be
  • How Nigerian terrestrial fibre is being held back - and what should be done to fix it
  • How Zambia may be small - but a good example of using competition to drive fibre uptake
  • And much, much more..

Key Topics Covered:

INTRODUCTION: SOLVING THE MOTHER OF ALL BOTTLENECKS

EXECUTIVE SUMMARY

  • Key Takeaways - Lots of fibre, and more coming
  • Key Takeaways - Data centers, government backbones, and the upside of metro networks
  • Key Takeaways - Investing in African terrestrial fibre: markets and players
  • Summary Key Charts

PART 1 - OF SUPPLY & DEMAND FOR AFRICAN TERRESTRIAL FIBRE

  • DIGGING INTO THE (FIBRE) NUMBERS: THE BIG PICTURE
  • The African terrestrial fibre boom - the half-a-billion kilometer mark was passed in 2016
  • From a self-provisioning era to a competitive, "open-access" era
  • A more focused, more specialized business - and the rise of state-owned fibre
  • From do it yourself to co-investing: African buildout models are evolving

AFRICAN FIBRE DEMAND: BUILDING FOR 4G, PREPARING FOR 5G

  • Drivers of demand: a Summary View
  • Building to support 4G
  • The Rise of 4G - More than 100 networks, towards ~200m connections
  • The 5G Impact: Not here yet, but already a potential game changer for fibre backhaul
  • The mobile leased fibre demand equation
  • Mobile leased capacity demand rising by ~30% annually

AFRICAN FIBRE DEMAND: ALTERNATIVE NETWORKS, HYPERSCALE INTERNET AND THE CLOUD

  • The emergence of alternative broadband providers
  • The rise of FTTH
  • African data center demand: building "power plants with fibre"
  • The hyperscale are coming - and they need fibre
  • Fibre Demand Outlook - Leased fibre capacity requirements are projected to triple

PART 2 - INVESTING IN AFRICAN TERRESTRIAL FIBRE

INVESTING IN AFRICAN FIBRE: WHICH MARKETS HAVE THE MOST UPSIDE?

  • The African terrestrial fibre boom - South Africa leads the way
  • Africa terrestrial fibre - Not competitive everywhere
  • African open access deployments - Governments lead the way
  • Africa Fibre Density - More Fibre is Needed
  • When open access doesn't really mean open
  • Where is the upside? A sample market review

INVESTING IN AFRICAN FIBRE: THE RISE OF THE METRONET

  • Metro fibre: the next big challenge - and opportunity
  • Metro opportunities are uneven
  • An improving African metro case

INVESTING IN AFRICAN TERRESTRIAL FIBRE - THE PLAYERS

  • African wholesale fibre plays - Stars, upstarts, and everybody else
  • African Fibre Plays - Our wholesale terrestrial opportunity watchlist
  • Liquid Telecom: From Cape Town to Cairo - an unassailable moat
  • Liquid Telecom: from pure wholesale to cloud infrastructure play
  • Liquid Telecom: a growth story in charts
  • Dark Fibre Africa: Through metro fibre, South Africa's (other) most attractive independent ICT asset
  • Dark Fibre Africa: with 5G coming, in the right place, at the right time
  • Csquared: Building value by upending metro tradition

PART 3 - ADDRESSING SOME PRESSING, AND VEXING QUESTIONS

AFRICAN TERRESTRIAL FIBRE: A CASE OF PRIVATE SECTOR FAILURE?

  • A Vexing, but important question
  • Market failure, or just not good business?
  • Charting demand: not all mobile operators are inclined to lease fibre

ARE GOVERNMENT BACKBONES THE SOLUTION?

  • The rise of the state: Governments control ~30% of SSA's Installed Fibre (excl. South Africa)
  • African government backbones - who's building, who's financing (China, mostly)
  • African government backbones - broadband catalysts, or white elephants? It's complicated
  • How to maximize government backbone assets: Liberalize the metro
  • HOW MUCH FIBRE (AND MONEY) IS NEEDED?
  • More fibre needed - and increasingly in the metro
  • Charting Sub-Saharan Africa's fibre requirements

PART 4 - COUNTRY FOCUS ANALYSIS

SOUTH AFRICA - FIBRE CONSOLIDATION IS COMING

  • South Africa market overview
  • South Africa terrestrial fibre: some fundamentals
  • South Africa's terrestrial fibre market structure: a summary view
  • Evolution of South Africa's terrestrial fibre supply - the dominance of open access
  • South Africa terrestrial fibre demand
  • Charting South Africa's terrestrial capacity demand - Fibre to the Site
  • There's more depth here: SA's terrestrial capacity demand projected to triple
  • Tier 2 & 3 Provider demand will drive the market
  • SA's terrestrial fibre revenue outlook: all about the metro
  • South Africa's terrestrial fibre: a market share summary
  • South Africa terrestrial fibre: a positional market mapping
  • SA fibre market: ripe for consolidation
  • Playing the SA fibre market

NIGERIA - WILL THIS (POTENTIAL) FIBRE GIANT EVER RISE?

  • Nigeria market overview
  • Nigeria terrestrial fibre: some fundamentals
  • Nigerian terrestrial fibre supply - Scarcity masquerading as abundance
  • Nigerian terrestrial fibre supply - Charts
  • The Nigerian Potential - How much fibre does Nigeria need?
  • How much (open access) fibre does Nigeria need?
  • Why doesn't Nigeria have more fibre? The Rights of Way predicament
  • Heavy reliance on the private sector, no government-backed backbone
  • The impact of high fibre rollout costs: stunted open access
  • Nigeria Fibre - Undeniable Potential, Unreadable Outlook
  • Nigeria leased capacity market - a potential 2x-3x larger than the baseline

ZAMBIA - SMALL, WITH UPSIDE

  • Zambia market overview
  • Zambia terrestrial fibre: some fundamentals
  • Zambia - Despite the geographic constraints, a market with upside
  • Zambia's terrestrial fibre market structure: a summary view

Companies Mentioned

  • Airtel
  • Axione
  • BCN Nigeria
  • BCS
  • Broadband Infraco
  • Broadbased Nigeria
  • Camtel
  • Cell C
  • Csquared
  • Dark Fibre Africa
  • Facebook
  • FibreCo
  • Fibrecom
  • Huawei
  • I H S
  • Liquid Telecom
  • MainOne
  • Maroc Telecom
  • MTN
  • Orange
  • Phase III
  • SCPT
  • Seacom
  • Soliton Telmec
  • Telkom SA
  • Vodacom
  • Zamtel

For more information about this report visit https://www.researchandmarkets.com/research/sg49bd/africa_backbone?w=5

Did you know that we also offer Custom Research? Visit our Custom Research page to learn more and schedule a meeting with our Custom Research Manager.

Did you know that we also offer Custom Research? Visit our Custom Research page to learn more and schedule a meeting with our Custom Research Manager.

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