Angola Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Angola Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Angola Telecom Market is expected to register a CAGR of 1.97% during the forecast period.

Key Highlights

• The telecom market in Angola is anticipated to expand primarily due to the country's growing urban population and the widespread use of cell phones offering 3G, 4G, and 5G services. Further, the Internet of Things (IoT), which connects with wired and wireless internet, is predicted to be used more in the telecom industry throughout the forecast period, supporting the market's expected growth during the forecast period.
• According to GSMA Intelligence, as of the fourth quarter of 2023, Angola had registered approximately 29 million mobile connections, excluding IoT. This figure represented a substantial increase from 15.5 million in 2020, which reflected a continuous upward trend observed since 2016. Mobile connections corresponded to 78.4% of Angola's total population in 2023.
• Ookla’s data indicated that fixed internet connection speeds in Angola had increased by 4.74 Mbps in the 12 months to the start of 2024, marking a 31.8% rise over the same period. Such a considerable rise in mobile connections is creating lucrative opportunities for the market studied to grow.
• The initiatives taken by the government to enhance telecommunications in the country would provide opportunities for robust growth in the market. For instance, The National Institute for the Promotion of the Information Society (INFOSI) announced that the Angolan government had planned to establish 50 new free internet access points across the country by October 2023. This initiative aimed to target underserved regions, intending to provide students with easier access to online academic resources and foster the exchange of information.
• Furthermore, Angola emerged as Africa's digital gateway, with an increasing number of American and European firms leveraging subsea cables, data centers, and local networks to enhance their digital presence. These investments further expanded their reach within Angola. In 2023, Angola witnessed a notable increase in foreign direct investments, totaling USD 3.8 billion, as reported by the country's Private Investment and Export Promotion Agency (AIPEX). Of this, investments from US companies alone increased by USD 1.2 billion. This surge in investor confidence was primarily attributed to the Angolan government's initiatives.
• Several factors are propelling competition in the Angolan telecom market. For example, the increasing demand for telecom services, including voice and data services, has also forced companies in the market to constantly expand their networks and services to meet the growing demand from consumers. Price is also a significant factor propelling competition in the Angolan telecom industry. Customers are increasingly price-sensitive, and companies constantly strive to offer more affordable services to attract and retain customers.

Angola Telecom Market Trends

Growth of IoT Usage in the Telecom Industry

• The telecom industry in the country has been utilizing IoT technologies in various ways. Internally, they are using it to increase efficiencies and resource utilization. On the customer-facing side, IoT helps telecom businesses track and predict information, informing customers of what to expect and keeping them up-to-date. Asset management and remote system monitoring are the most common IoT telecom use cases. Additionally, telecom operators provide connectivity services to customers with their IoT devices. The telecom industry can monetize its data and extend its reach through IoT.
• To provide better services to customers and expand their market share, telecom firms are collaborating with IoT providers to enhance their product portfolio. For instance, in June 2023, Liquid Dataport, a division of Liquid Intelligent Technologies (Liquid), a pan-African technology conglomerate, in collaboration with Angola Telecom, Angola's fixed network operator, announced a new terrestrial fiber route. This route extended from Luanda, Angola, through the Democratic Republic of Congo (DRC), Zambia, and Zimbabwe, finally reaching Johannesburg, South Africa. This extension significantly bolstered Liquid's expansive regional fiber backbone, which already spanned 110,000 km. The new route not only fortified Liquid's network but also ensured that its regional clientele could access high-speed connectivity at competitive rates.
• Moreover, at the ANGOTIC 2023 conference, Angola Telecom formally announced the launch of 'Conecta Angola,' a new service. This initiative, supported by the Angosat-2 satellite, was designed to provide free internet access to remote regions in Angola, areas that had previously been neglected by the nation's mobile operators. The primary objective of the project was to enhance digital inclusion by offering internet connectivity to essential state institutions such as schools, hospitals, and municipal administrations, which had been experiencing significant connectivity challenges.
• Additionally, in 2024, Africell Angola announced that it planned to double its communication towers and extend its services to four additional provinces. This initiative was part of Africell's strategy for the gradual expansion of its network across Angola. At that time, the company operated 700 telecom towers, providing services across Luanda, Benguela, Huíla, and Kwanza Sul. By the first quarter of 2024, it had aimed to reach Cabinda and Soyo (Zaire). Africell's ultimate objective is to achieve nationwide coverage by 2025.
• Further, IoT technology is used in telecommunications to build smart cities. Smart cities utilize IoT devices, including connected sensors, lights, and meters, to collect and analyze data gathered from the city's infrastructure. They then use this data to improve the quality of life for citizens, including through transportation, solid waste management, and pollution reduction. IoT technology in telecommunications allows for the creation of city-wide smart infrastructure that improves urban operations and the quality of life for residents.

Surge in Demand for Data and Messaging Services

• Data and messaging services in the Angolan telecommunication market include the internet and text messages from both fixed and mobile networks. These services are rising in Angola due to the adoption of 5G services, fiber-based optical fixed internet connection, etc.
• Telecom providers are forming partnerships, getting licensing agreements, expanding fiber and copper-based network infrastructure, and deploying 5G services in the country to support the increasing demand for data and messaging services. For instance, in November 2023, Paratus, a Pan-African firm, obtained a new debt facility to support its expansion initiatives. In collaboration with its fund manager, Ninety-One, the Emerging Africa Infrastructure Fund (EAIF), a subsidiary of the Private Infrastructure Development Group (PIDG), committed a substantial USD 31 million debt package to Paratus. This financial backing was designated to enhance Paratus' fiber and data center operations, with a strategic focus on the subsequent three years.
• The digitalization of business processes, such as using internet-based services in the BFSI, government, retail, manufacturing, and healthcare industries in the country, is creating demand for data services by telecom service providers from across industries and the people who use digital services, including internet data packages for both prepaid and post-paid data services. In addition, vendors in the market are expanding their data service offerings packages to support market growth in Angola.
• Moreover, the market has been witnessing acquisitions, investments, and collaborations among telecom providers to increase their market presence for mobile and fixed data services, which shows the market potential for the segment. For instance, in October 2023, Sterling and Wilson Private Limited (SWPL), a Shapoorji Pallonji Group Company, started construction of its second data center for Raxio, a prominent provider of carrier-neutral, colocation, Tier-III data centers in Africa. This data center, set to become the country's first independent and neutral Tier-III certified facility, will initially have a total IT load of 3 MW, with the capability to expand to 7 MW, and could accommodate over 1,600 racks. The project was scheduled for commissioning in the second half of 2024.
• Therefore, the expansion of optical fiber networks, the deployment of mobile internet networks such as 4G and 5G, and the need for high-speed data and messaging services across industry verticals and retail consumers to support the country’s digitalization strategy are fueling the demand for data and messaging services in the Angolan telecom market.

Angola Telecom Industry Overview

The Angolan telecom market is consolidated due to the dominance of a few major companies, particularly Unitel and Movicel, which are engaged in ongoing partnerships and technological advancements. Some major market players studied include Unitel SA, Movicel, Angola Telecom, and Africell Global Holdings Ltd.

• May 2024 - Angola Cables, an ICT solutions provider, and Camtel, the telecommunications operator in Cameroon, joined forces. Their collaboration aims to enhance digital and connectivity services not only in Cameroon but also across West Africa. This strategic partnership underscores their shared commitment to elevating regional business prospects. They are focused on strengthening network redundancy, enhancing resilience, and ultimately, elevating service quality domestically and globally.
• March 2024 - Perception Group, a vendor of cloud-based OTT video platforms, announced that Africell Angola, a mobile operator, had rolled out 'AfriTV,' an OTT mobile TV service powered by Perception's TVCDN platform. 'AfriTV' is designed to cater to Africell's mobile data subscribers in Angola, providing them complimentary access to 44 live TV channels, including local and international options, directly on their smartphones. Additionally, the service features a seven-day catch-up TV option.

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