The African international capacity market has entered a new era, a new phase that comes after a period of dynamic growth between 2010 and 2015, and follows a miserable decade of bandwidth scarcity between 2000 and 2010.
Things are different in 2017. Today's African international capacity market is facing a seminal challenge to its economic structure, a paradoxical predicament at a time when Internet traffic is booming across the continent. The dynamics behind these changes and their implications for market players and investors are at the heart of The Future of African Bandwidth Markets report.
There is much to assess. Our research says Africa's international capacity demand profile looks excellent. The headline number of broadband connections in Sub-Saharan Africa has grown 10x between 2010 and 2016 and should hit close to 300m by 2020. African demand for international capacity has been doubling every two years and will double again between 2016 and 2020. This market, unquestionably, will continue to need international bandwidth - and lots of it.
International capacity supply has been growing too. Between system upgrades, new cable rollouts and technology improvements, African international cable capacity will reach twenty times 2010 levels -and almost four times 2016 levels by 2020.
If the 2000-2010 decade was a decade of bandwidth scarcity, the 2015-2020 period will be a phase of African international bandwidth abundance. How will the marketplace handle this bandwidth bonanza?
The most comprehensive independent report available on African international capacity markets and part of the author's "Future of the African Internet Series", The Future of African Bandwidth Markets provides an unprecedented view into African international capacity demand, supply, key players, pricing and evolving business models.
It explores key questions such as the size of demand, the impact of capacity oversupply, the economic viability of proposed cable systems (SACS, SAIL, Liquid Sea, etc.), the future of African pure play capacity models, the impact of new wholesale capacity disruptors such as Angola Cables and Djibouti Telecom, how much lower international capacity price points can go, the impact of IXPs, which players will control African international capacity in 2020 and more.
A reference report for all players and investors in the African international bandwidth market.