Africa Mobile Value Added Services and Wholesale Voice Carrier Market
Growing Adoption of VoIP Services Fuels Africa Mobile Value Added Services and Wholesale Voice Carrier Market Growth
Telemarketing, customer service, and call center operations in South Africa are growing due to the established and ever-expanding network of fiber optic cables used for voice-over-internet protocol (VoIP) calls. Every year, more African enterprises are shifting from traditional copper landlines to VoIP telephony due to the vast improvements in call quality and reliability. According to the report of SEACOM, cloud voice services are growing by 12% in South Africa every year as a result of higher cloud adoption and digital transformation initiatives. VoIP plays a significant role in omnichannel and unified communications for enterprises, which have become preferred communications models for many successful companies. Also, the number of people who are able to access the web in South Africa is rapidly growing, allowing African businesses and individuals to install the VoIP solution. According to the report of The New Wave, ~30% of the South African population is able to connect online in 2023. VoIP improves existing IP networks, reducing the need for expensive infrastructure investments. This cost advantage boosts adoption and leads to a greater volume of voice traffic for wholesale carriers. Moreover, the increase in international call center contracts, particularly from the UK and the US, has contributed to this growth, as South Africa offers cost-effective solutions. VoIP services enable much cheaper international calling compared to traditional telephone networks, which is crucial in Africa, due to high cost sensitivity. This attracts more consumers and businesses to adopt VoIP, increasing traffic for wholesale voice carriers that route these calls. Thus, the rising adoption of VoIP services across Africa fuels the demand for wholesale voice carriers in the country, contributing to the market growth.
Africa Mobile Value Added Services and Wholesale Voice Carrier Market: Industry Overview
The Africa mobile value added services and wholesale voice carrier market is segmented on the basis of service type. Based on service type, the Africa mobile value-added services and wholesale voice carrier market is bifurcated into mobile value-added services and wholesale voice carrier services. In terms of mobile value-added services, the market is sub segmented into mobile money, mobile advertising, short message service (SMS) and multimedia messaging service (MMS), mobile email and IM, location-based services, and others. In terms of wholesale voice carrier services, the Africa mobile value-added services and wholesale voice carrier market is divided into voice termination, interconnect billing, and fraud management.
In terms of revenue, Nigeria dominated the Africa mobile value added services and wholesale voice carrier market share, followed by South Africa. Nigeria has established Africa’s largest Information and Communications Technology (ICT) market, with a thriving mobile phone sector and a growing internet user base. The telecommunications infrastructure landscape in Nigeria has witnessed significant growth in recent years. The number of mobile subscribers has rapidly increased, reaching over 218 million in 2023, according to the Nigerian Communications Commission (NCC). This high penetration, driven by increased smartphone adoption, digital content demand, and financial services, has fueled the demand for mobile value-added services. Also, in Nigeria, OTT services such as iROKOtv, GLO-TV, Cassava, Boomplay (music streaming), and Netflix are popular, driving the need for data-based mobile value-added services. Telecom operators integrate mobile data packages with streaming subscriptions that enhance mobile value-added service revenues. Nigeria is a major hub for international voice traffic in West Africa. Wholesale voice carriers are essential in managing this traffic, especially due to Nigeria’s large diaspora. The rise of VoIP services, driven by mobile internet growth, has increased the demand for wholesale voice services. For example, telecom operators, such as MTN Nigeria and Airtel, provide wholesale voice carrier services that facilitate international calls between Nigeria and countries with large diasporas from Nigeria, such as the UK and the US.
Africa Mobile Value Added Services and Wholesale Voice Carrier Market: Competitive Landscape and Key Developments
Orange SA, Tilil Technologies, Pearl Systems Zambia Limited, Cellfind (Pty) Ltd, Safaricom Limited, ALXTEL, Airtel Africa Plc, Teltac Worldwide, AfriCallShop, Tata communication Ltd, AstraQom International, and AT&T Inc are among the leading players profiled in the Africa mobile value added services and wholesale voice carrier market report. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The Africa mobile value added services and wholesale voice carrier market report provides detailed market insights, which help the key players strategize their market growth. As per the company press releases, below are a few recent key developments:
- International Finance Corporation (IFC) provided new financing to three of Airtel Africa plc’s subsidiaries with the aim of bringing high-speed mobile connectivity to more than 37 million subscribers in sub-Saharan Africa. IFC’s US$ 200 million loan supports the expansion and modernization of Airtel Africa’s network, as well as further investment into its distribution infrastructure, with a continued focus on rural areas.
(Source: International Finance Corporation (IFC), Press Release, 2024)
- Pan-African operator Orange’s Burkinabé unit chosen Vox Solutions as the international application-to-person (A2P) short message service (SMS) and voice gateway for traffic into its network. This partnership guarantee a secure and dependable transmission of A2P messages to Orange Burkina Faso’s clients and international enterprises.
(Source: Orange, Press Release, 2024)
