2009 Africa Wireless CAPEX to Drop 11.8% to $9.4 Billion

Mergers, Acquisitions and Financial Results

African wireless capital expenditure spending is forecasted to decline 11.8% in 2009 after growing 16.4% in 2008, according to the latest report from EJL Wireless Research.

"The spending levels for wireless capital expenditures have been sequentially increasing for the first three quarters of 2008 but declined in Q4. Regionally, both the North and South Africa regions declined in 2008 on a year over year basis. With a mobile penetration rate of 35.7% in Africa at the end of 2008, we believe that it will be tougher for mobile operators going forward to make money as APRU continues to decline," says founder and President, Earl Lum.

"Given the economic uncertainty, wireless capital expenditure spending by most of the major wireless operators in Africa will decline in 2009 when compared with 2008. We expect a brief market recovery in 2010 and then a more moderate decline in 2011. The economic uncertainty may also lead to more operator consolidation over the next several years," says Lum.

Cellular News