Fixed Line Still a Revenue Opportunity in Africa

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While mobile continues to grow by leaps and bounds, a “fiber revolution" in Africa is creating ample revenue opportunities for fixed-line operators there.

Billing and policy control provider FTS says fixed-line operators are perfectly placed to capitalize on an influx of fiber and transform their networks and offerings. New services and experiences will be made available to consumers and new revenue opportunities will be created for the operators, the company said. FTS and Camtel – Cameroon’s national operator – will discuss these revenue opportunities next week at Management World Africa in Johannesburg.

Fiber-optic, transmission-based networks have the potential to reach out into some areas for the first time, or at least for the first time in an affordable, far-reaching way, the companies say. Continued investment in existing infrastructure, combined with fiber rollout, will create a high return on investment for some carriers by providing economical transportation of existing services like telephony, mobile, broadband Internet and IPTV.

“The arrival of fibre in Africa is an exciting and significant development for the African population, many of whom will find telephony and Internet charges more affordable," said David O’Reilly, sales director at FTS. “Operators will be able to increase their revenues by offering new services to the market. They will also be able to reduce costs by consolidating and collapsing their existing legacy networks onto a new IP/MPLS core network."

Potential new revenue opportunities from installing a fiber-optic network include offering transmission services to cellular operators and ISPs; providing legacy and NGN services to government authorities and public bodies; as well as businesses at local, regional and international levels and private consumers, FTS said. The new networks will also support a range of advanced, revenue-generating services including high speed Internet (especially to rural areas), IPTV, VoIP, cellular backhauling, being a carrier of carriers, and a range of online services, including e-government, e-banking, e-commerce, e-learning and e-healthcare.

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