Ericsson bets on 3G in fast-growing Africa telecoms

[Wireless News]

By Helen Nyambura-Mwaura JOHANNESBURG (Reuters) - The world's top mobile infrastructure supplier Ericsson is betting that the fast-growing African mobile broadband market will remain dominated by 3G services over the next years as the newest 4G smartphones remain too expensive for local consumers. Africa's rapid telecoms expansion has come to symbolize the continent's economic growth, with the World Bank estimating a 10 percent increase in broadband coverage could add 1.4 percentage points to economic output. But while high-speed mobile connections are set to grow more than nine-fold by 2019 to 700 million from 75 million today, about 85 percent of these subscriptions will remain 3G, according to Ericsson estimates. The most recent devices with super-fast 4G technology, such as Apple's iPhone 5S, Blackberry's Z30 or Samsung's Galaxy S4, sell for several hundred dollars, more than a median monthly salary in most African countries, including biggest telecoms market South Africa.

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