Internet Penetration Proliferating in Africa

Released on = November 1, 2006, 3:02 am

Press Release Author = RNCOS

Industry = Computers

Press Release Summary = Africa is fast becoming Internet savvy but the market
penetration still stands at an extremely low value due to insufficient number of
dependable phone lines.

Press Release Body = It is difficult to measure the total Internet users in Africa.
As per an estimate, in early 2006, there were around 5.5-6 Million ISP subscribers
in the continent, mostly in North and South Africa. This figure is significantly
higher than approx 2 Million of 2005. On an average, each internet-connected
computer in Africa supports 3-4 users. As the PC penetration rate is extremely low,
users rely on kiosks or cybercafes, community phone shops, community telecenters,
schools and other public Internet access services. However, the user per Internet
subscription ratio decreased considerably in 2005, indicating an increased
affordability of personal Internet access by users.

The high cost of Internet access is a major constraint on African economic growth.
In most of the African countries, annual cost of Internet access is higher than the
average yearly income. Only Egypt and Libya enjoys an annual Internet access cost
which is less than 10% of the average yearly income. These countries observe low
prices of Internet access because of competition, deregulation, foreign investments
in Information and Communications Technology sector (ICT) and in few cases,
government subsidies.

“Middle East and Africa Broadband Sector Analysis (2007)”, a recent
report by RNCOS puts forth that in early 2006, the total Internet penetration rate
was about 4%. The highest rate was observed in Réunion and Seychelles (above 20%),
followed by Morocco (around 12%). This is comparable to the almost 50% penetration
rate in the developed countries. However, in recent years, many countries in Africa
have reported growth rates in three digits in Internet usage. These countries
include Senegal, Cote d’Ivoire, Sudan, Morocco and Tanzania. It is anticipated
that 2006 would experience the same growth trend.

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- Future outlook of the Broadband market in Middle East and Africa
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About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
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Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com

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