The telecoms industry in Africa is saturated… We need new digital disruptors

As we all know, finding a large enough and profitable space in traditional telecoms is a very difficult exercise. Most new traditional telecoms companies quickly realize that the capital costs of competing with large well-established players is futile. If one decides to rent network equipment from the larger players they are doomed because then you can’t charge competitively lower tariffs to customers and goodluck finding a bank that is willing to fund your own new network equipment as a new player in the traditional telecoms market. Africa needs disruptors that can rein in the telecoms value chain away from traditional services. In the USA, no one is starting a new telecoms company. What we see is Twitter, Facebook, Snapchat, Amazon Cloud etc for obvious reasons stated above.

 

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