Africa Roaming Tariff Market by Types (National and International), Distribution Channels (Retail Roaming and Wholesale Roaming), Services (Voice, SMS and Data) and Region (Sub-Saharan Africa and Rest of Africa) - Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021–2028

The Africa roaming tariff market is anticipated to expand at a CAGR of 5.4% during the forecast period, 2021 – 2028. The growth of the market is attributed to the growing adoption of smartphones and Internet in the region. Roaming tariff is referred to the charges collected by the communication service providers by allowing their consumers to access their communication devices outside the network’s geographical coverage.

The charges vary nationally and internationally. Roaming tariffs incurred on services such as voice, data and SMS are different. The number of smartphone users in Africa is growing at a rapid pace. According to a survey by GSMA Association, in 2018, there were 774 million SIM connections in Africa and it is projected to reach up to one billion during the forecast period.

The GSMA Association states, by 2028, more than 50% of the total population is expected to have subscription to mobile services. Increasing number of mobile subscription base in countries such as Ethiopia, Nigeria, Tanzania, Democratic Republic of the Congo (DRC), and Kenya is expected to spur the market growth. The association also states that the subscriber penetration of the Economic community of West African States (ECOWAS) and the South African Development Community (SADC) is expected to boost during the forecast period.

Various initiatives by the regulatory authorities and the network operators are contributing to the expansion of existing customer base. The Mobile Network Operators (MNOs) are focusing on making investments in this region. For instance, the KaiOS ‘smart feature phone’ initiative is anticipated to boost the smartphone adoption in the region. The KaiOS initiative is led by some of the leading operators in the region, such as Vodafone Group and AT&T Inc.

Market Drivers, Restraints, Trends, and Opportunities

• Rising cellular network subscribers in the Sub-Saharan Africa is expected to drive the market growth.
• Increasing number of international travelers is anticipated to rise the demand for roaming tariff in Africa, thereby driving the market growth.
• Recent introduction of One Network Area (ONA) roaming initiative in East Africa is intended to reduce the high tariff related to mobile roaming, thereby promoting regional integration. Furthermore, such regulatory initiatives are also emerging in other parts of Africa, which are anticipated to spur the growth of roaming tariff market in Africa during the forecast period.
• Telecom regulators have postponed their plans of 5G spectrum auction owing to the global COVID-19 pandemic. This is expected to adversely impact the potential of revenue generation for telecom providers.
• Rising adoption of 3G and 4G enabled smartphones across the region is positively impacting the growth of the roaming tariff market.
• The COVID-19 pandemic has persuaded employees to work from home. This, in turn, has increased the network traffic and data usage, which is expected to stimulate the market growth.

Scope of Africa Roaming Tariff Market Report

The report on the Africa roaming tariff market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Africa Roaming Tariff Market Segment Insights

National segment expected to account a significant market share

Based on types, the market is segmented into national and international. The national roaming segment is expected to account for a significant market share during the forecast period. Rising usage of Internet services by young consumers and increasing penetration of smartphones are expected to boost the national roaming segment growth. However, the international segment is expected to grow at a rapid pace owing to the increasing international tourism across the globe.

Wholesale roaming segment to account a considerable market share

On the basis of distribution channels, the market is divided into retail roaming and wholesale roaming. Retail roaming includes individual users, whereas the wholesale roaming includes services that are purchased in bulk amount. The wholesale roaming segment is anticipated to account for a considerable market share during the forecast period owing to increasing number of business enterprises opting for wholesale roaming services. The retail roaming segment is projected to expand at a CAGR of 5% during the forecast period. The ONA initiative encourages MNOs to renegotiate with their roaming partners to reduce tariffs and offer affordable services to their customers. This is expected to foster the segment growth.

Data segment to account a large market share

Based on services, the market is segmented into voice, SMS and data. The data segment is expected to account for a large market share owing to the rising adoption of smartphones in this region. According to the survey by GSMA, the subscriber base of mobile Internet usage is anticipated to reach up to 483 Million during the forecast period. The voice segment is anticipated to account for more than 55% of the market share during the forecast period. Voice communication is preferable for both literate and illiterate people which increases it demand in the region.

Sub-Saharan Africa to account a considerable market share

In terms of regions, the market is classified as Sub-Saharan Africa and Rest of Africa. Sub-Saharan Africa is expected to account for a considerable market share owing to the increasing investments in the market and initiatives such as ONA and KaiOS. For instance, in September 2016, Bharti Airtel Ltd. announced the launch of an International Roaming (IR) pack that offers free incoming calls and text from India on international roaming. Additionally, the presence of major key players in this region such as Vodafone Group and AT&T Inc. in the market in Sub-Saharan Africa is anticipated to grow the roaming tariff market in the region. 

Segments

The Africa roaming tariff market has been segmented on the basis of

Types

• National
• International

Distribution Channels

• Retail Roaming
• Wholesale Roaming

Services

• Voice
• SMS
• Data

Regions

• Sub-Saharan Africa
• Rest of Africa

Key Players

• America Movil
• AT&T Inc.
• Bharti Airtel Ltd.
• China Mobile Ltd.
• Deutsche Telekom AG
• Digicel Group
• Sprint Corporation
• Telefonica SA
• Verizon Communications Inc.
• Vodafone Group plc.

Competitive Landscape

Some of the key players in the Africa roaming tariff market are America Movil, AT&T Inc., Bharti Airtel Ltd., China Mobile Ltd., Deutsche Telekom AG, Digicel Group, Sprint Corporation, Telefonica SA, Verizon Communications Inc., and Vodafone Group plc.

Companies are focusing on sustaining their market position by launching new service lines at competitive prices. Additionally, they are focusing on mergers and acquisitions to acquire a large consumer base. For instance, in January 2019, Verizon Communications Inc. announced to acquire Protect Wise Inc. with a motive to expand its network detection and to include the ability to detect and respond to security threats. This step was taken to serve the growing 5G market.