Market Trends of Angola Telecom Industry
Growth of IoT Usage in the Telecom Industry
- The telecom industry in the country has been utilizing IoT technologies in various ways. Internally, they are using it to increase efficiencies and resource utilization. On the customer-facing side, IoT helps telecom businesses track and predict information, informing customers of what to expect and keeping them up-to-date. Asset management and remote system monitoring are the most common IoT telecom use cases. Additionally, telecom operators provide connectivity services to customers with their IoT devices. The telecom industry can monetize its data and extend its reach through IoT.
- To provide better services to customers and expand their market share, telecom firms are collaborating with IoT providers to enhance their product portfolio. For instance, in June 2023, Liquid Dataport, a division of Liquid Intelligent Technologies (Liquid), a pan-African technology conglomerate, in collaboration with Angola Telecom, Angola's fixed network operator, announced a new terrestrial fiber route.
- This route extended from Luanda, Angola, through the Democratic Republic of Congo (DRC), Zambia, and Zimbabwe, finally reaching Johannesburg, South Africa. This extension significantly bolstered Liquid's expansive regional fiber backbone, which already spanned 110,000 km. The new route not only fortified Liquid's network but also ensured that its regional clientele could access high-speed connectivity at competitive rates.
- Moreover, at the ANGOTIC 2023 conference, Angola Telecom formally announced the launch of 'Conecta Angola,' a new service. This initiative, supported by the Angosat-2 satellite, was designed to provide free internet access to remote regions in Angola, areas that had previously been neglected by the nation's mobile operators. The primary objective of the project was to enhance digital inclusion by offering internet connectivity to essential state institutions such as schools, hospitals, and municipal administrations, which had been experiencing significant connectivity challenges.
- Additionally, in 2024, Africell Angola announced that it planned to double its communication towers and extend its services to four additional provinces. This initiative was part of Africell's strategy for the gradual expansion of its network across Angola. At that time, the company operated 700 telecom towers, providing services across Luanda, Benguela, Huíla, and Kwanza Sul. By the first quarter of 2024, it had aimed to reach Cabinda and Soyo (Zaire). Africell's ultimate objective is to achieve nationwide coverage by 2025.
- Further, IoT technology is used in telecommunications to build smart cities. Smart cities utilize IoT devices, including connected sensors, lights, and meters, to collect and analyze data gathered from the city's infrastructure. They then use this data to improve the quality of life for citizens, including through transportation, solid waste management, and pollution reduction. IoT technology in telecommunications allows for the creation of city-wide smart infrastructure that improves urban operations and the quality of life for residents.
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Surge in Demand for Data and Messaging Services
- Data and messaging services in the Angolan telecommunication market include the internet and text messages from both fixed and mobile networks. These services are rising in Angola due to the adoption of 5G services, fiber-based optical fixed internet connection, etc.
- Telecom providers are forming partnerships, getting licensing agreements, expanding fiber and copper-based network infrastructure, and deploying 5G services in the country to support the increasing demand for data and messaging services. For instance, in November 2023, Paratus, a Pan-African firm, obtained a new debt facility to support its expansion initiatives. In collaboration with its fund manager, Ninety-One, the Emerging Africa Infrastructure Fund (EAIF), a subsidiary of the Private Infrastructure Development Group (PIDG), committed a substantial USD 31 million debt package to Paratus. This financial backing was designated to enhance Paratus' fiber and data center operations, with a strategic focus on the subsequent three years.
- The digitalization of business processes, such as using internet-based services in the BFSI, government, retail, manufacturing, and healthcare industries in the country, is creating demand for data services by telecom service providers from across industries and the people who use digital services, including internet data packages for both prepaid and post-paid data services. In addition, vendors in the market are expanding their data service offerings packages to support market growth in Angola.
- Moreover, the market has been witnessing acquisitions, investments, and collaborations among telecom providers to increase their market presence for mobile and fixed data services, which shows the market potential for the segment. For instance, in October 2023, Sterling and Wilson Private Limited (SWPL), a Shapoorji Pallonji Group Company, started construction of its second data center for Raxio, a prominent provider of carrier-neutral, colocation, Tier-III data centers in Africa. This data center, set to become the country's first independent and neutral Tier-III certified facility, will initially have a total IT load of 3 MW, with the capability to expand to 7 MW, and could accommodate over 1,600 racks. The project was scheduled for commissioning in the second half of 2024.
- Therefore, the expansion of optical fiber networks, the deployment of mobile internet networks such as 4G and 5G, and the need for high-speed data and messaging services across industry verticals and retail consumers to support the country’s digitalization strategy are fueling the demand for data and messaging services in the Angolan telecom market.
