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Study: African telecom liberalization boosts services

Telecommunications liberalization is gathering pace in many African countries and has resulted in rapid growth in take-up of services, especially mobile services, according to a report released Wednesday by independent telecommunications analyst Paul Budde.

Out of 54 countries and territories in Africa, 35 now have independent telecommunications regulators, and most are actively encouraging foreign investment as privatization and liberalization open up new opportunities across the continent, Budde said.

In particular, several countries have opened their mobile markets to new entrants, resulting in explosive growth in the number of mobile subscribers in Africa. The number of mobile phone users on the continent exceeded the number of fixed-line subscribers by 2001, according to Budde.

Some countries such as South Africa, Zimbabwe and Nigeria have licensed fixed-line competitors to the former monopoly carriers and Morocco is expected to follow suit shortly.

European investors have been quick to take stakes in African carriers that are being privatized. Among the recent investments are:

The health of the telecommunications industry varies widely across the continent, Budde said.

In many of the smaller countries, deregulation is slow due to lack of management, expertise and insufficient investment. Political instability, outright warfare and inadequate funding have depleted existing networks in some countries, Budde said.

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