5G in Africa:

realising the
potential
GSMA GSMA Intelligence
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Authors Contributors

Kenechi Okeleke, Director, Regional, Social and Policy Angela Wamola, Head of Sub-Saharan Africa
Research, GSMA Intelligence (Lead author)
Jawad Abbassi, Head of MENA
James Joiner, Senior Analyst, Network Strategy,
Peter Jarich, Head of GSMA Intelligence
GSMA Intelligence
Kamal Tamawa, Policy Director, Sub-Saharan Africa
Emanuel Kolta, Senior Analyst, Network Innovation
and Sustainability, GSMA Intelligence Luiz Felippe Zoghbi, Senior Spectrum Policy Manager
Caroline Mbugua HSC, Senior Policy Manager,
Sub‑Saharan Africa
Seyni Fati, Senior Policy Manager, Sub‑Saharan Africa
Alain Betu, Policy Manager, Sub‑Saharan Africa
Contents
Preface 5
Foreword 6
Executive summary 7
1 5G in a global context 10
1.1 Understanding 5G 11
1.2 5G versus previous generations 14
1.3 5G connections forecast 15
1.4 5G growth drivers 17
1.5 Emerging consumer 5G use cases 18
1.6 5G standalone networks come to fruition 20
2 5G in Africa’s connectivity landscape 21
2.1 Assessing Africa’s readiness for 5G 22
2.2 The case for 5G in Africa 27
2.3 A phased approach to 5G rollout 28
2.4 5G adoption outlook 30
2.5 5G economic impact 32
3 Building the networks of the future 34
3.1 The 5G networks ecosystem 36
3.2 Network modernisation on the front burner 37
3.3 Achieving cost-effective 5G rollout 40
3.4 Addressing the energy conundrum 43
3.5 Network rationalisation is a long-term prospect 45
4 Driving customer uptake 48
4.1 Consumer considerations 51
4.2 The FWA opportunity 54
4.3 Enterprise considerations 56
4.4 The private 5G network opportunity for operators 61
5 Policies to realise the 5G potential in Africa 65
5.1 5G spectrum policy framework 67
5.2 Network deployment regulations 70
5.3 The transition to renewable energy 71
5.4 Stimulating demand for 5G 72
5.5 Improving affordability 73
5.6 Misconceptions about 5G 74
Conclusion and call to action 76
Appendix 78
Glossary80

03 / 80
List of figures

Figure 1 IMT-2020 5G requirements 11

Figure 2 The features of 5G NR Release 16 and 17 12
Figure 3 The mobile industry’s goals for the 5G era 13
Figure 4 The 2020s will be characterised by the 5G era 14
Figure 5 5G mobile adoption in selected markets by 2030 16
Figure 6 Adoption of 5G versus 4G and 3G 16
Figure 7 The availability of 5G devices is increasing 17
Figure 8 5G drives consumer interest in non-connectivity offerings 19
Figure 9 Top benefits of 5G SA 20
Figure 10 Overview of the BEMECS framework 22
Figure 11 4G adoption in Africa 23
Figure 12 Price of entry-level devices as a percentage of GDP is still high in Africa 24
Figure 13 5G spectrum assignments in Africa 25
Figure 14 5G mass-market readiness and ecosystem maturity 26
Figure 15 Stakeholders expect 5G rollout in Africa to take a phased approach 29
Figure 16 The 5G footprint across Africa 31
Figure 17 4G will be the dominant technology in Africa for the foreseeable future,
but 5G is set to gain momentum 31
Figure 18 5G could benefit the African economy by $26 billion between 2021 and 2030 32
Figure 19 Retail, manufacturing and agriculture are expected to be the sectors that will
benefit most from 5G 33
Figure 20 Examples of 5G ecosystem players in Africa 36
Figure 21 Network modernisation focus areas for operators 38
Figure 22 Evolution of backhaul mix between 2022 and 2030 39
Figure 23 Network rollout and operations solutions 41
Figure 24 Anticipated timeline for shutdown of legacy networks 46
Figure 25 Main factors impacting consumer 5G uptake 50
Figure 26 The large amount of spectrum provides capacity to support new use cases 55
Figure 27 Key categories of players for enterprise 5G 56
Figure 28 Main factors impacting consumer 5G uptake 57
Figure 29 Key categories of players for enterprise 5G 59
Figure 30 Private networks sit on a scale of customisation, control and cost 62
Figure 31 Operators are best placed to drive the private 5G market in Africa 63
Figure 32 5G policy considerations 66
Figure A1 The GSMA BEMECS framework indicators 78
Figure A2 4G adoption in countries across Africa 78

04 / 80
Preface

Commercial 5G services are now available in To understand the opportunities of 5G in Africa,

every region of the world, making it a truly global in the context of the region’s connectivity and
technology. Today, nearly 220 operators in over socioeconomic landscape, the GSMA, in collaboration
80 markets around the world have launched with the ITU, conducted a survey (the 5G Africa
commercial 5G services. By 2030, there will be more Survey) of key stakeholders to capture on-the-ground
than 5.3 billion 5G connections, representing over perspectives of the 5G era in countries across the
half of total mobile connections globally. At least region. There were 48 respondents, drawn from:
60% of the world’s population will be covered by — policymakers and telecoms regulators
5G networks.1
— mobile operators (group level and local operators)
In Africa, the journey to 5G has begun but it is
with a combined share of more than 90% of total
still early stages for network deployment and
connections in the region
commercialisation. Governments and enterprises in
the region are increasingly using technology to tackle — equipment vendors with a combined share of more
the biggest challenges faced by society, and 5G will than 90% of the network infrastructure market in
no doubt play a key role in this area. This is especially the region
important in the context of Covid-19 and ongoing — global device and chipset manufacturers with
efforts to build more resilient economies and meet the
growing presence in Africa
growing demand for enhanced connectivity.
— enterprises across key verticals, including ports and
the extractive industries
— tech innovators and streaming content providers
— multilateral stakeholders representing 5G
ecosystem players.
The insights in this report have been generated from
analysis of anonymised and aggregated responses
(interviews and questionnaires) to the 5G Africa
Survey. We have also used GSMA Intelligence data
and other related market surveys. These include the
GSMA Intelligence Consumers in Focus Survey 2021,
the GSMA Intelligence Enterprise in Focus Survey
2021 and the GSMA Intelligence Operators in Focus:
Network Transformation Survey 2021.

1 GSMA Intelligence data

Preface 05 / 80
Foreword

mass-market adoption and ecosystem maturity is more

of a long-term prospect in most countries in the region.
However, the case for 5G in Africa is strong. In a post-
pandemic world, businesses and governments are
intent on building resilient, inclusive and sustainable
digital economies that can withstand current and future
shocks. Africa’s retail, financial services, agriculture,
extractive and manufacturing industries present clear
opportunities for 5G to enable digital transformation,
which will avert the risk of exacerbating the digital
divide with the rest of the world. Furthermore, Africa’s
vibrant tech startup ecosystem is well placed to
leverage the capabilities of 5G to develop innovative
solutions to address local challenges.
We recognise the role and responsibility of the private
sector in investing in future network technologies and
accelerating the development of locally relevant use
cases, for example through 5G labs and ecosystem
partnerships to co-create new solutions. All efforts are
welcomed towards achieving cost-effective network
Angela Wamola rollout, innovative use cases and applications, and
Head of Sub-Saharan Africa, GSMA affordable devices that appeal to African consumers
and enterprises.
We equally acknowledge the role that governments
Ready or not, the 5G era has already begun in can play in accelerating 5G rollout and adoption in
Africa. This will be driven not only by the benefits Africa. Fostering a pro-investment and pro-innovation
of the network economics and innovation that this environment is critical for stimulating network rollout
evolutionary broadband technology promises, but and demand for new services. In particular, addressing
also by the region’s digital natives who will be front the affordability challenge should be top of mind for
and centre in fuelling consumer interest in non- governments and policymakers. This can be achieved
connectivity offerings, such as video and music by aligning policies and regulations, especially around
streaming, gaming and metaverse applications. spectrum and taxation, with digital transformation
objectives.
4G still has a lot of room to grow in the region. With
device affordability still a challenge and 60% of the The opportunities are tremendous but so are the
adult population yet to connect to the mobile internet, challenges. In this 5G era, as in the old African proverb,
despite living within range of a 3G or 4G signal, 5G if we want to go further, we have to go together.

Foreword 06 / 80
Executive summary
With more than 1.2 billion connections and over 650 million unique
mobile users by the end of 2022, mobile has a greater reach in
Africa than any other technology, making it an important enabler of
social and economic progress in the region.
In this sense, 5G is a necessary upgrade to the mobile product,
ensuring that it continues to remain relevant to consumers,
enterprises, governments and society as a whole. The importance
of mobile, and 5G in particular, will become even more profound
as the world emerges into a post-Covid-19 scenario where digital
technologies and services are increasingly integrated into every
aspect of society.

Globally, total 5G connections will pass the 2 billion

mark by the end of 2025 and reach around 5.3 billion The case for 5G in Africa
by the end of this decade. 5G is experiencing a faster
rate of adoption compared to 4G and 3G in the 5G in Africa is a matter of when, not if. The decision
first few years after launch: the total number of 5G on when to launch 5G is often based on a number of
connections will reach 1 billion by the end of 2022, factors in the local market that reflect the readiness
just under four years from the launch of the first of operators to roll out 5G networks and readiness
commercial network, while it took 4G around eight of customers (consumers and enterprises) to adopt
years and 3G nearly 11 years after their respective 5G services and 5G-enabled solutions. In Africa, the
launches to reach the same milestone. Momentum present-day scenario suggests that 5G mass-market
has been boosted by a number of factors, including readiness is some way off. Despite a sizeable market
the economic recovery from the pandemic, rising opportunity of a total population of more than
5G handset sales, network coverage expansions and 1.3 billion people in total, with most individual markets
overall marketing efforts. having populations of 5 million or more, 4G is still in
infancy (accounting for just 25% of connections, on
average, compared to 60% globally) and affordability
of devices and digital literacy remain challenges.
Despite the challenge of mass-market 5G readiness in
Africa, there are reasons to welcome the 5G era, not least
because there would otherwise be a risk of exacerbating
the digital divide that already exists between Africa and
more advanced regions. Beyond that, digital connectivity,
with 5G at the core, will shape the way people live and
businesses operate in a post-pandemic world, including
the potential for:
— improving connectivity for homes and enterprises,
given the limited access to fixed broadband
connectivity (fixed broadband penetration is
typically below 2% in African countries).
— enabling the digital transformation of enterprises
by supporting governments efforts to drive the
fourth industrial revolution.
— boosting tech innovation by creating new
opportunities for tech startups to develop
innovative and locally relevant solutions for the
benefit of society.
— meeting the connectivity needs of young consumers
who, as digital natives, would be after contemporary
data-hungry digital services, such as live video
streaming and gaming and metaverse applications.

Executive summary 08 / 80
5G growth outlook for Africa Realising 5G’s potential in Africa
In 2020, Vodacom and MTN launched the first major Over the last five years, mobile operators in Africa
5G networks in the region, offering 5G mobile and have invested nearly $45 billion in capex – mostly on
fixed wireless access (FWA) services in South Africa deploying and expanding 4G networks. In the coming
and formally kicking off the 5G era in Africa. There years, operators will progressively increase investment
are now commercial 5G networks in more than 10 in 5G as they step up preparations for 5G rollout. Key
countries in the region, with stakeholders in many focus areas will include investments in fibre backhaul
more countries expecting commercial 5G to be and cell site densification, and network virtualisation
available in their markets by 2025. By the end of and automation capabilities. To build cost-effective
this decade, there will be more than 340 million 5G networks, operators and other ecosystem players will
connections in Africa, equivalent to a fifth of total need to increase their focus on the use of renewable
mobile connections. Together, 4G and 5G will account energy for network operations amid rising energy
for nearly two thirds of total mobile connections at costs and sustainability targets, and accelerate the
the end of 2030. rollout of voice over LTE (VoLTE) as a precursor to
shutting down legacy networks (2G and 3G) and
5G networks bring substantial improvements over
freeing up valuable spectrum for modern networks.
previous generations, including higher connection
speeds, greater capacity and lower latency. With this Beyond network deployment, customer (consumers
increased performance, 5G networks can enable new and enterprises) adoption and usage are critical to
use cases and applications that will positively impact scaling 5G in Africa and improving the business case
many industry sectors. In the period to 2030, 5G is for more widespread 5G rollout. The greatest potential
expected to contribute around $26 billion to Africa’s obstacle to consumer 5G adoption and usage
economy. Retail, manufacturing and agriculture are in Africa is device cost and availability. Given the
among the sectors that will see the most impact. impact of device affordability on 4G adoption, device
financing schemes will likely be necessary to improve
affordability. On the enterprise front, the industry
needs to better articulate the capabilities and value
proposition of 5G (including FWA, network slicing,
edge computing and IoT technologies) to customers.
The industry also needs to work collaboratively
with various stakeholders to develop innovative use
cases specifically for local markets in the region,
taking into account the unique social, economic and
environmental factors at play.
An enabling policy environment is also essential for
the success of 5G in Africa. Accordingly, governments
and regulators need to foster a pro-investment and
pro-innovation environment to support cost-effective
network rollout and the development of innovative use
cases to stimulate demand. In practice, this means:
— providing timely access to the right amount of
spectrum for 5G, under the right conditions
— implementing policies and regulation to support
cost-effective network rollout, especially around
right-of-way (RoW) approvals, electromagnetic
field (EMF) rules and small cell deployment
— supporting operators’ transition to renewable
energy
— facilitating use case development and content
creation to stimulate demand
— using fiscal and regulatory measures to improve
the affordability of devices
— addressing public concerns and misconceptions
about 5G.

Executive summary 09 / 80
1 5G in a global context
5G is now live in every region, making it a truly global technology.
The 5G era formally began in 2019 with the launch of mobile 5G
services in South Korea and the US. Since then, 5G commercialisation
has gained momentum, with new network launches and operators
scaling existing networks and services to reach more customers.
As of September 2022, there were 218 commercial 5G networks in 83
countries around the world. The Covid-19 pandemic has further boosted
5G momentum, with many governments and operators speeding
up their 5G rollouts to meet the growing demand for enhanced
connectivity as well as establishing the foundation for a digital future.
This chapter explains the capabilities of 5G and how it differs from
previous generations and highlights global 5G adoption trends,
growth drivers and use cases.

1.1
Understanding 5G
5G is a global and multi-stakeholder technology with IMT-2020 requirements proposed by the International
a range of design goals. Discussions between mobile Telecommunications Union Radiocommunication
industry stakeholders from different countries to Sector (ITU-R), which are seen as the definitive 5G
define and shape 5G began in 2012, culminating in the design goals.2

Figure 1

IMT-2020 5G requirements
Source: ITU-R

Requirement Value

Data rate Peak Downlink: 20 Gb/s Uplink: 10 Gb/s

User experience Downlink: 100 Mb/s Uplink: 50 Mb/s
Spectral efficiency Peak Downlink: 30 bit/s/Hz Uplink: 15 bit/s/Hz
5th percentile user Downlink: 0.12–0.3 bit/s/Hz Uplink: 0.045–0.21 bit/s/Hz
Average Downlink: 3.3–9 bit/s/Hz Uplink: 1.6–6.75 bit/s/Hz
Area traffic capacity 10 Mb/s/m²
Latency User plane 1–4 ms
Control plane 20 ms
Connection density 1,000,000 devices per km²
Energy efficiency Loaded: s ee average spectral No data: sleep ratio
efficiency
Reliability This is 1–10-5 success probability of transmitting a layer 2 protocol
data unit of 32 bytes within 1 ms
Mobility 0–500 km/hr
Mobility interruption time 0 ms
Bandwidth 100 MHz

2 https://www.itu.int/en/ITU-R/study-groups/rsg5/rwp5d/imt-2020/Pages/default.aspx

5G in a global context 11 / 80
The 3rd Generation Partnership Project (3GPP)
approved the non-standalone 5G new radio (5G
NR) specifications in 2017, allowing many operators
to bring forward their 5G commercial launch plans.
The standalone version was approved in June 2018,
which represented the full 3GPP Release 15. 5G
NR is designed to deliver faster and better mobile
broadband services compared to 4G, and to enable
new services for verticals, including mission-critical
communications and massive IoT. 3GPP completed
5G NR Release 16 and Release 17 in 2020 and 2022,
respectively, expanding the reach of 5G to new
services, spectrum, deployments and devices (see
Figure 2).

Figure 2

The features of 5G NR Release 16 and 17

Source: 3GPP

Release 15 Release 16 Release 17

Industrial - NR in unlicensed spectrum - Time-sensitive

IoT - Private networks communication (TSN)
- Ultra-reliable low-latency - Neutral host
communications (URLCC) - ‘NR-Light’ for Industrial IOT
- Time-sensitive networking - High-accuracy positioning
Ecosystem growth

(TSN)

Other - Vehicular communication - Sidelink enhancement for

verticals (Cellular V2X) public safety and pedestrians
- Multi-cast
- Non-terrestrial networks
(satellite and HAPS)
- Railway (application layer)

Network - Full 5G system resilience - Network slicing Phase 3

deployment - Wireless-wireline convergence - Network automation Phase 3
and automation
- Network slicing Phase 2 - Extension to 71 GHz
- Network automation Phase 2
Broadband enhancement

- Integrated access and backhaul

5G Release 15

Extreme Device
enhancement
- Device power saving
- Enhanced MIMO
-
-
Further device power saving
Further enhanced MIMO

mobile - Mobility enhancement -

-
Multiple USIMs
Cloud gaming QoS

broadband
- ‘NR-Light’ for Consumer IoT

5G in a global context 12 / 80
Figure 3

The mobile industry’s goals for the 5G era

Source: GSMA

1
Boundless
connectivity for all
5G networks coexist with
4G networks and alternative
network technologies to deliver
a high-speed, reliable and
secure broadband experience,
and to support a plethora of
use cases.

5 2
Digital Network
transformation of economics and
industry verticals innovation
The mobile industry provides 5G networks rely on a
the networks and platforms combination of established
to accelerate the digitisation and innovative technologies,
and automation of industrial and use both licensed and
practices and processes unlicensed spectrum, across
(including supporting different spectrum bands
Industry 4.0 goals). to deliver better quality
networks in a cost-effective
way, either independently or
through sharing/partnerships.

4 3
Massive IoT Enhanced
and critical mobile
communications broadband
5G networks support the 5G networks enable an
massive rollout of intelligent enhanced broadband
IoT connections for a multitude experience with speeds of up
of scenarios and provide an to 1 Gbps and latency of less
enhanced platform to support than 4 milliseconds; they also
widespread adoption of critical provide a platform for cloud
communication services. and AI-based services.

5G in a global context 13 / 80
1.2
5G versus previous
generations

Legacy mobile technologies (1G, 2G and 3G) were These improvements are enabled by 5G’s more
heavily voice-oriented with their primary circuit- advanced core network technology, along with
switched network architecture. 4G introduced the first the use of more efficient radio technologies, more
fully packet-switched network and the foundation spectrum bandwidth and more densely built networks.
for data services. As an evolutionary technology, 5G However, while 5G offers superior performance over
performs all the functions of 4G with the potential 4G, both network generations will coexist comfortably
for more, and at a significantly larger scale: super- into the 2030s. Considering the time required to
fast download speeds, high levels of reliability and extend 5G coverage into less densely populated areas,
extremely low latency. users will continue to rely on 4G networks for 5G non-
spots for the foreseeable future.
5G builds on 4G’s packet-switching capability to
deliver a 10–100× increase in data rate, 10× decreased
latency, a 10–100× increase in number of connected
devices, a 1,000× increase in mobile data volumes,
3× greater spectrum efficiency and a 10× reduction in
power consumption.

Figure 4

The 2020s will be characterised by the 5G era

Source: GSMA, Qualcomm

1G 2G 3G 4G 5G

1980s 1990s 2000s 2010s 2020s

Analogue voice Digital voice Wireless internet Mobile broadband Wireless Edge
AMPS, NMT, TACS D-AMPS, GSM, CDMA2000/EV-DO LTE, LTE Advanced, 5G new radio (NR)
IS-95 (CDMA) WCDMA/HSPA+ Gigabit LTE

Mobile voice Efficient voice Focus shifts Mobile broadband and A unified future-proof
communication to reach billions to mobile data emerging expansion platform

5G in a global context 14 / 80
1.3
5G connections
forecast

5G adoption rates will grow rapidly in the coming

years, according to GSMA Intelligence forecasts. Total
5G connections will pass the 2 billion mark by the end
of 2025 and reach around 5.3 billion by the end of this
decade (see Figure 5) – at this point, 5G connections
will account for more than half of the total number
of mobile connections. This does not include IoT
connections. Separately, GSMA Intelligence forecasts
that licensed cellular low-power wide-area (LPWA)
connections will reach 2.3 billion by 2030, setting the
base for massive IoT, as both long-term evolution for
machines (LTE-M) and narrowband IoT (NB-IoT) have
a long-term status of 5G standards.
GSMA Intelligence data also shows that adoption of
5G is faster compared to 4G and 3G in the first few
years after their respective launches. The total number
of 5G connections will reach the 1 billion mark by the
end of 2022, just under four years from the launch of
the first commercial network. In comparison, it took
4G around eight years and 3G nearly 11 years to reach
the same milestone (see Figure 6). The rapid growth
of 5G is primarily due to China’s earlier launch and
adoption of 5G compared to previous generations.
Strong 5G demand in China means that it represents
the single largest 5G market in the world, accounting
for three in five connections of the global total by the
end of 2022.

5G in a global context 15 / 80
Figure 5

5G mobile adoption in selected markets by 2030

Percentage of connections (excluding licensed cellular IoT and FWA) and number of connections
Source: GSMA Intelligence

US Developed Greater
APAC* China

95% 380m 93% 278m 89% 1.6bn

Europe Latin India

America
54%

89% 639m 58% 484m 36% 496m

Rest Africa
of APAC

Global
5.3bn 33% 582m 20% 341m

* Australia, Japan, Singapore, South Korea

Figure 6

Adoption
1200
of 5G versus 4G and 3G
Years to reach 1 billion connections from launch
Source: GSMA Intelligence

1,000m 5G 4G 3G

800m

600m

400m

200m

0m
1 2 3 4 5 6 7 8 9 10 11 12

5G in a global context 16 / 80
1.4
5G growth drivers

5G has become mainstream in many pioneer markets top 20 manufacturers in the first half of 2022, up
(notably China, South Korea and the US) and is from 40% in 2020. Xiaomi, Vivo and Oppo lead the
making considerable progress elsewhere. Momentum way, accounting for around half of the 120 new 5G
has been boosted by a number of factors, including smartphones launched in that period. The fall in
the economic recovery from the pandemic, rising device prices is also a factor, with the average price
5G handset sales, network coverage expansions and of 5G-ready devices globally now less than $500,
overall marketing efforts. 5G is present in over two compared to nearly $900 in 2019.
thirds of the smartphone models launched by the

Figure 7

The availability of 5G devices is increasing Number of 5G models launched

5G models as a share of total launched
Source: GSMA Intelligence per quarter

160 80%
73%

140 70%

120 60%

100 50%

80 40%

60 30%

40 20%

20 10%

0 0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2019 2020 2021 2022

Note: A total of 1,355 smartphone models were launched from the top 20 brands globally during the period shown, according to GSMA Intelligence research.

5G in a global context 17 / 80
1.5
Emerging consumer
5G use cases

Monetising 5G is still top of mind for operators. Entertainment experiences (e.g. sporting activities
Enhanced mobile broadband (eMBB) and FWA and venues, concerts, gaming labs, movies and
connectivity remain the dominant 5G use cases, theatres), which customers pay a premium, also
helped by an ever-growing portfolio of 5G-enabled provide avenues for operators to demonstrate the
smartphones across various price points. However, value of 5G. For example, Telstra has partnered with
existing 5G users are increasingly interested in adding Google and Accenture to develop an AR app over its
content and services (video streaming, music, gaming, 5G network to help sports fans navigate a stadium in
live sports, cloud storage etc.) to their 5G plans (see Melbourne, and Verizon offered fans a new experience
Figure 8). The shift of gaming consumption from with its 5G Multi-View platform at the 2022 Miami
consoles to mobile devices, combined with the rise Formula 1 Grand Prix, enabling real-time views of
of cloud-based gaming, offers new opportunities seven unique, live camera angles in high definition.
for monetising digital gaming. 5G can play a role
in providing the high-speed connectivity and low
latencies required for cloud-based content access,
delivery and consumption.

5G in a global context 18 / 80
Figure 8

5G drives consumer interest in

non-connectivity offerings
Percentage of contract mobile subscribers
who have added or are interested in adding the
following to their contract subscriptions (aggregate)
Source: GSMA Intelligence Consumers in Focus Survey 2021

Difference versus
5G users 4G users (pp)

Content Video streaming

+14
62%

Music streaming
+11
56%

Live sports
+11
36%

Gaming
+13
36%

Services Cloud storage

+9
55%

Digital security
+10
57%

Devices Wearables

+14
55%

Smart home
+10
44%

Entertainment
+14
45%

Base: Smartphone users who are most frequently connected to 5G or 4G networks.

5G in a global context 19 / 80
1.6
5G standalone
networks come
to fruition

Operators around the world began their 5G deployment Much of the enterprise opportunity will rely on
efforts with the non-standalone (NSA) version of the the deployment of SA networks to benefit from
technology. However, 5G standalone (SA) deployments 5G’s superior capabilities. Mobile operators are
ramped up in 2021 and 2022. In total, around 115 collaborating with vendors and enterprises to
operators from 54 countries across all regions have explore the potential of 5G SA. In Spain, Telefónica
launched or demonstrated intent to launch 5G SA is targeting three enterprise 5G use cases for its 5G
networks.3 The added functionalities enabled by SA network: automated guided robot vehicles for use
5G SA are key to delivering on the 5G promise of in places such as warehouses; remote maintenance
fully supporting eMBB, ultra-reliable low-latency systems using technology such as smart glasses; and
communications (URLLC) and massive IoT use cases. drones for site surveillance. In October 2021, Taiwan
Mobile received a 5G SA system certification from
the National Communications Commission, allowing
it to provide advanced mobile broadband services for
enterprises to embrace Industry 4.0.

Figure 9

Top benefits of 5G SA
Rank the following benefits of 5G standalone (select top three)*
Source: GSMA Intelligence Operators in Focus: Network Transformation Survey 2021, N=101

79%

66%
59%
53%
44%

Massive Simplified Ultra-reliable

machine-type network Network cost low-latency Network
communications architecture optimisation communications slicing

* Score (%) calculated as a sum of top three answers

3 5G in Context, Q2 2022, GSMA Intelligence, 2022

5G in a global context 20 / 80
2 5G in Africa’s
connectivity landscape
5G is a question of when, not if, for most markets and operators. In
many cases, the decision on when to launch 5G is based on a number
of factors in the local market that reflect the readiness of operators
to roll out 5G networks and readiness of customers (consumers and
enterprises) to adopt 5G services and 5G-enabled solutions.
While these factors vary across markets, there are common
prerequisites, enabling conditions and key considerations that
indicate the readiness for 5G rollout and adoption.
This chapter assesses Africa’s readiness for mass 5G rollout, the
case for 5G in Africa, the 5G deployment scenario in the context
of the current connectivity landscape and 5G’s growth outlook and
economic contribution in Africa.

2.1
Assessing Africa’s
readiness for 5G
In 2019, the GSMA developed a framework to assess indicators (e.g. urbanisation, GDP per capita, literacy
5G mass-market readiness across different countries. rates), which act as external variables that impact
The framework is based on six broad enablers – 5G readiness and over which telecoms industry
Basic, Economic, Market, Enterprise, Consumer and stakeholders have little or no control. The Market,
Spectrum (BEMECS) – each of which includes a set of Enterprise, Consumer and Spectrum enablers mostly
indicators that encompass the different perspectives include indicators that are endogenous to the
from which 5G readiness can be analysed. The Basic telecoms ecosystem and which can be influenced by
and Economic enablers mostly include exogenous its stakeholders.

Figure 10

Overview of the BEMECS framework

Source: GSMA

Enabler Description

Basic Socio-political context that shapes 5G rollout and adoption e.g. population,
population density, urbanisation
Economic Macroeconomic context that shapes 5G rollout and adoption e.g. GDP growth,
GDP per capita
Market Industry context that reflects the maturity of the telecoms ecosystem
e.g. 4G adoption, smartphone adoption, FTTx penetration, ARPU growth
Enterprise Opportunities and capacity for enterprises to adopt 5G e.g. IoT penetration,
Ease of Doing Business, Registered websites per 1,000 people
Consumer Ability of consumers to adopt and use 5G services e.g. device and service affordability
and usability
Spectrum Availability of spectrum in low (<1 GHz), mid- (1–6 GHz) and high bands (>6 GHz) for 5G

See Appendix for a detailed list and description of the indicators in each enabler

5G in Africa's connectivity landscape 22 / 80

Sizeable market opportunity 4G is still growing
for 5G but economic outlook is In most regions around the world, 4G was already the
challenging dominant technology when 5G arrived. In contrast,
the 5G era in Africa has come at a time when legacy
Africa has a total population of more than 1.3 billion networks still account for the majority of mobile
people and most individual markets have populations connections. This presents a variety of unique
of 5 million or more. However, more than half of challenges that will shape the rollout and adoption
the population lives in rural areas where network of 5G in Africa. 4G adoption has been held back by
deployment can be challenging. The region is device affordability and a lack of sufficient digital
susceptible to the economic impacts of the Covid-19 content to stimulate demand. 4G networks now
pandemic and the conflict in Ukraine: the African reach around 76% of the population in Africa, but the
Development Bank (AfDB) estimates that around 30 technology accounts for just 25% of connections, on
million people in Africa were pushed into extreme average, compared to 60% globally (see Appendix for
poverty in 2021 as a result of the pandemic and a 4G adoption in countries across Africa).
further 3.9 million will be pushed into poverty by 2023 With 4G adoption still growing and significant unused
as a result of the Russia-Ukraine conflict.4 GDP per 4G capacity, the focus for operators in Africa in the
capita for most countries in Africa is below $5,000, near term will be on increasing 4G uptake. This will
compared to the global average of $12,000.5 involve strategies to make 4G devices more affordable
and the provision of relevant digital content to drive
demand for enhanced connectivity. The average
selling price of smartphones has reduced significantly
in recent years due to the influx of sub-$100 devices,
mainly from Chinese brands such as Tecno and Infinix.
However, many consumers are still unable to afford
the one-off upfront cost of purchasing a device. This
has given rise to smartphone financing schemes and
other initiatives aimed at making 4G smartphones
accessible to more consumers in Africa.6 Safaricom’s
launch of a 4G smartphone package – in partnership
with Google and aimed at customers currently on
2G – is an example of emerging financing models to
accelerate the transition to 4G.

Figure 11

4G adoption in Africa
4G as a percentage of connections 4G adoption above 40%
4G adoption below 5%
(excluding licensed cellular IoT)
Source: GSMA Intelligence

60%
Global average 60%

50%

40%

30%

Africa average 25%

20%

10%

0%
Algeria Seychelles Morocco Namibia South Africa Tunisia Equatorial Burundi Central African South
Guinea Republic Sudan

4 African Economic Outlook 2022, African Development Bank, 2022

5 IMF data
6 Making internet-enabled phones more affordable in low- and middle-income countries, GSMA, 2022

5G in Africa's connectivity landscape 23 / 80

 Figure 12

Price of entry-level devices as a percentage of GDP

is still high in Africa
Device price as a share of monthly GDP
Source: GSMA Intelligence calculations based on pricing data from Tarifica

40 38.7% 38.2%
36.4%

30
25.7%
24.1% 24.6%

20

10

0
2016 2017 2018 2019 2020 2021

Note: Price of device is the cheapest 3G or 4G feature phone or smartphone available (at the time of collecting data) sold by mobile operators or mobile phone
retailers. To determine affordability, we divide the price by monthly GDP per capita (sourced from the IMF World Economic Outlook).

Device affordability and usability Progress is being made on

remains a challenge 5G spectrum assignment
Some 5G-based services, such as live gaming and but at a slow pace
metaverse applications, utilise a device ecosystem
– underpinned by AR, VR and other cutting-edge Most 5G launches globally (around 80%) have relied
technologies – that is yet to be fully established on 3.5 GHz spectrum. The 3.5 GHz range (3.3–4.2 GHz)
in Africa. In this context, low incomes and a lack of has been adopted as the 5G launch band because
digital skills mean that affordability and usability it supports the required bandwidth and speeds for
of 5G devices and services could be a challenge initial 5G services. As adoption increases and more
for significant swathes of the population. At $39, consumers and diverse services migrate to 5G networks,
the median cost of an entry-level internet-enabled more spectrum across low, mid- and high bands will be
handset is a significant proportion of the household needed in order to deliver widespread coverage and
income of the average consumer in the region (see enough capacity to support the delivery of 5G:
Figure 12). On the enterprise front, the budding — Low-band spectrum (sub-1 GHz) supports
tech ecosystem is supporting the growth of the app widespread coverage across urban, suburban and
economy in Africa. However, the majority of micro, rural areas and helps support IoT services.
small and medium-sized enterprises (MSMEs), which
— Mid-band spectrum (e.g. 3.5, 4.8 and 6 GHz)
make up the bulk of businesses in the region, have yet
to fully adopt digital solutions for their operations. typically offers a good mix of coverage and
capacity benefits.
— mmWave bands (24 GHz and above) will meet
peak traffic demand speeds to maintain the
performance and quality requirements of 5G
services.
Some countries in Africa have recently assigned
spectrum for 5G services to operators, notably Nigeria
and South Africa. However, 5G spectrum assignment
is still underdeveloped when compared to the rest of
the world. A further complication is the use of valuable
spectrum in the low and mid-bands by legacy networks,
potentially delaying 5G rollout in the affected markets.
Where fragmented legacy assignments exist, replanning
based on internationally harmonised approaches will
bring the greatest value from spectrum.

5G in Africa's connectivity landscape 24 / 80

Figure 13

5G spectrum assignments in Africa

Source: GSMA Intelligence

Country Date Bands Number of winners

Angola Dec 2021 3.5 Ghz 3 Africell (Lintel), Movicel, Unitel

Kenya May 2022 2600 MHz 2 Safaricom, Airtel Kenya
Mauritius Jun 2021 2600 MHz 3 Emtel (Currimjee), Chili (MTML),
my.t (Mauritius Telecom)
3.5 GHz
Nigeria Dec 2021 3.5/3.7 GHz 2 MTN, Mafab Communications
South Africa Mar 2022 700 MHz 6 Rain, Vodacom, Telkom Mobile, Neotel,
Cell C, MTN
800 MHz
2600 MHz
3.5 GHz
Tanzania Oct 2022 700 MHz 4 Airtel, Millicom, Viettel and Vodacom
2300 MHz
2600 MHz
3.5 GHz
Zambia Oct 2022 800 MHz 1 Airtel
2600 MHz

Data correct to September 2022

5G in Africa's connectivity landscape 25 / 80

—
Key survey
insight
It is still early days for 5G mass-market readiness
and ecosystem maturity in Africa. The majority
of stakeholders in the region believe that the
5G ecosystem in their respective markets is not
sufficiently developed.

Figure 14

5G mass-market readiness
and ecosystem maturity
On a scale of 1 to 5, with 1 being the lowest and
5 the highest, how mature is the 5G ecosystem
in your market? (Percentage of respondents)
Source: GSMA-ITU 5G Africa Survey

53%

33%

13%

0% 0%
1 2 3 4 5

5G in Africa's connectivity landscape 26 / 80

2.2
The case for 5G
in Africa

The above analysis reveals a challenging scenario — Boosting tech innovation: Africa has a vibrant tech
at present for 5G mass-market readiness in Africa. ecosystem, supported by a network of more than
However, there are reasons to welcome the 5G era, 600 tech hubs, a growing number and wide variety
not least because there would otherwise be a risk of investors and the activities of mobile operators.
of exacerbating the digital divide that already exists 5G-specific attributes, such as low latency and
between Africa and more advanced regions. Beyond high device density, will create new opportunities
that, digital connectivity, with 5G at the core, will for tech startups to develop innovative and
shape the way people live and businesses operate in a locally relevant solutions for the benefit of society.
post-pandemic world, including the potential for the Key sectors that can benefit from 5G-enabled
following: transformative tech include healthcare, education,
agriculture and entertainment.
— Improving connectivity for homes and enterprises:
Given the limited access to fixed broadband — Meeting the connectivity needs of young
connectivity (fixed broadband penetration is consumers: Around 60% of Africa’s population,
typically below 2% in African countries), the equivalent to over 800 million people, are under
immediate opportunity for 5G is to use FWA the age of 25. As digital natives, much of this
to bridge the gap for enhanced broadband population will be after contemporary data-hungry
connectivity for homes and enterprises, both large digital services, such as live video streaming and
and small. Indeed, increased demand for enhanced gaming and metaverse applications, which require
connectivity or an identified enterprise need in a high-performance networks. In the absence of
market are credible triggers for 5G rollout. In South widespread fibre connectivity, 5G will be essential
Africa, for example, the government assigned for consumers to access these services.
temporary spectrum in the 3.5 GHz range in the
wake of the pandemic to boost capacity at a time
of heightened demand.
— Enabling the digital transformation of enterprises:
Before the pandemic, some governments in Africa
publicised their ambition to implement the concept
of the fourth industrial revolution. The pandemic
has made such plans even more imperative as
governments step up efforts to build resilient,
sustainable and inclusive economies that can
withstand current and future shocks. 5G is an
important enabler of digital transformation and
new capabilities across key industries and sectors,
such as manufacturing, agriculture, financial
services and the extractive industries.

5G in Africa's connectivity landscape 27 / 80

2.3
A phased approach
to 5G rollout

Africa’s approach to 5G needs to account for the A possible downside to the phased approach is that
current connectivity landscape and unique market it could limit the opportunity for local operators and
features that could impact 5G rollout and adoption. other ecosystem players to realise economies of scale
In practice, this means phased and targeted 5G from 5G deployment. The telecoms sector is a capital-
deployment in specific locations where customers intensive industry and having sufficient scale can
have a need for 5G capabilities – for example, using provide huge benefits for all stakeholders in a market.
FWA to provide fibre-like home broadband services Markets with sufficient scale can better influence the
to support remote working or URLLC to support global trajectory of 5G development and are also
low‑latency control systems in industrial premises. able to achieve low unit costs of network rollout (i.e.
economies of scale). To mitigate this, operators in
The phased approach would allow operators to
individual markets can collaborate or align their 5G
roll out 5G infrastructure at a sustainable pace and
strategies to achieve better economies of scale, such
progressively build up the business case for more
as through network sharing.
widespread rollout. It would also allow operators to
maintain their focus on increasing 4G uptake in the
near term, especially as there are significant returns
still to be had on investments in 4G networks.

5G in Africa's connectivity landscape 28 / 80

—
Key survey
insight
The majority of stakeholders in the region expect
initial 5G rollout to take a phased approach (see
Figure 15). This is in contrast to the fast population
coverage approach that has been adopted in more
advanced markets. For example, 5G population
coverage in South Korea and the US reached 90%
within a year of commercial launch. In Africa, the
timeline to reach such coverage levels will vary from
market to market, depend on the demand for 5G
services and need to factor in the economics of 5G
rollout in various locations.

Figure 15

Stakeholders expect 5G rollout in

Africa to take a phased approach
How will 5G be deployed in your market? Phased rollout
Mass market rollout
(Percentage of respondents)
Source: GSMA-ITU 5G Africa Survey
4%
96%

5G in Africa's connectivity landscape 29 / 80

2.4
5G adoption outlook

In 2019, data-only network provider Rain began The 2020–2030 period will be pivotal for the
offering commercial FWA services in South Africa, connectivity landscape in Africa as 4G hits the mass
while Vodacom and MTN launched the first major market and 5G rollout and adoption gather pace.
5G networks in 2020, offering 5G mobile and FWA There will be a flurry of activities over the next three
services in South Africa and formally kicking off years in the 5G market as more operators in the region
the 5G era in Africa. 5G activities have since gained launch commercial 5G services. All stakeholders in the
momentum, with several more commercial and pre- 5G Africa Survey expect commercial 5G services to
commercial launches (see Figure 16). be available in their market by 2030, with the majority
predicting this to be within the 2023–2025 time frame.
By the end of this decade, 4G and 5G will account for
nearly two thirds of total mobile connections in Africa
(see Figure 17).

5G in Africa's connectivity landscape 30 / 80

Figure 16

The 5G footprint across Africa

Source: GSMA Intelligence Commercial Pre-commercial Planned

Data correct to September 2022

Figure 17

4G will be the dominant technology in Africa for

the foreseeable future, but 5G is set to gain momentum
Percentage of connections (excluding licensed cellular IoT) 2G 3G 4G 5G
Source: GSMA Intelligence

60%

50%
4G overtakes 3G
45%

40%

32%
30% 4G overtakes 2G

20% 20%

5G overtakes 2G
10%

2%
0%

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

5G in Africa's connectivity landscape 31 / 80

2.5
5G economic impact

5G networks bring substantial improvements over In addition to the measurable socioeconomic impact
previous generations, including higher connection of 5G technology and services, further benefits are
speeds, greater capacity and lower latency. With expected, such as improved access to healthcare and
this increased performance, 5G networks can enable education, increased public security and response
new use cases and applications that will positively times, safer driving conditions and reduced pollution.
impact many industry sectors. Figures 18 and 19 show
the expected contribution of 5G to Africa’s GDP,
according to GSMA Intelligence, providing insight into
the role it will play in helping deliver global economic
growth. This forecast is based on unique access to
operator and mobile ecosystem data, economic
statistics and a proprietary economic model.

Figure 18

5G could benefit the African economy

by $26 billion between 2021 and 2030
GDP uplift (billion)
Source: GSMA Intelligence

$30

$25

$20

$15

$10

$5

$0

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

5G in Africa's connectivity landscape 32 / 80

Figure 19

Retail, manufacturing and agriculture are expected

to be the sectors that will benefit most from 5G
5G benefit by sector, 2030 (percentage of total benefit) Retail Manufacturing Agriculture
Services (including healthcare and education)
Source: GSMA Intelligence
ICTs Transportation, utilities and construction
Others* Finance Public administration

4%
5%

10%

20%
10%

11%

17%

11%

12%

* Includes mining and quarrying, construction and real estate, and arts, entertainment and recreation

5G in Africa's connectivity landscape 33 / 80

3 Building the networks
of the future
5G will need to coexist and interwork with 4G for many years to
come. As such, the vast majority of initial deployments will be NSA
as a way of reducing time to market and ensuring good coverage
and mobility.
There will, however, be instances of SA deployment – for example,
a new mobile market entrant or private 5G network deployments
at specific location areas. In either case, the challenge for the 5G
network ecosystem players revolves around delivering cost-effective
and efficient 5G networks with an implementation strategy that
balances investment and value creation.
This chapter looks at the main opportunities and challenges
operators will face as they prepare their networks for 5G.

3.1
The 5G networks
ecosystem
The mobile industry is experiencing a paradigm shift Notable new ecosystem players include the
in network infrastructure models, with operators, both hyperscalers and open RAN vendors. Operator
large and small, increasingly considering new network collaborations with cloud providers are more
deployment and operations models. This trend has prominent in advanced markets, such as the US;
received further impetus in the 5G era, with the cloud the potential benefits are centred around creating
native design of the 5G core and adoption of a service- new customer experiences and use cases for 5G
based architecture driving the disruption of the network and mobile edge computing solutions. Today, the
equipment and services supply chain. This is resulting in major hyperscalers – including AWS, Google and
the entry of new players in the mobile ecosystem. Microsoft Azure – are considering new opportunities
and partnerships in Africa’s 5G ecosystem. For its
part, open RAN is gaining traction in Africa, with a
growing list of open RAN vendors already present in
the region.

Building the networks of the future 35 / 80

In the 5G era in Africa operators will increasingly forge
business relationships with these new partners and
adapt to new network deployment models. In March
2022, MTN signed a memorandum of understanding
with Rakuten to deploy an unspecified number of
open RAN–enabled 4G and 5G proof of concept
sites for live trials in South Africa, Nigeria and Liberia.
MTN has also worked with Altiostar, Mavenir, Parallel
Wireless, Tech Mahindra and Voyage in earlier open
RAN trials.

Figure 20

Examples of 5G ecosystem players in Africa

Source: GSMA Intelligence

Mobile operators Towers

Airtel Africa Orange America Tower

Etisalat Safaricom Helios Towers
Ethio Telecom Telkom IHS Towers
Maroc Telecom Vodacom SBA Communications
MTN

Network equipment

RAN Core Transport OSS/ BSS Network chipset

Altiostar Affirmed Aviat Accenture Amdocs Arm

Ericsson Cisco Ceragon Ericsson Intel
Huawei Ericsson Cisco Huawei Marvell
Mavenir Mavenir DragonWave-X Nutcracker Qualcomm
Nokia Metaswitch Ericsson Nokia
Parallel Wireless Huawei Huawei Oracle
Samsung Nokia NEC Tata Consultancy
ZTE Samsung Nokia Services

ZTE ZTE

Cloud services

Alibaba IBM
AWS Microsoft Azure
Inq Tencent
Google

Note: List of companies is not exhaustive.

Building the networks of the future 36 / 80

3.2
Network
modernisation on
the front burner

Over the last five years, mobile operators in Africa Despite the shift to fibre, microwave will continue
have invested nearly $45 billion in capex – mostly to account for a significant share of 5G backhaul
on deploying and expanding 4G networks. This infrastructure by 2030. As such, operators plan
includes investments in in the latest LTE-Advanced to upgrade their microwave backhaul links using
technologies such as multiple-input multiple-output new technical solutions that operate in the E-band
(MIMO) to increase coverage and capacity without (71–86 GHz) to increase the reach and capacity of
having to deploy additional sites. Operators will microwave backhaul. E-band’s importance is mostly
progressively increase investment in 5G as they step because of its large bandwidth (10 GHz), which
up preparations for 5G rollout. makes it ideal for meeting the backhaul capacity
requirements of cell sites in traffic hotspots.
5G sites will rely on a combination of fibre and
microwave backhaul solutions. Fibre is the ideal In addition, band and carrier aggregation (BCA)
option for 5G, as capacity demands are significantly makes it possible to use E-band spectrum in
higher compared to current typical microwave conjunction with traditional lower-frequency bands
installations. A site hosting a 5G radio base to provide higher capacity and longer link distances
station operating on 100 MHz of spectrum using as Etisalat and Huawei have demonstrated in Egypt.7
beamforming and MIMO is expected to require up to In 2020, Huawei introduced a 5G microwave long-
10 Gbps (depending on site size and access spectrum) reach E-band solution designed to extend the reach
for backhauling. For comparison, LTE backhaul of microwave backhaul to 3–5 km (from typically 3 km
demand is around 1–2 Gbps per site. In addition, or less) while providing 20 Gbps capacity.8 In 2022,
latency and reliability need to be considered in Ericsson demonstrated 5G wireless backhaul for rural
backhaul technology selection and design processes. and suburban coverage, delivering speeds of up to
10 Gbps over a distance of more than 10 km.9
Based on the use of higher-frequency spectrum
and rising mobile data traffic, 5G requires a denser
network, with more sites to deploy, monitor and
service. In Africa, 5G will mostly be initially deployed
using existing sites, meaning that operators may need
to densify their networks to provide ample capacity
in traffic hotspots in the future. This will largely be
achieved by deploying more small cells on public
infrastructure such as lamp posts and bus shelters, or
in the premises of large enterprises such as stadia and
bus stations.

7 “Huawei works with Etisalat Misr for Gigabit backhaul in Egypt”, TelecomTV, May 2016
8 “Huawei Launches 5G Microwave Long-Reach E-band Solution to Scale Up 5G Deployment”, Huawei, November 2020
9 “Fiber-like connectivity: Ericsson and O2 Telefónica successfully demo 5G wireless backhaul for non-urban areas”, Ericsson, September 2022

Building the networks of the future 37 / 80

—
Key survey
insight
In the 5G Africa Survey, 87% of operator
respondents indicated that they have started
upgrading and preparing their networks for 5G.
The main focus areas for operators include transport,
with efforts to deploy more fibre backhaul, and cell
site densification.

Figure 21

Network modernisation focus

areas for operators
If you have started preparing/upgrading your Radio Transport
Core Other
network for 5G, what part(s) of the network have so
far received attention? (Percentage of respondents)
Source: GSMA-ITU 5G Africa Survey
9%

21%

38% 32%

Building the networks of the future 38 / 80

—
Key survey
insight
The backhaul mix varies considerably across Africa,
from over 60% fibre backhaul in some markets, such
as Angola, Kenya and South Africa, to below 10%
in several other markets. In every market, however,
operators and tower companies plan to deploy more
fibre backhaul in the coming years. Figure 22 shows
a clear shift in the aggregated backhaul mix towards
more fibre between now and the end of this decade.

Figure 22

Evolution of backhaul mix

between 2022 and 2030
Microwave Fibre
What is the current backhaul mix on your network
Other
and what do you expect it to look like by the end
of the decade, based on your company’s network
transformation plans?
Source: GSMA-ITU 5G Africa Survey

2022

59% 40%

2030

33% 66%

Building the networks of the future 39 / 80

3.3
Achieving
cost-effective
5G rollout

5G networks are expected to incur a higher cost of Network sharing is not new in Africa, particularly the
deployment to meet throughput requirement and passive form through cell site co-location and tower
demand. Radio access networks already comprise sale-and-leaseback deals with independent tower
the largest portion of the cost in network deployment companies. Africa is witnessing a new wave of tower
and operation. To meet mobile broadband demand, deals as operators explore new network infrastructure
5G is likely to be offered on higher frequency radio models and seek further operational efficiencies in the
spectrum above 6 GHZ. While the 6 GHz band itself is context of the network densification requirements of
expected to use the existing grid structure of 3.5 GHz 5G. Recently, IHS Towers completed the acquisition
networks, higher frequencies can mean that cells of 5,701 tower from MTN in South Africa, and Airtel
offer a smaller radius of coverage and so achieving Africa agreed a sale-and-leaseback deal for 2,227
widespread coverage may be challenging. towers in Madagascar, Malawi, Chad and Gabon with
Helios Towers.
In Africa, the scale of fibre rollout and cell site
densification required for widespread 5G rollout is Tower companies will play a vital role in the rollout
much larger than in most other regions. Given the of 5G services in Africa. Beyond managing the tower
low spending power of most 5G customers in Africa, assets acquired from operators, many of them are also
relative to developed markets, operators need to involved in building new sites, which will be crucial
adopt network rollout solutions that allows them to for network densification, as well as investing in fibre
minimise capital and operational expenses. infrastructure to connect new and existing sites. IHS
Towers, for example, is laying fibres to its towers in
Network virtualisation promises to accelerate the
Nigeria and other markets to prepare them for the
time to market for existing and new services, as
expected increase in data traffic as customers move
well as enabling more flexible networks that can
to 4G and 5G networks.
scale and evolve as needed. Many of the solutions
for virtualisation are devised in groups adopting Evidence from China underscores the benefits of
open source, meaning operators will work with new 5G network sharing. Under a ‘co-build, co-share’
suppliers and a new layer of configurability in the agreement, China Telecom and China Unicom had
future. The transition to new architectures (such jointly deployed more than 400,000 5G base stations
as cloud-based networks) could deliver savings in across China as of H1 2021 – a move that has helped
the long run, while network and service automation them to save RMB80 billion ($12.4 billion) in capex
can achieve more immediate opex efficiencies by and about RMB8 billion ($1.3 billion) in annual opex.
replacing manual operations, which will become
untenable with the added complexity introduced by
5G networks.

Building the networks of the future 40 / 80

—
Key survey
insight
Operators in Africa are in the early stages of their
network virtualisation and automation strategies.
However, most of them are unequivocal about its
potential to unlock cost savings.

Figure 23

Network rollout and

operations solutions
Which of the following network solutions Network virtualisation Network automation
Network sharing Open RAN
will you consider for your 5G network rollout?
Source: GSMA-ITU 5G Africa Survey

13%

22%

28%
38%

Building the networks of the future 41 / 80

Addressing the digital
divide through the
power of technology
with Arm
Today, nearly half of the world’s population has — Heterogeneity by design: Magma supports
no access to the internet and this digital divide heterogeneity by design, both in the types of
is even more emphasized under the stress of a devices to be connected and the spectrum used
global pandemic. Of those who are connected, the to connect them. That means Magma can be used
majority access is through mobile devices. While the with any generation of cellular technology using
pervasiveness of mobile devices has lowered the cost licensed spectrum, flexible models for spectrum
of access around the world, there is still a significant sharing (e.g. CBRS), radio technologies (e.g. LTE
gap between the cost of access in Africa compared and 5G) or unlicensed spectrum (e.g. Wi-Fi).
to the world average. As an industry we have the — Small fault domains: In any cloud system, it is
responsibility to close this gap and bring the benefits
expected that individual components will fail;
of technology to everyone in the world through better
therefore, failure is treated as a common part of
connectivity and access.
the operational flow of the system. Magma uses
small fault domains (another contrast to traditional
Arm’s role in this journey is to make it as easy as
mobile network architectures) to ensure that
possible to create solutions that are accessible to
individual modules can restart and be upgraded
a broad userbase from cloud to edge to endpoint
independently of each other.
devices. To do that, Arm remains committed to
building solutions that are performant, power efficient — Simplified operations: Magma draws from
and pervasive. For the world of connectivity, one such software-defined networking (SDN) and large-scale
project that Arm is contributing is Magma – a low- data centre design to deliver an architecture that
cost, scalable disaggregated core network solution is robust and easy to manage. Whereas traditional
which simplifies the task of extending network access mobile networks are made up of components
out to remote regions and communities. The Magma that are managed individually, Magma adopts a
core supports LTE and the latest release of 5G. centralised controller (an orchestrator) that allows
an entire mobile network to be centrally managed
Some of the key features of Magma include:
from a single API.
— An open source solution: Magma core is open
Magma is well suited to providing small-scale, low-
source and comes with a permissive license that
cost community networks in addition to coverage
allows its users to commercially deploy it. The
extension through federation with existing mobile
Magma Core Foundation is the organisation that
networks. The solution is already being used in
oversees the Magma open source project. In
national parks and Native American reservations in
February 2021, the Magma Core Foundation joined
the US and remote communities in Brazil.10 Magma has
the Linux Foundation.
also been deployed in Africa to provide connectivity
— Use of commodity hardware: Most traditional to underserved rural areas, demonstrated by DishNet
networking equipment is proprietary, bundling the Africa’s deployment of the technology in South Sudan.
software with precisely specified and configured Magma is also exploring other mobile use cases,
hardware. However, Magma has been designed including FWA.
to operate on commodity hardware, allowing any
The pairing of the Magma Access Gateway stack and
component to be replaced at minimal cost and
vast ecosystem of Arm partner devices enables the
disruption to the network. Multiple original design
choice to scale deployments up and down as needed
manufacturers, such as Nexcom, Sercomm and
for the application, optimising for cost and power.
Hawkeye, have incorporated the Magma stack into
their network appliances.

10 “Software is Eating the Edge” Magma, May 2021

Building the networks of the future 42 / 80

3.4
Addressing the
energy conundrum

5G is more energy efficient per gigabyte over previous Against this backdrop, operators are increasingly
network generations. However, 5G massive MIMO and turning to renewable energy sources for their
the power requirements for cell site densification also operations. In many cases, solar energy is particularly
exacerbate the network energy management challenge. promising, given the decreasing cost of photovoltaic
panels and improvements in battery solutions, with
Operators in Africa face a particularly dire situation
the use of more cost-effective lithium batteries rather
from an energy-management viewpoint. The
than traditional acid battery options.
traditional approach for wireless networks has been
to use grid-supplied electricity as a primary power For the majority of operators in Africa, solar still
source and diesel generators to provide back-up accounts for less than 10% of the energy mix,
power. However, the reach of grid electricity is limited despite the region’s favourable sunshine duration
(specially outside of urban areas), often unreliable ratio. Operators and tower companies operating
and sometimes lack the capacity to power network in the region have pointed to the following as the
infrastructure. main barriers to using more solar: high upfront cost
for solar panels and batteries; theft and vandalism,
Historically, operators in Africa have mostly relied
especially in remote locations; and space limitation on
on diesel generators to power off-grid and ‘bad-
cell sites to assemble the solar components.
grid’ sites. This is unsustainable in the long term,
given the industry’s commitment to reducing its Another way operators can increase the use of
carbon footprint and rising fossil energy prices due renewable energy is through power purchase
to the conflict in Ukraine. In 2019, the GSMA Board, agreements (PPAs) with local energy suppliers. With
comprising members from the largest mobile network PPAs, an operator (or company from any industry)
operators in the world, set a milestone ambition: invests capital with a renewable energy provider to
to transform the mobile industry to reach net-zero fund capacity at a specific generation facility, such as
carbon emissions by 2050, at the latest. The mobile a solar or wind farm. To meet its commitment to halve
industry was the first sector to commit to the UN’s its environmental impact by 2025 and accelerate
17 Sustainable Development Goals (SDGs), including the reduction of greenhouse gas (GHG) emissions,
climate action, in 2016. Vodacom aims to buy electricity needed for its
operations from renewable energy sources using PPAs.
Vodacom recently sourced 1,183,898 kWh of energy
through such PPAs, which helped to save 11,971 MWh
of electricity, while reducing its GHG emissions by
12,272 metric tons of carbon dioxide equivalent.

Building the networks of the future 43 / 80

Orange at the forefront of
the transition to solar in Africa
Orange is a founding member of the Net Zero Orange now has the biggest deployment of solar panels
Initiative, which sets out a vision of a carbon-free in several of these markets, with renewable energy
world with other large organisations. To this end, accounting for more than 50% of energy use Guinea,
Orange has put in place several initiatives, including 41% in Madagascar and 40% in Sierra Leone. Orange
the use of solar energy, to reduce its reliance on diesel MEA (including Jordan) has installed solar panels
generators. Orange is deploying innovative solar at 6,000 of its sites, saving 55 million litres of fuel
solutions and the latest batteries with various partners each year. In some sites, solar power has reduced the
in the renewable energy space. Several countries are use of diesel by up to 80%. In January 2022, Orange
benefiting from this, including the DRC, Guinea, Côte announced a partnership with utility company Engie
d’Ivoire, Burkina Faso, Sierra Leone, Central African to build a solar plant that will supply 60% of daytime
Republic, Liberia and Cameroon. energy needs at its Côte d’Ivoire data centre. The plant
will comprise 784 photovoltaic cells that will generate
an estimated 527 MWh/year of renewable energy.

Building the networks of the future 44 / 80

3.5
Network
rationalisation is a
long-term prospect

Across the world, operators are increasingly outlining The slow pace of migration from legacy networks in
plans to shut down 2G and 3G networks as the Africa is a function of both demand-side and supply-
transition to 5G gathers pace. This is with a view side factors. On the demand side, the affordability of
to optimise network operations given the cost and 4G devices remains a challenge for most consumers,
complexity of simultaneously running multiple alongside low digital skills and a lack of relevant
network generations, the need to repurpose spectrum content to drive demand. On the supply side, over a
assets for more efficient 4G and 5G networks and fifth of the region’s population live in areas not yet
the opportunity to improve energy efficiency in covered by 4G networks, limiting access to 2G and 3G
the network (since legacy networks are less energy services only.
efficient). In addition, the standardisation and
In addition, only around 10% of 4G operators in Africa
maintenance of legacy equipment is slowing, with
have deployed commercial Voice over LTE (VoLTE)
some equipment due to lose support within a few
technology, which allows voice and SMS services to
years. This could result in higher security risks and a
be delivered to LTE devices. To drive the migration
greater incidence of outages on these networks.
to 4G, operators in Africa need to accelerate VoLTE
Telkom South Africa retired its 2G network in 2020 deployment, taking advantage of the increasing
and had shut down 80% of its 3G network as of availability of VoLTE-enabled devices. On average, it
January 2022. The operator is, however, an exception takes 2–4 years between the shutdown announcement
in Africa. On average, 2G and 3G account for 23% to the actual network switch-off. This means that
and 53% of mobile connections, respectively (as of operators need to begin formulating their network
September 2022), making their closure more of a shutdown plans by the mid-2020s, including VoLTE
long-term prospect. deployment, to ensure a smooth customer migration.
In the meantime, vendors are providing multi-
generational RAN solutions, which allow operators
to run 2G, 3G, 4G and 5G on the same radio. This
reduces the amount of equipment at each site,
generating cost savings for operators. For example,
ZTE has implemented a 3G/4G/5G Tri-RAT dynamic
spectrum sharing solution to help operators build
a lean multi-mode and multi-service network that
supports 5G while protecting their legacy investment.

Building the networks of the future 45 / 80

—
Key survey
insight
Most stakeholders in Africa expect legacy networks
(2G and 3G) to remain operational in their markets
beyond 2030.

Figure 24

Anticipated timeline for

shutdown of legacy networks
In your opinion, what is the realistic timeline for
shutting down legacy networks in your market?
(Percentage of respondents)
Source: GSMA-ITU 5G Africa Survey
52%

22%

19%

7%

2022–2024 2025–2027 2028–2030 Beyond 2030

Building the networks of the future 46 / 80

Enabling end-to-end
5G networks with Arm
5G Solutions Lab
In the coming years, more infrastructure will be The Arm 5G Solutions Lab serves as a confluence
required to achieve the true potential of 5G. Much where software and hardware developers, operators
of this infrastructure will be powered by Arm- and cloud service providers can come together to
based chips. These networks will evolve to enable define KPIs, blueprints and deployment guides to help
more complex technology capabilities, improved bring alive innovations in 5G and, ultimately, generate
provisioning and enhanced service offerings that will revenue faster.
unlock new use cases and revenue streams. The rapid
The initiative is made possible with the help of the
pace of deployment underscores how critical it is
Arm ecosystem, with support from a broad set
to achieve faster development of network and edge
of industry stakeholders, including Google Cloud,
infrastructure solutions to unleash the benefits of 5G
EdgeQ, Gigabyte, Marvell, Nvidia, NXP, Qualcomm
to everyone, including those with limited or no access
Technologies, Dish Network, Vodafone, Accelleran,
to connectivity. To do this, operators are seeking
Mavenir, Parallel Wireless, Radisys, Saankhya Labs
greater choice and flexibility in future systems.
and Tech Mahindra. Arm has ambitions to launch 5G
Arm launched the Arm 5G Solutions Lab in solutions labs across Africa, starting with South Africa.
October 2021 to accelerate innovation for network
infrastructure by providing a platform for Arm’s
hardware and software ecosystem partners to come
together and demonstrate end-to-end solutions in
a live testing environment. The momentum that is
building within the open RAN community creates an
opportunity for operators and enterprises looking to
deploy private networks to gain easy access to multi-
vendor platforms. The Lab will provide secure access
to partners and operators to validate solutions and
increase confidence in new technologies across a
range of critical use cases, such as small cells, macro
cells, private 5G networks, cloud RAN, the RAN
intelligent controllers and the core network.

Building the networks of the future 47 / 80

4 Driving customer
uptake
Realising the potential of 5G in Africa depends on customer
adoption and usage, which in turn strengthens the business case
for network rollout.
As with previous mobile generations, the consumer market will
be an important growth driver for 5G. Beyond that, enterprise
services and solutions will fuel 5G’s incremental revenue potential,
leveraging the technology’s unique capabilities to enable the digital
transformation of industries. For both segments, innovative use cases
and applications, as well as device availability and affordability, will
be crucial to drive uptake.
This chapter looks at the main barriers to customer adoption and
usage of 5G services in Africa, the role of FWA as a key use case in
Africa and the opportunity to meet enterprise needs through private
5G networks.

Driving customer uptake 49 / 80

—
Key survey
insight
The 5G Africa Survey sought to capture the
perspective of stakeholders on the impact of four
main factors on consumers’ ability and willingness
to adopt and use 5G services. Among these,
cost emerged as the top factor, underlining the
affordability challenge in Africa.

Figure 25

Main factors impacting

consumer 5G uptake
What is the biggest barrier to consumer adoption
of 5G? (Percentage of respondents)
Source: GSMA-ITU 5G Africa Survey

Cost 37%
(device and tariff)

Network 27%
coverage

Use cases 22%

and applications

Satisfied with 14%

previous generation

Driving customer uptake 50 / 80

4.1
Consumer
considerations

Cost Network coverage

5G devices are usually the biggest cost factor for The consumer impact of network coverage stems
consumers, given that 5G upgrades are offered at from the fact that 5G rollout is likely to take a phased
little or no premium in most cases. The first wave of approach in Africa. This may be a consideration for
5G devices targeted the top end of the market, but users who require mobility across wide geographical
the development of more-affordable chipset designs areas, but less so for more static use cases – for
has led to a significant decline in the average retail example, an FWA connection to the home or
price for 5G smartphones. workplace. As 5G NR supports handover to 4G
networks, users can enjoy uninterrupted connectivity,
Furthermore, the rollout of 5G in large, developing
even when they leave a 5G coverage area.
markets with similar income levels to countries in
Africa (e.g. India and Indonesia) will further incentivise
the mass production of more affordable devices. In Use cases and applications
India, Reliance Jio and Google worked together to
create a sub-$100 lightweight OS 4G smartphone The consensus of stakeholders in the 5G Africa Survey
with advanced features (with a 5G version expected was that eMBB and FWA will initially be the dominant
in late 2022), serving as an example for operator-OEM 5G use cases in Africa. There is growing demand for
partnerships. enhanced connectivity among consumers in the wake
of the pandemic, which has brought about changes
5G-ready handsets are now available for as low in many social and work-related activities. FWA in
as $150 from a range of vendors, but this remains particular will benefit from the underdevelopment of
prohibitive for most consumers in Africa, especially fixed-line infrastructure in Africa and could emerge as
if they have to pay for the device upfront. Given the the primary form of fixed connectivity to homes and
impact of device affordability on 4G adoption, device businesses across the region.
financing schemes will likely be necessary to improve
affordability. Financing solutions help to offset the Online streaming services, especially video and
impact of prohibitive upfront costs of purchasing a gaming, emerged as top applications that will drive
smartphone, helping consumers afford devices with demand for enhanced connectivity. Africa has the
high specifications and advanced features. right mix of factors needed to become a major
market for streaming content: a large, youthful
and tech-savvy population and a legacy media
and entertainment industry that is ripe for digital
disruption.

Driving customer uptake 51 / 80

Connectivity and content are arguably the two
most important remaining factors to unlock the full Satisfaction with previous
potential of the region’s streaming market. Indeed,
both factors are effectively in a virtuous circle, with
generation
improved connectivity creating opportunities for While 5G promises to deliver new experiences for the
users to consume content and increased consumption consumer, such as faster speeds and lower latencies,
of content driving data traffic and strengthening some consumers may wish to remain with an older
the case for network rollout. This underlines the network generation. This may be the result of several
important role of local content creators, such as Iroko factors, including a lack of awareness of the benefits
and Showmax, and global players, notably Netflix, of 5G, affordability of 5G devices and services and a
in driving demand for connectivity. In South Africa, lack of new use cases that necessitate the capabilities
for example, Netflix has showcased over 200 titles of 5G. Given the likelihood of this scenario, operators
and invested over ZAR2 billion ($110 million) in local should consider strengthening consumer messaging
productions over the last five years. to drive demand prior to service launch. This includes
5G will also benefit from the growth of the online building awareness of the broad range of 5G benefits,
gaming market in Africa. The number of gamers in such as speed, latency, capacity and resilience, and
the region has more than doubled in the last five showcasing these benefits with tangible new use
years to 186 million people, according to a study cases that consumers can relate to.
commissioned by game analytics company Newzoo
and Carry1st, a South African gaming platform. This
is largely being driven by mobile gaming, with 95%
of gamers across the region playing on a smartphone
or tablet, as opposed to consoles and computers.
However, immersive reality use cases and applications,
requiring dedicated devices such as VR headsets, may
struggle to gain momentum in the short term due to
device availability and costs.

Driving customer uptake 52 / 80

Qualcomm launches the
Snapdragon 480 Plus chipset
The average retail price for a 5G smartphone has Qualcomm’s expansion into the entry-level tier of
fallen significantly since the early days of 5G, reaching the 5G market is enabling device makers to deliver
less than $500 in 2022. This has been a key driver advanced features while also bringing the cost of 5G
of 5G adoption in pioneer markets. However, for handsets down to around $250. These designs are
Africa, a true mass-market 5G phone will have to be still priced too high for most consumers in Africa, but
much more localised and affordable. This requires they highlight the progress made since the launch
stakeholders to deliver cost efficiencies across the of 5G in addition to the effectiveness of Qualcomm’s
smartphone value chain, including lower-cost chipsets. strategy. This relies on heavy investment in R&D and
the commercialisation of its premium Snapdragon
The Snapdragon 480, launched in December 2020, was
chipsets to generate cash to develop lower-cost
Qualcomm’s first 5G chipset aimed at the entry-level
chipsets. This formula will prove pivotal to creating the
tier of the market. The Snapdragon 480 Plus is a follow-
budget smartphones needed to stimulate 5G adoption
up to the Snapdragon 480 with improved performance
in Africa and other low- and middle-income countries
for both productivity and entertainment. By the second
in Asia-Pacific, the Middle East and Latin America.
quarter of 2022, more than 100 devices based on the
Snapdragon 480 or 480 Plus had been announced or
were in development, highlighting the chipset vendor’s
reach. Key features include the following:
— Truly global 5G connectivity support: The 480
Plus uses the Snapdragon X51 5G Modem-RF
System, which supports sub-6 GHz and mmWave
frequencies, as well as 5G SA and NSA modes. It
also provides support for TDD, FDD and dynamic
spectrum sharing.
— Boosted performance: The Qualcomm Adreno
GPU, Qualcomm AI Engine and 8 nm process
combine to offer improved processing and
improved battery life. According to the GSMA
Intelligence Consumers in Focus Survey 2021,
battery life is the most important feature for
customers when choosing their next smartphone.
— Enhanced mobile gaming experience: The 480
Plus leverages best-in-series CPU and GPU to
ensure smooth visuals in games on an FHD+ 120Hz
display. This expands the range of games that
can be played on a mobile device, creating new
opportunities to monetise mobile gaming.

Driving customer uptake 53 / 80

4.2
The FWA opportunity

FWA networks have been around for decades, — Targeting enterprise segments to connect MSMEs
with the majority of commercial services using 4G. in underserved areas or areas with few alternatives.
However, FWA market adoption has been limited so The embedded security, reliability and high
far, mainly due to performance concerns, especially in capacity of 5G make for a valid value proposition
comparison to fixed-line options. 5G is making FWA for the enterprise segment. Other targets include
a more competitive solution versus FTTH and cable, temporary work sites, such as construction zones,
as it provides speeds of over 10× that of 4G FWA. and large campuses, to avoid the cost of wiring the
As of September 2022, 74 fixed broadband service premises.
providers had launched commercial 5G FWA services
The above scenarios are all applicable in countries
across 38 countries. GSMA Intelligence forecasts show
across Africa, with the option of targeting consumers
that the number of global 5G FWA connections could
in underserved areas providing one of the biggest
reach 40 million by the end of 2025, with the majority
FWA opportunities. The pandemic resulted in changes
in developed countries such as the US.
in broadband usage patterns, such as a marked
increase in data traffic in residential areas as people
worked from home and consumed more streaming
FWA deployment scenarios content during lockdown. Some of these changes may
become more permanent in an increasingly hybrid
There are four possible FWA deployment scenarios working environment.
for operators: 5G FWA will also be a primary 5G use case for
— Targeting new fixed broadband users in enterprises of all sizes, given the challenges around
underserved markets to drive first-time broadband access, cost and reliability of existing connectivity
adoption in developing markets such as in Africa. services, including fixed broadband and satellite. As
This can be cost effective compared to FTTH, such, early 5G deployments will likely target locations
particularly where new fibre infrastructure needs to with a high concentration of enterprises, including
be built, so it is a suitable and timely tool to tacklepublic institutions.
the digital divide in emerging markets more quickly. Apart from demand, the FWA opportunity also
— Targeting fixed broadband users looking for faster benefits from an expanding device ecosystem.
speeds, for instance to tackle the digital divide in According to the Global Mobile Suppliers Association,
rural towns and suburban areas lacking access to as of April 2022 there were 120 5G FWA customer-
FTTH, as well as areas with few alternatives. This premises equipment (CPE) models available from 72
occurs in markets where fibre infrastructure is different vendors, up from just 16 in May 2020. 5G
concentrated in urban areas. FWA rollout will be boosted by growing CPE model
diversity, an expected fall in CPE costs and continuing
— Complementing fibre offerings, generally in urban CPE innovation.
and suburban areas with difficult terrain and/
or regulatory red tape, or areas with few fixed
broadband alternatives.

Driving customer uptake 54 / 80

—
Using mmWave
spectrum for FWA
Mid-band spectrum is a good fit for 5G FWA in potential these bands have. mmWave spectrum was
population clusters such as towns and smaller urban internationally allocated to mobile services at the
areas, in most cases with a single base station. This World Radiocommunication Conference in November
is especially true where other options are expensive 2019 (WRC-19).
or unavailable. Low-, mid- and high-band spectrum
In several instances, mmWave provides an opportunity
all have a role to play as FWA connectivity expands.
for operators that are constrained in their mid-band
Lower bands (e.g. sub-1 GHz) are useful for rural and
holdings to deploy FWA services as a cost-efficient
remote areas, where populations are more spread
alternative to FTTH. A GSMA Intelligence study shows
out, and mmWave bands can provide access in more
that in both urban and rural areas that suffer from
densely populated areas with the fastest 5G speeds.
difficult terrain characteristics and regulatory red tape,
mmWave can handle large amounts of data at very a 5G mmWave FWA network could provide significant
high speeds and very low latency – a combination that cost savings where fibre cables need to be deployed
is appealing for busy and high-traffic residential areas, in ducts built by the operator.11
transport hubs, private networks and FWA. Further, it
The deployment of a large-scale mmWave network is
is now possible to offer FWA using solely mmWave
not without challenges. As the size of a mmWave cell,
spectrum (mmWave standalone) with no need for
depending on propagation characteristics, is expected
sub‑6 GHz spectrum. This provides operators with
to be in the order of 200 to 1,000 metres outdoors and
more flexibility in delivering FWA services.
tens of metres indoors, achieving nationwide coverage
The momentum behind mmWave spectrum is would be prohibitively expensive. However, vendors
growing. There is already a harmonised identification are increasingly developing solutions to address
of 26, 40 and 66 GHz for ultra-high-speed and ultra- these shortcomings. For example, Italian operator TIM,
low-latency consumer, business and government working with Qualcomm and Ericsson, achieved a
services. The next step is for countries to assign it speed of 1 Gbps on mmWave frequencies at a distance
to operators. As of September 2022, 63 operators of 6.5 km from the live network site, highlighting the
around the world had been assigned mmWave usability of mmWave spectrum for wider 5G FWA
spectrum, with commercial mmWave 5G networks coverage beyond high-density urban areas. In February
announced or launched in several countries, including 2022, Qualcomm announced new features and
Japan, Singapore and the US. Existing commercial capabilities to its Qualcomm 5G FWA Platform, which
mmWave 5G networks are showing the significant services more than 40 OEMs and 125 FWA designs.

Figure 26

The large amount of spectrum provides

capacity to support new use cases
Average bandwidth per operator
Source: GSMA Intelligence

3.5 GHz

85 MHz

mmWave

500 MHz

11 The 5G FWA opportunity: A TCO model for a 5G mmWave FWA network, GSMA Intelligence, 2022

Driving customer uptake 55 / 80

4.3
Enterprise
considerations

With the growing maturity of the consumer mobile growing adoption of enabling technologies such as
segment, and the sufficiency of 4G for many cloud, edge, AI and IoT across most vertical sectors.
consumer use cases, the enterprise market has an These technologies also require better network support
elevated importance in the 5G era. A raft of digital for reliable data transport, compute at the edge and
transformation projects across different industries, automation for mass connected assets and devices. 5G
with enhanced connectivity at the core, further networks are designed to cater for such needs.
highlight the opportunity for 5G. Even before Covid-19,
Network vendors and systems integrators, as well
the global trend towards digitisation was clear – the
as operators, are helping drive adoption of 5G for
pandemic has simply accelerated the shift.
the enterprise segment, mainly through private
Enterprises increasingly see network technologies networks. Technology companies that specialise in
as part of their digital transformation agenda. This niches of 5G, IoT, AI, cloud or end-user applications
is expected, as modern networks are the backbone are indispensable for the use-case discovery that
of new use cases such as industrial asset monitoring, enterprise 5G requires. The more enterprises work
digital twins enabled by sensors, and digital or as- with them, the more they will see proof of value for
a-service business models. Recent trends show a their business.

Figure 27

Key categories of players for enterprise 5G

Source: GSMA Intelligence

Device Operators Specialised tech Systems Cloud Network

makers companies integrators hyperscalers vendors

5G devices for Operators are the Technological or Technological or 5G devices for Enterprise cloud
enterprise use traditional vendors vertical application vertical application enterprise use computing was
include smartphones, of connectivity expertise is key to expertise is key to include smartphones, introduced around
tablets, AR services, including servicing enterprises servicing enterprises tablets, AR 10 years ago and has
glasses, VR 5G. They also offer with 5G. Companies with 5G. Companies glasses, VR since grown rapidly.
headsets, cameras, digital services such that specialise in IT, that specialise in IT, headsets, cameras, Hyperscalers are now
industrial sensors, as cloud, security AI, IoT or security AI, IoT or security industrial sensors, eyeing enterprise
gateways, robots, and IoT. Currently, are key to use- are key to use- gateways, robots, networking as an
smart vehicles private networks are case discovery case discovery smart vehicles opportunity to
(autonomous or gaining momentum, and innovation. and innovation. (autonomous or converge their cloud
remote controlled) but in the longer Examples include Examples include remote controlled) or hybrid compute
and drones. Notable term operators will Here Technologies Here Technologies and drones. Notable offerings. Examples
players include introduce slicing and (localisation, (localisation, players include include AWS, Google
Qualcomm, Quectel, edge computing. navigation), navigation), Qualcomm, Quectel, Cloud, Microsoft
Siemens, Telit, U-Blox VisionNav (industrial VisionNav (industrial Siemens, Telit, U-Blox Azure and IBM.
and Fibocom. AGVs) and Kudelski AGVs) and Kudelski and Fibocom.
(IoT security). (IoT security).

Driving customer uptake 56 / 80

—
Key survey
insight
To take advantage of the enterprise opportunity in
the 5G era, operators in Africa will need to address a
number of challenges, some of which may be unique
to the region. The 5G Africa Survey revealed the
three jointly top challenges when considering 5G
uptake among enterprises in Africa. This serves as
a pointer to areas where operators would need to
focus efforts in their 5G enterprise strategy.

Figure 28

Main factors impacting

consumer 5G uptake
What is the biggest challenge in selling 5G Lack of awareness among enterprises
No proven use cases and applications
to enterprises? (Percentage of respondents) Limited 5G network coverage
Source: GSMA-ITU 5G Africa Survey Insufficient technical skills among staff
at enterprises

12%

29%

29%

29%

Driving customer uptake 57 / 80

Awareness Use cases and applications
Enterprises are no strangers to telecoms services. Operators are acutely aware of the need to
Before, much of the services they used related to develop compelling 5G use cases that leverage the
basic connectivity services, such as voice and data. technology’s unique capabilities and to support the
However, 5G comes with a suite of new capabilities that realisation of IR4.0 objectives. Commercialising 5G
can enable innovative solutions for enterprises across across the consumer and enterprise segments will
different verticals. In the view of stakeholders in the 5G require the development of relevant use cases to drive
Africa Survey, there is currently a significant knowledge uptake among target customers.
gap among enterprises in Africa on the capabilities of
As with the consumer segment, FWA will be a prime
5G and how to take advantage of these capabilities.
5G use case for enterprises in Africa, especially in
In this context, there is an industry need to better locations outside of fibre coverage. In August 2022,
articulate 5G’s capabilities and the value proposition to Nokia successfully piloted 4G and 5G FWA network
enterprise customers (including FWA, network slicing, slicing in Kenya for Safaricom. Network slicing allows
edge computing and IoT technologies). The lack of operators to divide their networks into multiple logical
clarity on 5G capabilities and technology migration slices, each capable of maintaining independent end-
(timelines and how legacy technology works with to-end levels of service quality, network performance
new technology) can delay enterprise investment in and security, which lets them provide tailored services
devices and the potential take-up of service. to enterprises and other customers through the
network slices.
The possibility of insufficient technical skills
among staff at enterprises is less of a concern for
stakeholders – the perception is that IT staff at large
enterprises generally keep abreast of new technology.
However, efforts to engage with enterprises and
improve awareness of 5G and its potential among
enterprises would also allow them to identify any skills
gap that requires attention in order to take advantage
of new 5G services.

Driving customer uptake 58 / 80

 Figure 29

Key categories of players for enterprise 5G

Source: GSMA Intelligence

Sector Use case description

Smart cities Orange Romania’s 5G network provides solutions for congestion monitoring, parking sensors
and smart waste management at the Alba Iulia Smart City.

Autonomous O2 is trialling driverless cars in London using its 5G network.

vehicles

Crowd management Verizon and Cisco partnered to deliver a number of new capabilities to stadia, such as the
at sporting venues ability to use analytics to estimate waiting times at gates, restrooms and concession stands.

Sports broadcasting 5G-enabled cameras eliminate the need to use cables, making it easier to cover sports that
take place over a wide area. For example, Fox Sports trialled 5G at the US Open (golf) with
Intel, AT&T and Ericsson.
5G drones Vodafone Spain has trialled a solution to deliver a lightweight defibrillator for use at the scene
of a cardiac arrest, using a drone controlled by 5G.

Construction SK Telecom partnered with Hyundai Construction Equipment and geolocation software
company Trimble to use 5G networks to monitor construction equipment.

Manufacturing AIS Thailand is using 5G connectivity to enable robots to roam manufacturing plants.

Smart factories Verizon has partnered with specialist glass maker Corning to investigate how 5G can improve
the factory environment.

Agriculture 5G sensors collate real-time information about fertilisation, livestock and moisture needs,
helping to conserve energy. Moocall’s calving sensor, powered by 5G, alerts farmers when a
cow is about to give birth.
Ports PSA International is using 5G to support automated guided vehicles (AGVs) and automated
cranes. It has partnered with mobile operators in Singapore to scale these solutions.

Utilities China Unicom and State Grid Hangzhou Electric Power Company have used a 5G-enabled
cable tunnel inspection robot to conduct real-time monitoring of power systems.

Healthcare Telefónica, in partnership with a hospital in Malaga, developed a solution for remote surgery
that runs entirely on 5G.

5G-powered Telia has worked closely with TV 2 and BB&S Lighting in Denmark to test how 5G networking
studio lighting could be employed to improve lightning set-up and cost efficiency in broadcasting.

Oil and gas Centrica Storage and Vodafone have entered into a partnership to use 5G to automate, monitor
and centralise much of the former’s critical maintenance and engineering operations.

Aviation China Mobile Chengdu used Huawei’s 5G distributed massive MIMO solution to deliver 5G
in the new Chengdu Tianfu International Airport, with smart travel services, such as VIP
recognition, luggage tracking and AR map navigation.
Health and safety Singtel, Gammon Pte. Limited and the Building Construction Authority of Singapore are
developing a 5G solution to make building sites safer and more efficient.

Most 5G applications that have been developed to collaboration can enable a faster time to market with
date have focused on use cases and customers in the solutions that take advantage of unique 5G capabilities.
earliest-adopting markets. In some cases, these can They also demonstrate how operators selling 5G to
be replicated for enterprises in Africa, such as use enterprises are doing so by marketing various 5G
cases in agriculture and the extractive sectors, where benefits rather than focusing on speeds alone.
the operational process are largely uniform. However, Operators and equipment vendors have also invested
there is a strong argument to develop use cases and in 5G labs dedicated to co-creating solutions with
applications specifically for local markets in the region, partners to address specific needs in other regions. This
taking into account the unique social, economic and collaborative approach to 5G use case development
environmental factors at play. often brings together key stakeholders – including
Operators should exploit partnerships with enterprises startups, academia, enterprises, cloud providers and
for the purpose of developing 5G use cases in their systems integrators – to demonstrate how 5G can
markets. Examples from other regions highlight how enable digital transformation across society.

Driving customer uptake 59 / 80

Orange pioneers 5G labs
in Africa
In June 2022, Orange launched the first Orange 5G The services at the lab are specifically based around
Lab in Africa, located in Dakar, Senegal. Located in a programme to learn about 5G and the use cases
an Orange Digital Center, the lab creates, tests and it enables through demonstrations and activities.
demonstrates innovative products and services on the For innovators, it provides an opportunity to test
5G network and develops practical 5G applications their products and services in a 5G environment on
for local business and consumers. It also aims to give Orange’s experimental network. The facility also
stakeholders greater insight into the opportunities includes 5G equipment to support users, including
and value of 5G. The idea is to help these stakeholders AR glasses, VR headsets, routers and 5G devices.
to test their current solutions and services and Companies are also supported by Orange’s technical,
think about new 5G-enabled solutions while taking network and product experts, providing synergies and
advantage of an ecosystem to co-innovate and additional resources.
change their business model and processes.
The Orange 5G Lab in Dakar will benefit from the
Orange is taking a collaborative approach to the experience and opportunities created by the Orange
development of 5G applications in the lab, with 5G Lab ecosystem. It joins a network of 13 other labs
partners working on a range of solutions, including: across Europe – France (10), Romania (1), Belgium (1)
and Poland (1). Orange has already welcomed more
— 5G case studies carried out in several areas,
than 1,200 companies and authorities at its Orange 5G
including e-Health, smart ports, smart education
Labs, including 114 who have been able to trial their
and smart agriculture, in partnership with
own practical examples. Having a local presence is a
equipment vendors Huawei and Nokia
key part of the Orange 5G Lab initiative, to support
— 5G innovation demonstrations between the digital transformation of the local economy.
engineering R&D startup Caytu and the Dakar Orange plans to launch similar 5G labs in other
American University of Science and Technology countries in Africa where it is present.
— a 5G innovation demonstration between Senvital
and Sonatel in the area of occupational health
services.

Driving customer uptake 60 / 80

4.4
The private 5G
network opportunity
for operators

Mobile network operators are responding to demand Private wireless networks are delivered in diverse forms,
for private 5G networks. This is a growing part of with varying levels of infrastructure managed by the
operators’ business as enterprises look to have more operator or enterprise. This disaggregation of control
control over their connectivity and ensure performance further feeds into the opportunity to leverage open
levels that meet their evolving latency, coverage, edge network technologies and new vendors supporting
or security requirements. The initial addressable market different functions. In some cases, public networks
for private 5G networks is companies with location- will be combined with local infrastructure to support
specific coverage requirements, such as for a factory, private networks. For prospective enterprise customers,
industrial park or construction site. Other sources of these options entail trade-offs centred on cost versus
demand include private firms and municipal authorities the level of service customisation (see Figure 30).
in areas such as public transport and road signage.
Great care needs to be taken to ensure verticals are
A number of examples of use cases have been trialled fully supported without harming other wireless users –
and commercialised around the world: AT&T launched especially the consumers and businesses who rely on
a private 5G network for healthcare, connecting 4G and 5G. Spectrum that is set aside exclusively for
researchers and patients in the US; Verizon signed a verticals in core mobile bands, for example, risks being
contract with Associated British Ports to equip the underused and can undermine fair spectrum awards,
UK Port of Southampton, which is responsible for raising affordability issues for consumers. Commercial
£40 billion in UK exports each year, with a private mobile operators already support the needs of a
5G network; and Singtel is developing a new private wide variety of vertical sectors and will have added
5G network for Hyundai Motor Group to leverage 5G capabilities with 5G to look after private networks.
capabilities and mobile edge computing resources.

Driving customer uptake 61 / 80

 Figure 30

Private networks sit on a scale of customisation, control and cost

Source: GSMA Intelligence, GSMA Internet of Things Programme

Public network Public network Public network Public network Private network Private network
with SLAs with slicing with local (operator (non-operator
infrastructure spectrum) spectrum)
— Efficient use of — Operator — Dedicated and — Dedicated — Isolated network — Direct
infrastructure expertise and customised network — Managed service responsibility for
and spectrum spectrum network equipment spectrum access
or leasing of
— Mobile edge portfolio resources — Choices and usage
spectrum
computing — Superior — Higher data regarding — Independent
— Customised
within public customer isolation, localisation of design,
design,
network support and security and data/control operation,
operations and
SLAs privacy — On-site mobile procurement
deployment
and radio plan
edge computing

Less customisation More customisation

Less control More control
Lower cost Higher cost

The potential for the private 5G network market in For most stakeholders, setting aside 5G spectrum
Africa is significant. Given the likelihood that operators in key bands for non-operator players could mean
will take a phased approach to 5G rollout and that that a valuable resource goes unused in many areas,
public 5G services may not be available in certain limiting the amount of spectrum available for public
locations initially, the private 5G network option 5G services, with a direct impact on speeds, coverage
represents a credible alternative for enterprises. Early and cost. For example, industry verticals are unlikely to
adopters of private 5G networks are likely to be large use spectrum in priority 5G bands very widely across
enterprises with deep pockets and clear business countries, potentially resulting in unused spectrum
cases. This offers an opportunity for operators to assets. As such, spectrum carve-outs for vertical
test 5G and new business models – something as industries should be avoided in priority 5G bands
important, if not more important, than pure revenue (i.e. 3.5, 26 and 28 GHz). Sharing approaches such as
generation in the early adoption phase. leasing12 are typically better options in these situations.
While the private 5G market in the region is still Additionally, operators can leverage their larger
in its infancy, there are early signs of progress. In and more diverse spectrum assets and large-scale
South Africa, for example, MTN is building private 5G deployment experience to build networks more
networks for 14 companies in the mining and ports efficiently and effectively. This is especially true in
sectors. Most stakeholders in the 5G Africa Survey Africa, where most enterprises would not have the
envisage demand for private 5G networks in their scale and resources to build and operate private
market, with mining, ports, oil and gas, education and 5G networks, compared to their counterparts in
agriculture among the prospective sectors. more advanced markets. Furthermore, partnering
with operators to field test 5G offers enterprises an
opportunity to reduce the investment burden and
ensures a technology partner with interest at stake.

12 Spectrum leasing in the 5G era, GSMA, 2022

Driving customer uptake 62 / 80

—
Key survey
insight
The role that operators will play in the private 5G
network market has been open to some debate in
more advanced markets, especially with moves in
some markets to set aside spectrum in core mobile
band for verticals. In Africa, however, the consensus
among stakeholders is that operators are best
placed to lead the rollout and operation of private
5G networks.

Figure 31

Operators are best placed to drive

the private 5G market in Africa
Who should lead the deployment of 5G Operators Enterprises Equipment vendors

private networks in your market?

(Percentage of respondents) 6%
Source: GSMA-ITU 5G Africa Survey
94%

Driving customer uptake 63 / 80

—
The GSMA 5G
Transformation Hub:
unlocking the
potential of 5G How 5G could help transform
construction

Challenge
5G has the potential to enable a range of new Both dynamic and temporary in nature, building
applications and services, but it can be difficult for sites tend to lack the ICT infrastructure to truly
the mobile industry and its partners to source reliable harness digital technologies. To properly monitor
information on these opportunities. The GSMA 5G large and complex construction sites requires
Transformation Hub was established in response to mobile high-resolution cameras, supported by
this challenge. The hub is an online portal containing high-capacity, low latency connectivity.
information on current live 5G solutions with case
studies detailing design, benefits, key players, Solution
measured value and the future positive impact of
scaling up these solutions worldwide. Singtel has deployed a 5G SA network and
edge compute capacity to support a Gammon
As of August 2022, there were 15 case studies on construction site on Sentosa Island in Singapore.
the 5G Transformation Hub, with more to be added 5G is used to connect robots (that can scan the
in the rest of the year. A wide range of industries site in 3D), CCTV cameras (that supply footage
are covered, including manufacturing, energy, to image recognition software), headsets (for
transportation, live entertainment, smart cities and augmented reality services) and drones.
construction (see below for an example).
By publishing information on innovative 5G services, Impact and statistics
the GSMA 5G Transformation Hub allows industry
stakeholders to gain a better understanding of why Gammon estimates using 5G connected robots,
5G is best placed to deliver real value to customers rather than human beings, to scan construction
and transform multiple industries. This can help sites could lead to a 30–40% improvement in
inform the 5G business case and inspire operators, productivity for this process. At the same time,
businesses and governments to roll out solutions it believes 5G connected CCTV cameras will
to unlock the benefits of 5G and accelerate market significantly improve safety by enabling image
adoption. This is particularly important in regions that recognition systems to immediately detect
have yet to roll out 5G at scale, such as Africa. potential hazards. It is planning to deploy both
these solutions on other construction sites.

Wider implications
5G connectivity could enable contractors to create
highly detailed and up-to-date digital models of
a building site. These models could be used to
monitor progress, verify the quality of work, manage
assets and equipment and ensure compliance with
safety and environmental regulations. As a result,
the construction sector could achieve a major leap
forward in both safety and productivity, while
boosting customer satisfaction.

Stakeholders
Singtel, the Building Construction Authority of
Singapore (BCA), Gammon and Qualcomm13

13 For more information, see https://www.gsma.com/5GHub/construction

Driving customer uptake 64 / 80

5 Policies to realise the
5G potential in Africa
An enabling policy environment is essential for the success of 5G
in Africa. Accordingly, governments and regulators need to foster
a pro-investment and pro-innovation environment to support cost-
effective network rollout and the development of innovative use
cases to stimulate demand.
5G can deliver customisable services to meet the needs of a huge
variety of users and connection types. However, the success of these
services is heavily reliant on national policy decisions and their impact
on 5G network deployment and customer adoption.
This chapter outlines key policy and regulatory enablers to support 5G
network rollout and customer adoption and usage in Africa.

Figure 32

5G policy considerations
Source: GSMA Intelligence

Governments, policymakers and regulators

5G network rollout enablers 5G customer adoption enablers

— Providing timely access to the right amount of — Facilitating use case development and content
spectrum for 5G, under the right conditions creation to stimulate demand
— Implementing policies and regulation to support — Using fiscal and regulatory measures to improve
cost-effective network rollout, especially around the affordability of devices
right-of-way (RoW) approvals, electromagnetic — Addressing public concerns and misconceptions
field (EMF) rules and small cell deployment
about 5G
— Supporting operators’ transition to renewable
energy

Policies to realise the 5G potential in Africa 66 / 80

5.1
5G spectrum policy
framework

The speed, reach and quality of 5G services depend

on governments and regulators supporting timely 5G spectrum bands
access to the right amount and type of affordable
spectrum, under the right conditions. There is already Effective spectrum licensing is critical to encourage
a significant variation in the amount of spectrum the investment required to expand mobile access,
assigned and the prices paid at auctions, which means meet the increase in demand for data services and
the potential of 5G services will vary. This, in turn, enhance the quality and range of services offered.
directly impacts the socioeconomic benefits of 5G Successful 5G networks and services depend on
and the competitiveness of national economies. a significant amount of new harmonised mobile
spectrum. Ensuring the timely availability of prime
bands, including those requiring defragmentation,
should be prioritised. Initially, regulators should aim
to make available 100 MHz of contiguous spectrum
per operator in prime 5G mid-bands (e.g. 3.5 GHz)
and around 800 MHz per operator of high-band
(mmWave) spectrum. Lower bands (below 1 GHz)
are also required to provide wide-area capacity and
ensure that 5G reaches everyone.
The vast majority of commercial 5G networks around
the world depend on mid-band frequencies. This initial
focus – particularly on the 3.5 GHz range, which has
become the birthplace of commercial 5G – produces
the scale needed to bring down the cost of network
equipment and mobile devices. At its core, a mobile
spectrum licensing framework should:
— ensure operators have access to sufficient
spectrum
— provide predictability to support the new network
investment needed
— avoid costly restrictions on the use of spectrum
beyond those needed to manage interference.
Spectrum harmonisation has always played a vital
role in the success of mobile networks and the
rollout of 5G is no different. However, more mid-band
spectrum beyond the initial 100 MHz per operator
will be needed as 5G demand increases. This work
is vital to 5G’s future and requires forward planning
from policymakers. On average, a total of around 2
GHz of mid-band spectrum will be required for 5G per
country by 2030.

Policies to realise the 5G potential in Africa 67 / 80

Refarming 2G, 3G and 4G bands can, in time, — set modest reserve prices and annual fees to let the
contribute to meeting future spectrum requirements, market determine spectrum prices
but adding new bands is necessary to keep up with — carefully consider auction design to avoid
demand. A number of frequency ranges have the
unnecessary risks for bidders (e.g. avoiding
potential to help support future mid-band needs.
mismatched lot sizes, which create artificial scarcity)
Mobile use within the 3.5 GHz range (3.3–4.2 GHz) is
being maximised in some countries, while additional — develop and publish a 5G spectrum roadmap with
capacity in both 4.8 GHz and 6 GHz benefits the input of stakeholders to help operators plan
from harmonised equipment ecosystems. These effectively around future availability
bands are all part of the process of the next World — consult stakeholders on the award rules and licence
Radiocommunication Conference (WRC-23).
terms and conditions, and also take them into
While the importance of mid-band spectrum can’t account when setting prices (onerous obligations
be underestimated, the future of 5G also depends reduce the value of spectrum).
on access to more mmWave spectrum. Depending
on the urban characteristics of the city analysed and
the expected 5G penetration, an average of between
3 GHz and 4.5 GHz of mmWave spectrum will be Spectrum for 5G backhaul
needed to satisfy demand. This assumes that adequate
mid-band spectrum will be assigned by 2030. Regulators should carefully consider 5G backhaul
needs, including making additional bands available
For these planning efforts to succeed, countries and supporting wider bandwidths in existing bands.
should develop long-term spectrum roadmaps that Measures should also be taken to ensure licences are
reflect growing demand. Roadmaps are an important affordable and designed effectively. While fibre has
means of ensuring there is sufficient spectrum for an important role to play, it is essential that regulators
future demand from consumers and new technologies. plan to make available newer higher-frequency bands
Information on spectrum releases is critical for that can support wider channels and have a greater
businesses to prepare investment plans, secure total amount of spectrum available. In the near term,
financing and develop arrangements for deploying the E-band (70–80 GHz) will be most important,
particular technologies. especially to support initial 5G growth, but the
W-band (92–114 GHz) and D-band (130–175 GHz) will
be vital to scale capacity in subsequent years.
Spectrum pricing and conditions Regulators should also review backhaul licensing
approaches, including whether the pricing
Beyond spectrum availability, the cost of spectrum methodology is suitable for the 5G era. There are a
also has a major impact. Governments and regulators variety of licensing approaches for licensing backhaul
should assign 5G spectrum to support their digital bands, especially with the emergence of higher-
connectivity goals rather than as a means of frequency bands and dense small cell networks.
maximising state revenues. Effective spectrum Regulators should carefully consider their options
pricing policies are vital to support better quality and to ensure they are encouraging spectrum efficiency,
more affordable 5G services. In turn, that will help facilitating rapid deployments and ensuring the
address issues such as the usage gap. High reserve process can be efficiently managed by all parties. For
prices, artificially limited spectrum supply (including example, block licensing could play a greater role in
set-asides) and poor auction design can all have a new higher-frequency backhaul bands. Supporting
negative impact (i.e. slower mobile broadband and longer licence durations and encouraging spectrum
suppressed network investments). trading can also encourage heavier backhaul network
investment and more efficient spectrum use.
Regulators should apply the right 5G spectrum licence
terms and conditions and carefully consider best The price that operators pay for backhaul varies
practice for awarding spectrum. For example, spectrum significantly around the world. Higher prices place
licences with longer durations provide operators with a significant financial burden on operators, making
greater certainty to undertake long-term investments it more difficult to afford quick 5G rollout, especially
in rolling out networks and in deploying new services. outside of urban centres. The formulas used to
On the basis of the expected payback period for calculate prices are often designed for legacy narrow
substantial new network investment, many countries backhaul channel sizes, which means costs quickly
have decided to provide for a minimum term of 15 years. become unsustainable for newer wider channels. It
is essential that regulators ensure formulas contain
Additionally, licences should be technology and
components that mitigate such price jumps. Some
service neutral to allow the upgrade of existing bands
pricing approaches also penalise operators for
to 5G. Consulting with the industry will help maximise
adopting newer and more spectrum-efficient backhaul
consumer benefits and ensure 5G is available for all.
technologies. These too should be avoided, as they
To maximise the benefits of 5G, governments and
discourage network upgrades.
regulators should:
— make available sufficient 5G spectrum across low,
mid- and high bands and avoid limiting the supply
via set-asides

Policies to realise the 5G potential in Africa 68 / 80

—
Dynamic spectrum
sharing
Several 5G RAN vendors now use dynamic spectrum Given that new spectrum earmarked for 5G has only
sharing (DSS), which allows mobile operators to use been allocated in a handful of markets across Africa,
the same spectrum band for different radio access operators in the region are increasingly considering
technologies such as 4G and 5G, to combat the the technology to accelerate their 5G rollout. As with
absence of new 5G spectrum. It works by allocating every new technology, DSS needs to mature further
spectrum to different technologies in real time, before wider adoption is achieved. DSS solutions
based on demand. As of March 2022, DSS had been could incur trade-offs in overall 4G and 5G capacity
deployed for 5G networks by 45 operators across 32 due to DSS operational overhead, which can translate
countries. In Africa, MTN has deployed the technology into reduced peak data rates. Measurements show
in South Africa, in partnership with Huawei, using DSS that initial 5G data rates in DSS environments are only
on the 2.1 GHz frequency band to upgrade existing 4G marginally better than 4G. This is to be expected, as
base stations to 5G without changing antennas and DSS relies on 4G network equipment. Furthermore,
radio units. spectrum bandwidth available in the bands typically
used by DSS is limited.

Policies to realise the 5G potential in Africa 69 / 80

5.2
Network deployment
regulations

The densification of networks to cope with Meanwhile, 5G networks are often flexible and
urban capacity demands requires significant new modularised by design with technologies such as
investments in additional sites and supporting network slicing, SDN/NFV, cloud RAN and open
infrastructure, including fibre. Small cells are crucial RAN. At a basic level, these changes in mobile
to meeting the densification requirements of 5G, network technology and architecture seek to
especially considering the shortage of adequate reduce costs and provide flexibility for customised
backhaul infrastructure. Complex planning procedures services tailored for different customers. With 5G,
involving multiple layers of approval in some countries operators can use network virtualisation techniques
create an additional burden, significantly delaying to dynamically configure network resources to deliver
5G deployment. Policymakers must strive to ensure bespoke, managed connectivity services. Regulators
that the deployment regulations at the local level are should recognise the opportunity new deployment
aligned with national digital ambitions and market technologies can bring to 5G rollout and adapt their
realities. To this end, policymakers are encouraged to: regulatory frameworks to accommodate them.
— simplify planning procedures and regulations for
site acquisition, colocation and upgrades of base
stations
— provide operators access and rights of way (RoW)
to public/government facilities for antenna siting
and fibre deployment on reasonable terms and
conditions
— establish uniform electromagnetic field rules that
are no more restrictive than internationally agreed
levels
— encourage and incentivise fibre investments and
enact appropriate policies to ease and expedite
fibre rollouts
— avoid network monopolies, such as single
wholesale networks, which can stifle competition
and investments in network rollout
— setting reasonable fees and other conditions for
network deployment at local level
— offer a reasonable expectation of approval for
voluntary network sharing deals while avoiding
mandated sharing agreements that may amount to
an access obligation.

Policies to realise the 5G potential in Africa 70 / 80

5.3
The transition to
renewable energy

Energy efficiency is a top priority of operators’ In some countries, the cost of installing solar power is
network transformation strategies and a growing exacerbated by high duties on imported components.
number of operators in Africa have taken a leading Governments and policymakers can facilitate the
role in the use of renewables to meet their ambitious transition to renewable energy by easing the cost
targets. Governments and policymakers have a role burden on operators by implementing enabling fiscal
play in supporting this drive to reduce dependency on measures on solar components. Furthermore, with
diesel and switch to cleaner technologies, especially the increasing reliance on solar energy to power
for 5G networks, and to achieve local climate targets base stations, space and location will become even
in the process. In practice, this means creating an more important in cell site selection. Government
appropriate environment for solar panel deployments and policymakers will need to factor this in the RoW
and advanced energy-efficient technologies. assessment process.

Policies to realise the 5G potential in Africa 71 / 80

5.4
Stimulating
demand for 5G
—
Spotlight on the
EU’s support
for 5G use case
development

In most countries, the government is a major The European Commission’s Connecting

purchaser of ICT products and services, including Europe Facility (CEF) Digital programme
connectivity. With the advent of 5G, there is a case demonstrates the important role that
for governments to make deliberate efforts to public funding will play in supporting
integrate the technology within the various tiers of the deployment of 5G networks and
governments and across public institutions as part of development of innovative use cases. In
their overall digital transformation and national ICT January 2022, the Commission launched
strategies. For example, governments can integrate a call as part of CEF Digital to select
5G applications in the public healthcare and education projects that show concrete 5G use cases
sectors, with use cases around remote and immersive and have the potential to incentivise
services. In turn, this will increase public awareness future 5G application development in
of the technology and its benefits and, by extension, different sectors. The Commission expects
drive demand among private users and encourage the development of services that impact
operators to focus 5G rollout in populated rural areas local communities to help raise awareness
where peripheral infrastructure such as schools, clinics about the benefits of bringing 5G to all
and governmental offices are located. populated areas in Europe and to help
achieve its 5G targets set in its Digital
Governments can complement the efforts of operators
Compass for the end of the decade. The
to develop new 5G use cases through various
initiative is also expected to create a set
measures, including funding and creating an enabling
of best practice 5G use cases, which can
environment for innovation. Governments can promote
be reused as benchmarks for innovative
further availability of test grounds for innovation and
applications under other funding
the establishment of 5G sandboxes to serve as areas of
programmes across the EU.
shared interest and engagement between the supply
and demand sides of the 5G ecosystem.
Given the important role of locally relevant content
in stimulating demand for enhanced connectivity,
there is a need to enable a conducive environment
for content creation to grow and thrive. For example,
governments should recognise the unique business
model of streaming services and not apply the
regulations for traditional linear broadcasting or for
services that utilise spectrum/other scarce resources
on streaming content providers. Appropriate policy
levers should also be utilised to incentivise investment
in local content, in collaboration with content creators
across the region and beyond.

Policies to realise the 5G potential in Africa 72 / 80

5.5
Improving
affordability

Affordability is a major disincentive that could deter Finally, spectrum assignment can impact affordability
customers from adoption 5G. While device costs are and sufficient channel bandwidth plays a vital role
falling, they’re still priced at a significant premium over here. Wider channels lower network density and this
2G, 3G and 4G devices. For consumers in Africa, 5G is an important factor in determining the cost of 5G
uptake will be a function of device affordability. While services to consumers. However, it also has other
smartphone financing schemes are predominantly led advantages, including fewer base stations sites and
by the private sector, governments and policymakers lower environmental impact. The number of sites is
have a role to play in providing an enabling inversely proportional to channel bandwidth: narrower
environment to support such schemes – for example, channels mean more sites. Decreasing channel size
allowing operators to offer mobile handsets with fixed from 100 MHz to 60 MHz in the 3.5 GHz range will
SIM (carrier-locked) features as part of measures to require increasing the number of cell sites by 64%.
de-risk handset financing.
Furthermore, it is important for revenue authorities
to reduce or eliminate import and excise duties on
4G and 5G handsets to accelerate the transition
to enhanced connectivity. According to GSMA
research,14 post-production costs account for a
significant proportion of the retail price. These include
VAT, customs taxes and other sector-specific taxes.
Ultimately, aligning tax policies with governments’
digital transformation objectives will bring sustained
long-term benefits through the positive impact of
greater connectivity on socioeconomic growth.

14 Making internet-enabled phones more affordable in low- and middle-income countries, GSMA, 2022

Policies to realise the 5G potential in Africa 73 / 80

5.6
Misconceptions
about 5G

5G has been the subject of misconceptions in many

countries, including some in Africa. This has resulted
in potential customers expressing concerns about the
technology and hesitation to adopt 5G services when
it becomes available in their markets. As Africa moves
into the 5G era, there is an important role for national
authorities to communicate accurate and reliable
information. Authorities in many countries, including
Australia, France, Germany and the UK, have taken
steps to both educate the public as well as caution
the spread of 5G misinformation.
Policymakers should also take steps to streamline
the conditions for efficient 5G deployment by
setting a national mobile network deployment policy
that simplifies planning procedures for small cells,
improves operator access to public sites for antenna
siting and establishes uniform radiofrequency
exposure rules based on the international safety
guidelines. Both the World Health Organization and
ITU recommend the human exposure guidelines
developed by the International Commission of Non-
Ionizing Radiation Protection (ICNIRP). In its recently
updated guidelines, the ICNIRP (2020) states that
there is no evidence that additional precautionary
measures will result in a benefit to the health of the
population. The updates to the limits are based on
improved scientific accuracy and provide limits for
exposure that were not considered in the ICNIRP
(1998) guidelines.

Policies to realise the 5G potential in Africa 74 / 80

—
The role of
multilateral
stakeholders
There are a number of multilateral stakeholders and
organisations that engage with and represent various
parts of the 5G ecosystem. In Africa, these include
the African Telecommunications Union (ATU), the ITU,
the GSMA, Smart Africa and sub-regional digital and
communications authorities.

Based on responses in the 5G Africa Survey, these

stakeholders will play vital roles in the transition to
5G, notably by:
— facilitating 5G best practices around spectrum
assignment, equipment manufacturing and use
case development among members
— facilitating dialogue among ecosystem players
– globally, regionally and nationally – based
on empirical data through various forums,
including workshops and seminars
— providing insights, trends and thought
leadership to support decision-making
— supporting advocacy efforts by leveraging
platform to engage with policymakers.
— providing capacity building training on various
aspects of 5G for policymakers and sharing
lessons learned from early adopters
— supporting policymakers with evidence on 5G
safety and debunking misinformation
— supporting efforts to create 5G awareness
and demonstrate the value of technology with
examples and case studies from other markets
— exploring avenues to reduce cost for network
equipment and devices, in collaboration with
device vendors and other ecosystem players
— promoting the importance of 5G towards
achieving digital economy
— ensuring 5G spectrum is harmonised across the
region to realise the economies of scale and
therefore lower the cost of devices.

Policies to realise the 5G potential in Africa 75 / 80

Conclusion and
call to action
Africa is on the cusp of the 5G era. The opportunities are tremendous,
but so are the challenges. Although Africa as a whole is embarking
on its 5G journey at a slower pace than more advanced markets, the
region is well placed to benefit from an increasingly mature global
5G ecosystem, evidenced by increasing competition in the equipment
supply and applications markets.

Ecosystem collaboration will be essential to realisingMass-market 5G rollout and adoption may be some
the potential of 5G in Africa. This includes: way off in most markets, with much focus still on
ramping up 4G adoption. However, countries in Africa
— collaboration on cost-effective network rollout
can take a phased approach to 5G rollout, delivering
solutions, supported by timely access to the right
the benefits of enhanced connectivity to consumers
amount and type of affordable spectrum, under the
and enterprises at a sustainable pace while also
right conditions
improving the business case for more widespread
— partnerships to develop innovative and locally rollout. Meanwhile, it is important for Africa to keep
relevant use cases for consumers and enterprises in pace with global trends in relation to 5G adoption
Africa across society to avoid increasing the significant digital
divide that already exists with more advanced markets.
— initiatives to bring affordable 5G-ready
smartphones, CPEs and other devices to market.

Conclusion and call to action 77 / 80

Appendix

Figure A1

The GSMA BEMECS framework indicators

Sources: GSMA Intelligence, GSMA, ITU, SE4ALL, UN, ZookNIC, AppFigures, Ethnologue, World Bank, Tarifica, We Are Social

Basic Economic Market Enterprise Consumer Spectrum

indicators indicators indicators indicators indicators indicators

Affordability:
Region GDP (real) Total subscribers IoT penetration <1 GHz availability
ARPU/per capita
GDP growth rate Average download Registered websites Affordability: device
GSMA Region (real) speed (Mbit/s) per 1000 people ASP/GDP per capita 1–6 GHz availability

GDP growth rate Published apps

Population (constant) Number of operators per 1000 people Literacy rate >6 GHz availability

GDP growth rate Population with Mobile social media

Population Density (PPP) 4G penetration tertiary education accounts

Mobile connections Personal computer

Urbanisation GDP (real) per capita penetration Ease of doing business penetration

Smartphone Published apps

penetration in national language FWA opportunity

Unique subscribers E-government

penetration availability
Fixed broadband
penetration

Average ARPU
(2017–2018)

FTTx penetration

ARPU Growth
(2018–2023)
Internet backbone
penetration

Mobile revenue
growth/GDP growth

Electricity availability

Appendix 78 / 80
Figure A2

4G adoption in countries across Africa

Source: GSMA Intelligence

Algeria
Seychelles
Morocco
Namibia
South Africa
Tunisia
Angola
Libya
Egypt
Liberia
Madagascar
Mauritius
Togo
Senegal
Uganda
Sudan
Zambia
Ethiopia
Burkina Faso
Djibouti
Somalia
Ghana
Nigeria
Botswana
Cameroon
Mali
Congo
Cote d'Ivoire
Rwanda
Eswatini
Lesotho
Malawi
Guinea-Bissau
Kenya
Benin
Sierra Leone
Zimbabwe
Gabon
Tanzania
Cabo Verde
Guinea
Mozambique
Comoros
Chad
Gambia
Mauritania
Congo; Democratic Republic
Equatorial Guinea
Burundi
Central African Republic
Niger
South Sudan

0% 10% 20% 30% 40% 50% 60%

Data correct to September 2022

Appendix 79 / 80
Glossary

3GPP 3rd Generation Partnership Project ICT Information and communications

technology
5G NSA 5G non-standalone
ITU International Telecommunications Union
5G SA 5G standalone
LPWA Low-power wide-area
AfDB African Development Bank
LTE-M Long-term evolution for machines
AGV Automated guided vehicle
MIMO Multiple-input multiple-output
API Application programming interface
MSMEs Micro, small and medium-sized enterprises
AR Augmented reality
NB-IoT Narrowband IoT
ATU African Telecommunications Union
NFV Network functions virtualisation
BCA Band and carrier aggregation
NR New radio
CBRS Citizens Broadband Radio Service
PPA Power purchase agreement
CPE Customer-premises equipment
RAN Radio access network
DSS Dynamic spectrum sharing
RoW Right of way
eMBB Enhanced mobile broadband
SDGs Sustainable Development Goals
EMF Electromagnetic field
SDN Software-defined networking
FTTH Fibre to the home
URLCC Ultra-reliable low-latency communications
FWA Fixed wireless access
VAT Value-added tax
GDP Gross domestic product
VoLTE Voice over LTE
GHG Greenhouse gas
VR Virtual reality
ICNIRP International Commission of Non-Ionizing
Radiation Protection WRC World Radiocommunication Conference

Glossary 80 / 80
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