Released on = May 17, 2006, 9:12 pm

Press Release Author = RNCOS

Industry = Telecommunications

Press Release Summary = RNCOS Research:
(http://www.marketsmonitor.com/category/IM033.html) Many hurdles exist to future
expansion of mobile services market in Africa. The main being increased cost of
handsets. The mobile penetration in this continent is forecast to be 45% by 2011.

Press Release Body = RNCOS Research:
(http://www.marketsmonitor.com/category/IM033.html) In spite of a remarkable
development in the mobile phone services market in Africa and a potential for
further growth (as there is still 50 percent of Sub-Saharan African region that can
be covered by the mobile industry), obstacles exist in the way of the future
expansion of the industry. The main obstacle is the unaffordable cost of mobile
handsets.

Unlike their counterparts in United States and Europe, the mobile handset are not
generally subsidized by the mobile operators in Africa. Therefore only few of the
rural Africans find this gadget affordable for them.

A solution to this was found in 2004 when African mobile majors got together and
invited international handset makers to bid for contract to supply as many as 6
million handsets for less then $40 each. This contract was won by Motorola, which
started to deliver handsets in April 2005.

However, the onset of low priced handsets posed another hurdle to widespread
adoption of cell phones. This was the high tariff imposed on products and services
by many African governments. Hence increased, the tax burden on consumers as the
taxes and duties on cell phones and mobile services increased. Had the prices of
handsets been lower, it would have meant lower tax burden for the buyers.

In their recent market research report, "African Mobile Handset Market Analysis
(2006-2009)" RNCOS' analysts predict that the region would witness an increased
mobile penetration of around 15% at the end of 2005 to a high of 45% by 2011 end.

The report presents a section, which gives a complete overview, key facts & numbers
related to the mobile market in Africa. Also, key players in this sector, which
include Ericsson, Alcatel, Sony Ericssion, Nokia, Siemens, NTT Docomo, Samsung,
Infineon Technologies, RF Micro Devices, Mitsubishi Electric, Panasonic, CelTel
Zambia, Safaricom, and AT & T Wireless etc.

The report also covers an economic perspective and number of operators in both
sections - Mobile Device and Handset in the world market. These span for countries
like Algeria, Egypt, Morocco, Kenya, Zambia, Nigeria and South Africa. The
prediction about the service providers and market facilitates manufacturers to help
in estimating the future trends in the Mobile Industry in Africa.

The market research report provides an in-depth analysis on the developing market
for world mobile industry, their technologies and influence on the market.

About RNCOS:
RNCOS, formed in 2002, offers Market Research Reports via MarketsMonitor for your
business needs and aims to put an end to your information pursuit. Our expertise in
gathering global business information for industry research, corporate training,
growth consulting, and business consulting, brings reputed companies and firms to us
for business enhancement solutions. We can be your one-stop-shop for Industry
research information and niche market analysis.

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Head of Business Development
29, 1st Floor, Patparganj Industrial area, Delhi 92
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