Broadband market in Africa and the Middle East (AME) will be driven by mobile broadband, with the subscriber total increasing at a CAGR of 34% to reach around 38 million by 2014, slightly faster than the global average, according to a new report from Pyramid Research.
The report said that due to poor wireline services, innovative branding, and packaging from mobile operators, the future growth of broadband in AME will be driven by mobile broadband.
The research firm said that the broadband penetration in AME to grow at a CAGR of 20.4% from 2009 to 2014, and will outpace all developed regions in terms of growth in adoption of wireless technologies.
Hussam Barhoush, senior analyst at Pyramid Research, said: "In higher-income countries, such as the UAE, we believe that growth will be driven by both mobile and fixed broadband. As for poorer countries with weak fixed-line infrastructure, wireless technologies will power future growth.
"Fixed broadband providers in AME face the particular challenge of weak and limited coverage, especially in rural areas. This allows competition from other technologies, such as 3G and WiMax. ADSL is currently the main fixed broadband connection method used in the region."
However, the company said that other technologies, such as FTTx and WiMax, will take as much as 17% of subscriptions by 2014.
