The road to 5G in Africa: navigating investment and value creation INSIGHT SPOTLIGHT The journey to 5G has started in Africa and is gathering paceacross the region. There are now commercial 5G networks in 13countries, while operators and other ecosystem players inmany more countries expect commercial 5G to be available by affect 5G rollout and adoption. 5G network ecosystem playersin the region must find ways to deliver cost-effective andefficient 5G networks with an implementation strategy that Analysis Preparingfor 5G in Africa Assessing Africa’s readiness for 5G The rollout of 5G in Africa will likely take a phased approach, withan initial focus on urban centres, industrial locations and otherareas of high demand. This allows operators to roll out 5G at asustainable pace and progressively develop the business case formore widespread rollout. It also allows operators to maintain Anyassessment ofAfrica’s readiness for 5G needsto considervarious market indicators that could impact rollout and adoption. For example, 4G was already the dominant technology in mostother markets by the time 5G arrived. However, in Africa, legacynetworks (2G and 3G) remain dominant, with 4G accounting for Spectrum availability is another important factor. As of December2022, only seven countries (Angola, Kenya, Mauritius, Nigeria,South Africa, Tanzania and Zambia) had completed 5G spectrumassignments. Slow progress with assignments can delay networkrollout, and is particularly the case in North Africa, where In the coming years, operators will progressively increaseinvestments in 5G as they prepare for rollout. According to aGSMA Intelligence survey, 87% of operators have startedupgrading and preparing their networks for 5G. As 5G momentumbuilds across the region, success factors will include a pro- The case for 5G in Africa Despite the challenging scenario in Africa, 5Gis set to be akeypart of the connectivity landscape, enabling the following Source: GSMA Intelligence Mainfocusareas for 5Gpreparation If you have started preparing/upgrading your network for 5G,which part(s)ofthe networkhaveso far received attention?Percentage ofrespondents •Enhanced connectivity in homes andenterprises–5G FWAwill be a leading use case for 5G in Africa; a third of 5G launches •Digital transformation ofenterprises–5G can bring significant •Access to newservices–Around 60% of Africa’s population isunder the age of 25. For these digital natives, 5G will be key toaccessing new digital services, such as metaverse applications. •Techinnovation–Africa’s tech ecosystem will utilise the keyattributes of 5G, such as low latency and high device density, to Implications Mobile operators Regulators •Take a multi-year view–The network transformation required toreap the full benefits of 5G will mean a multi-year journey foroperators, but the groundwork needs to be done now. Thishighlights the need to take a medium-to long-term view whenbuilding partnerships with suppliers. For example, MTN Uganda is •Provide timely access to the right amount of spectrum–Initially,regulators should aim to make available 100 MHz of contiguousspectrum per operator in prime 5G mid-bands (e.g.3.5 GHz). Lowerbands (sub-1 GHz) are also required to provide wide-area capacityand ensure that 5G reaches everyone. Beyond spectrum •Make network automation a priority–The transition to newarchitectures (such as cloud-based networks) that often comes with5G investments presents an opportunity for operators to increasetheir level of network and service automation and drive opex •Consider 5G backhaul needs–Policymakers should makeadditional bands available and support wider bandwidths in existingbands. Measures should also be taken to ensure licences areaffordable and designed effectively. In the near term, the E-bandwill be most important, especially to support initial 5G growth, but •Seize the FWA opportunity–The immediate opportunity for 5G is to use FWA to bridge the gap for enhanced broadband connectivityfor homes and enterprises, both large and small. Increased demand •Enable quick and cost-effective network rollout–Policymakers areencouraged to simplify planning procedures and regulations for siteacquisition, co-location and upgrades to base stations. It is also Network equipment vendors •Integrate 5G within single RAN solutions–The slow pace ofmigration from legacy networks in Africa restricts opportunities toshut down 2G and 3G networks in the near term. Network vendorscan provide multi-generational RAN solutions, allowing operators torun 2G, 3G, 4G and 5G on the same radio, helping them balance •Build sustainability into the technology roadmap–The networkaccounts for around 90% of electricity use for an average operator(the rest being fleets, property and travel). To helpoperatorslowerenergy use, network equipment vendors should use 5G equipment •Promote E-band benefits–According to a GSMA Intelligencesurvey, wireless backhaul accounts for nearly 60% o