Video traffic set to triple demand globally

The telecommunications sector in Africa has been experiencing rapid growth, driven by increasing demand for connectivity and digital services. The Global Telecom Outlook 2023-2027 by PwC indicates: “Driven largely by video traffic, global data consumption over telecom networks will nearly triple, from 3.4 million petabytes (PB) in 2022 to 9.7 million PB in 2027.”

According to the Africa Telecommunications Sector Report 2023-2024 by EMIS, the sector has seen significant advancements in mobile telecoms networks, which are underpinning economic growth across the continent. The report highlights that mobile access is paramount for many African consumers and businesses, facilitating not only communication but also everyday financial, educational, and administrative tasks.

Globally, the telecommunications industry is facing rising demands and strategic challenges. It is noted that providers have little pricing power on increasingly commoditized connectivity and data services, leading to modest revenue growth.

In Mauritius, the telecommunications sector has shown strong performance in 2023. Mauritius Telecom recorded a turnover of Rs 12,729 million and a profit before tax (PBT) of Rs 1,620 million as of December 31, 2023. EMTEL Limited followed with a turnover of Rs 3,425 million and a PBT of Rs 623 million as of December 31, 2023. Digital Virgo Asia Middle East Africa Ltd reported a turnover of Rs 2,932 million and a PBT of Rs 534 million as of December 31, 2023. However, not all companies fared well. Orange Business Services reported a negative PBT of Rs -27 million as of December 31, 2023, indicating financial challenges. Mahanagar Telephone (Mauritius) Ltd also faced losses with a PBT of Rs -11 million as of March 31, 2023.

The sector is also increasingly focused on sustainability and ethical supply chain management alongside innovation. The adoption of eco-friendly practices and digital transformation initiatives are helping companies reduce their environmental impact while enhancing service quality. Thus, the telecommunications sector in Mauritius is poised for continued growth, driven by increasing connectivity demands and strategic investments.