Investment environment 'could threaten mobile market growth'

While such co-operation has driven significant growth in the African mobile industry over the past decade, there are no guarantees that this growth will continue, according to the report. A number of issues must be addressed as the continent moves towards the next phase of mobile development, the Booz & Company report said.

"Seasoned investors are taking an increasingly hard look at further investments in Africa because of extreme pricing pressure, an increasingly unattractive investment environment, and continued regulatory risk," said the report.

Investor hesitancy could jeopardise the next wave of telecoms investment and growth in Africa, a key part of which will be mobile broadband services, according to the company.

"Stakeholders, however, can act quickly and decisively to ensure the climate for investment is maintained, and that growth continues," the firm said, noting that all the players in the value chain have a part to play.

Booz & Company said it is up to governments to build investor confidence by implementing ICT-friendly policies and establishing open and independent regulatory regimes. It praised the transparency of the Kenya Open Data initiative, a project launched last year to make government data easily available online.

Regulators were also encouraged to develop transparent policies and to treat telecoms operators "as the enablers of the economy, and not simply a source of tax-like revenues". Operators, meanwhile, were directed to share infrastructure and to co-operate with regulators and governments to push for technology-neutral spectrum licensing.

"If the relationship between operators and governments holds, the African telecommunications success story will drive forward," said Booz & Company partner, David Tusa. "If it fails, Africa will miss a critical opportunity for economic and social development as the telecommunications industry and its investors move on to more accommodating markets.”