AFRICA, A FAST GROWING MARKET FOR MOBILE OPPORTUNITIES

Africa is the fastest growing mobile market in the world, suggesting companies like RIM and Nokia may have an opportunity to serve the continent's growing base of customers. Groupe Speciale Mobile Association's research indicates Africa is now the second-largest mobile market after Asia. The continent topped 649 million connections in the fourth quarter this year and is set to claim 735 million connections by the end of 2012. "That is equivalent to a 65 percent penetration rate. Out of every 100 people, 65 have some form of mobile connectivity," said Peter Lyons, a GSMA director. 

Africans also increased their cell phone use by twenty percent per year during the last five years, with Nigeria boasting 93 million network users to date.

Tax cuts on handsets have helped Kenyans purchase 200 percent more phones, which 8.5 million citizens use for increasingly popular mobile money transfers. South Africa has the strongest broadband connection, which supports music, videos, e-books and other online services.

This progress is not ubiquitous, however, as one-third of Africans in functioning mobile markets do not yet have network connections. That gap leaves space for companies like RIM, Nokia and other lower-end handset makers to claim more customers in these emerging markets.

RIM's investment in Africa has returned 50 percent more sales than last year, thanks to the "continued popularity" of its BlackBerry Messenger service. The Canadian company struggles elsewhere in the world, where it grapples with profits, products and leadership issues, but RIM may have a chance to entice more African subscribers to its fold.

Nokia, too, may have an opportunity to grow in Africa, if the company can overcome several obstacles. The Finnish company said it will undercut Android pricing with its new Windows Phones, suggesting it may manufacture cheaper handsets for developing countries in Africa. 

RIM may face troubles, however, as South Africa wants the keys to its encrypted BBM service and the company's recent outages have not endeared it to frustrated consumers worldwide. 

But after failing to compete with Apple and Android, ditching its Symbian platform andlaying off thousands of workers, Nokia has decided to embrace smartphones over feature phones. This tactic may work in western markets but Africa's networks are not always capable of handling smartphone speeds, suggesting Nokia may not want to ditch feature phones just yet if it hopes to gain traction in emerging markets.

Both RIM and Nokia may be able to capitalize on Africa's growing mobile market if they plan carefully and target their audience appropriately. Should they do so, Africa's handset and network adoption may soon grow to surpass even Asia's.