Ericsson Vice President Todd Ashton (pictured) believes the spread of 4G across Africa will help create unicorn companies, drawing parallels with Asia, where countries like Indonesia developed such firms through increased connectivity.
In an interview with Developing Telecoms, Ashton, Head of Customer Unit South and East Africa at Ericsson Middle East and Africa, noted that 4G coverage in Africa currently stands at 30%, up from 10% in 2020. However, he stressed the need for further expansion to make Africa a more economically competitive continent.
Ashton, who previously served as Managing Director of Ericsson Malaysia, Sri Lanka, and Bangladesh for over seven years, pointed to Asia’s 4G-driven success. In Indonesia alone, the rise of connectivity enabled the emergence of five unicorn companies, including the ride-hailing service Gojek.
“We have an opportunity to do something similar [in Africa],” said Ashton. However, he noted that Africa differs from Asia and requires specific operational conditions to enable connectivity growth. A key challenge, Ashton explained, is the rising cost of energy. To address this, Ericsson has invested in R&D to halve the energy consumption of its radios and reduce their weight, creating space for 5G equipment.
While 4G adoption in Africa is still in its early stages, widespread deployment of 5G is yet to take off. Ashton sees 5G as a “last-mile technology to deliver home broadband,” helping connect underserved areas with challenging terrain.
Another significant challenge is the high cost of smartphones, which remains a financial barrier preventing many Africans from participating in the digital economy.
Ashton acknowledged that competition is fiercer for Ericsson in Africa today compared to its early dominance when it held over 70% market share after building 2G networks in the early 2000s.
Despite this, Ashton sees opportunities for growth, particularly in connecting the unconnected and addressing the financial exclusion of the unbanked population. However, he emphasised the need for regulatory reform to make connectivity more affordable.
“We’re also working on innovating with radios to enhance connectivity. At the same time, it’s crucial to collaborate with mobile operators, regulators, and governments to recognise that connectivity is a basic human right, drives GDP growth, and promotes financial inclusion, especially for women through mobile money. We also need to address policy issues, such as reducing duties on phones to lower costs and making spectrum more affordable with longer terms. This ensures resources are directed towards building networks and making services more accessible,” Ashton explained.
