Large markets such as Nigeria, Ghana, South Africa, Brazil and parts of Asia have huge potential to attract digital infrastructure projects, but are untapped markets for fiber investment optical.
Findings from the Boston Consulting Group (BCG) and EDHECinfra, a firm of renowned international business school EDHEC, who found this, linked the inability of these markets to attract needed investment to uncertain economic growth that has made fiber penetration levels uneven despite strong demand for fiber infrastructure projects.
With findings documented in a new report titled “Infrastructure Strategy 2022: A Pivot to the Digital Frontier”, BCG and EDHECinfra provided a new perspective on investment strategies and risk-adjusted performance of different groups of companies. infrastructure investors.
“Although the demand for fiber optic projects is more pronounced in less affluent economies – large and diverse regions with significant potential, such as Nigeria, Ghana, South Africa, Brazil and parts of Asia are untapped markets – fiber penetration is also uneven in places where economic growth is less uncertain,” the report says.
The study, which was released on Monday, pointed out that the growing desire for higher speeds and reliable online access will inevitably lead to a huge expansion of fiber optic installations in new networks in low- and middle-income countries. as well as existing networks in high-income countries. He pointed out that ultimately fiber, which has already started to make inroads into networks everywhere, will completely replace existing (mostly copper) infrastructure, especially with the rollout of 5G.
Commenting on the findings of the study, Managing Director and Partner of BCG Nigeria, Stefano Niavas, said: “Investment in fiber optics is needed to expand the capacity of submarine cable infrastructure on the coasts of Nigeria. beyond the cities to other parts of the country. to make connectivity truly ubiquitous.
“With the growing demand for fast and reliable internet connectivity, investing in digital infrastructure pays off and investment in fiber optic facilities across the country is expected to accelerate in the next few days. years.”
The report also revealed a pivot towards the digital frontier. According to her, as the analysis showed, all investors plan to overinvest in digital infrastructure in the future.
Although this also involves data centers, towers, satellites and submarine connections, the appetite for high-speed connectivity remains high.
BCG Managing Director and Partner and co-author of the report, Roman Friedrich, explained: “The growing desire for higher speeds and reliable online access will inevitably lead to a huge expansion of fiber optic installations in new networks in developing countries as well as existing networks in more developed countries. Ultimately, fiber will completely replace existing infrastructure (mostly copper), especially with the rollout of 5G.