South Africa Telecommunications Report Q2 2015 - New Market Study
Investment in fibre optic network infrastructure will enable South Africa's telecoms service providers to diversify their product offerings for corporate and residential customers, and create new revenue streams to offset the disruptive impact of regulatory interventions and competition dynamics on traditional service revenues. In addition to enterprise solutions, residential services such as I PTV and VoD services will grow rapidly in the coming years on the back of these network infrastructure rollouts as well as the growing demand for convergence services by consumers.
Key Data
* The mobile market grew by 2.6% q-o-q in Q314 to bring total growth in 9M14 to 15.2%.
* Market average ARPU declined by 1.1% in Q314 in spite of an improved performance by some of the operators.
* The fixed-line incumbent operator, Telkom SA, reported a 4.8% y-o-y decline in fixed telephony subscriptions in the 12 months to September 2014, offsetting positive growth recorded by alternative operators.
* Total ADSL subscriptions grew by 7.4% in the year to September 2014.
Risk/Reward Ratings
South Africa moved up one place into 3rd position in this quarter's update to BMI's Risk/Reward Ratings for Sub-Saharan Africa, behind Gabon and Nigeria, following a 1pt increase in its aggregate score. South Africa remains one of the region's most developed markets and operators boast a healthier subscriber mix than much of the rest of the region, keeping its scores above the regional average. However, its more mature mobile market means that growth prospects are slower than many of its neighbours and we expect operators to diversify their revenue streams in order to sustain revenue growth.
Key Trends & Developments
In January 2015, mobile operator Cell C has raised objections over rival operator Vodacom's planned acquisition of Neotel, on grounds that the deal will threaten its business and may have devastating effects on the local telecoms market. Cell C has asked regulators not...
The South Africa Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of South Africa's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's South Africa Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in South Africa.