BMI View: The implementation of mobile termination rate (MTR) cuts in South Africa in 2014 launched a period of intense price competition between the four mobile network operators , while contributing to especially strong subscriptions growth. Price competition eased in early 2015 and will result in much slower subscriptions growth over our five-year forecast; operators are therefore intensifying their efforts to launch new, higher value services, revolving around faster broadband, converged mobile and wireline services, and enterprise solutions. This is driving heavy investment in fibre optic and LTE networks and moves towards consolidation, which, if approved, stand to significantly reshape the competitive environment in South Africa's telecoms market.
The mobile market grew by 1.6% quarter-on-quarter (q-o-q) in Q414 to bring total growth in 2014 to 12.8%.
Market average ARPU declined by 11.9% in 2014 owing to intensified competition, though showed signs of improvement in Q414.
3G subscriptions accounted for 34.7% of the mobile market in 2014, by BMI estimates.
The broadband market grew by a 10.4% in 2014 to 7.6mn subscriptions.
South Africa jumped up two spots to 3rd position in this quarter's update to BMI's Risk/Reward Index for Sub-Saharan Africa, behind Nigeria and Botswana. Rather than an improvement to its own score, which actually fell by 0.3 percentage points (ppts), South Africa's ascension was due to sharp drops in Angola and Gabon's scores, as lower oil prices begin to take their toll on GDP growth and consumer spending power.
The 0.3ppt drop in South Africa's score was due to a 5-point decline in its Industry Risks score to 65. This fall is reflective of the lack of clarity on policy and regulations in South Africa's telecoms sector, which has resulted in the delay to digital migration and to a regulatory verdict on proposed acquisitions. Nevertheless, telecoms regulator ICASA published the final Radio...
The South Africa Telecommunications Report features BMI Research'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.
- Benchmark BMI's independent telecoms industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic business planning in the South African telecoms market.
- Target business opportunities and risks in South Africa's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Africa.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.