Competition Brings Big Changes to South Africa’s Telecom Sector, Pyramid Research
Finds
CAMBRIDGE, Mass., Apr. 9 /PRNewswire-AsiaNet/ --
South Africa’s telecom market is in the midst of a dramatic change, as
incumbent fixed-network operator Telkom SA faces increasing competition not only
from mobile voice and data services but also from competitive fiber network
buildouts, according to a new report from Pyramid Research (www.pyr.com), the
telecom research arm of the Light Reading Communications Network
Communications Markets in South Africa offers a precise, incisive profile of
the country’s converged telecommunications, media, and technology sectors based
on proprietary data from our research in the South African market. The 30-page
report provides detailed competitive analysis of both the fixed and mobile
sectors, tracks the market shares of technologies and services, and monitors the
introduction and spread of new technologies such as WiMax, IPTV, and VoIP. This
executive study provides a comprehensive view of the South African communications
market by analyzing key trends, evaluating near-term opportunities and assessing
upcoming risks factors. Download an excerpt of this new report here:
South Africa is the largest telecom market in the Africa & Middle East region
in terms of revenue and is one of the most advanced in Africa in terms of
penetration rates, notes Yejide Onabule, Analyst at Pyramid Research and author
of the report. “The high penetration rates, however, make it one of the slowest
growing markets in the region, driving operators to seek new ways to distinguish
themselves and develop new revenue streams,” she says.
Telkom SA, the incumbent fixed-network operator, is feeling the pressure.
“Fixed voice revenue has been declining in the past few years and this trend is
expected to continue; revenue is expected to fall from $2.7 billion in 2008 to
$2.1 billion in 2014, mostly due to the falling cost of mobile telephony,” says
Onabule. “Telkom’s revenue will decline by 20 percent in the next five years due
to a continuation of fixed voice revenue’s downward trend and competing
operators’ plans to build out fiber networks that will cut into Telkom’s business
service revenues,” Onabule adds.
The need for high-capacity networks has triggered a wave of WiMax and other
fixed-wireless access (FWA) capex, allowing operators to bypass Telkom’s former
monopoly of the last mile. “Operators that previously relied on Telkom’s network
such as MTN and Vodacom are now building their own national fiber-optic networks,
contributing to Telkom’s revenue decline over the forecast period,” explains
Onabule. “Telkom also lost its monopoly in fixed communications when the newly
established second national operator Neotel was licensed in 2005,” she adds.
Neotel, has finally launched services over fixed-wireless CDMA and WiMax
networks, while smaller ISPs, such as MWeb, have made some inroads in the high-
growth DSL market.
Communications Markets in South Africa is part of Pyramid Research's Africa
and the Middle East Country Intelligence Report Series. Pyramid Research's
premium Country Intelligence Reports are the industry's best available analysis
on market trends, regulatory environments, and competitive dynamics for 60
countries worldwide.
Download an excerpt of this new report here:
Communications Markets in South Africa is priced at $990 and can be purchased
online here:
through Dave Williams via email at dave.williams@pyr.com or telephone at +1 858-
485-8870.
About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media, and technology
industries. Our analysis is uniquely positioned at the intersection of emerging
markets, emerging technologies and emerging business models, powered by the
bottom-up methodology of our market forecasts for over 100 countries – a
distinction that has remained unmatched for nearly 25 years. As the telecom
research arm of the Light Reading Communications Network, Pyramid Research works
with Heavy Reading, providing the communications industry's most comprehensive
market data, trusted research, and insightful technology analysis.
About Light Reading
media, research, and focused event company serving the $3 trillion worldwide
communications market. Lightreading.com is the ultimate source for technology and
financial analysis of the communications industry, leading the media sector in
terms of traffic, content, and reputation. Light Reading's research arms, Heavy
Reading and Pyramid Research, provide the most comprehensive communications
research, market data, and technology analysis in close to 100 markets around the
world. Light Reading produces nearly 20 targeted communications events including
TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @
CTIA, and Optical Expo, as well as focused one-day events tailored for cable,
mobile, and wireline executives. Light Reading was acquired by United Business
Media in August 2005 and operates as a unit of TechWeb.
About TechWeb
TechWeb (http://techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in our
communities created around our global face-to-face events, Interop, Web 2.0,
Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light
Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The
Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology
magazines. TechWeb also provides end-to-end services including next-generation
performance marketing, integrated media, research, and analyst services. TechWeb
is a division of United Business Media, a global provider of news distribution
and specialist information services with a market capitalization of more than
$2.5 billion.
*13.3 million business decision-makers: based on number of monthly
connections
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information
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Press contact:
Jennifer Baker
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jbaker@pyr.com
SOURCE: Pyramid Research
CONTACT: Jennifer Baker
+1-617-871-1910
jbaker@pyr.com
(UBM.L)
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