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The Connected Consumer Survey 2015: South Africa


The Connected Consumer Survey 2015: South Africa

In this report, we offer an insight into the potential role of LTE to improve data monetisation prospects for operators in South Africa, as well as OTT and digital economy usage trends and the most critical levers for customer retention. We also provide recommendations for operators on how to address the OTT challenge, reduce churn and exploit opportunities in the digital economy.


Executive summary
Operators can use LTE’s speed to improve data monetisation, but they will need to make LTE-enabled devices more accessible to consumers
Price, network performance and customer service are important to satisfy the growing expectations of customers and minimise churn
Most respondents who use mobile Internet services use OTT messaging, but voice is less at risk of substitution in the medium term
Recommendations
Data connectivity and device lifecycle
% of respondents use Wi-Fi regularly on mobile, mostly for cost savings, so Wi-Fi could be used to attract non-cellular data users
Respondents want cheaper tariffs, faster data speeds and better access to Wi-Fi hotspots in order to consume more mobile data
% of respondents claim to have 4G and have higher data allowances than those on 3G, potentially leading to network congestion
High handset pricing is an obstacle to unlocking the revenue potential of upgrading mid-range customers to 4G LTE
Operators are well positioned to exploit sales channels to stimulate 4G adoption because most respondents purchase handsets from operators
Mobile customer retention
Multiple-SIM usage contributes to fragmentation, but price competition has helped to mitigate its impact
Network performance, price and handset deals influence consumers’ choice of providers and their next mobile tariff/contract
Respondents have been with their operator longer than they have owned their phone, and 52% plan to replace their phone within a year
OTT communications and the digital economy
Most respondents who use mobile Internet services in South Africa use OTT messaging, but mobile VoIP and video calling will remain niche
Operator messaging usage in South Africa looks vulnerable because IP messaging services will become increasingly popular
Mobile payment for goods is low and cash is still the primary method of transacting, but mobile health services could potentially offer high growth
Panel information and methodology
Methodology
Panel information
About the authors and Analysys Mason
About the authors [1]
About the authors [2]
About Analysys Mason
Research from Analysys Mason
Consulting from Analysys Mason
List of figures
Figure 1: Propensity of respondents to pay extra for 4G LTE services with a new mobile phone contract
Figure 2: Reasons given for leaving previous operator
Figure 3: Respondents’ OTT mobile communication usage by type of service
Figure 4: Respondents’ Wi-Fi usage on mobile phones by frequency
Figure 5: Drivers that would encourage increased usage of mobile Internet services
Figure 6: Respondents’ knowledge and usage of 4G LTE
Figure 7: Data allowances by subscription type
Figure 8: Propensity of respondents to pay extra for 4G LTE services with a new mobile phone contract
Figure 9: Respondents’ handset acquisition method
Figure 10: Respondents’ handset acquisition channels
Figure 11: Respondents’ ownership of SIMs by number
Figure 12: Respondents’ ownership of handsets by type
Figure 13: Reasons given for leaving previous operator
Figure 14: Selection criteria for current service provider
Figure 15: Length of time respondents have been with their current provider, and with current phone
Figure 16: Length of time before respondents plan to acquire a new phone
Figure 17: OTT communication usage on handsets, by app type and country
Figure 18: Selected VoIP and OTT messaging app usage by country
Figure 19: Respondents’ usage preference for messaging
Figure 20: Mobile messaging traffic by type, South Africa, 2010–2018
Figure 21: Respondents’ usage of smartphones to purchase a physical item by frequency
Figure 22: Penetration of health and fitness apps

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