South Africa - Broadband Market - Insights, Statistics and Forecasts
South Africa's Internet and broadband market has taken off after years of stagnation due to an expensive operating environment created by Telkom SA's dominance in the fixed-line and international bandwidth market. Wireless broadband services have carved out market share from existing ADSL offerings, but several WiMAX networks are now being shut down as consumers migrate to 3G and 4G mobile services. With its fixed-line network reaching less than 10% of the population, Telkom has reacted by launching its own mobile network, but the incumbent is also coming under increased pressure from competition in the fibre optic sector.
The landing of four new international submarine fibre-optic cables in South Africa between 2009 and 2012 has brought down the cost of international bandwidth dramatically. Previously, Telkom had been monopolising access to the only major cable serving the country. Several additional cables with terabit capacity are expected to go online in 2014.
A new converged licensing regime has created hundreds of companies licensed to offer Internet services. There has been consolidation in the sector which is expected to continue.
Cost of international fibre bandwidth has collapsed since monopoly ended; More room for price reductions on retail level; Local loop unbundling (LLU) may create new opportunities for fixed broadband; Innovative wireless broadband services amidst spectrum allocation delays; Google tests wireless broadband using White Space' spectrum; Telkom assesses plans to convert public payphones into WiFi hotspots; MTN connects first customers to its FttP network; MWEB launched Fon-enabled WiFi routers.
Companies covered in this report:
Telkom SA, Neotel, Vodacom, MTN Network Solutions, Cell C, Atlantic Internet Services, Business Connexion, Internet Solutions, Verizon Business, MWEB, Vox Telecom (DataPro), Sentech, iBurst (WBS, Blue Label).