South Africa - Telecoms, Mobile and Broadband - Statistics and Analyses
South Africa’s MNOs anticipating spectrum auction in 2019
South Africa’s telecom sector boasts one of the most advanced infrastructures on the continent. There is has been considerable investment from Telkom, Liquid Telecom South Africa, Broadband InfraCo and municipal providers as well as from mobile network operators all aimed at improving network capabilities. The focus in recent years has been on backhaul capacity and on fibre and LTE networks to extend and improve internet service connectivity.
The poor historic availability and level of service of fixed-line networks encouraged the growth of the mobile sector for both voice and data services and this segment continues to command most investment and effort among telcos. Under a converged regulatory regime many alternative service providers have been able to enter the market to offer a range of services. This regime also encouraged the major mobile network operators Vodacom, MTN and Cell C to move into the fixed-line and fibre sector. Proposed amendments to the Communications Act are intended to improve the ability of new entrants to access networks and further develop a competitive market landscape.
Other key regulatory matters aimed at shaping the market include the licensing of LTE spectrum in several bands. A multi-spectrum auction, delayed since late 2016 and which has caused some difficulties for mobile network operators desperately short of spectrum and which have had to rely on spectrum refarming and other measures to increase network capacity, is scheduled for mid-2019.
The broadband market is emerging from many years of slow growth exacerbated by an expensive operating environment created by Telkom’s market dominance and its control of access to international bandwidth. Although wireless broadband services have carved out market share from existing DSL offerings, the sector is dominated by mobile networks and despite a growing fixed-line footprint the government’s plan to provide national broadband coverage is largely based on mobile technologies.
The mature mobile market has seen rapid growth since competition was introduced to the sector in the 1990s. SIM card penetration is high though is driven partly by the popularity of multiple card use as also by the take-up of mobile broadband services. The major mobile operators have branched into providing mobile banking and mobile entertainment services, while the market entry of a growing number of MVNOs has added to the competitive mix.
Telkom signs roaming and facilities leasing agreement with MTN;
Delayed spectrum auction rescheduled for April 2019;
Telkom completes Massive MIMO technology trials, aims to decommission 2G infrastructure;
Liquid Telecom South Africa to build a 4G network;
Comsol starts 5G fixed-wireless trials using spectrum in the 28MHz band;
Regulator sets MTRs through to October 2020;
Telkom FttC infrastructure passing close to three million premises;
Cell C extends wholesale fibre partnerships;
MTN acquires Smart Village, expands fibre network reach;
Telkom converts public payphones into Wi-Fi hotspots;
Vumatel extends open-access network offering 1Gb/s services;
South Africa to deploy nine nanosatellites;
Microsoft to build two data centres during 2019;
Telkom reports strong regulator growth in fiscal H1 2019, continues work on the Modderfontein Smart City development;
Vodacom contracts Alcatel-Lucent to build a GPON FttP converged network;
Report update includes the regulator’s the regulator’s March 2018 report on the ICT sector, operator data to September 2018.
Companies mentioned in this report:
Vodacom, MTN (MTN Network Solutions), Cell C, Telkom (Heita, 8ta), Virgin Mobile, Neotel, Atlantic Internet Services, Business Connexion, Internet Solutions, Verizon Business, MWEB, Vox Telecom (DataPro), Sentech, iBurst (WBS, Blue Label), Liquid Telecom South Africa (Neotel, Tata), Virgin Mobile, Broadband InfraCo, Transtel, Eskom, SEACOM, Transtel, Eskom, SITA, Sentech, Dark Fibre Africa (DFA), FibreCo, eFive, WASACE.
1. Key statistics1.1 Country overview2. Telecommunications market2.1 Historical overview3. Regulatory environment3.1 Historical overview3.2 Regulatory authority3.3 Telecommunications Act3.4 Telecommunications Amendment Act3.5 Electronic Communications Acts (2005, 2014)3.6 Regulation of Interception of Communications Act 20023.7 Electronic Communications Act and ICASA Amendment Act3.8 Converged licensing regime3.9 New Companies Act3.10 Universal Service and Access Fund (USAF)3.11 Interconnection4. Fixed network operators4.1 Overview4.2 Telkom4.3 Neotel5. Telecommunications infrastructure5.1 Overview of the national telecom network5.2 National fibre infrastructure5.2.1 Broadband InfraCo5.2.2 Dark Fibre Africa5.2.3 FibreCo5.3 VoIP5.4 International submarine cables5.4.1 SAT-3/WASC/SAFE5.4.2 SEACOM5.4.3 EASSy5.4.4 WACS5.4.5 African Coast to Europe (ACE)5.4.6 SAEx, WASACE5.4.7 Seaborn5.5 Satellite5.6 Next Generation Networks (NGN)5.7 Municipal networks5.7.1 Knysna Africa's first municipal network5.8 Data centres5.9 Smart infrastructure5.9.1 Smart cities6. Broadband market6.1 Introduction and statistical overview6.1.1 Market analysis6.1.2 Community access projects6.1.3 Internet Service Providers Association (ISPA)6.1.4 Internet Exchange Points (IXP)6.1.5 Broadband statistics6.1.6 Forecasts broadband subscribers 2019; 2021; 20236.2 Digital Subscriber Line (DSL) networks6.2.1 Introduction6.2.2 Wholesale6.2.3 Fibre-to-the-Premises (FttP) networks6.3 Other fixed broadband services6.3.1 Broadband over Powerlines (BPL)6.3.2 Fixed wireless7. Digital economy7.1 E-learning7.2 E-government7.3 E-health7.4 E-banking8. Mobile communications8.1 Market analysis8.2 Mobile statistics8.2.1 General statistics8.2.2 Mobile voice (VoLTE/Wi-Fi calling)8.2.3 Mobile data8.2.4 Mobile broadband8.2.5 Forecasts mobile subscribers 2019; 2021; 20238.3 Regulatory issues8.3.1 Spectrum8.3.2 Mobile Termination Rates (MTRs)8.3.3 Mobile Number Portability (MNP)8.3.4 SIM card registration8.3.5 Infrastructure sharing8.3.6 Roaming8.4 Mobile infrastructure8.4.1 5G8.4.2 4G (LTE)8.4.3 3G8.4.4 GSM8.4.5 M2M networks8.4.6 NB-IoT8.5 Major mobile operators8.5.1 Vodacom South Africa8.5.2 MTN South Africa8.5.3 Cell C8.5.4 Telkom Mobile8.5.5 Mobile Virtual Network Enablers (MVNEs)8.5.6 Mobile Virtual Network Operators (MVNOs)8.6 Mobile content and applications8.6.1 m- music8.6.2 CellBook8.6.3 m-banking8.6.4 m-gaming8.6.5 m-health8.6.6 Mobile advertising8.6.7 Location-based services (LBS)8.6.8 Manobi8.6.9 Mobile social mediaTable 1 Top Level Country Statistics and Telco Authorities South Africa 2018Table 2 Telecom sector investment 2015 - 2017Table 3 Telecom sector investment by sector 2015 - 2017Table 4 Fixed revenue by sector 2015 - 2017Table 5 Telecom sector revenue by service 2015 - 2017Table 6 Telecom and broadcasting revenue 2015 - 2017Table 7 Fixed and mobile telephony access by household 2014 - 2018Table 8 Telkom Group financial results 2010 - 2019Table 9 Telkom data revenue 2002 - 2017Table 10 Fixed lines in service and teledensity in South Africa 2000 - 2018Table 11 Fixed-line voice traffic 2015 - 2018Table 12 VoIP subscriptions 2015 - 2017Table 13 International internet bandwidth 2000 - 2016Table 14 National Broadband Policy penetration targets to 2030Table 15 Average internet access speed 2010 - 2015Table 16 Internet revenue 2015 - 2017Table 17 Internet revenue by sector 2015 - 2017Table 18 Historic - Internet users and penetration rate in South Africa 1999 - 2009Table 19 Internet users and penetration rate in South Africa 2010 - 2022Table 20 Fixed-line broadband subscribers and penetration in South Africa 2002 - 2018Table 21 Forecast fixed broadband subscribers in South Africa 2019; 2021; 2023Table 22 Telkom South Africa broadband subscribers 2003 - 2017Table 23 Telkom fixed data traffic 2014 - 2016Table 24 DSL subscriptions 2015 - 2018Table 25 Telkom South Africa fibre broadband subscribers 2016 - 2018Table 26 Telkom South Africa fibre premises passed 2016 - 2018Table 27 Telkom South Africa fibre ports by type 2017 - 2018Table 28 Fibre broadband subscribers 2013 - 2018Table 29 Telkom South Africa WiMAX subscribers 2008 - 2014Table 30 Mobile sector revenue 2015 - 2017Table 31 Mobile revenue by sector 2015 - 2017Table 32 Historic - Mobile subscribers and penetration rate in South Africa 1999 - 2009Table 33 Mobile subscribers and penetration rate in South Africa 2010 - 2019Table 34 Mobile voice traffic 2015 - 2017Table 35 SMS traffic 2013 - 2019Table 36 Active mobile broadband subscribers 2010 - 2018Table 37 Telkom mobile broadband subscribers by type 2015 - 2018Table 38 Telkom mobile broadband revenue 2015 - 2017Table 39 Telkom mobile data traffic 2015 - 2018Table 40 Mobile data traffic 2015 - 2017Table 41 Forecast mobile subscribers in South Africa 2019; 2021; 2023Table 42 Mobile numbers ported 2014 - 2015Table 43 Telkom LTE subscribers 2016 - 2018Table 44 4G (WiMAX/LTE) population coverage 2012 - 2017Table 45 Vodacom South Africa M2M connections 2011 - 2015Table 46 M2M connections 2015 - 2017Table 47 Vodacom South Africa mobile revenue 2010 - 2019Table 48 Vodacom South Africa mobile data subscribers 2013 - 2018Table 49 Vodacom South Africa subscribers and market share 2002 - 2018Table 50 MTN South Africa subscribers and market share 2002 - 2018Table 51 MTN South Africa financial data 2012 - 2018Table 52 MTN South Africa mobile ARPU 2013 - 2018Table 53 Cell C mobile subscribers 2013 - 2018Table 54 Cell C mobile service revenue 2013 - 2018Table 55 Cell C financial data 2016 - 2018Table 56 Telkom mobile subscribers 2009 - 2018Table 57 Telkom prepaid and contract mobile subscribers 2015 - 2018Table 58 Telkom mobile financial data 2014 - 2019Table 59 Telkom mobile ARPU 2014 - 2019Chart 1 Telecom sector revenue by service 2015 2017Chart 2 Fixed lines in service and teledensity in South Africa 2005 - 2018Chart 3 Internet users and penetration rate in South Africa 2005 - 2022Chart 4 Mobile revenue by sector 2015 2017Chart 5 Mobile subscribers and penetration rate in South Africa 2005 - 2019Chart 6 Active mobile broadband subscribers 2010 2018Chart 7 Vodacom South Africa mobile revenue 2010 2019Chart 8 Telkom mobile ARPU 2014 2019