Average smartphone bill in SA

·11 Nov 2013

Smartphone users in South Africa spend on average US$31 (R321) per month on their mobile phone bills, according to new research.

According to a study commissioned by Informa Telecoms & Media in July 2013 on trends in global mobile data usage, a rise in digital service usage will drive Africa’s mobile data business to be worth US$23 billion in 2018.

Africa’s mobile data business is currently worth US$8.5 billion a year.

Informa highlights the fact that, of 12 countries surveyed (a range of developed and developing markets), South Africans are the fourth biggest spenders, behind consumers in the US, Saudi Arabia and the UK.

“It is consumer demand that is driving this growth,” said Nick Jotischky, principal analyst at Informa Telecoms & Media. “But retail prices are still too high, smartphones are too expensive and there continues to be a lack of investment in connecting parts of rural Africa: These are barriers restraining even greater consumer demand.”

Smartphone penetration across the continent is 11%. Despite the arrival of many low-cost smartphone brands, one in three respondents to the Informa survey believe that the cheapest smartphones on the market are still too expensive for most Africans and 37% call for Africa’s mobile operators to subsidize smartphones and other data devices if they really want to reach the mass market.

Jotischky comments that until now the challenge for operators has been one of ensuring connectivity for a growing number of consumers.

But now the challenge has changed: It is about addressing new competition, serving evolving consumer needs and ensuring an excellent level of service – and all this at a time when margins are coming under intense levels of scrutiny.

Surveyed countries included: Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Russia, Saudi Arabia, South Africa, UK and US