{"id":47748,"date":"2013-10-17T10:14:38","date_gmt":"2013-10-17T08:14:38","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=47748"},"modified":"2013-10-17T10:49:25","modified_gmt":"2013-10-17T08:49:25","slug":"sa-economy-unlikely-to-affect-teleco-sector","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/47748\/sa-economy-unlikely-to-affect-teleco-sector\/","title":{"rendered":"SA economy unlikely to affect teleco sector"},"content":{"rendered":"

Despite the struggling South African economy,\u00a0global growth consulting firm Frost & Sullivan<\/a>\u00a0expects continued strong performance in the telecommunications sector.<\/p>\n

“Overall, the competition within the sector has increased as the industry matures, and it is anticipated that more intense rivalry within the industry will lead to convergence,” said\u00a0Ian Duvenage<\/a>, ICT business unit leader at Frost & Sullivan Africa.<\/p>\n

He noted that the major network operators, including Vodacom<\/a> and MTN<\/a>, have come under increased pressure as the regulator (Icasa<\/a>) has introduced asymmetric pricing, which will benefit operators with less than 20% market share – the likes of Cell C<\/a>, and Telkom Mobile<\/a>.<\/p>\n

“However, while the major operators\u2019 interconnect revenues will decrease, this will be offset by continued growth in data revenues,” the analyst pointed out.<\/p>\n

Looking at Vodacom’s revenues over the past 5 years, Duvenage’s reasoning is clearly laid out, as data revenues have grown almost every year – while interconnect revenues have slipped.<\/p>\n

Vodacom revenue breakdown – 2009-2013<\/h3>\n
\n\n\n\n\n\n\n\n
Year<\/strong><\/td>\nRevenue from Data (Rbn)
\n<\/strong><\/td>\n		Change
\n<\/strong><\/td>\n		Revenue from Interconnection (Rbn)
\n<\/strong><\/td>\n		Change<\/strong><\/td>\n<\/tr>\n
2009<\/td>\n5.973<\/td>\n25.48%*<\/td>\n8.632<\/td>\n8.64%*<\/td>\n<\/tr>\n
2010<\/td>\n4.614<\/td>\n-22.75%<\/td>\n8.075<\/td>\n-6.45%<\/td>\n<\/tr>\n
2011<\/td>\n6.18<\/td>\n33.94%<\/td>\n7.23<\/td>\n-10.46%<\/td>\n<\/tr>\n
2012<\/td>\n7.639<\/td>\n23.60%<\/td>\n6.71<\/td>\n-7.19%<\/td>\n<\/tr>\n
2013<\/td>\n8.882<\/td>\n16.27%<\/td>\n4.916<\/td>\n-26.73%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

* From 2008<\/small><\/p>\n

F&S says that fixed line Internet service providers will increasingly develop customer value propositions focused on niche markets to try and grow the fixed line market.<\/p>\n

“Typically, the prime focus will be on entertainment and media-related services. The development of more fixed-mobile convergence (FMC) solutions will be another key development in 2014, with the negotiations between Vodacom and Neotel<\/a> signalling the mobile operator\u2019s intentions in this regard,” F&S said.<\/p>\n

Duvenage says that the mobile penetration rate, which is currently around 135%, indicates that we will not see a massive jump in consumer mobile activations.<\/p>\n

Rather, the rapid uptake of M2M (machine to machine) products and services will continue to drive growth in the sector and open additional opportunities.<\/p>\n

According to the State of Broadband Report, the proportion of individuals with access to the Internet has jumped from 21% to 41% between 2012 and 2013. This is a very positive sign as it makes the development of online consumer products and services more viable.<\/p>\n

More on SA telecoms<\/h3>\n

MTR price cuts: how it will affect Vodacom and MTN<\/a><\/strong><\/p>\n

MTR cuts would cost us R1 billion: MTN<\/a><\/strong><\/p>\n

Telkom expects jump in earnings<\/a><\/strong><\/p>\n

Operators mull action on termination rate cuts<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the struggling South African economy, global growth consulting firm Frost & Sullivan expects continued strong performance in the telecommunications sector.<\/p>\n","protected":false},"author":10,"featured_media":47112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[21],"tags":[42,59,26,36,28,1075,27],"class_list":["post-47748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-cell-c","tag-frost-sullivan","tag-headline","tag-icasa","tag-mtn","tag-telkom-mobile","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=47748"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47748\/revisions"}],"predecessor-version":[{"id":47777,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47748\/revisions\/47777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/47112"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=47748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=47748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=47748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}