Telcos will need to look beyond data and voice for revenue, as maturing markets and shrinking margins will force operators to sniff out new revenue streams, say analysts.<\/p>\n
Speaking on CNBC Africa, Technology, Media and Telecoms (TMT) leaders at Deloitte, Mark Casey and Arun Babu, painted a picture of telecoms in Africa, indicating that telcos on the continent are in for a tough time if they do not find a way to differentiate their businesses.<\/p>\n
According to Casey, the massive growth of the middle-class population as well as a “bandwidth explosion” and jump in connectivity rates in Africa are providing massive opportunities for telcos on the continent.<\/p>\n
However, the analyst noted, a maturing subscriber rate, lower ARPUs and tighter margins on voice and data revenue have positioned operators at a difficult crossroads, which the analyst believes will result in a “consolidation play like nowhere else in the world.”<\/p>\n
This consolidation will see telcos looking for additional revenue streams in fields they previously did not have access to – such as mobile money, financial services, e-health, e-education and even media offerings.<\/p>\n
On the flip-side, Casey said, being in the position of playing in all the fields, have made telcos an appealing target – not by other telcos, but by media houses and advertising firms.<\/p>\n
Pointing to this shift on the continent, CNBC pointed to reports last week (13 November) that Vodacom Group is reportedly in discussions with South Africa media and Internet firm Naspers over access to its television content.<\/p>\n
It was reported that Vodacom Group CEO, Shameel Joosub hinted that there was an opportunity for the operator to unlock value by partnering with a pay-TV provider like DStv.<\/p>\n
This follows ongoing discussions between Vodacom and Neotel, for the former to acquire the latter for as much as a speculated R10 billion – a move which would give Vodacom a massive boost in the fixed-line fibre market.<\/p>\n
According to Babu, its in the space of consilidation where the greatest opportunity – and threat – for telcos lies.<\/p>\n
“Each of the other industries are trying to play in the telcos’ space – and the telcos will want to play in their space. That’s the interesting phase we’re currently going through,” Babu said.<\/p>\n
“Telcos are going to be the glue that brings industries together,” he said. “In the future there are going to be more machines connected to the Internet than humans – and telcos are going to be at the centre of it.”<\/p>\n
Vodacom in talks with Naspers: report<\/a><\/strong><\/p>\n Vodacom targets M-Pesa in SA, again<\/a><\/strong><\/p>\n