- The South African broadband market has shown consistently significant growth rates of over 30 percent in the last two years, and according to Frost & Sullivan, this positive trend is expected to continue for the next two years.
Despite the expense of network infrastructure roll-out, the country's top operators are still engaged in the crucial activity of increasing broadband penetration in South Africa, the company has said in its latest study, adding that there are immense opportunities for Internet service providers (ISPs) and vendors because all electronic communications network services (ECNS) license holders are currently permitted to self-provision.
A new analysis released today from Frost & Sullivan, South African Broadband Market, finds that the market earned revenues of over $291.6 million in 2008 and estimates this to reach $1.62 billion in 2015.
The vertical sectors covered in this study are: retail, financial services, tourism, government and healthcare, while the technologies covered are: asymmetric digital subscriber line (ADSL), worldwide interoperability for microwave access (WiMAX), mobile, wireless fidelity (WiFi), satellite and iBurst.
"The introduction of undersea cables and the anticipation that prices will be lowered due to new competition has resulted in greater optimism about broadband services with higher rates of uptake," said Frost & Sullivan Senior Industry Analyst Lindsey Mc Donald. "Operators have decided to provide better value to their clients and this trend is likely to intensify over the next three years."
However, the market's ability to capitalise on the potential connectivity of undersea cables depends on the level of national infrastructure, accoding to the analysis, further pointing that, unfortunately, the required quality of infrastructure is still lacking in South Africa, with some operators already working towards addressing this challenge.
"A lack of sufficient infrastructure is the main threat to the growth of broadband in the country," explains Mc Donald. "Most people utilise mobile technology which is still very expensive and out of the reach of many people in the country."
ISPs should understand the nature of their customer base. Engaging in customer segmentation processes will help them understand who their clients actually are and also reveal the best way, in which to offer services to these clients.
The South African Broadband Market is part of the Communications Services Growth Partnership Services programme, which also includes research in the following markets: Angolan Mobile Market, South African Contact Centre Technologies Market, Sub Saharan African CDMA Markets, and Mozambique Mobile Communications Market, by Frost & Sullivan.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.