Market Report, "South Africa Telecommunications Report Q2 2016", published
New Fixed Networks market report from Business Monitor International: "South Africa Telecommunications Report Q2 2016"
[USPRwire, Tue Feb 16 2016] We continue to maintain our core forecast f or the South African market and retain our positive outlook for 2016. The market has so far performed beyond our expectations, adding over 6mn subscribers in 9M15. Furthermore, the uptake of 3G and LTE services is in line with our recent revisions. We do however caution that with penetration rate inching towards 170%, there is a high likelihood of a significant number of inactive sims connections that have not been discounted. A major discounting by operators will lead us to revise our forecasts. Furthermore, we are carefully monitor ing the competitive dynamics of the South African mobile market as we believe 2016 will be the year of major consolidation as fixed line provider Telkom South Africa looks to acquire major wireless provider Cell C and Vodacom looks to acquire ISP provider Neotel.
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The South African mobile market grew higher than forecasted in 9M15 as the market added impressive 6mn+ subscribers. We believe that the market will end our current forecast period, 2020 with over 94mn subscribers.
The primary area of growth will be 3G and 4G development as high capital investments and the increased number of 3G and 4G sites suggests that new price wars will be targeted towards data and value added services. We are now expecting over 47.6mn 3G and 4G subscriptions by the end of our forecast period. The latest investments in developing and preparing the commercial launch of LTE-Advanced services by all major operators are a clear signal that the operators are preparing for severe competition based on data and advanced technologies.
The South African market appears to be nearing consolidation as Tel kom South Africa, the largest fixed-line provider looks to boost its declining revenues by entering the mobile market. It is considering the purchase of Cell C, the third largest cellular provider. Furthermore, wireless market leader, Vodacom, is looking to purchase ISP provider Neotel. We believe consolidation will be good for the market as it will increase competition and encourage 4G uptake and innovations.
The South Africa Telecommunications Report features BMI Research's independent industry forecasts on the future strength of South Africa's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
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