Telecoms & IT
From The Report: South Africa 2012
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The telecommunications sector in South Africa is among the continent’s most developed. It tends toward encouraging data-heavy services by shifting from voice to data services, increasing smartphone usage, expanding localised content, and adding both private and public sector capacities to lay the groundwork for fourth-generation (4G) and long-term evolution (LTE) networks. As of the third quarter of 2011, there were approximately 57m active mobile subscriptions, and with 20% of subscribers holding more than one SIM card, the mobile penetration rate stands above 100%. This compares with an overall fixed-line subscriber base of roughly 4m users, a rate that has been on a slow but steady decline in recent years.

South Africa is bursting with opportunities for growth in information and communications technology (ICT). The country has about 6m internet users and studies conducted by Research ICT Africa show that 15% of South African households have a working computer and that 5% have an internet connection. Prices for broadband internet connectivity have fallen in recent years, and the landing of multiple international cables on South African shores in 2012 will likely lower prices further. Continued expansion of South African firms, such as logistics companies, retailers and distributors, could strengthen demand for inventory management software, cloud computing services and other technological solutions.

This chapter contains interviews with Alan Knott-Craig, CEO, Cell C; Karel Pienaar, Managing Director, MTN South Africa; Pieter Uys, CEO, Vodacom South Africa; and Robert Venter, Chief Executive, Altron.

Articles from this Chapter

Overview

Profits full of data: New markets for mobile networks
OBG
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The telecommunications sector in South Africa is among the continent’s most developed. Telkom, the country’s former monopoly and fixed-line incumbent, is Africa’s largest telecommunications operator, competing alongside a number of heavyweight home-grown mobile providers. As in most sophisticated markets, the sector tends toward encouraging data-heavy services. This is seen in the growing incentives to shift from voice to data services, increasing smartphone usage, expanding localised content,…

Analysis

Assigning spectrum: Network bid put on hold, but testing continues
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The introduction of the latest wireless network technology – long-term evolution (LTE) networks – was a surprisingly delicate issue in South Africa in early 2012. It was expected that spectrum licences for the networks would be awarded before the year’s end, but, even as operators race to increase capacity, implementation complications have delayed the progress of Africa’s most-advanced wireless network. BACKGROUND: South Africa’s biggest mobile operators, including MTN, Vodacom…

Interview

OBG talks to Alan Knott-Craig, CEO, Cell C; Karel Pienaar, Managing Director, MTN South Africa; and Pieter Uys, CEO, Vodacom South Africa.
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Interview:Alan Knott-Craig,Karel Pienaar,Pieter Uys In what areas do you expect to see growth within the mobile segment in the future? ALAN KNOTT-CRAIG: Voice in South Africa is still growing, but it will become saturated at some point as there are only so many people and only so much they can say to each other. The great thing about data is that its growth is not related to population, and is instead a factor of volume, speed and price. If the price is low enough and the speed…

Interview

OBG talks to Robert Venter, Chief Executive, Altron
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Interview:Robert Venter What are some of the challenges associated with having the government as a key customer? ROBERT VENTER: The biggest IT spender in the country is by far the state. Increasingly, the government has realised that sourcing from the local IT industry helps keep manufacturing and service jobs in South Africa. This is not a form of protection, but rather a way of supporting local industry and having a public-private approach to job creation. Unfortunately, for some of the…

Overview

Looking to connect: Paving the way for greater access
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With plans under way for some of the most sophisticated wireless infrastructure on the continent, a sizeable network backbone, high mobile data usage and encouraging corporate demand, South Africa is bursting with opportunities for growth in information and communications technology (ICT). This encouraging forecast is driven by the country’s steady economic expansion, as South Africa remains a large and developing middle-income market. The country’s ICT needs will grow as small and medium-sized…