South Africa’s MNOs anticipating spectrum auction in 2019South Africa’s telecom sector boasts one of the most advanced infrastructures on the continent. There is has been considerable investment from Telkom, Liquid Telecom South Africa, Broadband InfraCo and municipal providers as well as from mobile network operators all aimed at improving network capabilities. The focus in recent years has been on backhaul capacity and on fibre and LTE networks to extend and improve internet service connectivity.
The poor historic availability and level of service of fixed-line networks encouraged the growth of the mobile sector for both voice and data services and this segment continues to command most investment and effort among telcos. Under a converged regulatory regime many alternative service providers have been able to enter the market to offer a range of services. This regime also encouraged the major mobile network operators Vodacom, MTN and Cell C to move into the fixed-line and fibre sector. Proposed amendments to the Communications Act are intended to improve the ability of new entrants to access networks and further develop a competitive market landscape.
Other key regulatory matters aimed at shaping the market include the licensing of LTE spectrum in several bands. A multi-spectrum auction, delayed since late 2016 and which has caused some difficulties for mobile network operators desperately short of spectrum and which have had to rely on spectrum refarming and other measures to increase network capacity, is scheduled for mid-2019.
The broadband market is emerging from many years of slow growth exacerbated by an expensive operating environment created by Telkom’s market dominance and its control of access to international bandwidth. Although wireless broadband services have carved out market share from existing DSL offerings, the sector is dominated by mobile networks and despite a growing fixed-line footprint the government’s plan to provide national broadband coverage is largely based on mobile technologies.
The mature mobile market has seen rapid growth since competition was introduced to the sector in the 1990s. SIM card penetration is high though is driven partly by the popularity of multiple card use as also by the take-up of mobile broadband services. The major mobile operators have branched into providing mobile banking and mobile entertainment services, while the market entry of a growing number of MVNOs has added to the competitive mix.
Key developments:
Telkom signs roaming and facilities leasing agreement with MTN;
Delayed spectrum auction rescheduled for April 2019;
Telkom completes Massive MIMO technology trials, aims to decommission 2G infrastructure;
Liquid Telecom South Africa to build a 4G network;
Comsol starts 5G fixed-wireless trials using spectrum in the 28MHz band;
Regulator sets MTRs through to October 2020;
Telkom FttC infrastructure passing close to three million premises;
Cell C extends wholesale fibre partnerships;
MTN acquires Smart Village, expands fibre network reach;
Telkom converts public payphones into Wi-Fi hotspots;
Vumatel extends open-access network offering 1Gb/s services;
South Africa to deploy nine nanosatellites;
Microsoft to build two data centres during 2019;
Telkom reports strong regulator growth in fiscal H1 2019, continues work on the Modderfontein Smart City development;
Vodacom contracts Alcatel-Lucent to build a GPON FttP converged network;
Report update includes the regulator’s the regulator’s March 2018 report on the ICT sector, operator data to September 2018.Companies mentioned in this report:
Vodacom, MTN (MTN Network Solutions), Cell C, Telkom (Heita, 8ta), Virgin Mobile, Neotel, Atlantic Internet Services, Business Connexion, Internet Solutions, Verizon Business, MWEB, Vox Telecom (DataPro), Sentech, iBurst (WBS, Blue Label), Liquid Telecom South Africa (Neotel, Tata), Virgin Mobile, Broadband InfraCo, Transtel, Eskom, SEACOM, Transtel, Eskom, SITA, Sentech, Dark Fibre Africa (DFA), FibreCo, eFive, WASACE.
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1. Key statistics
1.1 Country overview
2. Telecommunications market
2.1 Historical overview
3. Regulatory environment
3.1 Historical overview
3.2 Regulatory authority
3.3 Telecommunications Act
3.4 Telecommunications Amendment Act
3.5 Electronic Communications Acts (2005, 2014)
3.6 Regulation of Interception of Communications Act 2002
3.7 Electronic Communications Act and ICASA Amendment Act
3.8 Converged licensing regime
3.9 New Companies Act
3.10 Universal Service and Access Fund (USAF)
3.11 Interconnection
4. Fixed network operators
4.1 Overview
4.2 Telkom
4.3 Neotel
5. Telecommunications infrastructure
5.1 Overview of the national telecom network
5.2 National fibre infrastructure
5.2.1 Broadband InfraCo
5.2.2 Dark Fibre Africa
5.2.3 FibreCo
5.3 VoIP
5.4 International submarine cables
5.4.1 SAT-3/WASC/SAFE
5.4.2 SEACOM
5.4.3 EASSy
5.4.4 WACS
5.4.5 African Coast to Europe (ACE)
5.4.6 SAEx, WASACE
5.4.7 Seaborn
5.5 Satellite
5.6 Next Generation Networks (NGN)
5.7 Municipal networks
5.7.1 Knysna – Africa’s first municipal network
5.8 Data centres
5.9 Smart infrastructure
5.9.1 Smart cities
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market analysis
6.1.2 Community access projects
6.1.3 Internet Service Providers Association (ISPA)
6.1.4 Internet Exchange Points (IXP)
6.1.5 Broadband statistics
6.1.6 Forecasts – broadband subscribers – 2019; 2021; 2023
6.2 Digital Subscriber Line (DSL) networks
6.2.1 Introduction
6.2.2 Wholesale
6.2.3 Fibre-to-the-Premises (FttP) networks
6.3 Other fixed broadband services
6.3.1 Broadband over Powerlines (BPL)
6.3.2 Fixed wireless
7. Digital economy
7.1 E-learning
7.2 E-government
7.3 E-health
7.4 E-banking
8. Mobile communications
8.1 Market analysis
8.2 Mobile statistics
8.2.1 General statistics
8.2.2 Mobile voice (VoLTE/Wi-Fi calling)
8.2.3 Mobile data
8.2.4 Mobile broadband
8.2.5 Forecasts – mobile subscribers – 2019; 2021; 2023
8.3 Regulatory issues
8.3.1 Spectrum
8.3.2 Mobile Termination Rates (MTRs)
8.3.3 Mobile Number Portability (MNP)
8.3.4 SIM card registration
8.3.5 Infrastructure sharing
8.3.6 Roaming
8.4 Mobile infrastructure
8.4.1 5G
8.4.2 4G (LTE)
8.4.3 3G
8.4.4 GSM
8.4.5 M2M networks
8.4.6 NB-IoT
8.5 Major mobile operators
8.5.1 Vodacom South Africa
8.5.2 MTN South Africa
8.5.3 Cell C
8.5.4 Telkom Mobile
8.5.5 Mobile Virtual Network Enablers (MVNEs)
8.5.6 Mobile Virtual Network Operators (MVNOs)
8.6 Mobile content and applications
8.6.1 m- music
8.6.2 CellBook
8.6.3 m-banking
8.6.4 m-gaming
8.6.5 m-health
8.6.6 Mobile advertising
8.6.7 Location-based services (LBS)
8.6.8 Manobi
8.6.9 Mobile social media
Table 1 – Top Level Country Statistics and Telco Authorities – South Africa – 2018
Table 2 – Telecom sector investment – 2015 - 2017
Table 3 – Telecom sector investment by sector – 2015 - 2017
Table 4 – Fixed revenue by sector – 2015 - 2017
Table 5 – Telecom sector revenue by service – 2015 - 2017
Table 6 – Telecom and broadcasting revenue – 2015 - 2017
Table 7 – Fixed and mobile telephony access by household – 2014 - 2018
Table 8 – Telkom Group financial results – 2010 - 2019
Table 9 – Telkom data revenue – 2002 - 2017
Table 10 – Fixed lines in service and teledensity in South Africa – 2000 - 2018
Table 11 – Fixed-line voice traffic – 2015 - 2018
Table 12 – VoIP subscriptions – 2015 - 2017
Table 13 – International internet bandwidth – 2000 - 2016
Table 14 – National Broadband Policy penetration targets to 2030
Table 15 – Average internet access speed – 2010 - 2015
Table 16 – Internet revenue – 2015 - 2017
Table 17 – Internet revenue by sector – 2015 - 2017
Table 18 – Historic - Internet users and penetration rate in South Africa – 1999 - 2009
Table 19 – Internet users and penetration rate in South Africa – 2010 - 2022
Table 20 – Fixed-line broadband subscribers and penetration in South Africa – 2002 - 2018
Table 21 – Forecast fixed broadband subscribers in South Africa – 2019; 2021; 2023
Table 22 – Telkom South Africa broadband subscribers – 2003 - 2017
Table 23 – Telkom fixed data traffic – 2014 - 2016
Table 24 – DSL subscriptions – 2015 - 2018
Table 25 – Telkom South Africa fibre broadband subscribers – 2016 - 2018
Table 26 – Telkom South Africa fibre premises passed – 2016 - 2018
Table 27 – Telkom South Africa fibre ports by type – 2017 - 2018
Table 28 – Fibre broadband subscribers – 2013 - 2018
Table 29 – Telkom South Africa WiMAX subscribers – 2008 - 2014
Table 30 –Mobile sector revenue – 2015 - 2017
Table 31 – Mobile revenue by sector – 2015 - 2017
Table 32 – Historic - Mobile subscribers and penetration rate in South Africa – 1999 - 2009
Table 33 – Mobile subscribers and penetration rate in South Africa – 2010 - 2019
Table 34 –Mobile voice traffic – 2015 - 2017
Table 35 – SMS traffic – 2013 - 2019
Table 36 – Active mobile broadband subscribers – 2010 - 2018
Table 37 – Telkom mobile broadband subscribers by type – 2015 - 2018
Table 38 – Telkom mobile broadband revenue – 2015 - 2017
Table 39 – Telkom mobile data traffic – 2015 - 2018
Table 40 – Mobile data traffic – 2015 - 2017
Table 41 – Forecast mobile subscribers in South Africa – 2019; 2021; 2023
Table 42 – Mobile numbers ported – 2014 - 2015
Table 43 – Telkom LTE subscribers – 2016 - 2018
Table 44 – 4G (WiMAX/LTE) population coverage – 2012 - 2017
Table 45 – Vodacom South Africa M2M connections – 2011 - 2015
Table 46 – M2M connections – 2015 - 2017
Table 47 – Vodacom South Africa mobile revenue – 2010 - 2019
Table 48 – Vodacom South Africa mobile data subscribers – 2013 - 2018
Table 49 – Vodacom South Africa subscribers and market share – 2002 - 2018
Table 50 – MTN South Africa subscribers and market share – 2002 - 2018
Table 51 – MTN South Africa financial data – 2012 - 2018
Table 52 – MTN South Africa mobile ARPU – 2013 - 2018
Table 53 – Cell C mobile subscribers – 2013 - 2018
Table 54 – Cell C mobile service revenue – 2013 - 2018
Table 55 – Cell C financial data – 2016 - 2018
Table 56 – Telkom mobile subscribers – 2009 - 2018
Table 57 – Telkom prepaid and contract mobile subscribers – 2015 - 2018
Table 58 – Telkom mobile financial data – 2014 - 2019
Table 59 – Telkom mobile ARPU – 2014 - 2019
Chart 1 – Telecom sector revenue by service – 2015 – 2017
Chart 2 – Fixed lines in service and teledensity in South Africa – 2005 - 2018
Chart 3 – Internet users and penetration rate in South Africa – 2005 - 2022
Chart 4 – Mobile revenue by sector – 2015 – 2017
Chart 5 – Mobile subscribers and penetration rate in South Africa – 2005 - 2019
Chart 6 – Active mobile broadband subscribers – 2010 – 2018
Chart 7 – Vodacom South Africa mobile revenue – 2010 – 2019
Chart 8 – Telkom mobile ARPU – 2014 – 2019
