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Broadband Market in South Africa Prospers Despite Regulatory Hurdles - The Independent Communications Authority of South Africa (ICASA) has to deal with significant hurdles in regulating the telecommunications sector due to the convergence of technologies
Broadband Market in South Africa Prospers Despite Regulatory Hurdles

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2008/03/11 - The Independent Communications Authority of South Africa (ICASA) has to deal with significant hurdles in regulating the telecommunications sector due to the convergence of technologies.

   
 
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However, the regulatory environment for the provision of broadband services in South Africa needs to be clarified to enable smoother operations for market players.

New analysis from growth consulting company Frost & Sullivan (communicationservices.frost.com), South African Broadband Market, finds that the market earned revenues of at least $195 million in 2006.

"An unclear regulatory environment is proving to be a challenge for market entrants," says Frost & Sullivan Industry Analyst Lindsey Mc Donald. "There are areas in which the policies of government and the regulatory authority seem to differ and this makes conditions challenging for operators."

Despite these difficulties, the broadband market is performing well and growing at a pace that is likely to remain consistently high until 2013 due to increased use of the internet. Fixed line broadband services are growing steadily, while mobile and wireless services are experiencing high levels of uptake.

Frost & Sullivan expects that the continued demand for lower prices will enhance competition and improve service uptake. Internet service providers (ISPs) and access providers, particularly in the consumer segment, are already luring more users by driving down prices. The increased competition has also encouraged greater investments in infrastructure supporting broadband services.

The market provides attractive opportunities for ISP market entrants, specifically at the lower levels of the value chain. For instance, the rapidly expanding popularity of voice over Internet protocol (VoIP) has triggered a simultaneous demand for broadband.

"Moreover, several municipalities throughout South Africa are either in the process of rolling out broadband or are planning to," says Mc Donald. "Cape Town, Johannesburg and Tshwane have all announced broadband strategies to cut municipal telecommunications costs and provide services to clients using alternative access points such as kiosks."

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the South African Broadband Market, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, fax number and email address. Upon receipt of the above information, an overview will be sent to you by email.

South African Broadband Market is part of the Information and Communication Technologies Services Growth Partnership Service programme, which also includes research in the following markets: contactless smart card applications and GSM SIM. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Broadband Market in South Africa Prospers Despite Regulatory Hurdles

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Contact: Patrick Cairns 
+27 21 680 3274 patrick.cairns[.]frost.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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