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.
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