The SWOT table below profiles the sub-sector, providing strengths, weaknesses, opportunities and threats of mobile telecommunications. Table 25: Mobile Telecommunications Strengths Weaknesses Competitive sector with four network Despite strong contract customer growth, operators and MVNOs. the mobile market remains highly skewed Leading operators Vodacom and MTN have towards prepaid users. a strong international presence, bringing Despite the presence of Virgin Mobile, the international expertise and best practice MVNO sector remains undeveloped. into the sector. South Africa's telecoms regulator, ICASA, 3G and 3.5G services are offered by all of has been criticised for not doing enough to the network operators, and MTN help liberalise the market; tariffs remain experienced strong growth in data services high by international standards and the in 2012. government was also accused of hindering LTE network rollouts in 2012. rather than aiding telecoms policies. Vodacom, MTN and Telkom are able to offer converged service packages. Sector has benefited from strategic investments from Vodafone (Vodacom) and Saudi Arabia's Saudi Oger (Cell C) as well as the Virgin Mobile Group. Opportunities Threats MTN and Vodacom have been actively Mobile market appears to be approaching deploying multimedia content services, saturation point, limiting the potential for providing opportunities for content new customer growth. providers. LTE growth likely to be limited due to low Cell C has launched high-speed networks availability of spectrum. and continues to expand nationwide. Danger of third operator Cell C being The fixed-line incumbent's 8ta mobile squeezed out of market as Vodacom and brand has further intensified competition, MTN remould themselves as converged offering low-priced services. telecoms service providers. LTE launches offer chances to reach clients with a wider range of services and products, building long-term revenue potential. Deployment of HSDPA and HSUPA and the launch of new multimedia mobile handsets should have a positive impact on data service usage. Deployment of fibre networks by MTN and Vodacom will enable these operators to offer a broader suite of converged services. Source: Adapted from BMI, 2013
The SWOT table below profiles the sub-sector, providing strengths, weaknesses, opportunities and threats of mobile telecommunications. Table 25: Mobile Telecommunications Strengths Weaknesses Competitive sector with four network operators and MVNOs. Leading operators Vodacom and MTN have a strong international presence, bringing international expertise and best practice into the sector. 3G and 3.5G services are offered by all of the network operators, and MTN experienced strong growth in data services in 2012. LTE network rollouts in 2012. Vodacom, MTN and Telkom are able to offer converged service packages. Sector has benefited from strategic investments from Vodafone (Vodacom) and Saudi Arabia's Saudi Oger (Cell C) as well as the Virgin Mobile Group. Despite strong contract customer growth, the mobile market remains highly skewed towards prepaid users. Despite the presence of Virgin Mobile, the MVNO sector remains undeveloped. South Africa's telecoms regulator, ICASA, has been criticised for not doing enough to help liberalise the market; tariffs remain high by international standards and the government was also accused of hindering rather than aiding telecoms policies. Opportunities Threats MTN and Vodacom have been actively deploying multimedia content services, providing opportunities for content providers. Cell C has launched high-speed networks and continues to expand nationwide. The fixed-line incumbent's 8ta mobile brand has further intensified competition, offering low-priced services. LTE launches offer chances to reach clients with a wider range of services and products, building long-term revenue potential. Deployment of HSDPA and HSUPA and the launch of new multimedia mobile handsets should have a positive impact on data service usage. Deployment of fibre networks by MTN and Vodacom will enable these operators to offer a broader suite of converged services. Mobile market appears to be approaching saturation point, limiting the potential for new customer growth. LTE growth likely to be limited due to low availability of spectrum. Danger of third operator Cell C being squeezed out of market as Vodacom and MTN remould themselves as converged telecoms service providers. Source: Adapted from BMI, 2013
MICT_SETA_SSP_2013-2014.docx