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South Africa to offer additional spectrum to address data traffic spike
[May 06, 2020]

South Africa to offer additional spectrum to address data traffic spike


Sydney, May 07, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on South Africa outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/South-Africa-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

South 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. With the ongoing migration to fibre, the incumbent telco Telkom expects to close down its copper network in 2024.

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 to move into the fixed-line and fibre sector.

Other key regulatory matters aimed at shaping the market include the licensing of LTE spectrum in several bands. A multi-spectrum auction has been delayed since late 2016 and this has caused some difficulties for network operators gearing up to launch 5G services. In early 2020 the regulator prepared plans to release additional spectrum to operators to enable them to manage the spike in data traffic resulting from the lockdown imposed to curb the spread of the coronavirus.

South Africa is expected to be one of the first countries in the region to launch commercial 5G services, following ongoing investment from Rain, Vodacom and MTN. Liquid Telecom in 2020 began offering a wholesale 5G service using its 3.5GHz concession, but a full commercial 5G services await the anticipated multi-spectrum auctions.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments

  • MTN South Africa relaunches m-money service;
  • Regulator to provide operators with additional spectrum in wake of COVID-19 data traffic spike;
  • Telkom’s fibre infrastructure passing close to three million premises;
  • Comsol starts 5G fixed-wireless trials using spectrum in the 28MHz band;
  • Regulator sets MTRs through to October 2020;
  • Report update includes the regulator's the regulator's March 2020 report on the ICT sector, operator data to December 2019, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments.

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.


  • Key Statistics
  • Regional Market Comparison
    • TMI vs GDP
    • Mobile and mobile broadband
    • Fixed and mobile broadband
  • Country overview
  • COVID-19 and its impact on the telecom sector
    • Economic considerations and responses
    • Mobile devices
    • Subscribers
    • Infrastructure
  • Telecommunications market
    • Market analysis
  • Regulatory environment
    • Historical overview
    • Regulatory authority
    • Fixed line developments
      • Telecommunications Act
      • Telecommunications Amendment Act
      • Electronic Communications Acts (2005, 2014)
      • Regulation of Interception of Communications Act 2002
      • Electronic Communications Act and ICASA Amendment Act
      • Converged licensing regime
      • New Companies Act
      • Universal Service and Access Fund (USAF)
      • Interconnection
    • Mobile network developments
      • Spectrum
      • Mobile Termination Rates (MTRs)
      • Mobile Number Portability (MNP)
      • SIM card registration
      • Infrastructure sharing
      • Roaming
  • Mobile market
    • Mobile statistics
    • Mobile voice (VoLTE/Wi-Fi calling)
    • Mobile data
      • SMS
      • MMS
    • Mobile broadband
    • Mobile infrastructure
      • 5G
      • 4G (LTE)
      • LTE-U
      • 3G
      • GSM
      • Other infrastructure developments
    • Major mobile operators
      • Vodacom South Africa
      • MTN South Africa
      • Cell C
      • Telkom Mobile
      • Mobile Virtual Network Enablers (MVNEs)
      • Mobile Virtual Network Operators (MVNOs)
    • Mobile content and applicatins
      • m-music
      • CellBook
      • m-banking
      • m-gaming
      • m-health
      • Mobile advertising
      • Location-based services (LBS)
      • Manobi
      • Mobile social media
  • Fixed-line broadband market
    • Market analysis
    • Community access projects
      • Microsoft Digital Villages and telecentres
      • The Smart Cape Access Project
    • Internet Service Providers Association (ISPA)
    • Internet Exchange Points (IXP)
    • Broadband statistics
    • Digital Subscriber Line (DSL) networks
      • Wholesale
      • ADSL2+
      • VDSL
    • Fibre-to-the-Premises (FttP) networks
    • Other fixed broadband services
      • Broadband over Powerlines (BPL)
      • Fixed wireless
    • Digital economy
      • E-learning
      • E-government
      • E-health
      • E-banking
  • Fixed network operators
    • Telkom
    • Neotel
  • Telecommunications infrastructure
    • Overview of the national telecom network
    • National fibre infrastructure
      • Broadband InfraCo
      • Dark Fibre Africa
      • Vodacom
      • MTN
      • FibreCo
    • International submarine cables
      • SAT-3/WASC/SAFE
      • SEACOM
      • EASSy
      • WACS
      • African Coast to Europe (ACE)
      • SAEx, WASACE
      • Seaborn
      • METISS
      • PEACE
    • Satellite
    • Next Generation Networks (NGN)
    • Municipal networks
      • Knysna – Africa’s first municipal network
  • Data centres
  • Smart infrastructure
    • Smart cities
  • Appendix – Historic data
  • Glossary of abbreviations
  • Related reports




List of Tables


  • Table 1 – Top Level Country Statistics and Telco Authorities – South Africa – 2020 (e)
  • Table 2 – Change in the proportion of households with telecom service by type – 2014 – 2018
  • Table 3 – Development of Telecom sector investment – 2015 – 2019
  • Table 4 – Development of telecom sector investment by sector – 2015 – 2019
  • Table 5 – Development of telecom sector revenue by service – 2015 – 2019
  • Table 6 – Development of total telecom and broadcasting revenue – 2015 – 2019
  • Table 7 – Change in fixed revenue by type – 2015 – 2019
  • Table 8 – Development of mobile sector revenue – 2015 – 2019
  • Table 9 – Change in mobile revenue by sector – 2015 – 2019
  • Table 10 – Development of mobile prepaid revenue by type – 2015 – 2019
  • Table 11 – Growth in the number of mobile subscribers and penetration – 2010 – 2025
  • Table 12 – Change in the number of prepaid and contract mobile subscribers – 2015 – 2019
  • Table 13 – Change in mobile voice traffic by type – 2015 – 2019
  • Table 14 – Decline in SMS traffic – 2013 – 2020
  • Table 15 – Growth in the number of active mobile broadband subscribers – 2010 – 2025
  • Table 16 – Increase in the number of Telkom’s mobile broadband subscribers by type – 2015 – 2019
  • Table 17 – Growth in Telkom’s mobile broadband revenue – 2015 – 2020
  • Table 18 – Growth in Telkom’s mobile data traffic – 2015 – 2020
  • Table 19 – Growth in overall mobile data traffic – 2015 – 2019
  • Table 20 – Growth in the number of mobile data subscribers – 2015 – 2019
  • Table 21 – Telkom LTE subscribers – 2016 – 2018
  • Table 22 – Development of 4G (WiMAX/LTE) population coverage – 2012 – 2019
  • Table 23 – Development of 3G population coverage – 2015 – 2019
  • Table 24 – Growth in the number of M2M connections – 2015 – 2019
  • Table 25 – Development of Vodacom South Africa’s mobile revenue – 2010 – 2020
  • Table 26 – Growth in the number of Vodacom South Africa’s subscribers and market share – 2010 - 2019
  • Table 27 – Change in the number of Vodacom South Africa’s prepaid and contract subscribers – 2017 - 2019
  • Table 28 – Growth in the number of Vodacom South Africa’s mobile data subscribers – 2013 – 2019
  • Table 29 – Development of Vodacom South Africa’s mobile ARPU – 2017 – 2019
  • Table 30 – Change in the number of MTN South Africa’s mobile subscribers and market share – 2010 – 2019
  • Table 31 – Change in the number of MTN South Africa’s prepaid, contract subscribers – 2013 – 2019
  • Table 32 – Development of MTN South Africa’s financial data – 2012 – 2019
  • Table 33 – Development of MTN South Africa’s mobile ARPU – 2013 – 2019
  • Table 34 – Change in the number of Cell C mobile subscribers – 2013 – 2019
  • Table 35 – Growth in Cell C’s mobile service revenue – 2013 – 2019
  • Table 36 – Increase in Cell C’s mobile data revenue – 2017 – 2018
  • Table 37 – Development of Cell C’s financial data – 2016 – 2019
  • Table 38 – Growth in the number of Telkom’s mobile subscribers – 2009 – 2019
  • Table 39 – Growth in the number of Telkom’s prepaid and contract mobile subscribers – 2015 – 2019
  • Table 40 – Development of Telkom’s mobile financial data – 2014 - 2020
  • Table 41 – Change in Telkom’s mobile ARPU – 2014 – 2020
  • Table 42 – National Broadband Policy penetration targets to 2030
  • Table 43 – Change in fixed internet revenue by type – 2015 – 2019
  • Table 44 – Development of the Schools Connected program – 2016 – 2019
  • Table 45 – Growth in the number of fixed-line broadband subscribers and penetration – 2010 – 2025
  • Table 46 – Change in the number of fixed broadband subscribers by type – 2015 - 2019
  • Table 47 – Growth in the number of Telkom’s broadband subscribers – 2010 – 2019
  • Table 48 – Growth in Telkom’s fixed data traffic – 2014 – 2020
  • Table 49 – Change in the number of Telkom’s DSL subscribers by type – 2016 – 2019
  • Table 50 – Change in Telkom’s fixed copper and fibre broadband subscribers – 2017 – 2019
  • Table 51 – Increase in the number of Telkom South Africa’s fibre ports – 2017 – 2019
  • Table 52 – Telkom South Africa fibre premises passed – 2016 – 2019
  • Table 53 – Growth in the number of fibre broadband subscribers – 2013 – 2019
  • Table 54 – Change in the number of fixed wireless broadband subscribers – 2017 – 2019
  • Table 55 – Development of Telkom Group’s financial results – 2010 – 2020
  • Table 56 – Change in Telkom Group’s capex by type – 2017 – 2020
  • Table 57 – Development of Telkom’s data revenue – 2010 – 2020s
  • Table 58 – Change in the number of fixed lines in service and teledensity – 2010 – 2025
  • Table 59 – Change in the number of fixed lines in service by type – 2015 – 2019
  • Table 60 – Decline in fixed-line voice traffic – 2015 – 2019
  • Table 61 – Growth in international internet bandwidth – 2014 – 2019
  • Table 62 – Historic - Mobile subscribers and penetration rate in South Africa – 1999 – 2009
  • Table 63 – Historic - Vodacom South Africa subscribers and market share – 2002 - 2009
  • Table 64 – Historic - MTN South Africa subscribers and market share – 2002 – 2009
  • Table 65 – Historic - Average internet access speed – 2010 – 2015
  • Table 66 – Historic - Internet users and penetration rate in South Africa – 1999 – 2015
  • Table 67 – Historic - Fixed-line broadband subscribers and penetration – 2002 – 2009
  • Table 68 – Historic -Telkom South Africa broadband subscribers – 2003 – 2009
  • Table 69 – Historic - Telkom fixed broadband subscribers by type– 2016 – 2018
  • Table 70 – Historic - Telkom South Africa WiMAX subscribers – 2008 – 2014
  • Table 71 – Historic - Telkom data revenue – 2002 – 2009
  • Table 72 – Historic - Fixed lines in service and teledensity in South Africa – 2000 – 2009
  • Table 73 – Historic - International internet bandwidth – 2000 – 2013

List of Charts

  • Chart 1 – Overall Africa view - Telecoms Maturity Index vs GDP per Capita
  • Chart 2 – Southern Africa - Telecoms Maturity Index vs GDP per Capita
  • Chart 3 – Africa – Top-tier Telecoms Maturity Index (Market Leaders)
  • Chart 5 – Southern Africa mobile subscriber penetration versus mobile broadband penetration
  • Chart 6 – Southern Africa fixed broadband and mobile broadband penetration rates
  • Chart 7 – Change in the proportion of households with telecom service by type – 2014 – 2018
  • Chart 8 – Development of telecom sector investment by sector – 2015 – 2019
  • Chart 9 – Development of telecom sector revenue by service – 2015 – 2019
  • Chart 10 – Change in fixed revenue by type – 2015 – 2019
  • Chart 11 – Change in mobile revenue by sector – 2015 – 2019
  • Chart 12 – Development of mobile prepaid revenue by type – 2015 – 2019
  • Chart 13 – Growth in the number of mobile subscribers and penetration – 2010 – 2025
  • Chart 14 – Change in the number of prepaid and contract mobile subscribers – 2015 – 2019
  • Chart 15 – Change in mobile voice traffic by type – 2015 – 2019
  • Chart 16 – Growth in the number of active mobile broadband subscribers – 2010 – 2025
  • Chart 17 – Increase in the number of Telkom’s mobile broadband subscribers by type – 2015 – 2019
  • Chart 18 – Development of 4G (WiMAX/LTE) population coverage – 2012 – 2019
  • Chart 19 – Development of Vodacom South Africa’s mobile revenue – 2010 – 2020
  • Chart 20 – Change in the number of Vodacom South Africa’s prepaid and contract subscribers – 2017 - 2019
  • Chart 21 – Development of Vodacom South Africa’s mobile ARPU – 2017 – 2019
  • Chart 22 – Change in the number of MTN South Africa’s mobile subscribers and market share – 2010 – 2019
  • Chart 23 – Change in the number of MTN South Africa’s prepaid, contract subscribers – 2013 – 2019
  • Chart 24 – Development of MTN South Africa’s financial data – 2012 – 2019
  • Chart 25 – Development of MTN South Africa’s mobile ARPU – 2013 – 2019
  • Chart 26 – Development of MTN South Africa’s mobile ARPU – 2013 – 2019
  • Chart 27 – Development of Cell C’s financial data – 2016 – 2019
  • Chart 28 – Growth in the number of Telkom’s prepaid and contract mobile subscribers – 2015 – 2019
  • Chart 29 – Development of Telkom’s mobile financial data – 2014 - 2020
  • Chart 30 – Change in Telkom’s mobile ARPU – 2014 – 2020
  • Chart 31 – Change in fixed internet revenue by type – 2015 – 2019
  • Chart 32 – Growth in the number of fixed-line broadband subscribers and penetration – 2010 – 2025
  • Chart 33 – Change in the number of fixed broadband subscribers by type – 2015 - 2019
  • Chart 34 – Growth in the number of Telkom’s broadband subscribers – 2010 – 2019
  • Chart 35 – Growth in Telkom’s fixed data traffic – 2014 – 2020
  • Chart 36 – Change in the number of Telkom’s DSL subscribers by type – 2016 – 2019
  • Chart 37 – Change in Telkom’s fixed copper and fibre broadband subscribers – 2017 – 2019
  • Chart 38 – Growth in the number of fibre broadband subscribers – 2013 – 2019
  • Chart 39 – Development of Telkom Group’s financial results – 2014 – 2020
  • Chart 40 – Change in Telkom Group’s capex by type – 2017 – 2020
  • Chart 41 – Change in the number of fixed lines in service and teledensity – 2010 – 2025
  • Chart 42 – Change in the number of fixed lines in service by type – 2015 – 2019
  • Chart 43 – Decline in fixed-line voice traffic – 2015 – 2019

List of Exhibits

  • Exhibit 1 – Generalised Market Characteristics by Market Segment
  • Exhibit 2 – Southern Africa - Key Characteristics of Telecoms Markets by Country

Read the full report: https://www.budde.com.au/Research/South-Africa-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Nicolas Bombourg
[email protected]

Within Australia
(02) 8076 7665

Outside Australia
+44 207 097 1241

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