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SA telecom market to exceed $15bn by 2014

April 29, 2010 • Mobile and Telecoms

A recent study by Pyramid Research states that South Africa’s growth over the next five years will be backed by strong demand in mobile data and broadband Internet, estimating a $15.1 billion telecom market by 2014, at a CAGR growth rate of 1.6% per year.

The study ‘South Africa: Operators Continue to Upgrade Networks as Mobile Data Demand Builds’ covers a 32-page profile of South Africa’s telecoms industry, detailed analysis on both fixed line and mobile sectors and the market’s use of new technologies.

According to Badii Kechiche, Senior Analyst and co-author of the report, the mobile segment generated 72% of total market revenue in 2009, fueled by mobile voice and data.

“Mobile voice will continue to generate most of the segment’s revenue, specifically mobile data; driven by mobile email and mobile broadband Internet services, we anticipate mobile data revenue will grow from $1.4 billion in 2009 to $2.2 billion in 2014, a CAGR of 9.4%”, said Kechiche.

He said part of the growth is attributed to the number of undersea cables and land-based projects that bring additional bandwidth capacity to the continent, driving operators to invest heavily in upgrading their networks and investing in mobile technologies.

“We expect broadband Internet revenue to grow from $369 million in 2009 to $740 million in 2014, a CAGR of 14.9%”, added Kechiche.

For more on the report, click here.

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