South African broadband market up by 30% and booming

South African broadband market has grown by a massive 30% in the last two years, industry analysts Frost and Sullivan have revealed.

The analysts said the local broadband market earned over US$291.6 million in 2008 and could reach US$1.6 billion by 2015.

The introduction of 10 to 12 new undersea cables is expected to see a boom in the industry, with an anticipated price cut and a general optimism about broadband services with higher rates of uptake.

Following the uptake, operators will provide better value to their clients and this trend is expected to intensify over the next three years.

According to Frost and Sullivan, the market’s ability to capitalize on the potential connectivity depends on the level of the national infrastructure.

Mobile broadband is benefiting immensely from this development, while the fixed broadband is struggling. In developing countries like South Africa, mobile broadband, 3G and 3.5G, adoption is high, and expected to grow to become the favoured technology to bridge the next digital divide.

There is a natural movement path for mobile, which fixed broadband does not offer. According to recent report by Ericsson, mobile broadband provides instant access and there is no need to wait for installation of fibre to small businesses and homes.

The 2009 World Wide Worx mobility study reveals that the cellular market reached a milestone 50 million connections, with a whopping 68% of these being individual users.

by Tinavo Magaisa