South Africa Telecommunications market - the next six months

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Cellphones, 3G and LTE

“In the cellphone market, the variation between the different smartphones is becoming blurred,” says Smith. With players such as Apple’s iPhone, Google’s Android, the Blackberry and a new offering from an alliance of Nokia and Microsoft set to be released soon. “However, the Android, with its open operating system and multi vendor support looks to continue to outpace the others,” says Smith. The Android operating system has already seized 25 per cent market share across the world and looks likely to grab market share from the likes of Nokia and BlackBerry smartphones in South Africa this year.

Wireless technologies such as 3G, high speed mobile, WiMAX, WiMAX enhanced and LTE (Long Term Evolution) are all set to grow in 2011, says Smith. The various technologies are moving towards converging on each other to all become LTE or 4G, he explains. “The subscriber numbers and uptake of broadband for wireless users is much higher than in cabled options in South Africa, and this trend is set to continue during 2011,” says Smith.

However, one inhibitor to this growth is the regulatory environment in the country. There is still the need for a reviewing of, and an auctioning off of the frequency spectrum to new operators, enabling new entrants to participate in the mobile and fixed line environment.

This will allow new operators to supply their own infrastructure instead of selling that of existing operators and increasing competition in the industry. Timelines for this process are continually being extended and the process delayed. These continuing delays are the single biggest inhibitor to the growth and development of this industry at present, stresses Smith.

 

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