Southern Africa Broadband Market

Frost & Sullivan, March 2011, Pages: 144

This Frost & Sullivan research service titled Southern Africa Broadband Market gives a detailed analysis of the trends in infrastructure development, subscriber and revenue growth in South Africa, Angola, Zambia and Lesotho. The research presents the key factors that drive as well as those that restrain the growth of the market. Furthermore, an analysis of changing technology trends is presented and strategic recommendations are drawn to enable operators and Internet service providers (ISPs) make informed decisions on the market approach that is likely to accelerate growth of their revenues over a seven-year forecast period. In this research, Frost & Sullivan's expert analysts thoroughly examine markets in the following countries: South Africa, Angola, Zambia and Lesotho.

Market Overview

Broadband Services to Swell Revenues of Operators

The demand for broadband services is growing steadily in the southern African markets. For this reason, major operators and ISPs are investing in undersea fibre as well as terrestrial fibre and other infrastructure. These ISPs will target the business segment to achieve significant average revenue per user (ARPU) margins in the short term. However, the revenue potential arising from serving the consumer market is attracting investments into mobile and wireless broadband technologies. Broadband service revenues are expected to contribute significantly to operator margins.

The demand for broadband services and the decline of wholesale bandwidth prices are expected to be the main drivers for the broadband market in the southern Africa market. “The demand for bandwidth intensive applications and services that are available on the internet has been growing in the southern Africa market,” notes the analyst of this research. “Enterprise users (both large, corporate and SMEs) as well as consumers have adopted the internet a major source of information and means of conducting business and communication.” High bandwidth costs remain a major constraint to the rapid growth of the broadband market. However, the landing of additional undersea cables has resulted in the decline of international wholesale bandwidth. “Moreover, this has spurred significant investments into terrestrial fibre and wireless network infrastructure aimed at boosting network capacities,” remarks the analyst. “Increasing competition in the market is resulting in the decline of retail bandwidth prices, contributing to the steady growth of the broadband market.”

Reliable Delivery of Quality Broadband to be Key Differentiator in Competitive Market

The low penetration of fixed broadband infrastructure in the southern Africa market has resulted in high retail bandwidth prices. At the same time, the high cost of maintaining fixed lines translates to high charges for ADSL services. This factor is contributing to the slow growth in the adoption of ADSL as a primary broadband connection for enterprises and consumers. Leading operators and ISPs are deploying fibre in the last mile. However, the CAPEX involved in fibre deployments is significant and requires steady revenue to ensure ROI in a given timeframe. “As a result, few enterprises will be connected by this technology in the short term,” states the analyst. “It is only when the penetration of ADSL and fibre reaches significant levels that the broadband market will achieve its full growth potential.”

Significant investments in fixed as well as wireless broadband will enable operators and ISPs to benefit from the revenue potential of the southern Africa broadband market. They need to leverage on the earliest available opportunity to invest in broadband infrastructure and gain an edge over competition in the market. Moreover, broadband is an enabler for the delivery of next generation services to enterprise users and consumers. The growth of the broadband market will be accompanied with growth in data traffic. “This will affect fixed, wireless and mobile networks,” comments the analyst. “Reliable delivery of quality broadband services will be a key differentiator in a highly competitive market that will characterise the southern Africa region.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following countries in this research:

- South Africa
- Angola
- Zambia
- Lesotho

By Application:

- Business
- Consumer

Technologies

The following technologies are covered in this research:

- ADSL
- HSPA
- WiMax
- FTTB

1. Executive Summary

2. Research Aim and Objectives

3. Research Scope and Definitions

4. Research Methodology

5. Southern Africa Broadband Market
- 5.1 Market Introduction

6. Market Forces and Forecasts
- 6.1 Industry Challenges
- 6.2 Market Drivers
- 6.3 Market Restraints

7. Southern Africa Market Engineering Measurements
- 7.1 Market Forecasts
- 7.2 Competitor Analysis

8. Country Analysis –South Africa
- 8.1 South Africa
- 8.2 Regulatory Environment
- 8.3 Infrastructure Analysis
- 8.4 Technology Analysis
- 8.5 Market Trends
- 8.6 South African Broadband Market Engineering Measurements
- 8.7 Market Forecasts
- 8.8 Competitor Analysis
- 8.9 Recommendations

9. Country Analysis – Angola
- 9.1 Angola
- 9.2 Regulatory Environment
- 9.3 Infrastructure Analysis
- 9.4 Technology Analysis
- 9.5 Market Trends
- 9.6 Angolan Broadband Market Engineering Measurements
- 9.7 Market Forecasts
- 9.8 Competitor Analysis
- 9.9 Recommendations

10. Country Analysis – Zambia
- 10.1 Zambia
- 10.2 Regulatory Environment
- 10.3 Infrastructure Analysis
- 10.4 Technology Analysis
- 10.5 Market Trends
- 10.6 Zambian Broadband Market Engineering Measurements
- 10.7 Market Forecasts
- 10.8 Competitor Analysis
- 10.9 Recommendations

11. Country Analysis – Lesotho
- 11.1 Lesotho
- 11.2 Regulatory Environment
- 11.3 Infrastructure and Technology Analysis
- 11.4 Market Trends
- 11.5 Lesotho Internet and Data Market Engineering Measurements
- 11.6 Market Forecasts
- 11.7 Competitor Analysis
- 11.8 Recommendations

12. Industry Best Practice
- 12.1 Broadband Market Best Practice

13. Conclusions
- 13.1 Research Conclusions

14. About Frost and Sullivan

List of Figures

Broadband Market: Impact of Top Six Industry Challenges (Southern Africa), 2010-2016
Broadband Market: Market Drivers Ranked in Order of Impact (Southern Africa), 2010-2016
Broadband Market: Market Restraints Ranked in Order of Impact (Southern Africa), 2010-2016
Broadband Market: Revenues Forecasts (Southern Africa), 2009-2016
Broadband Market: Country Information (South Africa), 2009
Broadband Market: Revenues Forecasts (South Africa), 2009-2016
Broadband Market: Country Information (Angola), 2009
Broadband Market: Revenues Forecasts (Angola), 2009-2016
Broadband Market: Country Information (Zambia), 2009
Broadband Market: Revenues Forecasts (Zambia), 2009-2016
Broadband Market: Country Information (Lesotho), 2009
Broadband Market: Revenues Forecasts (Lesotho), 2009-2016

List of Charts

Broadband Market: Impact of Top Six Industry Challenges (Southern Africa), 2010-2016
Broadband Market: Market Drivers Ranked in Order of Impact (Southern Africa), 2010-2016
Broadband Market: Market Restraints Ranked in Order of Impact (Southern Africa), 2010-2016
Broadband Market: Revenues Forecasts (Southern Africa), 2009-2016
Broadband Market: Country Information (South Africa), 2009
Broadband Market: Revenues Forecasts (South Africa), 2009-2016
Broadband Market: Country Information (Angola), 2009
Broadband Market: Revenues Forecasts (Angola), 2009-2016
Broadband Market: Country Information (Zambia), 2009
Broadband Market: Revenues Forecasts (Zambia), 2009-2016
Broadband Market: Country Information (Lesotho), 2009
Broadband Market: Revenues Forecasts (Lesotho), 2009-2016
Broadband Market: Internet Access Technologies of Neotel (South Africa), 2009
Broadband Market: Internet Carrier Technologies of Broadband Infraco (South Africa), 2009
Broadband Market: Internet Access Technologies of Vodacom (South Africa), 2009
Broadband Market: Internet Access Technologies of MTN (South Africa), 2009
Broadband Market: Internet Access Technologies of Cell C (South Africa), 2009
Broadband Market: Internet Access Technologies of Internet Solutions (South Africa), 2009
Broadband Market: Internet Access Technologies of MWEB (South Africa), 2009
Broadband Market: Internet Access Technologies of Webstorm (South Africa), 2009
Broadband Market: Internet Access Technologies of Dabba (South Africa), 2009
Broadband Market: Internet Access Technologies of I-Soft (South Africa), 2009
Broadband Market: Internet Access Technologies of TENET (South Africa), 2009
Broadband Market: Geographical Scope (Angola), 2009
Broadband Market: Proportion of Operators and ISPs (Angola), 2009
Broadband Market: Subscriber Forecasts (Angola), 2009-2016
Broadband Market: Market Engineering Measurements (Angola), 2009
Broadband Market: Revenue Forecasts (Angola), 2009-2016
Broadband Market: Company Profiles (Angola), 2009
Broadband Market: Internet Access Technologies of Angola Telecom (Angola), 2009
Broadband Market: Internet Access Technologies of Unitel (Angola), 2009
Broadband Market: Internet Access Technologies of Movicel (Angola), 2009
Broadband Market: Internet Access Technologies of ITA (Angola), 2009
Broadband Market: Internet Access Technologies of Multitel (Angola), 2009
Broadband Market: Geographical Scope (Zambia), 2009
Broadband Market: Proportion of Operators and ISPs (Zambia), 2009
Broadband Market: Subscriber Forecasts (Zambia), 2009-2016
Broadband Market: Market Engineering Measurements (Zambia), 2009
Broadband Market: Revenue Forecasts (Zambia), 2009-2016
Broadband Market: Company Profiles (Zambia), 2009
Broadband Market: Internet Access Technologies of Zamtel (Zambia), 2009
Broadband Market: Internet Access Technologies of BringCom (Zambia), 2009
Broadband Market: Internet Access Technologies of Realtime Zambia Ltd. (Zambia), 2009
Broadband Market: Internet Access Technologies of MTN Business (Zambia), 2009
Broadband Market: Internet Access Technologies of Quick Edge Ltd (Zambia), 2009
Broadband Market: Geographical Scope (Lesotho), 2009
Broadband Market: Proportion of Operators and ISPs (Lesotho), 2009
Broadband Market: Subscriber Forecasts (Lesotho), 2009-2016
Broadband Market: Market Engineering Measurements (Lesotho), 2009
Broadband Market: Revenue Forecasts (Lesotho), 2009-2016
Broadband Market: Company Profiles (Lesotho), 2009
Broadband Market: Internet Access Technologies of Econet Telecom (Lesotho), 2009
Broadband Market: Internet Access Technologies of Vodacom (Lesotho), 2009
Broadband Market: Internet Access Technologies of Leo Internet Services (Lesotho), 2009

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