Botswana: Competition to Stiffen in the Mobile Market as Operators Focus on Affordable Data Bundles and VAS to Drive Revenue

  • ID: 4239878
  • Report
  • Region: Botswana
  • 31 pages
  • GlobalData
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FEATURED COMPANIES

  • Allround
  • BeMobile
  • BOCRA Botswana
  • BoFiNet
  • BTC
  • BTCL
  • MORE
Botswana: Competition to Stiffen in the Mobile Market as Operators Focus on Affordable Data Bundles and VAS to Drive Revenue

Summary

Botswana generated telecom service revenue of US$376.3m (equivalent to 2.4% of nominal GDP) in 2016, an increase of 5.3% over 2015, led by mobile voice and mobile data. Along with mobile services, fixed Internet services will be a key growth driver for the market, expanding at a CAGR of 7.5% over 2016-2021. Planned expansion of 3G/4G services and a subsequent rise in consumption of high-bandwidth content over mobile devices will drive mobile data revenue in the coming years.

Mascom and BTC (the merged brand for BTCL and beMobile) accounted for 71.7% of total service revenue in 2016. Mascom will continue to maintain its leadership position in the telecom market through 2021. Both operators will seek to improve coverage and quality of their wireless networks in order to strengthen their position in the marketplace.

2G continues to be the most used technology, accounting for 55.4% of total mobile subscriptions in 2016, but is losing share to 3G and 4G technologies, which will altogether represent 68.7% of subscriptions by 2021. Being in its early stages of adoption, 4G is expected to record the fastest CAGR, at 71.5%, over the 2016-2021 periods, to reach 433,000 subscriptions by 2021. Fixed broadband lines will grow during 2016-2021, with penetration of population to increase from 1.8% in 2016 to 3.3% by 2021. Growth will be driven by government and operator investment in fixed broadband network deployment to improve high-speed broadband availability.

It is expected that overall telecom service revenue to grow at a sluggish CAGR of 0.02% (3.3% in local currency terms) during 2016-2021, due to currency depreciation and the impact of mobile and fixed voice revenue decline. Growth in mobile data services, supported by the rise in 4G adoption, will offset the decline in mobile voice services revenue starting from 2019. Fixed infrastructure development will help drive growth in the fixed Internet segment. The fixed/mobile revenue split will be dominated by the mobile segment through the 2016-2021 period and will account for 84.9% of overall service revenue by 2021.

Over the next five years, operators should continue to focus on network investments and upgrades and tap into opportunities arising from growth in the mobile data segment. Expansion of 3G/4G networks will also present significant opportunities for both network and handset vendors.

The report "Botswana: Competition to Stiffen in the Mobile Market as Operators Focus on Affordable Data Bundles and VAS to Drive Revenue" provides an executive-level overview of the telecommunications market in Botswana today, with detailed forecasts of key indicators up to 2021.

In particular, this report provides the following -
- Regional context: Telecom market size and trends in Botswana compared with other countries in the region.
- The regulatory environment and trends: Areview of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
- A demand profile: Analysis as well as historical figures and forecasts of service revenue from the fixed telephony (including VoIP), broadband, mobile voice and mobile data markets.
- Service evolution: A look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2016 to 2021.
- The competitive landscape: An examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
- In-depth sector analysis of fixed telephony, broadband, mobile voice and mobile data services: A quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
- Main opportunities: This section details the near-term opportunities for operators, vendors and investors in Botswana’s telecommunications market.

Companies mentioned in this report: Mascom, Orange Botswana, BTC, BTCL, BeMobile, Huawei, Allround, Telepin, BoFiNet, BOCRA Botswana, Botswana Communications regulatory Autority.

Scope

- The overall telecom services revenue in Botswana will grow at a sluggish CAGR of 0.02% (3.3% in local currency terms) during 2016-2021. The fixed/mobile revenue split will be dominated by the mobile segment through the 2016-2021 period and will account for 84.9% of overall service revenue by 2021.
- Mobile data revenue will continue to grow at a CAGR of 6.8% during 2016-2021, driven by the rise in 3G/4G and smartphone adoption and the increase in mobile data usage.
- 2G continues to be the most used technology, accounting for 55.4% of total mobile subscriptions in 2016 but is losing share to 3G and 4G technologies, which will altogether represent 68.7% of the subscriptions by 2021. Being in its early stages of adoption, 4G is expected to record the fastest CAGR , at 71.5%, over the 2016-2021 period, to reach 433,000 subscriptions by 2021.
- Mascom and BTC (the merged brand for BTCL and beMobile) accounted for 71.7% of total service revenue in 2016. Mascom will continue to maintain its leadership position in the telecom market through 2021. Both operators will seek to improve coverage and quality of their wireless networks in order to strengthen their position in the marketplace.

Reasons to Buy

- This Country Intelligence Report offers a thorough, forward-looking analysis of Botswana’s telecommunications market, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Botswana’s mobile communications, fixed telephony/VoIP and broadband markets, including the evolution of service provider market shares.
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Botswana’s telecommunications market.
- The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Botswana.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Allround
  • BeMobile
  • BOCRA Botswana
  • BoFiNet
  • BTC
  • BTCL
  • MORE
Table of contents
Executive summary
Market and competitor overview
Regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Identifying opportunities
Opportunities in the market
About the authors
Country Intelligence Report coverage

List of Tables
Botswana telecom market size and growth prospects in a regional context, 2016E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
Botswana communications market revenue, 2014-2021, US$
Segment revenue CAGRs, 2016-2021,US$
Segment revenues 2014-2021
Service revenue mix: voice, data & video, 2016, 2021
Service revenue mix: fixed & mobile, 2016, 2021
Service revenue by operator, 2016
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2014-2021
Key mobile market indicators, 2016
Mobile services revenue mix, 2016, 2021
Total mobile ARPS; data percentage of total mobile ARPS, 2014-2021
Mobile market shares by subscriptions, 2014-2021
Mobile subscriptions by technology family, 2014-2021
Fixed-line penetration of population, 2014-2021
Key fixed market indicators, 2016
Fixed voice and Internet revenue, 2014-2021
Opportunities in the Botswana telecommunications market

List of Figures
Botswana telecom market size and growth prospects in a regional context, 2016E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
Botswana communications market revenue, 2014-2021, US$
Segment revenue CAGRs, 2016-2021,US$
Segment revenues 2014-2021
Service revenue mix: voice, data & video, 2016, 2021
Service revenue mix: fixed & mobile, 2016, 2021
Service revenue by operator, 2016
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2014-2021
Key mobile market indicators, 2016
Mobile services revenue mix, 2016, 2021
Total mobile ARPS; data percentage of total mobile ARPS, 2014-2021
Mobile market shares by subscriptions, 2014-2021
Mobile subscriptions by technology family, 2014-2021
Fixed-line penetration of population, 2014-2021
Key fixed market indicators, 2016
Fixed voice and Internet revenue, 2014-2021
Opportunities in the Botswana telecommunications market
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  • Mascom
  • Orange Botswana
  • BTC
  • BTCL
  • BeMobile
  • Huawei
  • Allround
  • Telepin
  • BoFiNet
  • BOCRA Botswana
  • Botswana Communications regulatory Autority
Note: Product cover images may vary from those shown
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