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IOT, VOD to bolster telcos' ICT services portfolios

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 02 May 2017
Convergence across telecoms and entertainment markets is helping propel market growth.
Convergence across telecoms and entertainment markets is helping propel market growth.

South African telecommunications providers are bolstering their ICT services portfolios through Internet of things (IOT) and video-on-demand (VOD) services, as well as m-commerce offerings.

This is according to the South Africa ICT Outlook 2017 study from Frost & Sullivan's IT Services and Applications Growth Partnership Service programme.

"The convergence across telecommunications and entertainment markets, combined with the growing uptake of managed services, software-defined wide-area network technology, and consultation-driven BPM service delivery models will propel market growth," says Frost & Sullivan digital transformation senior research analyst Deepti Dhinakaran.

"In the managed services segment, there will be greater demand for network and application security services due to the need to improve compliance and security efficiencies."

Frost & Sullivan believes an increase in affordability of Internet and telephony services, as well as a growing adoption of the latest technology business models by companies, is attracting significant investment in the South African ICT industry.

Aggressive service diversification, along with strategic partnerships and acquisitions, are altering the industry landscape, compelling market participants to gauge market trends and growth opportunities before designing their services, it says.

"ICT companies are creating new revenue streams through the offer of software-defined data centres, flash storage, cloud-based mobile apps, non-core outsourcing and business intelligence," says Dhinakaran.

"This culture of innovation is impelling start-ups to establish themselves in the ICT industry, while the enthusiastic adoption of end-to-end IOT solutions has encouraged telecommunications providers to introduce mobile app-based services. Successful mobile apps, such as ride-hailing and m-commerce, are accelerating the overall revenue growth of the industry."

Frost & Sullivan says additional factors accelerating change in the South African ICT industry include: maturing 3G technology and ubiquity of 4G networks, increasing demand for VOD services, availability of affordable digital terrestrial television services, demand for platform-as-a-service, and higher relevance of cloud, big data, analytics and IOT.

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