Growth in telecoms spending in the South African small and medium enterprise (SME) market dropped from 7% in 2003 to 2.8% in 2005, says BMI-TechKnowledge.
The ICT market analyst firm says the South African telecoms market was worth R77 billion in 2005/6, with the SME market accounting for 30.5% and the top 350 and corporates providing 24.5% of the spend. The residential and informal business markets made up the balance, the company says.
Growth in telecoms spending within the corporate sector also slowed down from 6.9% in 2003 to 5.6% in 2005, says Tertia Smit, senior analyst at BMI-T.
While there was a decrease in spend on fixed voice services, the corporate sector increased its spend in the mobile and data markets, she says.
Fixed voice accounted for 41% of the corporate market`s spend, with 30% of spend going to the mobile market, 13% to fixed data, 16% to ISPs, VANS and other players, she explains.
In the SME market, fixed voice services accounted for 46% of total telecoms spend, with mobile coming in at 37%, the report says. In third place is fixed data, which accounted for 12% of SME telecoms spend, and ISPs and other players only getting 5% spend, it says.
Smit says over 600 000 economically active South African business entities, each earning over R300 000 a year, were surveyed.

