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Growth in telecoms spend slows

By Damaria Senne, ITWeb senior journalist
Johannesburg, 20 Jun 2006

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 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 , 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 , 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.

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