A decade after cellular telephony reached the southernmost tip of Africa, the South African industry is still booming. It is the fastest growing such market in the world, and believed to be the second-largest GSM market globally.
"Mobile telephony has been an absolute success story so far. We have seen innovation and massive acceptance and progress in the local market," says Doug Batchelor, Key Accounts Manager at Compuware Corporation
The figures are revealing: by mid -2003 South Africa had an estimated 13-to 15-million active cellphone users, a figure that could rise to 21 million by 2006.
Worth around R16-billion in 2002, this market could grow to more than R30-billion by 2004 and a hefty R46-billion by 2005.
Vodacom continues to be the largest player, with some 7.8-million users, while MTN has 5.22-million. Incredibly, new kid on the block Cell C already boasts an astonishing 2-million subscribers, achieved within two years of commencing its operations in November 2001. This is indicative of continued stiff competition from the incumbent mobile operators.
"Mobile is undoubtedly fantastic, especially because when thinking back to the first democratic elections where they were used," says Sentech chief executive Dr Sebiletso Mokone-Matabane.
"At that time, most people who had them obtained them through work, while a few people had them as status symbols. Looking at the tariffs, we asked how people were going to afford them. But a lot has been accomplished since," he explains.
Although all three networks agree that the contract sales are more lucrative, the market received an enormous boost with the introduction pre-paid packages. Selling mobile services in this way has literally put telecommunications into the hands of the masses, accelerating demand into the majority of the population and significantly contributing to the meteoric success of the industry.
The deployment of further new technologies, which will expand services that can be offered to cellular devices, is expected by 2005. This should have a further stimulative effect on the market, potentially attracting new mobile users in the process.
Nevertheless, the jury is still out on whether GPRS (General Packet Radio Service) will take root, with many suggesting that the so-called 3G services will take off only after GPRS has been firmly entrenched.
Cellular technology has achieved enormous success in South Africa, a remarkable achievement that has helped many citizens achieve economic freedom. That`s a powerful reason to get connected if you aren`t already among the millions who have already.
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