Telecoms consolidation: What it means for voice customers

Consolidation is on the cards in the telecoms industry. (Image: Wanatel)

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South Africa’s telecoms industry is in the middle of a major reshaping. High-profile transactions, such as Vodacom’s proposed stake in fibre operator Maziv and ongoing shifts in Telkom’s strategy, are raising questions about competition, pricing and innovation. For voice customers, the impact is likely to be felt in subtle but important ways.

When consolidation happens, the immediate concern is often around market concentration. Will fewer players mean higher prices or reduced choice? For business customers, however, the effects are more complex. Wholesale fibre pricing, access to last-mile connectivity and the pace of network expansion all influence how competitive the voice and collaboration market can be.

“Consolidation is not inherently bad,” says Evan Damon, Wholesale Channel Manager at Wanatel. “It can bring investment and accelerate infrastructure growth. The risk is when it reduces competition at the wholesale level and makes it harder for independent providers to deliver innovative services. That is when customers lose out.”

For enterprises and SMEs, the question is whether consolidation will affect flexibility. If fewer wholesale options are available, it may limit the ability to shop around for competitive SIP trunking, hosted PBX or bundled services. On the other hand, larger, better-funded networks could improve service reliability and coverage in underserved areas.

For resellers, the concern is slightly different. They rely on open access to networks to deliver differentiated services. If consolidation leads to restrictive terms or less favourable wholesale arrangements, it could erode margins and make it harder to compete.

Independent voice specialists are an important counterbalance in a consolidating market. They give customers choice, keep pricing pressure in check and bring new ideas to the table. Whether it is a more transparent approach to billing, advanced fraud prevention or concierge-style support for number portability, independents often set the standard for customer-centric innovation.

“As the market shifts, businesses should remember that they are not limited to the biggest names,” Damon notes. “Smaller, more agile providers can often deliver the flexibility and personalised support that larger players struggle to match.”

The Competition Tribunal and ICASA will continue to play an important role in ensuring balance as deals unfold. For businesses and resellers, the best approach is to stay informed, ask hard questions about how consolidation will affect pricing and access, and work with providers who are committed to openness and transparency.

Consolidation may change the shape of the telecoms industry, but customers still have choices. Those choices will matter more than ever in determining the quality and affordability of voice services in South Africa.