Declining voice revenue across the sub-Saharan Africa is likely to push investment into broadband data services.
This has prompted research firm Frost & Sullivan to predict a leap in dual-play subscribers from 19 million in 2009, to approximately 161 million by 2016 across the region.
Internationally, Ovum predicts that by 2015, approximately 1.4 billion users will have access to both fixed-line and mobile services.
Frost & Sullivan senior industry analyst Vitalis Ozianyi explains that communication service providers (CSP) are investing in broadband data services to create new revenue sources to overcome declining average revenue per user for voice.
He explains that broadband will support new services such as TV and Web services that will be effectively marketed as converged products rather than individual services.
Ozianyi notes that convergence, and the promotion of service differentiation, will foster competition between the telcos.
However, he argues that it won't be an easy task as the lack of concrete business models to support the adoption of convergence is likely to slow down the migration to converged network platforms.
“The lack of proven successful converged networks and services business models for the Sub-Sahara African market means that independent service offerings are preferred by CSPs,” remarks Ozianyi.
“Broadband data services are being introduced as separate subscriptions from voice; the same trend is expected for video services like mobile TV.”
Ozianyi advises that CSPs' move towards gradual adoption of convergence which will enable operators to seamlessly offer niche services and benefit from the offering of new services bundled in enriched products to gain a competitive advantage in the market.
Convergence in SA
South African telcos seem to be keeping up with this trend, as all four mobile operators already offer both voice and data solutions to subscribers.
MTN and Vodacom also have business units geared for the promotion of converged offerings in the corporate space.
However, newcomer 8ta has potential for a wider range of converged offerings, as it's backed by the country's fixed-line incumbent Telkom.
Telkom has confirmed convergence is an integral part of its strategy, arguing that its dominance in the fixed-line market will give it a competitive advantage. It is expected that 8ta will unveil converged offerings later this year.
SA may also see the emergence of a triply play offering this year, according to market research conducted by broadcaster MultiChoice and Internet service provider MWeb.
Last year, MultiChoice sent out a questionnaire to its subscribers, based on an offering involving a possible convergence of bundled uncapped broadband, pay-TV, and voice telephony.
Share