This Frost & Sullivan research service titled Southern African Broadband Market provides analysis on industry challenges, market drivers and restraints. Furthermore, an analysis of changing technology trends is presented and strategic recommendations are drawn to enable operators, IAPs and ISPs make informed decisions on the market approach that is likely to accelerate growth of their revenues over a seven year forecast period. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: South Africa, Lesotho, Zambia and Zimbabwe.

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Market Overview

Mobile Broadband and Data Centres are Driving Revenue and Subscriber Growth Rates 

Southern Africa has a marginally low broadband penetration rate, thus the broadband market is highly underserviced. Major network operators, Internet Service Providers (ISPs) and Internet Access providers (IAPs) are entering into strategic collaborations in order to undertake and invest in terrestrial network expansion and connect to the undersea cable network.  Traditional technologies for broadband connection like dial-up and VSAT are now experiencing gradual decline in subscriptions in the wake of reliable mobile broadband technologies like W-CDMA, WiMax, HSDPA and HSPA+. The main target for ISPs and operators are the enterprises and SMEs due to the constant need for connectivity.

“Extensive terrestrial network expansion, decline in prices of broadband products and mobile broadband are expected to be the main drivers in the Southern Africa market,” notes the analyst of this research. “With improved connectivity, revenue and growth in the market is expected to be spurred by mobile broadband, and data-based, value-added services for the next three to five years.” Infrastructure investment expands coverage and network capacities to underserviced areas, thus increasing broadband subscribers and revenue. Connection to undersea cables has caused an overall decline of wholesale bandwidth prices which, in turn, has triggered a reduction in the prices of available data packages. Furthermore, network operators have launched mobile broadband services and low cost devices that enable cheap connectivity. 

Regulatory Issues and Low Disposable Incomes Pose Challenge

The growth of the broadband market is likely to be inhibited by regulatory inefficiencies. Low disposable incomes will, moreover, restrain the demand for data services which will be further aggravated by limited access to infrastructure. “Regulators in Southern Africa are responsible for services, technologies and spectrum applicable to broadband communications in their countries,” explains the analyst. “However, the turnover from framework inception to implementation is quite low and this affects the rate at which technology is dispensed to the public, thus restricting growth in the broadband market.”  Furthermore, the region has a high level of unemployment limiting the expenditure on broadband products. Limited infrastructural access limits the number of consumers able to use data services.  

Regulator facilitation of spectrum allocation and technology policies in a timely fashion will accelerate the deployment of technologies. Market segmentation is important for operators to provide a range of products that meet all market demands. “Collaborated infrastructure expansion and sharing will enhance broadband penetration as service providers expand network coverage and cut costs,” concludes,” the analyst. “Broadband operators in the Southern Africa market should embrace infrastructure sharing and market segmentation in order to intensify competition and rapidly grow market share.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following countries in this research:

• South Africa
• Zambia
• Lesotho
• Zimbabwe 

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