Browsing: BMI-TechKnowledge

Telkom has set its sights on taking up to 15% of the SA market in the next five years with its new mobile network, 8ta. Analysts say the target is ambitious, but some think it is doable.

After years in planning, Telkom is expected finally to unveil its mobile network in a fortnight. However, analysts say the company will have to pull out all the stops to gain any traction in the cellular market. David Lerche, telecommunications equity analyst

Falling mobile termination rates and slow recovery of the economy are dampening the growth of SA’s telecommunications market. That’s according to a new report from BMI-TechKnowledge (BMI-T). The report forecasts that the industry will grow only 5% over the next five years, with most of that growth coming from data services.

MWeb’s uncapped broadband products have hammered the margins of many local Internet service providers, says BMI-TechKnowledge director of research Brian Neilson. And some might not survive. Speaking at a BMI-T telecommunications briefing in Johannesburg on Tuesday morning, Neilson said the uncapped model, and the price war it sparked had turned broadband provision into a volumes game.

Uncertainty in SA’s telecommunications industry has played havoc with product and network planning, says research firm BMI-TechKnowledge (BMI-T). BMI-T director Brian Neilson says mobile termination rates and the regulatory environment have been the primary drivers of uncertainty in the market.

SA’s telecommunications industry regulator needs to rethink the way it divvies out the radio frequency spectrum that can be used to provide the next generation of wireless broadband services. The spectrum in question, particularly the 190MHz available in the 2,6GHz band, should be split into three separate parts — two bands catering to so-called frequency-division duplex technology (FDD) and a third band catering to time-division duplex (FDD) systems.

JSE-listed Pinnacle Technology Holdings has offered to buy distribution business Axiz Technology for R170m in a deal that could see it become the largest IT distributor in the country. In a statement to shareholders on Tuesday morning, Pinnacle revealed its decision to make the offer to Axiz, which is expected to merge with Pinnacle’s Workgroup business.

The fixed-line telecommunications market in SA is set for a turnaround, in part because of declining mobile termination rates, says technology research and advisory firm BMI-TechKnowledge. A new report, SA Voice Services Market Forecasts and Analysis, shows that between 2009 to 2014, fixed and mobile revenues are forecast to grow at compound annual growth rates of 3% and 7% respectively.

With MTN’s cellular network acquisitions in emerging markets on hold, analysts say the group can probably be considered a mature business. But there are still opportunities in the business services sector, they say. MTN told shareholders on Thursday that acquisition opportunities in emerging markets are becoming harder to find.