The focus of this report is on South Africa’s retail internet services market, covering the broad range of services provided by internet service providers. These include connectivity and managed network services, notably those provided by ISPs, but also by telcos and system integrators.

Study focus areas and objectives

The study examines the market from a retail internet services perspective, including access technologies deployed in SA, covering subscriber and revenue numbers, and player market shares. The study then considers the revenues derived by the same players in respect of value-added activities such as IP VPNs, hosting, voice and other key service categories.

Quantitative analysis and forecasts

This study is updated annually, with a key objective being to provide up-to-date market sizing and forecasts, while illustrating the major trends currently and key market changes expected over the next five years.

The research is based on an integrative analysis of all available primary and secondary data, including an update of BMI-T’s baseline data services model. The underlying model for the access market analysis is a bottom-up model by competitor, lending a player-centric focus to the study in terms of market share trends. Forecasts are based on market scenario analysis, which includes a review of international trends as well as the specific nuances of the local South African environment and competitive industry dynamics. The analysis considers customer uptake, the impact of decreasing prices on ARPUs, and which players will be the chief beneficiaries of the growth trends.

Segmentation

Market segmentation and forecast

  • Internet access market segmentation and forecast –subscribers and revenues
  • Other services provided by ISP players and competitive telcos in respect of revenues
  • Historical growth and five year forecasts

Competitive market shares

  • Internet access services market shares by technology and key player – both subscribers and revenues
  • Overview revenue shares of other services provided by ISPs

Key questions answered:

  • What is the size and shape of internet services market in South Africa?
  • Which service categories will grow the fastest in future?
  • What technology trends will have the greatest impact?
  • Service maturity, margin pressure, and looming consolidation? How will price/performance ratios impact on ARPU attrition?
  • What are the key players’ market shares, and which ones will benefit in future?