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South African Broadband Market to Reach 3.3-Million by 2012

12:30 am on November 19, 2007 | Category: Internet, Telecom Services

South African broadband providers are expected to reach more than 3.3 million subsribers by the year 2012, representing a compound annual growth rate of 33% over the next five years, according to a recent report by the research and analysis firm, BMI-TechKnowledge.

DSL networks will account for about 45% of South African broadband users in 2012, according to report author, Fezekile Mashinini, while fixed and mobile wireless networks would encompass the other 55%.

“Currently DSL accounts for 49 percent but is shedding some market share to the fast growing HSDPA (High Speed Downlink Packet Access) wireless service being provided by the two mobile operators Vodacom and MTN,” Mashinini explained in a statement attached to the report.

Managing director, Arthur Goldstuck, of independent technology research firm, World Wide Worx, meanwhile, projected 1.3 million South African broadband subscribers by the end of 2008, noting that 3.3 million by 2012 was a fairly conservative estimate.

“Once Neotel comes on board, there will be much more choice,” Goldstuck said. “Undersea cables will bring more capacity into the market, by 2010 we should really be past the 2 million mark.”

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