Africa & Middle East Market Perspective / Vol. 7, Issue 5, July Edition

Publication Date: July 2007

Broadband to Boom in South Africa

ANALYSIS SUMMARY

• Growth of broadband in South Africa is restricted by availability, not
  affordability.
• Competition is encouraging investment in coverage and driving prices down.
• Broadband household penetration is expected to increase from less than 1% at
  the end of 2006 to 10% in 2012.

SPOTLIGHT

Conditions in South Africa are such that we expect a surge of growth in broadband take-up over the next few years. A significant portion of the country’s households can afford broadband. However, a lack of competition, a lack of investment, and long local loops have meant limited broadband availability, long waiting lists, and poor service. This is changing as competition intensifies in South Africa; the incumbent is also reacting to a changed environment.