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Network Convergence in South Africa Presents New Revenue Opportunities for CSPs to Remain Competitive and Raise ARPUs - Convergence presents opportunities for overcoming declining revenues of voice only services and promoting usage of broadband data services, where the current focus is on investments
Network Convergence in South Africa Presents New Revenue Opportunities for CSPs to Remain Competitive and Raise ARPUs

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2011/01/27 - Convergence presents opportunities for overcoming declining revenues of voice only services and promoting usage of broadband data services, where the current focus is on investments.

   
 
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Convergence turns networks into customer-centric services-oriented platforms that promote subscriber retention and revenue growth.

New analysis from Frost & Sullivan (wireless.frost.com), Sub Saharan African Network Convergence Market, finds that the market had 19.12 million dual play subscribers in 2009 and estimates this to reach 161.02 million in 2016.

Declining voice revenues due to price differentiation are pushing investments into broadband data services. This will promote convergence.

"The demand for converged services will grow in all market segments and will be driven by increasing broadband penetration, " notes Frost & Sullivan ICT Senior Research Analyst Dr. Vitalis G. Ozianyi. "Communication Service Providers (CSPs) are investing in broadband data services to create new revenue sources to overcome declining voice average revenue per user (ARPUs)."

Broadband will support new services like TV and Web services that will be effectively marketed as converged products rather than individual services. These products will foster CSP competitiveness based on service differentiation.

Lack of concrete business models to support the adoption of convergence is likely to slow down the migration to converged network platforms. CSPs in the region depend on mobile voice revenues and prefer to introduce independent services that will not influence income from voice.

"The lack of proven successful converged networks and services business models for the SSA market means that independent service offerings are preferred by CSPs, " remarks Ozianyi. "Broadband data services are being introduced as separate subscriptions from voice; the same trend is expected for video services like mobile TV."

The motivation to migrate to IMS service control platforms for converged IP networks is hindered by the lack of business models that will ensure continued offering of niche services. This is true especially for circuit switched voice and SMS.

Gradual adoption of convergence will enable operators to seamlessly offer niche services and benefit from offering of new services bundled in enriched products to gain a competitive advantage in the market.

CSPs need to take advantage of convergence to prepare their networks for subscriber demand for rich multimedia services that will overtake the demand for current niche products for both business and consumer segments.

"They should ensure that investments in network infrastructure go towards build capacity for subscriber and service management, and data transport, " concludes Ozianyi. "This will position the networks appropriately for evolution to next generation networks (NGN)."

Sub Saharan African Network Convergence Market is part of the Mobile & Wireless Growth Partnership Services programme, which also includes research on the following markets: West African, East African and Southern African markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

If you are interested in more information about this study, please send an E: to Christie Cronje, Corporate Communications, at christie.cronje[.]frost.com, with your full name, company name, title, telephone number, company E: address, company website, city, state and country.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Sub Saharan Africa Network Convergence Market / M62D.

 
 
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Network Convergence in South Africa Presents New Revenue Opportunities for CSPs to Remain Competitive and Raise ARPUs

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