South Africa, a vast country the size of France, Spain and Netherlands together, is also the largest and most developed mobile market in Africa. Is this country already on your business radar?
South Africa has a population of approximately 47.9 million people, with a median age of 24 years. The country has 11 official national languages, and English is the common business language. As at end 2008, the mobile penetration is estimated at 105%, with some 85% being prepaid customers.
The largest mobile network operator is Vodacom (52% market share, source: Vodacom), MTN is second (35% market share, source: MTN) and Cell C, a subsidiary of Saudi Arabia’s Oger Telecom, is third (4.2 million subscribers, 8.8% market share, source: Cell C). Some 7% have 3G subscriptions.
Mobile, anyone?
South Africa is a very attractive market for mobile services. According to a report from Frost & Sullivan, demand for mobile content services in South Africa will grow by an average of 15 per cent per year until 2013.
It is also the most advanced mobile territory in Africa, with a European-style infrastructure, and consumers whose first introduction to telecoms and the web comes from mobile. Mobile broadband usage is as common as fixed line.
The Mobile Marketing Association recently released some interesting statistics about the phenomenal growth in this market and the current state of mobile adoption in South Africa, as summarized in an article by 20fourLabs.
South Africa is a nation sparkling with confidence, higher than many parts of the world (source: Bureau for Economic Research), and with great ambitions as the 2010 World Cup is gripping this sports mad country!
Launching mobile content services in South Africa
In November Netsize launched its mPayment operator-based billing solution with South Africa coverage with MO premium and MT premium billing. On Vodacom and MTN (total 87% market share) both MT and MO premium are available, and a long number for sending and receiving messages.
Multiple price points per short code are possible. MO premium is available on Cell C with a single price point per short code. For the most common price points shared short codes will be available.
Applications …
Popular mobile applications include banking (money transfer services), advertisement (mobile marketing) and entertainment (content/infotainment and social networking).
Whereas traditional direct marketing and online marketing is costly and less effective due to the language situation and lack of broadband access, mobile is providing an alternative marketing channel. Direct and personal, it has the widest reach of all in this vast country.
With 4 times more people using sms than email, it is clear that in this country the mobile is everyone’s “first screen.”
Regulatory aspects
As most countries, South Africa has put in place industry self regulation. The WASPA Code of Conduct promotes fairness and decency in dealings with subscribers and members in the content value chain.
Advertising must follow the rules in the Advertising Code of Conduct, with clear communication on pricing matters. Operators have set some specific rules as well in particular for MT subscription services.
Online seminar
If you would like to know more on how to launch mobile content services in South Africa and Netsize mobile messaging, billing and marketing solutions, we invite you to view the Netsize online seminar on South Africa at www.netsize.com.
