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Johannesburg - The South African telecommunications sector will see more
mergers and acquisitions as the market consolidates over the next 18 to
30 months, according to an industry expert.
At the sixth annual Broadband Summit on Monday, ECN Telecoms CEO John Holdsworth said consolidation was starting to happen already.
"Those with limited services... their days are absolutely numbered."
Holdsworth, who earlier this month sold his business to JSE-listed Reunert [JSE:RLO], said: "You are going to see a wave of consolidation over the next 18 to 30 months. I think you will see a host of mergers and acquisitions and a combination of smaller companies disappearing and some being bought out."
Alan Knott-Craig Jnr, CEO of investment company World of Avatar and a former MD of broadband provider iBurst, said growth would come from the rest of Africa.
"The future is data. It is Africa where the opportunities lie; if you are thinking SA you are thinking too small - sub-Saharan Africa is the sweet spot. Sub-Saharan Africa is the play and data is the play."
Knott-Craig Jnr said that infrastructure was key.
"Go and build and they will come. Preferably use your own money - that will focus you."
He said that whoever provided effective infrastructure over the next five years would be the most powerful. If they did not continue to invest, they would not be the most powerful.
Knott-Craig Jnr noted that Telkom [JSE:TKG] continued to be the "crown jewel in the South African telecoms market", but added that Cell C was making a big play at success through its broadband strategy.
He added that while Vodacom Group [JSE:VOD], led the pack, "it's difficult to dislodge Vodacom because they have the market share".
Said Knott-Craig Jnr: "If you want to challenge them, you have to go out and build stuff. The crowd that still has the biggest opportunity is Telkom, particularly through 8ta and voice."
At the sixth annual Broadband Summit on Monday, ECN Telecoms CEO John Holdsworth said consolidation was starting to happen already.
"Those with limited services... their days are absolutely numbered."
Holdsworth, who earlier this month sold his business to JSE-listed Reunert [JSE:RLO], said: "You are going to see a wave of consolidation over the next 18 to 30 months. I think you will see a host of mergers and acquisitions and a combination of smaller companies disappearing and some being bought out."
Alan Knott-Craig Jnr, CEO of investment company World of Avatar and a former MD of broadband provider iBurst, said growth would come from the rest of Africa.
"The future is data. It is Africa where the opportunities lie; if you are thinking SA you are thinking too small - sub-Saharan Africa is the sweet spot. Sub-Saharan Africa is the play and data is the play."
Knott-Craig Jnr said that infrastructure was key.
"Go and build and they will come. Preferably use your own money - that will focus you."
He said that whoever provided effective infrastructure over the next five years would be the most powerful. If they did not continue to invest, they would not be the most powerful.
Knott-Craig Jnr noted that Telkom [JSE:TKG] continued to be the "crown jewel in the South African telecoms market", but added that Cell C was making a big play at success through its broadband strategy.
He added that while Vodacom Group [JSE:VOD], led the pack, "it's difficult to dislodge Vodacom because they have the market share".
Said Knott-Craig Jnr: "If you want to challenge them, you have to go out and build stuff. The crowd that still has the biggest opportunity is Telkom, particularly through 8ta and voice."
