BMIT’s enterprise market sizing and forecast model segments business and government telecoms spending and provides forecasts from 2019 to 2024.

BMIT segments the overall telecoms spending market into three categories, namely: large corporate organisations; active VAT-paying ‘SME and midmarket’ companies (plus some additional public sector organisations such as schools and clinics) and the residential, private and informal business sector which includes non-VAT active businesses.

This document tracks telecommunications spend by customer segment and service types including fixed voice, mobile, internet and other data spends and their five-year forecasts.

 

Methodology and structure of enterprise ICT model

Methodology

BMIT’s enterprise ICT model is based ‘bottom-up’ on the composition of all the business and government customer segments by employee bracket, and their spending patterns, which in turn are formulated from primary and secondary research input including:

  • BMIT databases and other secondary sources, including SARS reporting of the number of VAT-paying companies,
  • Enterprise ICT spending patterns, based on BMIT’s end user surveys and derived models, and
  • Top-down industry revenue figures tied back to BMIT in-depth reports on IT and telecoms market segments, which in turn are informed by primary research (vendor interviews) and analysis of operator reporting.

Enterprise ICT Model Structure

The key model dimensions, as reflected here, are:

  • number of business customers in each size category, segmented by key vertical market sector
  • adoption levels of various technologies and services within the business customer base
  • companies’ usage of telecommunications voice and data services and how this will change in future
  • overall telecoms spending levels and growth trends in each service category, including forecasts to 2024
  • resultant corporate telecoms revenues and forecast growth rates, segmented by major telecoms service category
  • excluded are ICT salaries, ICT intermediary consultants and reseller mark-ups

Telecoms category segmentation

Fixed voice and VoIP

 

 Internet access

 

 Mobile and LCR

 

 Other fixed line data services
Total fixed line voice services spend. including Voice over

IP services from alternative operators.

 

 

 

 

 

 

 Mobile data for high-demand devices (Mobile Wi-Fi routers, tablet SIMs and PC dongles).

Broadband fibre, leased line, metro ethernet, satellite, microwave, internet over VPN.

Fixed wireless broadband access

DSL.

 

 Mobile voice for company-owned or subsidised cellphone accounts.

Mobile data on handsets/smartphones, telemetry and messaging (SMS/MMS).

Traditional least cost routing (LCR) via cell routers .

 

 

 Private leased circuits.

Managed network services including IP VPNs.

Fixed line value added services including hosting and managed security [1].

 

 

 

 

[1] Public cloud services are, in general, not included in the numbers in this category, but are included in BMIT’s IT Services category in the Enterprise Market model. Inevitably there is some ‘grey area’ here as some fixed line value-added services are hybrid in nature, thus public cloud may contribute to some of the growth in the category here.

 

Table of Contents

Introduction

SA Economic Overview

  • GDP
  • GDP in 2019 and 2018
  • Challenges for the economy
  • Potential for the economy
  • Inflation & Interest Rates
  • Fixed Capital Formation
  • GDP vertical segmentation over time
  • 4 sectors contribute 66.2% of GDP
  • Unemployment
  • Employment vs Unemployment
  • Employment by industry sector, and growth
  • Employment by industry sector, split by type
  • Employment by Industry Sector, Split by Type
  • ICT-related occupations

Companies and Segmentation

  • Number of companies
  • Corporate, Midmarket and SME segments
  • Businesses by size (number of employees)
  • Companies by vertical sector

Business Telecoms Market Segmentation

  • Telecoms service categories and segmentation methodology
  • Overview of retail business and residential telecoms spend by customer segment, 2019 (Rm)
  • Overview of total retail business and residential telecoms market by service type, 2019 (Rm)
  • Overview of percentage spend per customer segment in the total enterprise telecoms market, 2019 (Rm)
  • Overview of retail business and residential telecoms spend by customer segment, 2019 (Rm)
  • Overview of total retail business and residential telecoms market by service type, 2019 (Rm)
  • Overview of percentage spend per customer segment in the total enterprise telecoms market, 2019 (Rm)
  • Comparison between number of organisations and telecoms spend per customer segment, 2019
  • Total business telecoms spend by segment and service type, 2019 (Rm)
  • Corporate annual telecoms spend by service type and organisation size, 2019 (Rm)
  • SME and Midmarket annual telecoms spend by service type and organisation size, 2019 (Rm)

Business telecoms revenue segmentation and forecast

  • Total business telecoms market by Corporate vs SME, forecast, 2019 – 2024 (Rm)
  • Total business telecoms market by service type, 2019 – 2024 (Rm)
  • Total business telecoms forecast by customer segment and service type, 2019 – 2024 (Rm)
  • Corporate telecoms spend by service type 2019 – 2024 (Rm)
  • SME and Midmarket telecoms spend by service type 2019 – 2024 (Rm)
  • Business fixed line voice market
  • Business telecoms forecast analysis by customer segment on Fixed voice services, 2019 – 2024 (Rm)
  • Business mobile market
  • Business telecoms forecast analysis by customer segment on Mobile services, 2019 – 2024 (Rm)
  • Business internet market
  • Business telecoms forecast analysis by customer segment on Internet services, 2019 – 2024 (Rm)
  • Business ‘Other data’ market
  • Business telecoms forecast analysis by customer segment on Other Data services, 2019 – 2024 (Rm)

Summary

 

 

Research team

The team for this research includes Brian Neilson (BMIT Research Director), Penny Smith, and Clinton Jacobs. This team has extensive sector ex

perience in this field, having conducted these studies annually for the past 10 years.

Deliverables and format

The outcomes of the research and analysis will be documented in a rich PowerPoint document with supporting Excel tables. The PowerPoint document will contain charts, and will be detailed enough to provide all the qualitative insights and interpretation, including market sizing and forecasting.

BMIT will also provide a workshop/presentation in the Gauteng region, while reserving its option to combine this topic with other published topics.

Related research

  • SA IT Enterprise Market Sizing and Forecast 2019
  • SA Vertical Industry Market Sizing and Forecast 2019
  • SA IT Market Overview Sizing and Forecast 2019 Update
  • SA IT Services Market Forecast and Analysis 2019 Update

Further information

For further information and details on how to subscribe to this research please contact Anita Mathews |011 540 8000 | 082 466 2317 | anita@bmit.africa