Vodacom remains king, but MTN and Telkom fighting hard

There are four main players in South Africa’s R200 billion fixed and mobile telecommunications market – Vodacom, MTN, Telkom, and Cell C.

Vodacom dominates the South African telecoms market with a 43% share of revenue, followed by MTN with 26%, Telkom with 23%, and Cell C with 8%.

Over the last few years, Vodacom increased its market share, MTN stayed stable, while Telkom and Cell C’s market share declined.

It reveals that Vodacom is gaining market share at the expense of Telkom and Cell C.

While MTN maintained its market share and Telkom’s share declined, it does not mean these two companies did not show revenue growth.

The South African telecommunications market showed steady growth over the last decade, and most operators benefitted from the increased market size.

Revenue from the big four showed that the market has grown by an average annualised rate of 3.16% since 2013.

Looking at the growth rates of the individual operators reveals that Telkom showed the highest average revenue growth over the last decade.

Vodacom was second, followed by MTN and Cell C. Telkom and Vodacom grew faster than the industry average, while MTN and Cell C were below this average.

Analysing the growth rates for each year gives an overview of revenue growth consistency for each operator.

This analysis reveals that Vodacom and MTN generated the most stable revenue growth rates.

Telkom and Cell C, in comparison, generated strong revenue growth in 2015 but slowed in recent years.

Cell C had an extended period of negative revenue growth over the last four years.

Another interesting analysis is the cumulative revenue increase for each company to see the total absolute increase in revenue since 2013.

It shows how Vodacom grew significantly faster than the rest in absolute terms and why it has such a dominant position in the market.