With Telkom gearing up to enter the cellphone market, a recent study by research firm Synovate found that half of South Africans aged 16 and older would be prepared to buy a Telkom SIM card.
The research, which concentrated on metropolitan areas, found that 68% of those interviewed felt there was sufficient space for another mobile operator to enter the market, 71% believed Telkom had the infrastructure, and 68% believed it had sufficient sales and distribution channels to sell its products.
Telkom will have to work to get people to leave their present service provider, however, with 77% saying Telkom's offering would have to be unique for them to consider it.
“It is encouraging to see that South Africans are always open and receptive to new entrants,” said Synovate client services director Andries Lombaard.
Telkom has indicated that it plans to move into the mobile market as part of its renewed business strategy.
Telkom CEO Reuben September told Business Day last year that being only in the fixed-line business was never going to take Telkom into the future.
Telkom's entry into the mobile market would bring it into a sector with an annual revenue of R60bn, dominated by MTN and Vodacom. With revenue from fixed lines flattening out, the move, if done correctly, could be central to Telkom's future growth.
Telkom spokesman Pynee Chetty yesterday would not reveal when Telkom planned to launch its mobile service, which was initially expected to have taken place in February. He said the Synovate study was certainly encouraging.
Telkom has been erecting wireless base stations and negotiating with existing cellphone players to roam on one of their networks in areas where it is not cost-effective to build its own.
The study found that 97% of those interviewed were aware of the Regulation of Interception of Communications and Provision of Communication-Related Information Act, which requires all people living in SA who have a SIM card, whether on contract or prepaid, to register their SIM cards in person with their network by 1 January next year.
Of those questioned, 72% said they had registered.
Source: Business Day