As ownership levels rise, voice ARPU will fall from $23.2 pcm to $21.9 pcm. A contributing factor to this is the fact that the majority of new accounts are prepay, generating around 86% less ARPU than postpay accounts for operators.
South Africa has a large youth population and their use of data services such as SMS and mobile music will account for a growing percentage of blended ARPU, reaching 10% by 2007. Overall revenue will rise to $8.77 bn by 2007, aided by new subscribers and the increase in data ARPU, with messaging and content services both contributing to this.
The future challenge for operators will be how to prevent ARPU and revenue from being further eroded in the face of falling numbers of new subscribers.
Data Contained in the Report on:Vodacom
MTN
Cell C
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