Entries by Andre Wills

South African Telecoms Operators: The CAPEX Challenge

Current total [1] CAPEX investment growth is outpacing retail telecoms revenue growth – and there are no signs that this will change over the short term.  Unless telecoms operators change their business model, their ability to sustain such investments will become increasingly squeezed.  In the future, we expect to see a range of innovative network sharing […]

The Rise of the New IT Service Provider Superstar

AYO Technology published pre-listing plans which show that it has strong ambitions to grow its revenue from R479 million to R7.7 billion over two years. The strategy it plans to adopt consists of a strong M&A element, combined with a novel approach to team up with a global IT Service Provider. BT SA Alliance AYO […]

3G vs 4G vs 5G – Analysis of Vodacom SA

Summary Since the deployment of the first 3G base stations, Vodacom has led the market in expanding network coverage. An analysis of the network deployment and uptake of 3G and 4G services, shows the following interesting points: Reviewing the Technology Investment: Vodacom has aggressively accelerated the deployment of 4G coverage, reaching 80% population coverage after […]

Cell C 2017 Results Analysis

Cell C announced their FY2017 results on 21 February 2018. This note presents a summary of their results.   FY2017 Summary The refinancing of Cell C has removed a significant financial burden and has freed up cash flow for investment into the business. Cell C looks confident in the marketplace and has displayed a dedicated […]

Potential Sale of Dimension Data MEA

There has been market speculation that Dimension Data Middle East Africa (DD MEA) is for sale. This analyst note explores the potential sale of DD MEA, reviews the corporate activity of 2017, explores possible sales scenarios and highlights potential buyers. 2010 NTT Group buys Dimension Data Group In 2010, the NTT Group acquired Dimension Data […]

2016 Adoption of Mobile VoIP

A leading indicator that signals the adoption of mobile VoIP is the adoption by mobile subscribers of social networking/instant messaging OTT services. The precursor to OTT service adoption is the strategic drive by mobile operators to increase smartphone penetration combined with an effective data pricing strategy. Mobile VoIP OTT usage leads to traditional mobile revenue […]

EOH, The Most Prolific M&A Company in the SA ICT Sector

EOH Holdings Limited (EOH) is the most prolific M&A company in the SA ICT sector. Analysis of the revenue streams over the period 2011 to 2016 shows that by FY2016, EOH had earned 63% of its revenues from the cumulative acquisitions it had made over this period. The EOH challenge, however, is how to continue […]

Vumatel/Fibrehoods deal underlines the FTTH Economics of Scale Factor

Summary Economics of scale is a critical success factor for open access fibre networks. Achieving scale gives open access network providers a strong competitive advantage. Mergers and acquisitions (M&A) is a critical tool used by fibre network operators in achieving scale. The Vumatel acquisition of Fibrehoods represents the latest M&A deal in the open access […]

Interrogating the Cell C Subscriber Numbers

The Blue Label Telecoms Circular (18/10/2016) shows that Cell C subscriber numbers are significantly lower when reported against the industry standard of a 90 day active subscriber definition. Using this new information and applying the 90 day definition to the historically published subscriber numbers shows that Cell C has not performed as well as it […]

Blue Label Telecoms – Cell C Deal Update

In October 2016, Blue Label Telecoms announced that it had increased its offer to R5.5 bn for 45% equity in Cell C. In December 2015, the company offered R4 bn for 30% equity. The new offer does not change the fundamentals of the refinancing deal. We expect that the new deal will not bring any […]