Despite an analyst at research group BMI-TechKnowledge commenting that SA's over-regulated telecoms environment will not bode well for the entrance of the second national operator (SNO), the research firm says the SNO's prospects are “excellent”.
“BMI-T is of the opinion that the business case for the SNO is fundamentally sound,” says MD Denis Smit. "Pent-up demand is huge and the opportunity for the SNO to secure greater than 15% of the market in three to four years is clearly possible,”
This is contrary to this week's report of comments “made by a BMI-T analyst in his personal capacity and quite unfamiliar with the detailed BMI-T research done focused on the SNO market opportunity,” he says.
He says fixed-line incumbent Telkom has publicly stated it expects to lose about 20% of its market share, albeit in a growing market. "Starting a multibillion-rand business takes time and the SNO has taken extra care not to rush to market without making sure it has a best practice carrier-class solution that over-delivers on promises. This is simply being astute,” notes Smit.
“BMI-T is of the opinion that the business case for the SNO is fundamentally sound,” says MD Denis Smit. "Pent-up demand is huge and the opportunity for the SNO to secure greater than 15% of the market in three to four years is clearly possible,”
This is contrary to this week's report of comments “made by a BMI-T analyst in his personal capacity and quite unfamiliar with the detailed BMI-T research done focused on the SNO market opportunity,” he says.
He says fixed-line incumbent Telkom has publicly stated it expects to lose about 20% of its market share, albeit in a growing market. "Starting a multibillion-rand business takes time and the SNO has taken extra care not to rush to market without making sure it has a best practice carrier-class solution that over-delivers on promises. This is simply being astute,” notes Smit.