Vodacom vs MTN market share in South Africa

ICASA has released a discussion document on its Market Inquiry Into Mobile Broadband Services.

In the document, ICASA looks at the dominance of mobile operators in certain areas and lays out by how far the leading players are ahead.

As part of its investigation, it looked at market shares and market power across South Africa.

“Markets for mobile services in South Africa are highly concentrated. In 2018, for example, concentration measured by the Herfindahl Hirschman Index was approximately 3,173 and two firms accounted for almost 75% of subscribers,” said ICASA.

A measure of above 2,000 is highly concentrated.

“These high levels of concentration have persisted over time, which suggests that any market power is unlikely to decline significantly over the medium term,” it added.

The two firms in question are Vodacom and MTN.

As of 2018, they had 43% and 30% market share respectively.

Telkom and Cell C then account for 10% and 16%, respectively.

This is a significant portion of the user base considering that in 2005, Vodacom and MTN controlled 95% of the market.


South African market share

The graph below shows the mobile operators’ market shares in South Africa, based on subscriber numbers, from 2005 to 2018.

Click the graph to enlarge it.

Mobile Networks


Municipal level

ICASA went on to state that at the municipal level, markets are even more concentrated.

In many municipalities, particularly lower-income municipalities, high levels of concentration occur.

The graph below shows this, by referencing the Herfindahl Hirschman Index.

The darker green an area, the more concentrated the market is.

Click the graph to enlarge it.

Provincial


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Vodacom vs MTN market share in South Africa