Cellphone penetration in South Africa has gone up, but average spending has continued to dwindle as a result of various pressures on consumers.<\/p>\n
According to the latest figures by the SA Advertising Research Foundation, 67% of adults in the country have cellphones.<\/p>\n
This was an improvement from the previous survey, which showed that 60.5% of South Africa had cellphones.<\/p>\n
In contrast, the average spending per user has dropped to R169 a month, from R186 previously.<\/p>\n
Claire Welch, technical support executive at South African Advertising Research Foundation, said: "Cellphones are becoming very accessible, but at the same time people aren’t able to spend the large amounts that they used to.<\/p>\n
"Poorer people can now more easily afford cellphones, but their lower spending habits tend to bring the average spend down." <\/p>\n
Cellphone operators have been experiencing similar trends, with higher numbers of subscribers joining, higher increases in pre-paid usage, lower average revenue per user figures and the shift to selling lower denomination recharge vouchers.<\/p>\n
MTN, which historically targeted lower- to middle-income customers, experienced a 53% increase in subscribers, but revenue was only up by 35% for the six months to June 2008.<\/p>\n
Vodacom, which caters to higher- end users – who favour contracts – showed a 13.1% increase in customers and a 14% increase in revenue in its latest interim results.<\/p>\n
Denis Smit, managing director of research firm BMIT, said: "Cellphone prices in South Africa are high, and people here generally spend less than in other countries.<\/p>\n
"With the state of the economy, all people are cutting back. <\/p>\n
"Poor people will still spend on a cellphone. which for them is a necessity, but they talk for shorter periods, meaning lower average spending per user." <\/p>\n
The survey also showed that pre-paid cellular dominated the market with a steady growth, while the number of contracts was decreasing proportionately.<\/p>\n