When a country like South Africa jumps from a 17% cell phone usage in the year 2000 to a whopping 76% in 2010, it’s clear as day that dependency on cell phones has overtaken dependency on TV, radio and landline phones. The running comparison today for cell phones is that with more than 29 million users, more South Africans have better access to cell phones than they do to clean drinking water.
In terms of loyalty to one network provider, the average South Africans sticks to his first choice for at least 4 years before moving on to another, if that ever happens at all. Obviously, there are lock-in contracts for cell phone subscription plans although most new cell phone users start as pre-paid accounts. More than 80% of all South African cell phone users tend to recommend their provider mainly because it would cost less to use the same provider.
When polled, 85% of South African cell phone users are on pre-paid accounts because of the monthly expense of a post-paid account. However, of these 85%, 25% say that they plan on moving to the more convenient post-paid accounts within a year.
The reason for leaving their network provider is usually because of poor signal and tariff concerns. Right now, the top 2 cell phone network providers have a complicated tax system which other providers are using as part of their marketing angle with which they can lure customers. Whether this strategy will work or not remains to be seen since it’s a recent development.
Most cell phone owners prefer the Nokia brand over Samsung or Apple, and their second choice for a handset would be the Blackberry. As far as usage is concerned, South Africa ranks 5th in the world which is higher than cell phone usage for the U.S., which falls to 7th place.
Compared to the internet, most South Africans prefer to text or use the SMS messaging option of cell phones. It’s cheaper and faster. They also prefer texting to calling for the same practical reason; however, with the proliferation of cell phones and, in turn, internet connectivity, online shopping is an activity that is set to increase within the near future.
According to Clickatell’s Chief Executive, Pieter de Villiers, a top SMS provider with offices in South Africa:
Currently, Africa is the world’s fastest-growing mobile phone market. Today there are more people using mobile phones across the continent than traditional, fixed lines. However, like fixed-lines concentrations, most of the cellular phones are used in urban areas by a minority elite. The poor majority still cannot afford cellular phones despite their great desire for them.
In short, while the poor sector of South Africa still can’t afford cell phones, the country is growing economically and the middle class is expanding. Thus, the spread of wealth is expected to filter down. Once this happens, the majority can begin to enjoy the perks of owning a cell phone – a market that can bring South Africa to greater heights in cell phone usage rankings.
Figures like these have attracted the world’s biggest cell phone carrier, China Mobile. They have big plans for entering the South African market and the rest of Africa within a year or two. Comparing South Africa to the rest of Africa, it has the widest reach in cell signal because it has developed its infrastructure, but Nigeria has more cell phone users and Kenya tops the mobile banking through cell phones list.