Markt Structure MTN And Vodacom

 Markt Composition MTN And Vodacom Composition

п»їQUESTION 1

QUESTION 1 . one particular Market framework MTN and Vodacom

1 ) 1 . 1 Introduction

The South African mobile marketplace structure can be classified because an oligopoly, or even a duopoly, with two firms, Vodacom and MTN of approximately the same size dominating industry. Both Vodacom and MTN have marketplace shares of at least 35%. This implies that both equally firms can be classified while ‘dominant' i actually. t. um. the Competition Work. It is also vital that you note that the combined business of the two large players is approximately 80-90% which should be the of their communautaire market electricity. Where two large companies control an industry (duopoly) plus they have identical cost and pricing approaches, competition levels may not be optimum.

1 . 1 ) 2 SA mobile Market Share past and present

Determine 2: Cellular market share in terms

of subscribers (2005)

SOCIAL FEAR mobile market share in terms of clients (2005)

Origin: Company annual reports, and ICASA

It is necessary to note that MTN and Vodacom were the initially two early on entrants into the mobile sector in 1994 (Duopoly), Cellular C followed suite in 2001. Research has shown that prices to communicate in SA will be abnormally excessive. Research ICT Africa provides proven that the prices to get communication recharged by MTN and Vodacom are excessive when compared with the costs of related operators in other places in The african continent.

This is due to the truth the MTN and Vodacom were the sole two mobile phone providers via 1994-2001, zero other competition.

Current Market Framework

December 2011- December 2013

Subscribers (Millions) and Business

Operator

2011

Market Share

2012

Market Share

2013

Market Share

MTN

20. being unfaithful

33. 6%

24. your five

37. 3%

25. zero

36. 8%

Vodacom

23. 7

55. 9%

twenty nine. 97

forty-five. 6%

30. 28

43. 0%

Cellular C

almost 8. 2

13. 2%

9. 4

18. 3%

14. 7

17. 2%

Telkom Mobile/8ta

1 ) 14

1 . 8%

1 . 48

2 . 2%

1 . 54

2 . 3%

Virgin Mobile

0. a few

0. five per cent

0. some

06%

zero. 5

0. 7%

Total*

62. 24

100%

sixty five. 75

fully

68. 02

100%

SA Mobile Subscribers 2011-2013

Previously mentioned table show that both...

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