Mobile radio - big earning from exports

8 October 2003 Telecoms, Datacoms, Wireless, IoT

The mobile radio equipment market in South Africa is worth R400 million a year, with a further R100 million being earned from exports to other African countries. This was the finding of the first survey quantifying this industry, also known as professional mobile radio or land mobile radio.

Mobile radio technology is critical to the operations of essential services, such as, ambulance, medical rescue, fire fighting, and policing. It is also essential to many private sector companies, such as private security firms. The mobile radio market (MRM) survey was led by Bruce Conradie, Director of Razor's Edge Business Intelligence, a provider of business and market intelligence, and was endorsed by the Professional Mobile Radio Association (PMRA), an industry body representing the interests of radio companies.

The survey aggregated sales figures from radio equipment importers and manufacturers to profile the total market for the 2002 year. The survey found that the South African market was worth R400 million, at end-user prices. This is an industry that can blow hot or cold, since the value of individual contracts can be enormous. In the 2003 year, for example, the industry is waiting for the awarding of the R800 million Gauteng Police tender. The contract period is four years, equating to an expenditure of roughly R200 million a year, which is 66% of the total market size for the previous year.

The size of the export market may also surprise many observers. The MRM survey found this to be R100 million. Note that this is not even at end-user prices, but rather at dealer prices (price charged by the South African exporter). To get to end-user prices, the dealer margin would have to be added. Moreover, this figure excludes the considerable southern African sales (outside of South Africa) of Motorola South Africa, which are handled directly between the Motorola's overseas principals and the distributors in the various southern African countries. Adding the Motorola sales to the R88 million in sales moving through South African countries indicates that regional sales are a significant source of revenue, both existing and potential, for South African suppliers.

The full report is being distributed by the PMRA for R750. Contact Bronwen Lambert, 011 706 5457, [email protected]. For other information contact Bruce Conradie, 011 792 4140, [email protected]

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