For years South Africans didn't have access to mobile phones and since mobile telephony was launched in South Africa in 1994, mobile phones have become an integral part of people's lives. It doesn't matter what your age, race, religion, literacy and occupation is, mobile phones are owned by a large variety of people.
The technological developments within the mobile phone industry have drastically changed over time as well as the reasons why people buy mobile phones. The reasons range from safety need to always be in touch, status, business as well as entertainment. With the technological developments mobile phones can be used for emailing, listening to music, banking, taking photos as well as accessing Internet to mention a few.
Background
According to the Telecommunications Act of 1994, the mobile telephony industry was first launched in South Africa in 1994. Vodacom (Pty) Ltd and MTN (Mobile Telephone Networks (Pty) Ltd were incorporated in terms of the Companies Act, 1973 (Act 61 of 1973), and awarded licences to provide mobile cellular telecommunications services in accordance with the terms and conditions of the telecommunication licence and multiparty implementation agreement published under General Notice 1078 of 29 October 1993.
Furthermore a third licence was offered in June 2001 to the Cell C Consortium, whose mobile services were launched on 17 November 2001 as the third mobile operator in South Africa.
South Africa has a vibrant mobile market that has seen rapid uptake of mobile services since competition was introduced to the sector more than 10 years ago.
BMI-T (2004) stated that "subscribers to the three networks operated by Vodacom, MTN and Cell C exceeded 20 million during 2004, compared with less than 5 million fixed-line connections" (BMI-T 2004:15). The market has mainly been driven by the prepaid sector, which accounts for around 85% of all mobile phone users. The entry of a third operator, Cell C, in November 2001