Abstract
With more than 30 million South African mobile phone owners in 2007, the most powerful and the most developed country of Africa plays an important role on the international mobile phone market. According to data from the "SA Mobile Market" statistical handbook, the South African market's size is more than the Australian and Canadian markets combined and "close behind the mobile market in Spain". In South Africa, the industry is dominated by three companies: Vodacom, MTN and Cell C which operate persistent high prices. With 58% of market shares (Telkom Annual Report 2007) Vodacom is the leader of the market. MTN has 34% of market shares (MTN Annual Report 2007) and Cell C reaches 8%. According to the Competition Act, both Vodacom and MTN can be classified as "dominant" in the mobile phone industry. It is also relevant to note that the combined market share of the two major companies is more than 90%.
