A business model for SMME's in the telecommunications sector in the Border Region

The telecommunications landscape in South Africa is changing. The monopolistic nature of the sector, previously dominated by Telkom has come to an end. Telecommunications companies, in particular SMMEs face the opportunity as well as challenges to find new ways of doing business successfully in this changing landscape. The research problem states a business model for SMMEs in the telecommunications sector. The author’s research is aimed to assist SMMEs in this sector to reposition them and be successful. The literature review focused on the local telecommunications market in South Africa, a comparisons between telecommunications markets in relation to other countries with similarities in their telecoms sectors as well as the opportunities and challenges SMMEs face in the market space. Regulation and new technologies pose opportunities but also potential dangers for business owners to conduct business. Traditionally, a typical resell model would be fully dependant on the way the monopolist determined the shape and structures of small companies, but the research indicated innovation and creativity will be the drivers to be successful today. The research design was done by using a survey questionnaire to telecoms end users. The literature review and a survey aimed at the consumer market were done and the findings highlights focus areas where SMMEs need to direct their energy and resources in to establish the business model. With reference to both the literature review and the empirical findings, the business model can be formulated and supported by a strong entrepreneurial person or group of people. In addition, the recommended business-level strategy is an integrated and coordinated set of commitments and actions the SMMEs will use to gain a competitive advantage by exploiting core competencies in specific telecoms markets