By mid-year, South Africans will have access to low-cost, high-speed broadband services facilitated by the Seacom fibre-optic undersea cable linking southern and east Africa, Europe and south Asia. This represents a giant step forward for SA, a country that, as recently as 2005, was rated near the top of the global charts for the cost of its Internet links.
In that year, market research indicated that 'average' South Africans had to spend between 46% and 105% of their monthly salary for a basic broadband connection.
South Africa's slow development in the Internet landscape can largely be attributed to this situation, brought about by its highly restrictive regulatory environment.
But times are changing and the ongoing deregulation of the communications industry, and now the promise of the imminent connection of the Seacom undersea cable, will bring low cost Internet links to all South Africans.
The R3.8 billion Seacam project is on schedule and is set to go live in June. One of its first tasks will be to assist with the broadcasting requirements of the Fifa Confederations Cup, which SA will host this year.
The cable will have a number of implications for South African consumers. For individuals, affordable access to the Internet and e-services are on the horizon, while businesses will benefit from access to a raft of modern-day communications technologies, including WiFi, WiMax (which provides wireless data over long distances in a variety of ways, FTTP - fibre to the premises) and power line communications.
Enabling environment
High-speed broadband will enable South African businesses - particularly small to medium-sized enterprises (SMEs) - to benefit from an enabling environment that is in line with their counterparts in Europe, the UK and the US.
Tele-networking and videoconferencing will save time and costs associated with travel to meetings that can now be held online, while the possibility of video streaming, faster Internet access and the delivery of a range of online applications will facilitate information sharing, stimulate socio-economic development and improve data security.
Many businessmen see the prospect of transforming SA into a digitally-aware country as an exciting challenge.
Andy Robb is CTO of Duxbury Networking.
Many businessmen see the prospect of transforming SA into a digitally-aware country as an exciting challenge. However, some are saying an overarching broadband strategy for SA has yet to be put in place and are calling on government to adopt a national policy framework.
Market watchers say Internet service providers, communications workers, independent content providers, academics, civil society organisations and consumer groups should all be involved in the drafting of such a framework.
Many SMEs say the US example, in which a diverse group of Americans came together to launch a National Broadband Coalition to provide the then president-elect Barack Obama with a policy framework for a comprehensive national broadband strategy, cannot be ignored.
They say such a strategy, if implemented in SA, would reinforce government's commitment to a next-generation broadband infrastructure, and make better use of the country's wireless spectrum to promote new facilities, technologies and applications - and even the possibility of new tax incentives for companies.
Further growth
Perhaps in anticipation of high-speed broadband, the Internet user base in SA grew by 12.5% last year (2008 - the highest rate of growth since 2001. There are now 4.5 million users online. Studies indicate that a further 13.3% growth can be expected this year, with another 17.6% boost in 2010.
Significantly, the growth is being driven by SMEs, which accounted for more than 50% of the upswing.
For SMEs, high-speed broadband services will lead to increased levels of competition, more exposure to global markets and perhaps even economic diversity.
One of the benefits of the new market environment will be the emergence of numerous small networks offering high-speed broadband services of their own. As one industry commentator said: “It spells the birth of an entirely new industry.”
* Andy Robb is CTO of Duxbury Networking.
Share