Business Link

Vast opportunities for improving efficiencies, reducing costs and developing new business are being opened up with the arrival of competition in the supply of Internet connectivity to South Africa – and the rest of the continent.

Locally, Telkom’s stronghold on bandwidth will be loosened through the commissioning of the Seacom undersea cable linking South Africa and other African states to Europe and each other. This is one of a number of submarine cable developments that will bring faster Internet access to areas in Africa that were formerly deprived. East Africa, for example, is the only region in the world that relies solely on satellite links.

West Africa is supplied by the same Telkom-managed consortium as South Africa – and the same pricing. The East African Submarine Cable System (Eassy), the SEA Cable System (Seacom), and The East Africa Marine System (Teams) are all currently under construction and due to come on-line this year. Others, including a loop around Africa, are expected to connect over the next three years.

There are also signs that telecommunications costs in South Africa will be driven down through the entry of competitors to Telkom. It is unclear just when all these benefits will be felt in the Eastern Cape as the current focus is on Gauteng, Durban and Cape Town, but it is never too early to start planning for the far-reaching changes that cheaper and abundant bandwidth will bring.

Business Link outlines some of them:

Always on

Even small businesses like bed and breakfasts can now automate procedures such as the direct booking of rooms. Warehouses, gates and offices can be monitored remotely, and the cold-drink dispenser in the passage can be on-line.

Interactive websites

With functionality like videos, webcams, and downloads broadband brings you closer to your potential and existing customers.

Cloud computing

The latest buzz – having the programmes, storage and service on-line instead of having to invest in your own hardware and software.

VOIP

Make free calls through the Internet – locally or around the world.

Telecommuting

Broadband into the home will become affordable – making telecommuting and having remote offices connected to the company network more cost-effective.

Surf and data

Data-hungry businesses such as programming and design will be able to locate to the Eastern Cape to enjoy the beaches, the mountains, the wildlife and the people.

GETTING CONNECTED

Africa had between 45-million and 55-million Internet users at the end of 2007

AfricaNext projects that this number will reach over 100-million by 2012

South Africa’s 5,1 million internet users represent only 9% of Africa’s total Internet subscribers

ADSL dominance is at an end. Wireless broadband subscriptions outnumber ADSL 750,000 to 558,000 in 2008 (Internet Access in 2008 by World Wide Worx)

Broadband subscriptions leapt from 818 000 in 2007, to 1 308 000 in 2008; a 60% growth rate

South African broadband users expected to grow to 8,4-million by 2013

Dial-up is dying: from its high of 1,08-million in 2004, it dropped to 700 000 in 2008

Johannesburg is being transformed into a “digital city” through a wireless network and Internet Kiosks expected to be completed by 2012

Mobile operator MTN and fixed-line operator Neotel have announced a joint venture (JV) that will see them rolling out 5 000 km of fibre-optic cable to service South Africa’s major cities. Port Elizabeth and East London are on the Neotel map, but there is no word on when the services will be available in the two cities