Broadband has managed to crack the president's state of the nation address, a feat that some analysts call a boon for the industry.
During his address last night, president Jacob Zuma explained that government was working towards reducing the cost of broadband in the country. “We will work to increase broadband speed and ensure a high standard of Internet service, in line with international norms,” he added.
While the president's mention of the rate and penetration of broadband was as vague as the rest of his address, many analysts are pleased that the technology cracked the nod at all.
According to Denis Smit, MD of BMI-TechKnowledge, broadband is the first technology in the ICT industry that has a measurable impact on the economy. “We have always said that ICT is important for growth, but we now have actual figures that prove a correlation between broadband and GDP,” he says.
The issue of technology has always been a difficult one for government; however, Smit says the actual measurability of broadband access has finally given the industry the boost it needs to prove its economic value.
While this is not the first mention of broadband access by the president, it seems it will have more impact behind it. Internet players and telecoms operators are expecting the Department of Communications to present its latest draft of the broadband policy, which will hopefully be in play by April.
“With such strong economic arguments backing the policy and a dedicated strategy for broadband in the future, there is no doubt that technology will move up a few notches of importance in government's eyes,” adds Smit.
Silvia Hirano Venter, ICT analyst at Frost & Sullivan, agrees that government's awareness of the importance of broadband is good, however, she adds that Zuma's comments were vague.
“With the growing demand for broadband services, more needs to be done. What is needed is a combination of efforts from operators, ICASA and government for prices to be brought down.
“The important vertical institutions in this country need to combine their efforts to effect change,” she adds.
However, other analysts have greeted Zuma's plans with scepticism. One analyst, who asked to remain unnamed, says the mention of broadband means little in the bigger picture. The analyst explains that it is likely just another ingredient in a shopping list, which is how many have described the state of the nation address.
Another analyst says the president's mention of technology means nothing, specifically since the operators and Internet providers have made the industry what it is, despite controls, or the lack of controls, set in place by government.
With ministerial meetings now under way, more details of the president's plans should be revealed over the next few weeks.
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