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Market retains opportunities

By Warwick Ashford, ITWeb London correspondent
Johannesburg, 15 Dec 2004

The enterprise infrastructure and network access market is slowing, but a number of important opportunities remain, says ICT research firm BMI‑TechKnowledge.

Research shows South African enterprise equipment market growth slowed from 16% in 2002 to 13% in 2003. BMI‑T says this decline was fuelled by the fact that the market segment is maturing.

However, Roy Blume, BMI‑T services and software division manager, says a number of important opportunities remain, particularly in LAN and converged voice and equipment.

"The local market for enterprise infrastructure and network access equipment is expected to increase in revenue at a compound annual growth rate of 8.5% through to 2008," adds Blume.

BMI-T also expects the new convergence legislation and framework to have a significant impact on the market, although these factors are unlikely to introduce any sudden changes.

"Competition enablers such as number portability and carrier pre-selection will be key, but are not necessarily tied to the convergence timetable.

"The same applies to the timetable for allowing voice over IP, and self-provisioning for ISPs and VANs, although this particular enabler is likely to be delayed to protect the fledgling second national operator," Blume concludes.

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