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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 wireless LAN and converged voice and data 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 regulatory 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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