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Telkom monopoly 'damages SMEs`

By Bandile Sikwane, ITWeb journalist
Johannesburg, 12 Sept 2006

Extremely high bandwidth costs and Telkom`s monopoly on local telecommunications infrastructure, as well as skill shortages, have stunted the international competitiveness of local small and medium enterprises (SMEs), says Viola Manuel, executive director of the Cape IT Initiative (CITI).

"SA is facing enormous challenges, especially with our telecommunication environment acting as a barrier to new investment and price competitiveness.

"The overriding feeling in our industry at the moment is one of optimism and, despite the challenges, the path has been plotted. Private, public and tertiary sectors are beginning to see the benefits of working together," Manuel says.

She adds SMEs must contribute by thinking globally. "Start-up businesses must already be thinking about producing products aimed for the international market. SMEs must do some introspection and ask what value their business can add in the global arena."

Manuel notes that the recent CITI 'Think Global` ICT conference was successful as it allowed ICT businesses from SA to engage with other countries and forge business alliances.

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