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SA Internet access to get kick-start

By Tracy Burrows, ITWeb contributor.
Johannesburg, 28 Nov 2003

Market research firm World Wide Worx predicts that SA Internet access will get a "kick-start" next year, after a dramatic slowdown in the past three years.

According to "The Goldstuck Report: Internet Access in SA 2004", 3.1 million South Africans had access to the Internet at the end of 2002. Growth in 2002 was around 7%, the slowest since the Internet became available to the public in 1993, and the first time it had been below 20%.

Growth in 2003 was set to be only 6%, with 3.28 million South Africans expected to have access to the Internet by the end of 2003. This amounts to one in every 13 South Africans, marginally up from one in 15 at the end of 2001.

Arthur Goldstuck, MD of World Wide Worx, says the developments expected to boost growth in 2004 include the second national operator`s roll-out of competitive access services to businesses, Sentech`s roll-out of high-speed or broadband wireless access, and the healthy rand-dollar exchange rate, which has dramatically brought down the cost of equipment for rolling out infrastructure. Sentech is characterised in the report as the half network operator, due to its wide-ranging licence to provide access services.

"From having no choice at all, the South African market will suddenly be faced with two new players who are both eager to supply Internet access needs."

Goldstuck says he also expects schools connectivity to get a boost next year, when long-awaited projects are implemented. The small and medium enterprise (SME) market was covered in the survey for the first time this year, with research partner Netsurit surveying more than 2 200 SMEs with Internet access. Almost half reported e-mail as their primary use of the Internet, while a third cited banking as their primary online activity.

The survey also found that small businesses with Internet connections were increasingly pursuing high-speed connectivity, with only one out of five using traditional dial-up modem access.

On the technology front, the report concludes that 2004 will see the biggest explosion of technology options yet available to Internet users in SA. "From broadband wireless supplied by Sentech, to ADSL and ISDN from Telkom, to a range of creatively packaged technology options from a variety of ISPs [Internet service providers], it`s like 1994 all over again," says Goldstuck.

"Once again, the challenge will be an educational one for the existing market, and affordability for those who are still not connected."

Nevo Hadas, VP of marketing for the survey`s support partner Systemsfusion, warns that this poses a huge challenge to ISPs. "They have to make their offerings not only simple to use, but also simple to understand," he says. "The Internet user wants a fast, reliable connection, rather than a technically brilliant way for it to reach the computer. The industry has to be technically brilliant in such a way that the user doesn`t even know about it."

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