Low broadband access and high telecommunications costs are increasingly becoming the biggest "disenabler" in the way of small and medium enterprise (SME) growth.
This is according to Tebogo Khaas, president of the SMME Forum, releasing the results of a new survey in Johannesburg yesterday.
He told the media and industry players that the study was carried out by independent researchers late last year. It found there was low broadband penetration in rural areas and townships, with SMEs saying the service was prohibitively expensive.
Khaas lashed out at broadband service providers including Telkom, WBS, Vodacom and the Universal Service Agency. "The service providers are not doing enough to provide access to broadband services to poorer communities."
He said a particular area of concern is the low uptake of broadband, with a penetration of only 0.2%.
The high cost of telecoms inhibits global competitiveness, said Khaas.
"For small businesses to compete internationally and to experience growth, they must have access to adequate ICT infrastructures and that includes access to broadband services."
Telecom challenges
Khaas highlighted 10 South African municipalities where between 73% and 93% of SMEs have no access to fixed telephone services at all. He said many SMEs report that they wait up to 12 months to have fixed-lines installed.
Khaas also noted that SMEs in rural areas spend a higher proportion of their income on telecoms than those in urban areas.
He said the majority of underserviced area licensees concentrated on going to the market quickly using the GSM infrastructures of Vodacom or MTN. "In so doing, they have been reduced to being value-added resellers of the incumbent GSM network operators without offering real competition or alternative products to the communities."
In conclusion, Khaas said a national strategy is required to provide free Internet access to schools and communal access points.
Telkom responds
Lulu Letlape, Telkom's group executive for corporate communications, says while she attended the presentation yesterday, she is unable to comment on the SMME Forum's findings as she has not seen the full report.
However, she says: "Broadband penetration in SA is slow compared to international countries.
"Telkom continually strives to increase broadband penetration by gradually lowering the costs and looking at new product developments which can make business practice easier for SMEs and all other customers."
Vodacom spokesperson Nicoline Visser said Vodacom would comment later today.
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