African businesses are expecting a revolution in Internet access, as the costs of connection and technology drop due to the rush of new undersea cables connecting the continent to the outside world, says latest research.
More than 90% of business decision-makers across Africa are expecting prices to drop and competition to increase dramatically, according to the Telecoms Trends in Africa 2010 report, released today by World Wide Worx and Database 360.
The survey, conducted among 1 100 Internet-using small, medium and large businesses across 20 African countries, also revealed that most African countries remain heavily reliant on slow or expensive forms of connectivity, such as dial-up and satellite. However, they are beginning the move to broadband.
“Our interviewers encountered tremendous enthusiasm for the Internet in all countries we surveyed,” says Database 360 MD Louise Robinson. “There is little doubt that, in this new connectivity era, the very nature of most businesses is changing.”
Database 360 operates a call centre in Cape Town, from which the respondents were interviewed telephonically. The study was compiled and the data analysed by independent research firm World Wide Worx.
“ADSL is fast becoming the standard form of business Internet access across Africa - more than 40% of businesses in these 20 countries are using it,” says World Wide Worx MD Arthur Goldstuck. “However, we can see the limitations of existing infrastructure from the fact that satellite connectivity remains a key part of the mix.”
More than one in five respondents said they were using satellite connectivity, with a similar number planning to add it to their options.
“Satellite is the most expensive means you can possibly use to access the Internet,” says Goldstuck. The continued appetite for it, even though there is an expectation for better and cheaper connectivity, indicates the reality on the ground remains one of limited infrastructure.
“Moreover, once businesses go online, the Internet becomes increasingly vital to their survival, and having a backup form of access becomes increasingly important.”
Countries like Mauritius, Ivory Coast and Namibia are already showing strong growth in ADSL usage by business, while Angolan businesses indicate the highest anticipated growth for this form of broadband.
Robinson adds: “It's amazing to see how the level of Internet usage shoots up wherever the new undersea cables have landed and fibre-optic networks have linked the cables to urban centres. The East Africa countries, especially, are taking to social networking as a business tool to a greater extent than almost anywhere else in Africa.”
The survey highlights Kenya and Uganda as the biggest African users of social networking for business. However, even landlocked countries that have recently seen major upgrades to their fibre-optic networks, such as Botswana and Zambia, are also moving rapidly in this direction.
The study further explores the use of general Internet applications, e-mail on cellphones and the emergence of cloud computing in Africa.
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