The ICT sector will see modest, but more sustained growth in the future compared to the "boom-to-bust" cycles of the 1990s and early 2000s, says Dimension Data SA chairman designate Andile Ngcaba.
Ngcaba spoke at DiData subsidiary Internet Solutions` annual Internetix conference in Cape Town yesterday.
He said the ICT sector will have to return to business basics, but the exciting times have not passed by yet.
"A bright future awaits those willing to innovate and accept the challenges presented."
Ngcaba was director-general of the Department of Communications until January, before moving across to his present position at DiData. He will become chairman at the end of the year.
He said opportunities are being presented through the changes in legislation planned for later this year, including the finalisation of the Convergence Bill, which will consolidate much of the current laws.
Ngcaba said that in the face of the prolonged global downturn in the telecommunications sector, where Europe and the US are almost saturated, Africa remains an expanding market and the Internet will be a key driver.
Internet statistics highlighted by Ngcaba show that SA has approximately 3.1 million Internet users, with stagnant growth over the past four years following the rapid double-digit growth in the 1990s.
Internet service providers have seen their share of total cost of connectivity shrink from 41% in 1993 to 15% in 2003, while Telkom, as the only full licensed operator, has seen its share of connectivity costs increase from 59% in 1993 to 85% in 2003, he noted.
"This means the actual cost of connectivity has increased."
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