ADSL Internet connections have overtaken dial-up and wireless broadband as the connection of choice for small and medium enterprises (SMEs), says the 2009 SME survey.
Preliminary findings reveal dial-up is disappearing as a viable connectivity option for SMEs. The survey, which polled around 2 500 SMEs, reveals ADSL has replaced dial-up as the primary form of Internet connectivity, while wireless broadband has only achieved moderate penetration in the SME market.
“ADSL had grown from 3% to 63% penetration of SMEs using the Internet in the period between 2003 and 2008, while dial-up dropped from 62% to 9.5% by last year. This year's research shows that dial-up has halved again, to 4%,” says Arthur Goldstuck, MD of World Wide Worx.
The 2009 SME survey, sponsored by Standard Bank, the Umsobomvu Youth Fund and Fujitsu, aims to determine SMEs' ability to deal with the changing business landscape. The study establishes how the recession is affecting SMEs, their readiness to deal with it and the strategies they may have in place. The final results will be released in October.
The survey states wireless broadband was poised to compete with ADSL as a primary connection by 2008. Despite growing from a zero base to 10.5% of SMEs using it as their primary connection by 2008, penetration levels dropped again in 2009.
According to the survey, all forms of wireless broadband combined, including 3G, iBurst, Worldwide Interoperability for Microwave Access and municipal Wireless Fidelity, dipped from 10.5% to 8% penetration as a primary form of Internet connectivity among SMEs.
The survey notes the declining market share of wireless broadband is due to its failure to meet the cost and performance needs of SMEs. The real opportunity for wireless broadband is in backup connectivity, as SMEs are increasingly using a 3G card as a secondary connection when away from the office, says Goldstuck.
“ADSL simply offers more reliable and cost-effective broadband than any wireless option - and the cost of incremental usage is not as high as for 3G,” explains Goldstuck.
Fujitsu business client portfolio manager Ross Olver notes that business trends back up the preliminary findings of the SME survey.
“We have seen a steady decline in the requirement for dial-up modems and on-board modems within our business clients' product portfolio. Interestingly enough, we have seen a substantial increase in the demand for portable mobile devices with built-in 3G Universal Mobile Telecommunications System connectivity, as users discover the benefits of high-speed connectivity,” he explains.
Related stories:
SAP targets SMEs
SMEs get creative
Share
