SME broadband uptake nearly doubles

The preliminary findings of the SME Survey 2005, released last week, indicate that the proportion of small to medium enterprises (SMEs) connecting to the Internet via broadband connections almost doubled in comparison to 2004 figures.

The initial findings, based on the first 1 700 responses from a random sample of 6 000 SMEs, indicate that SMEs are increasingly moving away from dialup connections to high-speed options such as ADSL and leased-lines. In 2003, only 2% of companies made use of ADSL connections, in comparison with 23% in 2005.

"The growth potential for broadband in SA is enormous as it exposes SMEs to a range of opportunities that were previously unattainable. ADSL will transform the way in which SMEs conduct business, aid their competitiveness and ensure sustained growth," says Andre Joubert, general manager, MWEB Business.

The results furthermore indicate vigorous uptake of ADSL across all industry sectors; with IT software and service (32.31%), mining (31.25%) and electricity and utilities (31.10%) showing the highest usage of ADSL. In addition, the financial services sector has seen a significant increase in the uptake of leased-lines, up from 25% in 2004 to 33% in 2005.

"We believe that in future, broadband connectivity will be the preferred Internet access method for SMEs. The current high cost of broadband in SA is, however, an inhibitor for broader adoption and effecting change in this regard should be a strong priority for all industry players," concludes Joubert.

For further information on SME Survey 2005, visit www.smesurvey.co.za.