News of the growing demand in broadband Internet services in East Africa issued by Frost & Sullivan this week highlights the importance of governments supporting the delivery of these services as a macro-economic growth strategy.
The report shows that the East African broadband market earned revenues of $301.3 million in 2009 and estimates this to reach $6.34 billion in 2016. There are now 150 companies in the region supplying connectivity and applications services.
That is a lot of additional revenue flowing into the region. However, what is more exciting is the growth opportunity for the region’s business communities as a whole.
We know that new information and communications technologies, in particular high-speed Internet, are changing the way companies do business, transforming public service delivery and stimulating innovation. Studies by the World Bank show that with just a 10% increase in high-speed Internet connections, economic growth increases by 1.3%.
Think of the opportunities for foreign companies, many of whom will now be eyeing the region with a renewed interest. Think of the opportunities for new, e-learning initiatives which can be rolled out.
This kind of good news focuses our attention back to our own environment. We are still waiting for some finality on the spectrum auction, holding up new services and access. We have hundreds of millions of rands lying idle in the Universal Access Fund, which could be used to stimulate the roll-out of decent broadband to millions of small businesses in remote areas.
We are aware that the wheels of government turn slowly and that any policies or decisions need to be considered and thoroughly assessed. What South African business, and indeed end-users, cannot settle for, is endless delays in decisions that have a material impact on our lives.
Governments need to be reminded that they are there to develop policy which is in the public interest – a concept that sometimes gets lost in the endless political jockeying of public life.
PUBLICATION: ITWEB BIZ E-NEWS BEAT
DATE: 23 JULY 2010