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CHEAPER FIXED BAND NEEDED [Cape Argus (South Africa)]
[April 17, 2014]

CHEAPER FIXED BAND NEEDED [Cape Argus (South Africa)]


(Cape Argus (South Africa) Via Acquire Media NewsEdge) Joseph Booysen BUSINESS REPORTER ALTHOUGH South Africa is fast becoming tech-savvy with internet connections improving, affordability and accessiblity is an issue as wi-fi is still too expensive for most, say experts.



According the MWEB Internet Trends Report launched this week, many entrepreneurs work from public places that offer internet connectivity such as "Coffice's" (coffee shops used as an office).

The report said six out of 10 local entrepreneurs prefer to work out of coffee shops because they are an easy location to access wi-fi and are good places to work for for a few hours. Seven out of ten entrepreneurs use an average of five gigabytes of data a month, while more heavy users average between eight and 10.


The five-gig users attribute their low usage to "free wi-fi" dependency reducing the cost of their paid wi-fi.

Carolyn Holgate, general manager of MWEB Connect, said wi-fi and the "Coffice" culture has made working outside the traditional office setting a lot easier.

Arthur Goldstuck, managing director of World Wide Worx and editor-in-chief of Gadget, said South Africa's internet user base grew 23 percent last year and 5.3 million new users have come on board in the past two years, as many as there were in total in 2009.

"In 2011 the internet contributed 1.9 percent to South Africa's GDP, according the Internet Matters study we did with Google. Our forecast is for this to grow to 2.4 percent by 2015." Goldstuck said although current levels are on par with emerging economies such as Russia and Brazil, and ahead of countries such as Turkey and Indonesia, they are far behind developed economies.

"The priority is to create an environment in which any adult or student has access to the internet, wherever they are, at an affordable price." Simon Leps, chief executive of Fontera Digital Works, said mobile networks are the only reason South Africa's internet connectivity has grown rapidly.

He said South Africa however, needs to see more growth in broadband connections such as fibre optic cables.

"Connectivity is far too expensive via mobile broadband, which has created a desperate need for affordable fixed broadbandconnections. " Craig Medefindt, national sales manager at FastNet, a wireless data communications service provider, said in light of the rapid growth in wi-fi usage, it is imperative that South African service-orientated businesses look to incorporating wi-fi as a service to its customers in order to remain competitive or gain the advantage.

Last month, Finance, Economic Development and Tourism MEC Alan Winde visited NPO (not for profit organisations) in Delft to see first-hand how communities are benefitting from free internet access.

Delft-based, the Home of Compassion Ministries received a R1 million grant from the Western Cape government to offer free wi-fi to Delft residents. The NPO is connecting residents to economic opportunities through a range of skills development initiatives and is one of three organisations selected to roll out the Western Cape government's Free Wi-Fi project.

Winde said 90 000 people will be connected to the internet through the project. It is part of the Western Cape government's R1.3 billion broadband plan.

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