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Broadband in South Africa the roadmap to growth
1. This document is offered compliments of
BSP Media Group. www.bspmediagroup.com
All rights reserved.
2. Broadband in South Africa:
The Roadmap to Growth
Africa Com
2013
Carel Booysen
Executive: Business Broadband Portfolio
3. Agenda
1. The effect of broadband and the Internet on innovation and growth
2. How does South Africa rate on innovation?
• Infrastructure
• Human capital
3. Challenges of Broadband in South Africa
4. National Broadband Policy
5. Public and private sector partnerships
6. Telkom response
7. Human capital and personal digital readiness
8. Digitisation trends and the future
4. Why the Internet and Broadband transformed
innovation
1. Enable access to a global platform of knowledge that accelerates and enables further
invention and innovation
• Best and brightest ideas
• Known to billions of people
• “Global knowledge bootstrapping”
2. Exponentially increase the ability of people to create, exchange, debate, ideas and
knowledge – the building blocks for innovation
• Debate and paradigms can spread around the world in days
• Viral spread of the best views and ideas
3. Paradigms that made mobile technology accessible to the developing world, like
prepaid, can be used to address other critical development needs
• Mobile payments
• Prepaid electricity
Source: Global Innovation Index 2012, Chapter 9
7. SMEs using Web technologies extensively are
growing more quickly
8. South Africa’s ranking on Global Innovation
Index
Overall ranking: 58th out of 142.
Factor (out of 84)
ICT access
ICT use
86th
Government’s online service
81st
79th
Pupil-teacher ratio, secondary
Human Capital
86th
E-participation
Infrastructure
RSA Rank
107th
Tertiary education
141st
Gross tertiary outbound enrolment
135th
Source: Cornell University & INSEAD, 2013
11. Internet Access: SA vs. OECD
Source: Digital Media and Marketing Association, South Africa
Source: World Bank, Eurostat, DMMA
x SA has less than half the relative internet access than the OECD average (±75%)
But there has been a recent acceleration and the gap will close as OECD saturates and new
technologies proliferate in SA
12. Government’s broadband and ICT aspiration
Government’s stated commitment is to achieve
100% broadband access and 1 million linked jobs by 2020
• SA places 70th in the WEF ranking of 144 countries on Broadband readiness
• Increasing broadband can have a material impact on economic growth. The
World Bank estimate that 10% increase leads to 1-1.4% increase in GDP.
• If done effectively, broadband penetration could have major impact on
productivity, growth, and employment.
• National Broadband Policy: South Africa should have a target of universal
broadband, offering a minimum download speed of 100Mbit/s to four-fifths of
the population, by 2030
• Icasa is required “to ensure the rapid assignment of high-demand spectrum
required to extend the wireless component of the open-access broadband
network by mid- 2014”.
13. Public and private sector partnerships are
critical
But also diverse Interests
Diverse strengths
Public Sector – Legitimacy, strategic agenda,
ability to align various levers of influence;
different ROI criteria, some delivery capacity
Private Sector – Delivery capacity, innovation,
technical know-how
Public Sector – Policy Objectives & socioeconomic development
Private Sector – Commercial Objectives & ROI for
Shareholders
The Digital Divide
Private sector ROI attractive:
prevailing regulation/policy
effective
Private sector ROI often very long
term - Investment stimulation &
incentives helpful
Private sector ROI
unattractive.
PPPs drive progress
12
15. South Africa’s ranking on Global Innovation
Index
Overall ranking: 58th out of 142.
Factor (out of 84)
ICT access
ICT use
86th
Government’s online service
81st
79th
Pupil-teacher ratio, secondary
Human Capital
86th
E-participation
Infrastructure
RSA Rank
107th
Tertiary education
141st
Gross tertiary outbound enrolment
135th
Source: Cornell University & INSEAD, 2013
16. What influences personal digital readiness?
Hypothesis
Possible Measures
Access
We need digital access to become
familiar with and engage with the
digital realm. Access includes
connection, device and
affordability
% Population (or
Staff) with access to
the Internet
Age
“Youth” or “Gen-Y” are
overwhelmingly more
comfortable, participative and
productive in digital environments
% population or
customer base or
staff 24 years old or
younger
More educated people are more
able to engage with and adapt to
digital worlds
% customer base or
staff with at least
secondary education*
Education/skill
* Considered Literacy but too
broad; HDI but includes
inappropriate factors
17. Secondary
School +
Not completed
Secondary School
Education/skill Level
A Possible Model for Personal Digital Readiness
Pace-setters
Cautious Rationals
With Access
Digitally
Disempowered
Hopefuls
≥ 25 Yrs
≤ 24 Yrs
Age
18. Broadband and the Internet enables
digitisation trends
underpins
Digitisation
Change in Competitive Imperatives
17
Big Data
Broadband
and Internet
Digital and
social
media
Mobility &
UC
19. Some Gartner predictions for the future
• By 2020, the labour reduction effect of digitalization will cause social unrest and a quest
for new economic models in several mature economies.
• By 2017, over half of consumer goods manufacturers will employ crowdsourcing to
achieve fully 75% of their consumer innovation and R&D capabilities.
• By 2020, enterprises and governments will fail to protect 75% of sensitive data, and will
declassify and grant broad/public access to it.
• By 2020, the majority of knowledge worker career paths will be disrupted by smart
machines in both positive and negative ways.
• By 2020, consumer data collected from wearable devices will drive 5% of sales from
the Global 1000 companies
Source: Gartner Group, 2013
