Information and Communication Technology Growth in South Africa

677 Words2 Pages

Despite continued dynamic growth in the South African information and communication technology (ICT) sector, most significantly in the mobile sector, this growth has yet to meet the national goals of affordable access for all South Africans to the full range of information and communication services. Access to mobile voice and data continues to grow, however broadband access (in particular fixed-line broadband) remains comparatively and noticeably lower than other lower to middle income countries. Prices of all communication services in South Africa continue to remain high by both global and and most noticeably, African standards.

Growth in the ICT sector has consistently risen at almost twice the national growth rate, and today contributes approximately six percent (6%) to South Africa’s GDP. It must be stated that this growth has taken place despite the ICT sector’s policy, which “has not created an environment conducive to investment, nor institutional arrangements likely to result in effective competition - resulting in a number of regulatory bottlenecks that constrain sector expansion.” (Understanding What is Happening in ICT in South Africa, Gillwald, Moyo and Stork, 2013)

Despite the noticeable growth in the ICT sector, fixed-line access has continued to decline, with a survey by Research ICT Africa (RIA) in 2012 showing that only 18% of South African households have fixed lines. These figures further illustrate the decline in fixed line access as they show that only 24% of urban households and 5.8% of rural households have a working fixed line. The increase of mobile for fixed line substitutions is significantly high, with over 86% of users cancelling fixed lines in favour of mobile (RIA South Africa 2012 Household and I...

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...creasingly used to purchase data bundles and data services are increasingly used for VOIP calls and SMSs are being replaced with free instant-messaging services.

The ICT sector in South Africa has the potential for even further growth. The policy makers in South Africa are under increasing pressure to deregulate the industry in order to encourage foreign investment and increase affordability and access to all South Africans. The current policy is under review as the incumbent ANC government faces massive pressure from the DA on this issue, which for the first time in South African history has become an election manifesto focus. Perhaps the forward thinking of the DA on this issue might spark the ANC and ICASA into making the crucial policy changes which will bring even greater equality of access and increased economic growth through the ICT sector in South Africa.

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