A recent report from Research ICT Africa (RIA) reveals that mobile broadband is cheaper and faster than fixed-line broadband – mainly ADSL – in South Africa. This, unfortunately, can be damaging to the country.
The high price and low speed of fixed broadband means that mobile broadband is the predominant way for South Africans to connect to the Internet.
South Africa’s relatively high mobile broadband connections and low fixed broadband penetration is in contrast with more developed nations where fixed broadband is the predominant form of accessing the internet.
High ADSL prices in South Africa
The report said that while South Africa’s ADSL prices have come down over the past few years, they are still not anywhere near as competitive as services offered by the Mobile Operators.
“Poor broadband penetration levels in the country are an outcome of high prices. The high prices and poor quality of ADSL services reflect the absence of competition in this segment of the broadband market,” the RIA report states.
Challenge facing South Africa
The problem with a high mobile broadband and low fixed broadband penetration is that wireless is inherently less stable than fixed broadband technologies such as DSL and fibre.
“The implications of not having ubiquitous, reliable always on high-speed connectivity for the economy and global competitiveness are serious,” the report states.
“South African enterprises dependent on stable high-speed broadband frequently identify broadband as a major input cost in their businesses.”
To meet the increasing demand for data bandwidth and reliable connectivity, 4oceans will be launching its ubiquitous, reliable always on high-speed satellite broadband services for businesses during Q1 2014.
