plug
27-09-2003, 03:54 AM
The Internet is the fastest growing technology in history, far outpacing the telephone, television, and practically any other communications or information medium. It’s innovative in nature, constantly evolves and has value for all who use it.
In 2004, Forrester Research predicts North America to realize USD 3.5 trillion in eCommerce transactions while the Asia-Pacific can expect USD 1.6 trillion, and Europe should see USD 1.5 trillion. http://www.epaynews.com/statistics/transactions.html - With these figures in mind, it is a fact that the Internet plays and can play a very vital part in any country’s economy.
There is no doubt that the Internet will have a profound impact in the future and the way we do business locally and globally. For this reason it is crucial that Internet access develops in a way where it’s easily accessable to all. Consumers are best served when prices are affordable in a competitive market and when there is a wide variety to choose from.
For example:
Currently only John supplies Internet access. Mark comes a long and undercuts John in price and wins some customers from John and gains more customers than John. John decides to try and win his customers back and drops his price and increases bandwidth on his packages. John wins some customers back. Now Rick provides Internet Access but he got a special deal with bandwidth and can undercut John and Mark in price to win over more customers and at the end of the day, all competitors are trying to win over customers as hard as they can. Their sole mission is to keep customers happy as this would be the main factor determining profits.
If only John supplied Internet access and there was no competition, John had no reason to improve his offering. His only mission would be to make money, even at the expense of his customers because they have no-where else to go. John has little motivation to improve and innovate and an improvement and betterment of service is not a definite requirement because it would not mean that he could go out of business if he doesn’t improve. In the competition scenario with John, Mark and Rick drastic improvements are constantly required which ultimately is the value creator for consumers.
Why is Internet Access so expensive in South Africa?
Telkom has a monopoly on communications in South Africa. More or less like explained in the competition scenario above. Innovation required from them is not the determining factor of profit. They are only in the business of making money, even at the expense of the customer. There is no drastic demand on Telkom to innovate. This probably explains the imposed limits on their 3rd World ADSL offering.
How could we make it affordable for everybody? Deregulate the communications industry as soon as possible. It will give South Africa a bigger stake in a Trillion Dollar E-Commerce market. Create jobs. Create a wider uptake of Internet access. Make Internet Access affordable to most households. Knowledge is Power and the Internet is man’s largest library of knowledge.
In 2004, Forrester Research predicts North America to realize USD 3.5 trillion in eCommerce transactions while the Asia-Pacific can expect USD 1.6 trillion, and Europe should see USD 1.5 trillion. http://www.epaynews.com/statistics/transactions.html - With these figures in mind, it is a fact that the Internet plays and can play a very vital part in any country’s economy.
There is no doubt that the Internet will have a profound impact in the future and the way we do business locally and globally. For this reason it is crucial that Internet access develops in a way where it’s easily accessable to all. Consumers are best served when prices are affordable in a competitive market and when there is a wide variety to choose from.
For example:
Currently only John supplies Internet access. Mark comes a long and undercuts John in price and wins some customers from John and gains more customers than John. John decides to try and win his customers back and drops his price and increases bandwidth on his packages. John wins some customers back. Now Rick provides Internet Access but he got a special deal with bandwidth and can undercut John and Mark in price to win over more customers and at the end of the day, all competitors are trying to win over customers as hard as they can. Their sole mission is to keep customers happy as this would be the main factor determining profits.
If only John supplied Internet access and there was no competition, John had no reason to improve his offering. His only mission would be to make money, even at the expense of his customers because they have no-where else to go. John has little motivation to improve and innovate and an improvement and betterment of service is not a definite requirement because it would not mean that he could go out of business if he doesn’t improve. In the competition scenario with John, Mark and Rick drastic improvements are constantly required which ultimately is the value creator for consumers.
Why is Internet Access so expensive in South Africa?
Telkom has a monopoly on communications in South Africa. More or less like explained in the competition scenario above. Innovation required from them is not the determining factor of profit. They are only in the business of making money, even at the expense of the customer. There is no drastic demand on Telkom to innovate. This probably explains the imposed limits on their 3rd World ADSL offering.
How could we make it affordable for everybody? Deregulate the communications industry as soon as possible. It will give South Africa a bigger stake in a Trillion Dollar E-Commerce market. Create jobs. Create a wider uptake of Internet access. Make Internet Access affordable to most households. Knowledge is Power and the Internet is man’s largest library of knowledge.