Internet Entrepreneur slates Telkom
Speaking to Moneyweb about the recent Microsoft acquisition of a 1.6 % stake in Facebook, Lingham – winner of the Top Young IT Entrepreneur in Africa – reiterated the importance of affordable Internet to ensure a booming online environment in South Africa.
“South Africa is being held back by the various companies that forced us to have very expensive Internet. But we're catching up,” said Lingham.
The Incubeta founder further highlighted that the online advertising market is growing at a rapid rate internationally.
“If you look at the online advertising market, it's hundreds of billions of dollars worldwide. And companies like Facebook are now taking away face time from TV, radio, magazines, other media, and a portion of it's going online, so the dollars have to flow there,” said Lingham.
‘It’s pretty sad’
When asked whether South Africa can leapfrog certain developments if the country gets decent broadband, Lingham painted a bleak picture.
“We can't at the moment. We are an Internet company in Cape Town, and I'm running a new company called Synthosite. We had no internet for four days. One of Telkom's, whatever, boxes went down and we had no Internet for four days. How do you run a Internet company with no Internet for four days?” asked Lingham.
“I don't know. Our infrastructure is shocking, the cost is ridiculous, and the economics of running Internet businesses in Africa is pretty tough right now, and I think we are looking for government to change that. I mean the rest of the world – we are one of the most expensive countries in the world for Internet. It's pretty sad,” Lingham concluded.
Renewed concerns about poor ADSL service
Telkom has come under renewed fire for their high prices and low service levels recently with prominent experts like the OECD’s Dr. Taylor Reynolds questioning the state of fixed line broadband in South Africa.
Telkom was also dragged in front of the ICASA Complaints and Compliance Committee last week for its alleged non-compliance with the ADSL regulations, something which has taken the Regulator over a year to address since the regulations became law.
Most experts however agree that the only solution for the poor state and high prices of local ADSL offerings is competition. Local Loop Unbundling and a well regulated wholesale and interconnection regime can also play a pivotal role.
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