’low and slow’ local Internet ’limiting investment in Web services’
About 60% of SA’s population does not have access to the Internet, and only 10% of the country’s population has access to broadband, which is hampering the development of investment in Web services.
Johan Strydom, GM of propertygenie.co.za, a local property listings Web site with over 120 000 listings, says that the low Internet penetration coupled with slow download speeds is hampering Web site advancement in SA.
"While the future looks promising for increased and wider broadband usage in SA, the country still lags behind by international standards"
"Globally, there has been a growth in the use of social networking Web sites, such as face book, youtube and myspace.com.
"The challenge faced by SA is that of ensuring that the use of Internet is spread across various kinds of Internet services. The limiting Internet service in South Africa is a hurdle to businesses that plan to invest in their Web sites."
In 2006 the penetration of new broadband users was at less than 5% in SA, the USA stood at about 23% and the UK was at a steady 25%.
Although there has been good growth in the number of people using the site to view properties, the viewings are very much limited to certain segments of the income groups. This is a clear indication that the digital divide is mainly attributable to the income gap and the high cost of Internet usage in SA.
Says Strydom: "Between 2003 and the first quarter of 2007 broadband uptake has grown by 500 000 users, but this growth was not without impediments. The cost of Internet connectivity is generally expensive and limited bandwidth is a cause for concern because it restricts the optimal use of the Internet. Massive growth in broadband is required as this may increase time spent on the net. The Internet is far more impactful in marketing luxury goods, cars, professional services and property."
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