Dramatic increase in broadband
The economy might be down but there are still plenty of opportunities on the internet and in cellular communication for entrepreneurs, says Arthur Goldstuck of World Wide Worx.
Speaking at the Net Prophet conference in Cape Town, Goldstuck said that the laying of several new undersea cables and the recent landing of Seacom’s cable in Mtinzini in KwaZulu Natal would see a dramatic increase in broadband capacity.
Most African states were rolling out fibreoptic and microwave networks that will see an improvement in the quality of connectivity between countries on the continent, he said.
A study conducted last year by World Wide Worx showed that sub-Saharan Africa’s available bandwidth would increase by 120 times over last year after six new cables are completed in 2011.
He said that local online ad spend grew by 32% last year, the highest in three years.
“Online media is almost healthier than anywhere else in the world, except Brazil.”
He said locally the internet experience curve — the length of time users had spent on line — was also growing. The longer someone was on line, the more comfortable they were in using web applications such as e-commerce and online banking.
He said that another trend was the increasing number of cellphone users who used their handsets as their primary access to the internet, with 500000 users expected by end of this year as against 180 000 last year.
“You have to catch the rising tide to leverage those opportunities rather than get depressed about the depression.”
He said that servicing the small business sector was a growing opportunity. About 60% of all business owners access the internet through ADSL, whereas just six years ago most small firms used dial-up to connect to the internet.
Goldstuck said there was an opportunity for firms to educate entrepreneurs in online marketing and online accounting packages, as many business owners knew little about how to maximise their broadband connection beyond emails and the internet.
Entrepreneurs had the opportunity to use the internet to level the playing field and bring down the cost of any existing service. They could also employ blogs and Twitter feeds to become independent watchdogs or thought leaders in their specific field.
When it comes to cellphone opportunities, Goldstuck said those entrepreneurs that can enhance the life of users in a way that is not dependent on a cellphone network will have a real winner of an idea.
He said a gap exists for independent firms to advise users, as cellphone networks tended only to relay information to their user base that would help their network generate more revenue.
A business that has found an opportunity with cellular communications is Mobilitrix. The company runs a service that allows people to SMS a short code and in return receive information over their cellphone.
Dave Duarte, a mobile marketing specialist, says he uses the South African-run service to get feedback from those that attend his marketing seminars.
Chris Rolfe, the company’s CE, says businesses can use the service to run surveys, competitions or to send customers information. Customers are billed only on the number of times they use the service. An SMS can range from between 73c to R2,74.
Rolfe says the reality is that not many people have internet access and that only 10% of all cellphone users have web-enabled phones. The service aims to bridge this gap as it uses plain-text SMSs that can be read on all handsets.
Launched last year, Mobilitrix’s clients include Checkers, Spar and Spur. Rolfe says the company plans to expand to 10 African countries.
Business Day
Loading ...