1st Annual DMMA Publisher Conference
Increasing ICT competitiveness and usage in South Africa: the Challenge and Opportunity
Loren Braithwaite-Kabosha SA Communications Forum09 October 2013
Introduction of SACF
Digital Media Opportunity
Issues requiring urgent attention
Some of the SACF Members:*
Background of SACF
- Members of SACF also include numerous small and medium enterprises in the ICT and broadcasting industries, including electronic manufacturers ( this is only a partial list for the sake of brevity)
The SACF is an organisation which pools together high level technical skills and business expertise in the ICT sector.
- Among South African ICT industry associations, SACF is the association which includes members from across the entire spectrum of the industry, rather than specific silos.
To be the credible, nationally supported umbrella industry platform:that serves, promotes and protects the interests of SACF members and other ICT associations,to enable the achievement of Vision 2020 and other initiatives,to create an innovative and globally competitive ICT industry,to accelerate national development,by proactively engaging the government and all other stakeholders.
Unleashing the power of the SA ICT industry to create themost enabling ecosystem for a universally connected and prosperous South AfricaSACF Strategic Objectives:To become the unifying platform of the ICT sectorTo be instrumental in developing the appropriate policy and regulatory ecosystemTo provide thought leadership through research and developmentTo coordinate the development of ICT human capitalTo promote ICT as a means for socio-economic developmentTo further transformation in the ICT sector
Creating jobs is one of the most critical challenges facing South Africa today
This UN recommendation, specific to the Southern African region, suggests how to help reduce the sub-regions alarming and dangerously provocative income inequalities: SACF recommends consideration of its adoption
Recommended Intervention Areas in Southern Africa As part of development policies, public authorities must mobilise urban young peoples potentials and energies with proper training in entrepreneur skills and information/ communication technologies, in order to enable them to set up and run their own businesses. Some urban authorities have tried to foster inclusive cities, but none have fully considered children and youth in their service provision and governance strategies. Cities should make more efforts to deliver broadband Internet to all urban neighbourhoods, rather than reinforcing existing inequalities in services delivery.
In this Information Century, is South Africa Competitive?
South Africa: Declining ICT Competitiveness:
Minister Carrims Priorities:
1.Set a firm foundation for a further reduction in the costs of communication. Carrim says the digital revolution is changing very fabric of our society but that its important the poor are not left behind.
2. See realistic progress in broadband becoming more extensive, affordable and speedier. "We intend to finalise the government's National Broadband Policy and Implementation Programme by end of November, and says his department wants to have an effective spectrum policy related to broadband before March next year.
3. Reduce the digital divide between the haves and have-nots. "We are going to place much greater stress on delivering in rural and underserviced areas.The Internet presents a great opportunity for government to provide services to citizens, Carrim says. We must reduce, not increase, divides. We have made some progress, but not enough. We are lagging behind our peers.
Minister Carrims Priorities, cont.
4. Stabilise the department of communications; state-owned companies and public entities in the ICT sector and make them more effective.
5. Begin with the roll-out of digital migration before the end of this year.
5. Locating ICT in the national development plan and broader policies of the majority party;
6. Finalising governments ICT policy review.*
Global Perspective 1: Fixed Broadband PriceMost recent data for Q3 2012. Accessed 20th July 2013Country selection based on availability of reliable informationAll ADSL prices exclude modem and PSTN line include ADSL capability rental*
Global Perspective 2: Mobile Broadband PriceMost recent data for Q3 2012. Accessed 20th July 2013Country selection based on availability of reliable informationAll services based on 3G/HSPA, lowest published price selected*
Global Perspective 3: High usage Mobile dataSouth African price based on 24 GB limit; Brazil on 10 GB; Russia on 30 GBThese high end user broadband services are critical for multimedia learningGenerally unaffordable for the majority of South AfricansData for Q3-2012*
Global Perspective 4: Low usage Mobile dataSouth African price based on 1 MB limit; Brazil & Russia 100 MB; China 120 MBTarget low end social media and email users: Affordable but of limited useToo costly and capacity limited for learning and work-related usageData for Q3-2012*
Economic ImplicationsInternational Implications of high Communication CostsGlobal investment decisions target countries with lower communication costs;South Africa losing more than competitive advantage also losing position as favoured investment destination and ICT gateway for the continent;Example: Numerous global ICT companies including IBM, Google and Intel companies locating their African headquarters in Kenya higher ICT growth, Lower ICT pricesNational Implications of high Communication CostsHigh costs restrict and limit significant engagement with the tools and resources available through the internet for a majority of South Africans. Even those who have limited access (Facebook and Twitter) do not become fully fledged Digital Citizens able to utilise the maximum benefits of ICT for human developmentSouth Africa is among the nations with the highest income inequality in the world. High costs means large percentage of population shut out of Knowledge Economy; stuck in quagmire of poverty; and utilise a larger percentage of income for communications costs of basic needs.Overall drag on economic growth as access and implementation of ICT is an enabler across all industries.*
Source: PWC, Informa Telecoms & Media
South Africas entertainment and media market is set to grow at a CAGR of 10.9% in the next five years.
Total South African entertainment and media market by segment, 2008-2017 (R million)South Africa Historical data Forecast data CAGT %20082009201020112012201320142015201620172013-19Television16 32219 81423 68025 95127 42629 08830 58432 11734 00535 772YOY growth (%)21.4% 19.5%9.6%5.7%6.1%5.1%5.0%5.9%5.2%5.5%Internet8 61710 06411 80915 72220 95227 69736 17645 80155 77963 239YOY growth (%)16.8%17.3%33.1%33.3%32.2%30.6%26.6%21.8%13.4%24.7%Radio2 6502 6643 0193 2433 6123 8854 2424 6345 0555 513YOY growth (%)0.5%13.3%7.4%11.4%7.6%9.2%9.2%9.1%9.1%8.8%Filmed entertainment1 7561 6991 7802 0812 2162 3662 5152 6742 8683 106YOY growth (%)-3.3%4.8%16.9%6.5%6.8%6.3%6.3%7.2%8.3%7.0%Video games1 4971 6011 7371 9372 1552 3572 5412 7733 0283 316YOY growth (%)7.0%8.5%11.5%11.3%9.3%7.8%9.1%9.2%9.5%9.0%
Source: PWC, Informa Telecoms & Media
South African entertainment and media consumer spend 2008-2017 (R millions)
South Africa Historical data Forecast data CAGT %20082009201020112012201320142015201620172013-19Television10 04011 90513 55615 01716 05517 09117 86718 70019 71520 695YOY growth (%)18.6%13.9%10.8%6.9%6.5%4.5%4.7%5.4%5.0%5.2%Internet access8 1109 51511 19714 85719 76926 14734 15043 23252 64759 570YOY growth (%)17.3%17.7%32.7%33.1%32.3%30.6%26.6%21.8%13.2%24.7%Filmed entertainment1 3891 3971 4251 5701 6641 7721 8761 9902 1362 325YOY growth (%)0.6%2.0%10.2%6.0%6.5%5.9%6.1%7.3%8.9%6.9%Music2 5572 3602 3142 2122 1542 1462 1472 1602 1812 200YOY growth (%)-7.7%-2.0%-4.4%-2.6%-0.4%0.1%0.6%1.0%0.9%0.4%
A Complex compendium of issuesAttempting to solve one component in isolation will lead to failurePublic sectorDisconnectBottom line focusLimited recognition of value Mass access not part of business value propositionNational scale market failureAd hoc or philanthropic initiatives as CSRDisruptive technologies suppressedWeak ICT utilizationCapability gapsOverly techno-centric focusFailure to recognise mutual needsPrivate sectorNational/Corporate Interest ConflictsRegulatory DeficienciesVertical Silo structures in conflict with ConvergenceWeak ICT policy design & implementationDiffering expectationsWeak USO enforcement*
Constrained solutionsTransformation ModelBusiness as usual*
The purpose of all Human Endeavour is to improve its life-circumstances: Health; Wealth; Security; Sustainability; Comfort; Happiness;All summarised as Human WellbeingThe Principal Tool for doing this is Human Knowledge;The Principal Tools for Managing, Distribution, and Sharing Knowledge are the ICTs;The links between Each and All Global ChallengesFinal thoughts: The Millennium Challenges*
ConclusionConcluding recommendations:The high cost to communicate; infrastructure deficit in rural and underserviced area