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Telecoms investments boost SA economy [ITWeb]
[October 23, 2014]

Telecoms investments boost SA economy [ITWeb]


(ITWeb Via Acquire Media NewsEdge) Telecoms service providers are looking to collaborate in order to drive greater efficiency and profitability, says Eckart Zollner, head of business development at Jasco ICT Solutions.

There has been a significant investment in the telecoms landscape in SA, influencing better access to communication technology for all, thus stimulating a stagnant local economy.

So says Eckart Zollner, head of business development at Jasco ICT Solutions (http://www.jasco.co.za/Divisions-ICTSolutions.aspx), who notes there has been increased momentum in terms of mergers and acquisitions between the various local fixed-line and mobile operators.



He gives the example of the acquisition of WiFi provider AlwaysOn by Internet Solutions which now provides ubiquitous wireless access through thousands of hotspots across SA as well as many abroad.

Also, a mature supply of fixed and wireless infrastructure has been deployed – several undersea cables are operational and a terrestrial fibre support laid, says Zollner. "With cable systems from Seacom, Eassy and WACS now in place, linking the country with the rest of the world and helping to drive down the cost of broadband, the telecoms landscape has opened up dramatically." Across both the fixed-line and mobile markets, service providers are looking to collaborate in order to drive greater efficiency and profitability while offering more effective services to a wider audience, he says.


According to Zollner, these factors have generated increased competition and reduced cost of services – changing business models that will pave the way for new services, new solutions and more pervasive communication to connect more users, more affordably.

Access to advanced services such as Internet and e-mail is now more affordable to the broader base of the population. Also, economic growth is now enabled by access to information and access to markets by a much larger base of society, he adds.

Businesses are now able to become more efficient, more automated and offer enhanced services to their customers. This will lead to organisations becoming more competitive globally – attracting new markets and actively grow market reach, says Zollner.

"What this all boils down to is more pervasive access to connectivity, which in turn results in greater access to services, better communication links, enhanced interconnection between different operators and service providers, and the beginnings of a bridge in the ever-present digital divide." Zollner believes the emergence of new service providers has led to greater innovation, resulting in increased competition, which in turn drives down pricing.

However, many consumers and businesses are not yet sufficiently aware of the available options, and further education in this field is needed, he concludes.

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