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The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
The State of the Internet in South Africa
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The State of the Internet in South Africa

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  • Good afternoon. Thanks very much for having me.
  • my name is Craig and I work at IS. I look after a portfolio of 5 businesses/services that make up a strategy called unified cloud messaging. I was asked to come and speak to you about the Internet and specifically, internet access in SA.
  • Today I was asked to talk to you about the state of the internet in SA. From what I understand, We have a mixture of geeks and non-geeks, so I’ve kept the talk pretty highlevel. Today is mainly about giving you an understanding of the playing field and the different players involved. I’d argue strongly that there are few industries that are as complex as this one. You’ve got the private sector, ISP’s, government, ICASA, international involvement, telkom and NPO’s all who are pulling different levers and have different influence in how this is shaping.Why is this important?
  • We have no choice. I’d like to put it to you today that getting this right is the most important challenge facing us a country. The more one understands about this issue, the different players and the forces at work, the more you can become an advocate for true broadband to the masses and a highly connected country. Ultimately that’s what I’m pitching today. And I believe, we’re on the cusp of realizing that dream.
  • For too long broadband access has been seen as a nice to have rather than a key economic driver. In my opinion, broadband should be made a basic human right. As soon as we begin to place it on the same level as clean water and basic sanitation, the focus changes substantially.
  • SA’s GDP sits just under R3BillionBroadband penetration vs. GDP:A 2009 World Bank report has analyzed the impact of broadband on growth in 120 countries from 1980 to 2006, showing that each 10 percentage points of broadband penetration results in 1.21% increase in per capita GDP growth in developed countries, and 1.38% increase in developing countries. Investing in broadband is an investment in economic growth and development.Currently, just the internet economy (goods purchased via the internet) is equivalent to 2,8% of our GDP
  • 2011 – 85 million internet users (25%) – doesn’t tell the full story – many of these are cellular users/dula simcards. Only 10% of this number are broadband users1000,000 fixed subscirbersInternet penetraiton = 17% (5th in Africa)This growth brings Internet penetration in South Africa to approximately 17 percent. Despite rapid growth, however, it lags significantly behind the biggest Internet user bases of Africa. Nigeria, with 45-million users, has 29 percent penetration, while Egypt’s 21.6-million users gives it 26 percent penetration and Morocco’s 15.6-million users represents 49 percent penetration. Kenya claims 10.4-million Internet users, for 25 percent penetration.2 
  • Access to quality broadband is means different things to different people depending on what side of the Gini index you’re sitting. SA is the poster child for inequality globally and what we take for granted at an ADSL level is life changing for someone in rural KZN. At the same time, businesses like financial traders rely on high speed and low latencies, which at volume, can make a major difference in financial performance.
  • Cost of a GB:Local/IPC or IP Connect Costs – 70%International – 20% (dropped from 40%)Email analogy – cheaper to send mail from JHB, Durban, Mtunnzizi (via Seacom to London), WACS to CT).
  • WACS:CT – London. Touching 12 African countries;Design capacity of 5,12tbps – highest capacity cable to date;$650million projectInteresting: despite being an international consortium that owns the cable system, the engineering IP has come from SA – one of the first cables in the world to use GMPLS tech(optical fibre switching technology within the cable). Something to be proud ofBenefits:Talking about South Africa becoming a highly connected country – number of cables (5);Redundancy – reducing latency and increasing availability – incredibly important for business ----- Meeting Notes (2012/06/15 14:54) -----do business with african countries
  • SEACOM as an exampleLocal fibre projects:FibreFTTHThe local loop (IPC costs)
  • The furture is wireless – the economics of an infrastructure are bad! Wireless = long distance, fibre as backhaulLTE vs Super Wi-Fi – MNO will be launching LTE services by the end of yearOften you can tell what tech is going to win by watching the handset makers – iphone4s = LTE enabled
  • Application layer! Economics of the infrastrcutre business is badNetflixNetflix has one of the biggest Internet footprints of any company, yet for years it has essentially been paying rent on all that space.The video service announced late Monday that it would like to become a land owner.Netflix (NFLX) said it has created its own content delivery network called Open Connect. It's a series of servers, routers and fiber that can send Netflix video from the source to Internet Service Providers (ISPs) like Comcast (CMCSA), Time Warner Cable (TWC, Fortune 500), Verizon Wireless (VZ, Fortune 500) and AT&T Wireless (T,Fortune 500).Previously, Netflix had been relying exclusively on third parties to deliver its content from its servers to ISPs. Level 3 (LVLT) had been the company's primary content delivery network since November 2010, but Netflix also relied on Akamai (AKAM) to handle some of its traffic. Shares of Akamai plunged on the news.etflix serves up just under 1 billion hours of streaming video per month, second only to Google's (GOOG, Fortune 500) YouTube. That amounts to petabytes of data -- millions of gigabytes each month -- sent over borrowed networks.At a certain point, it makes sense to stop relying on landlords and buy the building yourself."The world's other major Internet video provider, YouTube, has long had its own content delivery network," Ken Florance, Netflix's content delivery chief, wrote in the company's blog. "Given our size and growth, it now makes economic sense for Netflix to have one as well." 
  • The operators strike back!!!!RCS (Rich Communications Suite) – Joyn. Comes integrated onto the device, able to use across multiple networks. I believe that we’re going to see the operaotrs pulling back power from the likes of whatsapp, imessage, bbmText messaging - $170billion industryThe London-based Ovum research firm estimates telecommunications companies lost nearly $14 billion last year in text-messaging revenue as consumers migrated to applications allowing them to send messages over cell phone data networks.Ovum said the companies still took in an estimated $153 billion, but that was down 9 percent from a year earlier, and Pinger co-founder Joe Stipher wants to reduce the amount even more."Text messaging is free, and calling is going to be free," said Stipher, wearing jeans in contrast to the dark suits favored by thousands of cell phone company executives attending the four-day 2012 Mobile World Congress that ended Thursday. "Data is going to be like electricity or water, not totally free, but do you worry about giving someone a glass of water at your home or letting them plug in? No." 
  • ----- Meeting Notes (2012/06/15 14:54) -----Ubiquitous high speed wireless internet accessglobal innovation that follows thatfearless connected entrepenuersavailable and experienced capitalfearless and connected consumersability to reach millions in accelorating timeunprecendented combination of focus on tech and designPlug and play type environment for entrepeneurs
  • At a personal level I believe that we need to look at least 10 years into the future – putting the steps in place for
  • Transcript

    • 1. The State of the Internet in South Africa Craig Stewart // @stewartcraig
    • 2. Who I am Craig Stewart Product Portfolio Manager @ Internet Solutionstags: passionate african focused ambitious foot model (retired) believer wine goo goo dolls lost in:
    • 3. 1.The Infrastructure is: I. Important II. Irrelevant2. Reimagine
    • 4. WHY ISTHISIMPORTANT?
    • 5. why is this important? WHY IS THIS IMPORTANT? we have no choice…
    • 6. Internet access for all
    • 7. why is this important? The Economics “A 10 percentage points of broadband penetration results in a 1.38% increase in per capita GDP growth in developing countries”.Source: World Bank Report, 2009
    • 8. why is this important? The Stats 2011 = 85 Million Internet users Internet Penetration = 17%Source: World Wide Worx, 2012, Internet Access in SA
    • 9. fact: SA has one of the highest GINI Coefficients in the world...
    • 10. THEINFRASTRUCTUREIS IMPORTANT
    • 11. the infrastructure is important What’s really in a GB?
    • 12. the infrastructure is importantSource: Steve Song - manypossibilities.net
    • 13. the infrastructure is important
    • 14. the infrastructure is important The Future is Wireless… boom.
    • 15. THEINFRASTRUCTUREIS IRRELEVANT
    • 16. the infrastructure is irrelevant The bottleneck will always exist
    • 17. the infrastructure is irrelevant 1
    • 18. the infrastructure is irrelevant 2
    • 19. IT ISTIME TOREIMAGINE!
    • 20. It’s time to reimagine… NEWS
    • 21. It’s time to reimagine… HIRING
    • 22. It’s time to reimagine… HEALTHCARE
    • 23. It’s time to reimagine… VIDEO CREATION/PRODUCTION
    • 24. It’s time to reimagine… ADVOCACY
    • 25. It’s time to reimagine… IDEA BUILDING/FUNDING
    • 26. It’s time to reimagine… EDUCATION
    • 27. THE FUTURE:THE MAGNITUDE OFCHANGE IS GOING TO BESTUNNING
    • 28. What does this mean… For your company? For your clients? And most importantly, for your career?
    • 29. “We hope to rewire the way people spreadand consume information… We think a moreopen and connected world will help create astronger economy with more authenticbusinesses that build better products andservices”.Mark Zuckerberg, Founder/CEO, Facebook.Letter to Potential Shareholders, May 2012

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