Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Political war erupts over BEE in the ICT sector - Solly Malatsi

      Political war erupts over BEE in the ICT sector

      13 December 2025
      Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

      Icasa told to align on BEE in move that will favour Starlink

      12 December 2025
      South African solar industry faces a reality check

      South African solar industry faces a reality check

      12 December 2025
      OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

      OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

      12 December 2025

      A leaner BCX positions itself as market consolidator

      11 December 2025
    • World
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
      IBM reportedly close to $11-billion deal to buy Confluent - Arvind Krishna

      IBM reportedly close to $11-billion deal to buy Confluent

      8 December 2025
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Danie Nel » Cheap broadband: is business ready?

    Cheap broadband: is business ready?

    By Editor9 February 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Danie Nel

    [By Danie Nel] The SA broadband landscape has been littered with announcements that signal the transformation of broadband usage in this country.

    The Seacom submarine cable recently went live and the East African Submarine System (Eassy) is on track to come on-stream by mid-year.

    But the arrival of these high-capacity undersea cables and long-awaited cheap, reliable and fast broadband connectivity also bring with them some challenges. For a long time, all technology planning in business in SA has been geared towards operating in a bandwidth-constrained economy.

    This means that improving efficiencies, while reducing the costs of technology infrastructure and service delivery has been the main driver. With the imminent arrival of real broadband, business in SA is suddenly faced with a new challenge — how to optimise functionality and innovate when cost of connectivity is not longer a major factor.

    It may sound like a no-brainer. How can better bandwidth not be good for business? But the reality is, not all businesses are in a position to take advantage of these new developments in the broadband market.

    It’s similar the problem that has afflicted airlines which were caught short by hedging against the rising cost of oil by forward-buying fuel at fixed prices. They did this only to find that prices tumbled, leaving them in the uncomfortable position of having to continue paying inflated prices for a resource that their competitors were now snapping up for half the price.

    Businesses that have bought into long-term bandwidth agreements will be shackled to higher payments while competitors gain a technological edge.

    In a bandwidth-constrained economy, entering into fixed agreements for bandwidth provision made perfect sense. In a broadband landscape with more bandwidth and greater value for money on the horizon, it clearly does not.

    Even though the era of abundant bandwidth has not yet arrived, business of all shapes and sizes should be putting flexibility at the forefront of their IT planning in the coming months.

    In addition to flexibility, the second element that SA businesses need to get right, and need to get right soon, is visibility. Having a proper baseline survey — a snapshot of their telecommunications environment — is vital. Good information is needed to support quantitative decision making and investment, cost and performance optimisation decisions.

    With the advent of better broadband, the need for proper baseline information increases. The internal telecoms infrastructure of most companies is already becoming increasingly complex due to the need to run converged voice, data and video applications on their networks.

    Corporate networks are being accessed over the Internet by employees, customers and suppliers and in some cases companies are trading online from their websites. In many big companies, users are accessing ERP, human resources and other back-office applications across the network from a centralised data centre or server.

    With improved broadband, a host of opportunities becomes possible, from interactive distance training, to new Web-based applications that improve a user’s experience, to greater automation to improve efficiency and reduce staff costs.

    These and other applications will accelerate as bandwidth becomes cheaper, and if companies don’t take steps to get a proper fix on their telecoms environment, they may be left treading water in a sea of technology while their competitors are ready to take advantage.

    In an inversion of the 80-20 rule, companies should be aiming to spend 20% of their time looking for information and 80% analysing it to make good business decisions. The reality in SA is that most companies spend 80% of their time hunting down the information and just 20% looking at it strategically. Investing in a baseline survey of their businesses and putting in place processes to ensure sustainability can help fix this ratio.

    The King 3 Report, which was published a few months ago, may help focus the minds of business leaders in this regard. Among its new reporting requirements is a clause to consider the strategic role of IT and its importance from a governance perspective.

    This and other clauses have broadened the scope of corporate governance in SA with its core philosophy revolving around leadership, sustainability and corporate citizenship. This can only be a good thing, especially if it helps SA businesses become aware that technology is not an add-on but an integral part of how they do business.

    And it has come in the nick of time. Ubiquitous broadband might be almost here, but unless businesses take stock now and plan accordingly, we might not find that it is the windfall that everyone is hoping for.

    • Daniel Nel is CEO of Nebula, an independent professional services firm in the enterprise telecoms space
    • Action needed to stop Sentech’s ‘terminal decline’
    • Sentech role in telecoms questioned by DA


    Danie Nel Eassy Nebula Seacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleUnion wants Sentech board axed
    Next Article MTN jumps on the HSPA+ bandwagon

    Related Posts

    Seacom targeting Q4 2026 to lock in funds for huge new broadband system - Prenesh Padayachee

    Seacom targeting Q4 2026 to lock in funds for huge new broadband system

    11 November 2025
    Africa's next terrestrial internet leap might come from the sea - Seacom Nic Breytenbach

    Africa’s next terrestrial internet leap might come from the sea

    10 October 2025
    TCS | Seacom 2.0: Alpheus Mangale unpacks all the details about the giant new subsea system

    TCS | Seacom 2.0: Alpheus Mangale unpacks all the details about the giant new subsea system

    3 October 2025
    Company News
    When the physical world goes online: the new front line of cyber risk - Snode Technologies

    When the physical world goes online: the new front line of cyber risk

    12 December 2025
    Endless possibilities with Adapt IT Telecoms' unified VAS platform - Matthew Seabrook

    Endless possibilities with Adapt IT Telecoms’ unified VAS platform

    11 December 2025
    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    11 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Political war erupts over BEE in the ICT sector - Solly Malatsi

    Political war erupts over BEE in the ICT sector

    13 December 2025
    Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

    Icasa told to align on BEE in move that will favour Starlink

    12 December 2025
    South African solar industry faces a reality check

    South African solar industry faces a reality check

    12 December 2025
    TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

    TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

    12 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}