Is the south African business infrastructure about change in a big way or is all the hype about broadband simply another sales ploy from the large telecoms companies?

In many ways and if figures from first world countries can be believed, broadband certainly will play a large part in leveling the playing field most of the sectors where knowledge and information drive competitiveness and profitability.

The boom in the sme sector in many countries has been attributed to the ease, low cost and breakdown of barriers to entry provided by the availability of broadband technology.

Some of the ways that small firms may benefit are:

1)Geographic location becomes less important so firms in small towns and remote areas where salaries, property and transportation costs are low can now compete.

2) Infrastructure cost savings will equate to lower cost and lower prices for the end user.

3) Start-up costs are lower and hence the risk of starting becomes much lower.

4) Online training and elearning can be used to access high value low cost training and support for small business employees.

5) As online products and services become more popular, SEO and online advertising becomes more important. Although the small firm will still not be able to compete with he big budget advertising of large firms, entrepreneurs with the right skills and experience can gain valuable exposure through online marketing.

6) New employment opportunities will emerge resulting from new technology.

In addition my argument is supported by the below article in the Business Times.

Comments welcome

Ben

-----------------------------------------

The invention of the printing press is regarded as the enabler by which the human race leapt forward in making knowledge widely accessible.

Some believe it is broadband capability — even more than the advent of the Internet — that will be the next enabler of the democratisation of knowledge. In developing countries such as South Africa, technology is getting to a point where it can leapfrog some developmental challenges.

Too much traffic on the roads? Broadband could significantly reduce that by allowing people greater mobility. Business people can conduct the affairs of a company from any connected location, including their homes, cutting down on fuel consumption, traffic congestion and pollution — to name but some of the possibilities.

Inconsistent standards of education? K nowledge can be brought to the poorest communities, even in the most remote regions, in any country.

Broadband connectivity has the ability to change society completely and improve the quality of life of those who have it.

Technology is fast becoming available to the masses.

Just as the cellphone revolutionised the connectivity of the masses, broadband may bring Internet and e-mail access to the common folk.

But it is not happening fast enough, according to Viv Crone, Spescom chief technical officer and president of the SA Institute of Electrical Engineers.

“This can be attributed to a lack of understanding and appreciation of what it can do for social upliftment and change,â€