While South Africa is frequently maligned for lagging behind on leading edge technology, some market watchers think differently – arguing that the country is, in fact, at the leading edge of the continent’s technology evolution with its consistent introduction of new technologies and solutions, such as voice over Internet protocol (VoIP) and broadband.
One of the market watchers who takes a more positive view, is Derick Roberts, the CEO of specialist wireless solutions company, TruTeq Devices.
“The cellular market has experienced explosive growth since its inception in the middle 1990s.There is now saturation in the market, with uptake sitting above 100%. There is now stiff competition between the country’s service providers – Vodacom, Cell C, MTN, Autopage Cellular and Nashua – to offer better packages to users. The war is now raging on the data platform – users are demanding more and more data.”
The total size of the South African information technology (IT) market is expected to increase from US$9,3-billion in 2010 to around US$13,7-billion.
This is not an insignificant number, says Roberts.
Continuing, he says the growing penetration of the Internet is fuelling the demand for higher end computer power and products –which are now embodied in more mobile devices such as laptops and iPads. As the mobile user “really comes alive” – and as the demand for desktop computers decreases- the number of broadband Internet users is projected to reach around 2,15-million by 2013.
South African companies have long been providing IT services in other African countries and have been thriving because of their understanding of the local business environment.
Providing solutions under various business conditions in Africa has given South African software companies the time and space to fine-tune their solutions.
“The edge that South African companies hold is that they understand that each country – and each market – demands a different kind of solution. That success in Africa lies in providing tailored solutions.”
He says “what is clearly apparent” is that the South African market is the gateway to Africa’s wireless future.