Broadband is recognised as a strategic tool in the building of an information economy and society. Extensive international studies have been performed on the benefits of investing in Broadband infrastructure. In every such study Broadband has demonstrated the ability to deliver substantial economic growth, increased employment and vast societal benefits. The potential benefits will positively contribute to the improvement of lives of many South African households by, for example improving communication, access to services, employment and business opportunities. The benefits of investment in Broadband infrastructure in South Africa will not be limited by our national borders but will extend to the Southern African Development Community (SADC) region as a contributor to the regional strategy in relation to ICTs. Some of the benefits foreseen in South Africa are as follows:
| • |
economic development and growth: |
| o |
stimulating growth of Small Medium and Micro Enterprises (SMMEs) and cooperatives; |
| o |
reducing the cost of communication; and |
| o |
improving marketability and encouraging investment. |
| o |
improved quality of education; |
| o |
improved quality and access of health services; |
| o |
improved quality and access of government services; and |
| o |
reduced carbon emissions. |
| 3.1) |
Economic development and growth |
Broadband creates an environment that stimulates economic activity and can contribute to economic development and growth. Universal access to Broadband services can lower the cost of telecommunications and attract business to provinces and municipalities, thereby stimulating their economic environments and increasing economic growth.
Therefore Broadband has an indirect impact on economic growth through improved ease of communications and the distribution of products and services to a wider market.
| 3.1.1) |
Stimulating growth of SMME's and cooperatives |
| 3.1.1.1) |
SMMEs and cooperatives can gain a competitive advantage by using Broadband, by reducing barriers to entry of markets through increased access to information as this technology would expose them to a broader market where they can promote and sell their products and services on the global scale. Broadband will also benefit cooperatives and SMMEs by reducing their cost of association. |
| 3.1.1.2) |
Broadband will enhance both backward and forward economic linkages. Forward linkages will be enhanced through access to new domestic and international markets. SMMEs will also benefit from enhanced backwards linkages; especially in the rural context this will give them access to more suppliers and more competitive inputs thus increasing their bargaining power with suppliers and the competitiveness of their product. |
| 3.1.2) |
Increasing employment |
| 3.1.2.1) |
Broadband networks have been shown to have a direct impact on employment. It is however the use of these networks towards growing economic activity and enhancing social development, that unlocks the potential increase in employment. |
| 3.1.3) |
Reducing the cost of communication |
| 3.1.3.1) |
The cost of communication can be reduced by an increased rollout on infrastructure and improved availability of Broadband services. Reducing the cost of communication will be beneficial to citizens, business and government by reducing the cost of doing business and by making a wider range of products and services available at affordable prices. |
| 3.1.4) |
Improving marketability and encouraging investment |
| 3.1.4.1) |
Provinces will be able to increase their marketability, both inside the country and globally and attract investment by ensuring the availability and affordability of Broadband services. This will have a positive impact on provincial economic growth and will enable provinces to become more competitive. Broadband does not only provide access to provincial and municipal governments, but it also allows their businesses and citizens access to the rest of the world. |
| 3.1.4.2) |
Access to Broadband creates opportunities to improve efficiency for both the private and public sector and ensure that services are more readily and speedily available to customers and communities. |
| 3.1.4.3) |
Universal access to broadband will also contribute to reducing spatial inequalities in South Africa which had developed out of a system that fostered lopsided economic development through the unequal distribution and access to economic opportunities and assets. The ability to communicate increases the marketability of especially rural provinces and municipalities as investment destinations, making it more attractive for businesses to directly invest into these areas. Broadband investment in rural areas will act as a counter measure to the migration of persons to metropolitan areas, through local development initiatives as a result of this investment. |
| 3.2.1) |
Improved quality of education |
| 3.2.1.1) |
Broadband can improve the quality of education by enabling the delivery of digital content and lessons to all learners, regardless of their location, over Broadband networks. A further benefit is the improvement of communication between different educational institutions at different levels of government. |
| 3.2.1.2) |
Broadband access creates an opportunity for citizens to increase their knowledge through research and collaborative team work. It also provides an opportunity for citizens to become ICT literate, increasing their value in the job market. |
| 3.2.2) |
Improved quality of health services |
| 3.2.2.1) |
The healthcare sector is one of government's priorities, and can be greatly improved through the use of ICTs and Broadband. As an example improved communication between health care centres can greatly improve health care. |
| 3.2.2.2) |
Broadband services can enable the use of a number of applications such as telemedicine, remote diagnosis and the treatment and care of patients in rural areas. |
| 3.2.2.3) |
Online inventory systems, enabling the electronic prescription and ordering of medicine in health care institutions can significantly improve the access and efficiency of current systems. Availability of electronic medical patient records will facilitate uninterrupted and reliable treatment of patients. |
| 3.2.3) |
Improved quality of government services |
| 3.2.3.1) |
Government's ability to communicate with the citizens is central to service delivery. Universal access to Broadband services can greatly enhance Government's capability of communicating with its citizens. Government services need to be updated to incorporate services that citizens could access online and use not only for information purposes but also for transactional purposes. This would reduce the cost of governance and would enhance service delivery, CIS turnaround times could improve significantly. |
| 3.2.4) |
Reduced carbon emissions |
| 3.2.4.1) |
Broadband also has the potential to indirectly reduce carbon emissions. The ITU-T is focussing on the role lCTs can fulfil in order to reduce green house gases. As an example video conferencing has the potential to reduce travelling which supports the reduction of green house gases. |
Gas Regulator Levies Act, 2002
