Connecting the unconnected is an economic imperative, both locally and globally

“Increasing broadband connectivity leads to improved economic activities, hence job creation”- Dr Albert Lysko?

Telecommunications have proven to be a lifeline for keeping many businesses running during the pandemic-induced lockdowns. Internet access is equally critical for growing our economy and the overall progress of the fourth industrial revolution advancements.??

Internet connectivity creates jobs. The World Bank states that mobile broadband provides 2.5 and 4.0 additional jobs for each broadband job. In South Africa, online shopping has created numerous jobs, including the creation of 2,870 new jobs at Checkers Sixty60 alone.??

Furthermore, increasing broadband connectivity leads to improved economic activities. For example, the International Telecommunication Union (ITU) has estimated that “an increase of 10 per cent in mobile broadband penetration in Africa would yield an increase in 2.5 per cent in the gross domestic product (GDP) per capita”. Building broadband Internet is like building a network of highways and roads that allow instantaneous access to information, products, services, and immediate payments, helping the economy grow.??

Having many people still unconnected is slowing economic development. The World Bank says that “only about 35 per cent of the population in developing countries has access to the Internet (versus about 80 per cent in advanced economies).” South Africa is in-between. According to the Independent Communications Authority of South Africa (ICASA), the proportions of households who have access to the Internet at home and use mobile devices are at 8.3% and 64.1%, respectively. Connecting more people can help to offer them new opportunities as well as increase prosperity.??

There are two key factors preventing people from being connected to the global Internet community. One is the access to the Internet and the cost of such access. For instance, ITU states, “a 10 per cent drop in mobile broadband prices will boost adoption of mobile broadband technology by more than 3.1 per cent”. The other factor is in the relevance of the content, understanding the opportunities offered by the Internet and the ability to access the content (e.g. literacy and language).??

To improve access, one must build networks and provide connectivity/access to the Internet. Satellites can offer the widest broadband coverage, including remote and rural areas, yet expensive right now. Fibre is the king of connectivity, but the high cost of deployment often restricts availability to higher-income neighbourhoods. Cellular, especially 4G/LTE, is the most widely used broadband, thanks to its widespread and nearly ubiquitous set of services.??

Over 32% of South Africa’s population resides in rural, sparsely populated areas, where the cost of deploying and providing Internet connectivity can be three times higher than in dense urban areas. With this, the high cost of Internet access is still a challenge as South Africa ranks 136 worldwide for the cost of mobile data.??

Despite the challenges, South African citizens receive the latest technologies, including the fifth generation of mobile networking, 5G. The 5G is so far expensive, and its coverage is small geographically. However, 5G includes many features, including a much higher speed, better options for coverage in rural areas, and a new level of support for industrial processes and sensors. In time, these features will help improve access to the Internet.??

The second key factor preventing people from being connected to the global Internet community is the relevance of the content offered on or via the Internet and the ability to read it. Under 10% of South Africans have English as their first language, and only 16% speak English outside of the home. Yet, the majority of the content on the Internet is in English and other European languages. This mismatch creates a significant barrier to adopting and using the Internet and all the opportunities it offers as well as an opportunity for local entrepreneurs.??

“Local is lekker”, and the language, regulation and other peculiarities of the local market should be a big opportunity for local businesses. Yet, many locally developed businesses struggle to compete against international giants like Google and Netflix. The locally-developed Mxit had over 7 million monthly active subscribers in 2013 but drowned, unable to compete with Facebook-backed WhatsApp. Today, local DStv seems to struggle against Netflix and says, “Netflix must be subject to the same regulations as DStv.” This is in part due to the virtually tax- and regulation-free operation of foreign companies online, i.e. less than fair competition regime.??

Only a few foreign apps, like Uber, Airbnb, and Booking.com, create or support local jobs. The Honorable Minister of Communications and Digital Technologies Ms Khumbudzo Ntshavheni has said: "We cannot be dependent on the West for our technological environment, we must drive this ourselves as a country." South African overall progress in the fourth industrial revolution advancements heavily relies on the availability of connectivity and skills.?

The Internet is a vast opportunity for local entrepreneurs and South Africa to promote the ancestral heritage and grow new businesses having unique competitive advantages.??

Ensuring broadband coverage and making the regulation more supportive of local innovation - whether this means giving promising local enterprises special allowances or enforcing South African low on the operation of foreign online businesses - will be a leap forward for South Africa.??

Dr Albert Lysko, Council for Scientific and Industrial Research-CSIR?

Email -?[email protected] ?

?The Council for Scientific and Industrial Research (CSIR) recently developed a new communication technology enabling television white spaces (TVWS). The TVWS signals can travel well, including through vegetation, and so TVWS can help to close the currently existing connectivity gaps in challenging to reach locations. Now, the CSIR is working on the 5G and beyond 5G technologies, aiming to offer better and cheaper connectivity for all.?

The CSIR is working to reduce this barrier and has developed a software product that converts digital text into synthetic speech in all the 11 official South African languages. The technology generates synthetic speech that is as close to human speech, including articulation and accent. CSIR researchers have developed capabilities to work with resource-scarce languages and adopt state-of-the-art techniques in text-to-speech conversion for the South African context.??

To further address the challenge of access to multilingual content and literacy, the CSIR has developed software to help people to read, overcoming mobility, visual impairment, dyslexia, low literacy and other special educational needs. The software breaks down these barriers by adding audio to publications and synchronising it with the text.?