No stopping broadband

Zweli Mokgata

Zweli Mokgata

Broadband markets across the world are set to open up untapped profits, but heavy regulation of the industry is holding back growth in the sector.

Demand for high speed digital Internet connection has reached all time highs in South Africa, but a lack of content and monopolistic control of the industry hamper growth.

Derek Wilcocks, Dimension Data services executive, said: "The industry here will open up once the regulatory environment allows for more competition and prices come down as has been seen overseas."

The European broadband markets continue to witness strong growth, thanks largely to deregulation across the region and the shift towards integrated services.

The growing demand for highly customised broadband-based services is also a major growth factor, as customers are willing to pay that little extra for high-quality broadband services such as video on demand, pay-per-view TV and other attractive multimedia content.

"As we begin to embrace the era of digital lifestyles, service providers have begun to focus on providing interactive communication services," said research analyst Julia Martusewicz-Kulinska.