Asymmetric digital subscriber line (ADSL) Internet connections were by far the connection of choice for South African small- to medium-sized enterprises (SMEs), preliminary findings of the SME Survey 2009 showed.

The survey, which was now in its sixth year, polled about 2 500 business decision-makers on crucial issues affecting their businesses, and was sponsored by Standard Bank, the Umsobomvu Youth Fund and Fujitsu.

Dial-up connections were “nearing its end” as the connection of choice, while wireless broadband connections have only achieved moderate penetration in the SMEs market, the survey highlighted.

Principal researcher Arthur Goldstuck noted that ADSL had almost precisely replaced dial-up as the primary form of Internet connectivity among SMEs.

“ADSL had grown from 3% to 63% penetration of SMEs using the Internet in the period between 2003 and 2008, while dial-up dropped from 62% to 9,5% by last year. This year’s research shows that dial-up has halved again to 4%,” he said.

He added that ADSL was finally wiping out dial-up access as an alternative, noting that the finding of this year’s survey confirmed the prediction of the 2005 survey that dial-up would disappear as a viable connectivity option for SMEs.

“We have seen a steady decline in the requirement for dial-up modems and on-board modems within our business clients product portfolio. Interestingly enough, we have seen a substantial increase in the demand for portable mobile devices with built-in third-generation (3G) Universal Mobile Telecommunications System connectivity as users discover the benefits of high-speed connectivity. This backs up the preliminary findings of the SME survey,” commented Fujitsu business clients portfolio manager Ross Olver.

Wireless broadband had seen a more leisurely acceptance, growing from a zero base to 10,5% of SMEs using it as their primary connection by 2008.

“With one in ten SMEs using it as a primary connection by 2008, wireless broadband appeared to be destined to compete with ADSL, while ADSL would continue growing,” said Goldstuck.

However, instead of wireless broadband gaining further traction, it fell back for the first time.

“All forms of wireless broadband combined, including 3G, iBurst, Worldwide Interoperability for Microwave Access and municipal Wireless Fidelity, dipped from 10,5% to 8% penetration as a primary form of Internet connectivity among SMEs,” he stated.

This also demonstrated the need for reasonably priced services. “ADSL simply offers more reliable and cost-effective broadband than any wireless option – and the cost of incremental usage is not as high as for 3G,” explained Goldstuck.

He added that wireless broadband was not meeting the needs of SMEs to the extent that ADSL did from both a cost and performance perspective.

The real opportunity for wireless broadband was in back-up connectivity, said Goldstuck, noting that SMEs were increasingly using a 3G card as a secondary connection when away from the office.

The final results of the survey would be released in October.

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