Chinese technology group views South Africa as ‘dynamic’ growth market

28th November 2014

By: Sashnee Moodley

Senior Deputy Editor Polity and Multimedia

  

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The local information and communication technology (ICT) industry is experiencing dynamic growth, as well as a multitude of significant changes to address trends such as ‘bring your own device’ and cloud computing.

This is according to Chinese technology giant Huawei Eastern and Southern African region enterprise business president Eman Liu, who tells Engineering News that these trends have increased the consumption of mobile services and are creating major shifts in the way businesses operate.

With growing demand from employees to use their own choice of devices in the workplace, businesses adapt their processes and networks to accommodate mobile technology.

“Further, with the cost of mobile broadband being cheaper than fixed broadband, and mobile broadband speeds being faster than asymmetric digital subscriber lines in South Africa, businesses are adopting more interactive approaches to market their audience,” he says.

Liu notes that an increase in competition in the network and service provider areas will increase as these trends are adopted, and in light of the focus on increasing accessibility and affordability.

However, Huawei Eastern and Southern Africa region carrier business VP Cao Ming believes that, although connectivity in South Africa has reached increased levels of maturity, access to broadband, especially fixed broadband, remains a challenge for many South Africans.

He adds that the cost of communication services is high, compared with global standards.

In terms of smartphone consumer trends, Huawei Eastern and Southern Africa region consumer business director Peter Hu says there has been a considerable shift among consumers towards using smartphones, as they provide better access to the Internet, as well as a better experience and a larger screen size.

“A recent study by the Interactive Advertising Bureau of South Africa showed that up to 92% of Internet users currently own a smartphone.”

Hu adds that, as the technology adoption rate in the market increases, so does the demand for smartphones in South Africa and, with it, the need for more affordable entry-level smartphones.

ICT Growth Potential
The greatest potential for ICT growth lies in sectors such as government, commercial enterprises and small and medium-sized enterprises, says Liu, who adds that, with the growing adoption of mobility and improved user experiences, consumers are becoming more informed and demand faster lead times for service provision.

Further, governments are responding by expanding infrastructure to bridge the digital divide and commercial businesses are changing their business models to accommodate the significant need for data.

Ming states that, to adapt to the revolutionary changes taking place in the information industry, Huawei is making strategic adjustments to better serve its customers and has extended the reach of its offerings from the telecommunications carrier network field to the enterprise and consumer fields.

“We have coordinated the development of the cloud-pipe-device business and allocated considerable resources to providing large-capacity and intelligent information networks, a variety of smart devices, as well as new-generation business platforms and applications to offer users an efficient, environment-friendly and innovative information-based experience,” he says.

Further, Huawei is collaborating with its partners to deliver a wide range of customercentric ICT solutions and services based on a thorough understanding of customers’ business needs to enable about greater penetration in connectivity for end-users.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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