Identifying opportunities to drive demand
PUBLICATION YEAR: 2012
OUTPUT TYPE: Research report- other
Intranet HSRC Library: shelf number 7637
SA should apply a 3-pronged strategy driven by enabling a critical mass of digital citizens and key industries in the short term. Enabling individual digital citizenship requires building critical mass of users by addressing two key barriers: affordability and content Affordability: Private sector must reduce prices for the end user. Users need better access to devices (feature/smart phones, PCs or tablets) and connectivity. Private sector must drive down cost and can consider additional solutions such as bundling device and connection with content. While detailed information on price elasticity of demand for broadband is lacking for SA, evidence from other developing countries showed that dramatic reduction in the price of smartphones ($100) lead to significant increase in internet users in the same period. Financing could be driven by both DFI finance or in line with ICT Charter requirements (1.5% after tax profit focused on socio-economic development) to spur early stage app/content development aligned with user needs.