One of the most crucial considerations made when choosing an ICT provider is how cost effective their solutions are.
The initial investment must be realistic and affordable, and an organisation must be able to see both the short-term and long-term financial value of implementing their required solutions. ICT can add immense benefit to the productivity and profitability of an organisation, but solutions must be cost-effective in order to realise this.
[quote style=”boxed” float=left”]”all providers…aware that price is often the biggest differentiator”[/quote]
Telecoms costs are always a controversial and newsworthy topic in South Africa. Recently we have seen a price hike in bulk SMS rates with Cell C being the first to increase its rates by 14 to 17.5 cents, depending on how many SMSes will be sent. This is due to a new SMS interconnect agreement. Vodacom and MTN are expected to follow suit. It is envisaged however, that these price hikes will serve to increase competition and choice in what is already a R1 billion rand per year sector.
— NewsWall SouthAfrica (@NewsWallCoZa) July 12, 2013
Hetzner, a prominent hosting company, announced that it has significantly reduced its traffic over-usage costs, including, but not limited to, all web hosting packages. Telkom has also recently informed the market of its tariff changes, which will see an increase in basic voice and data services from August 2013. The cost of line rentals and installations will also increase. Interestingly, Telkom has announced a decrease in the tariffs for peak and off-peak outgoing fixed-to-mobile calls.
Looking further into the future, it would seem that overall costs could be set to decrease. If organisations create BYOD-ready environments, this will change the structure of networks making them far more affordable and easier to manage. This is according to Dimension Data’s 2013 Network Barometer Report. (Get it here)
Irfan Verjee, senior manager for emerging markets theatre for Africa and the Middle East at Cisco Consulting Services, said that he believes that increased investment into WiFi is the way forward for South African providers to lower costs. WiFi is seen as a cost-effective strategy to support an increasingly mobile world and deal with the potential capacity overload of local operators.
South African app ‘Find Free WiFi’ gathers momentum http://t.co/CgFfuSRy – via ITWeb Africa
— ITWeb Online News (@ITWeb) January 8, 2013
The South African market demands high-quality and cost-effective ICT solutions and all providers within the market place are aware that price is often the biggest differentiator and gives strong competitive advantage. Although increases are inevitable, it would seem that the market is working to reduce costs where possible, and to provide increased financial value to customers.