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No. 37261

GOVERNMENT GAZETTE, 24 JANUARY 2014

telecommunications call traffic was addressed. The Electronic Communications Act of 2005

repealed the Telecommunications Act. As convergence legislation, it allowed for a
separation of policy-making from that of regulation; allowed for more competition through
various regulations including on facilities leasing, interconnection and the rapid rollout of ICT
infrastructure and spectrum management.

3.1.2 Growth and outlook
The ICT sector in South Africa is characterised by an exponential growth of the mobile
sector, with a penetration rate of about 136%. Statistics South Africa reports that the
contribution of the ICT sector to GDP in 2012 was 6%, and that the telecommunications
sector market alone had grown to more than R179 billion in 2011. According to Stats South
Africa, the 2011 Census survey shows that 89% of the 14.5 million households in the country
have access to mobile phones, whilst 75% of households have access to a television set
and a further 68% have access to a radio. However, penetration of radio is much higher,
reaching nearly 90% of the population. The Census survey also reveals that only 35% of
households have access to the internet and only 15% have access to a landline phone.

These statistics underscore the startling growth of the ICT sector, driven in the main by the
mobile sector, while fixed line continues to decline. But they also show the gaps that persist,
particularly in relation to internet access.

*

r

R-useho4-_,-_ w'r, fixed ire

18 5%

14 5%

18 2%

18 0%

Houserolc c \,. M c prrcuter

15 (-_%

2' 4%

14 S'D

:...:,

b 5c3

67 5%

77 7%

62 3%

65 5%

74 5%

71 ls'o

78 2%

FicuAloics *1- [JCL':

,

Holisehov-. vi li teiev sicid

Hal:ekilcs

4 8% illcu,:etioldi
r-ife

2{-:.

v icne -mineish p Ira sehoid;

08 0%

15.1_,,r1:rdmoua

5%

7% tousedadi
,22

Iir1CP Idva

62 1%

'3,-_,ece. RA ;CT Surve, 0,3ta 2011-12

Source: RIA ICT Survey Data 2011-12

The role that ICTs play in the broader society is underscored by the 2010 World Bank study
that found that for every 10% increase in broadband penetration in emerging markets, there
is a 1.38% increase in GDP growth.

Therefore the ability of South Africa to compete in the global economy is dependent, to a
large extent, on the state of its ICT sector and in particular the country's ability to facilitate
and grow the sector to meet its citizens' needs for affordable, accessible broadband. The
rapid deployment of fast and affordable broadband infrastructure remains a powerful lever to
create an internationally competitive knowledge economy, improve productivity and expand
access to new markets.
According to the RIA ICT Survey data 2011-2012, about 22% of internet users access the
internet via ADSL but more people access it using their mobile devices.

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