Trade department disappointed with Internet

Alan Hirsch, of the Department of Trade and Industry, says that the Internet has disappointed businesses and government by failing to transform small local companies into global traders.

Hirsch was speaking at a conference hosted by the Internet Service Providers Association to mark the start of SA's first Internet Week. He said that initial hopes were that the Internet would empower small businesses to communicate with customers and trading partners and narrow the gap between them and larger businesses, but that the necessity of a brand name that people trust was underestimated by companies trying to trade online. To date only about 30% of businesses in SA have Internet access.

Fingers were also pointed at Telkom for high bandwidth fees and lack of services in many areas and the hope was expressed that the introduction of competition will mean lower costs. Lower costs would not only be good for the customer, but would also make it easier for SA's service providers to increase Internet penetration by reaching schools, small businesses and individuals.

Hirsch is still upbeat on future prospects, though, and points out that the Internet, rather than being a fad, is a significant revolution. "Living in SA we are far from the international markets. We have to sell our products and services internationally and the Internet is going to be very important."