The Internet Café Industry in South Africa Ramon Thomas ramon@netucation.co.za www.netucation.co.za Introduction Background What is an Internet Café? What are the worldwide trends? What is status quo in South Africa? What is an Internet Café? A café or shop that provides Internet Access to the public at a fee Community access Helps to bridge the “digital divide” The Internet Café Timeline 1994: Café Cyberia, London 1995: Suba, Chicago & Milky Way, Joburg 1998: Iran, segregated 2000: Irbid, Jordan, 130 on a single street 2004: 20,000 in 171 countries Taiwan 2001: 700 Internet Cafes 2002: 4,000 due to boom in PC Games Value R2.5 billion!! India 50,000 Internet Cafes Satyam Infoway set-up 2,000 cybercafés across 67 cities in 3 years Half-million users a month South Africa 135 Internet Cafes (NETucation) 18 Citizen’s Post Offices (240 sites) 600 PiT 32 Digital Villages (Microsoft) 196 Telecentres Provincial Breakdown 80 69 70 Eastern Cape Free State 60 Gauteng 50 KwaZulu-Natal 40 30 30 20 10 9 13 5 Limpopo Mpumalanga North West 1 2 0 2 3 Northern Cape Western Cape Internet Cafés Franchises & Branches Odyssey Internet Café (10) 3@1 Communications (19) Jetline (10) Pricing Models Average Hourly Rate = R27 Lowest = R6 per hour Highest = R75 per hour Computers & other Peripherals Average = 9 Lowest is 1 or 2 Highest is 29 (including laptops) Printers = 1.7 Scanners = 1.3 Operating Hours Average = 12 6% operate 24x7 44% closed on Sundays Bandwidth ADSL MyWireless Diginet ISDN Access Method 18% ADSL MyWireless ISDN 64K 12% 59% 4% ISDN 128K Diginet 4% 3% Unknown The Future? Wi-Fi Hotspots Cheaper Internet access Support from ISPA, et al. Thank You Contact Details: Ramon Thomas ramon@netucation.co.za 082-940-7137