South African consumers embrace a shift towards A ‘Smarter’ Digital Life, with sustainability and security as top priorities
By Ryan Noik 25 July 2023 | Categories: feature articlesEvolving consumer expectations are powerful – we have known that for quite some time. But according to the most recent Cisco Broadband Survey, they may be even more influential than we suspected.
According to the survey, consumer expectations are set to reshape the needs and economics of the internet itself. Apparently, the internet, which has become as part of our modern existence as electricity or running water, is undergoing a bit of a shift.
The report from Cisco revealed that people are rethinking what they rely on the internet for, balancing classic demands for speed and reliability, with the intensifying needs of rising eco-consciousness, secure cloud infrastructure, and the consumerisation of technologies such as the Internet of Things (IoT) connecting our devices, from smart cars to home appliances.
This has led 78% of SA survey respondents viewing broadband as critical national infrastructure. In addition, 85% of those working from home view broadband as part of the critical national infrastructure, not surprisingly, since the pandemic pushed most if not all small connected businesses into remote working.
It is not a small number of South Africans who rely on their home internet to work from home or run a business, with 87% of respondents to the survey indicating this was the case for them. As well, more than half (six out of ten) South African now log into work via a home connection. This represents a dramatic year-on-year increase of 20%, signalling the popularity of the trend in South Africa.
“Against the backdrop of digital transformation and remote and hybrid work trends, broadband plays a critical role globally, and impacts us both personally and professionally. Connectivity is related to factors such as reliability, security, and even sustainability. In other words, how broadband impacts us and the world we live in,” explained Smangele Nkosi, General Manager for Cisco South Africa.
Sustainability is essential
What is different now though is that there is a growing awareness about the need for sustainable broadband connectivity. Connectivity on its own is not enough, with the carbon-cost of broadband connectivity also emerging as a top priority for consumers.
This supports a wider market trend, shown in a 2019 survey by Nielsen and a 2022 survey by Globescan. That survey revealed widespread consumer awareness around the environmental impact of the products they use and a demand for companies to step up and mitigate negative impacts on the planet.
However, according to Cisco, only a few are knowledgeable enough on the topic to explain it to others. This illustrates the need and potential for broadband to act as a force for sustainability, enabling best practices such as hybrid work and e-commerce, which in turn help reduce carbon emissions.
Key findings relating to sustainability include:
- When asked about the CO2 footprint of the internet, only 10% of respondents said they know a lot about it and could explain it to others, while 37% had never heard about it (for comparison, only 14% of UAE respondents said they had never heard about it).
- 25% of respondents who plan to upgrade their broadband service in the next 12 months cite sustainable or “green” broadband provision as a driving factor in their choice.
- 34% of respondents said they would be willing to pay a premium of up to 10% for the “greenest” broadband available in their country that has a lower carbon footprint. Assuming the quality of connectivity was the same, 23% said they would be willing to pay a premium of up to 20%.
“If broadband is the driving force behind a thriving digital ecosystem, we must consider how sustainable that broadband can be. Sustainability cannot be an afterthought. It can be a means to positive socioeconomic and environmental change, and it requires us to be proactive in everything we do and set out to achieve. Consumers are starting to realise this, and businesses should be paying attention,” explained Nkosi.
Security too
Along with sustainability, another major priority that is shaping the internet as more people move online is, of course, security.
According to the report, along with growing environmental concerns, the emergence of hybrid work and the ever-increasing blur between the professional and personal lives of employees brings new risks into the home. South Africans therefore, are looking for home internet solutions and packages that are affordable, reliable, and secure.
Security is no longer a grudge purpose or an afterthought. It has become a critical component of successfully benefitting from the opportunities provided by remote work on a microcosmic level, and and growing the economy through digital technology on a macrocosmic one.
The need for security is also worth it to consumers. According to the report, South Africans would pay an extra R287 per month for more reliable, fast and secure broadband. It appears that the need for security is growing in recognition. 70% of respondents said they rely on a password to protect their broadband. At the same time, a quarter use more comprehensive measures such as turning on firewalls on their wireless routers (27%), using a VPN (20%), or network encryption (26%).
Rising costs impair connectivity
While broadband connectivity plays an important role in everyday life, there are concerns surrounding affordability and accessibility, which continue to be top-of-mind in the face of national economic challenges.
According to the survey, 46% of respondents indicated that the increase in the cost of living had impacted broadband spending, with 26% switching to lower-cost broadband and 20% cancelling streaming service subscriptions. Furthermore, 26% said they could not afford to upgrade to more reliable, fast, and secure broadband, while 16% said they struggle to pay for it outright.
“Through the findings of the Cisco Broadband Survey, we can better understand the country’s digital journey and better inform our efforts to transform it into an interconnected, tech-enabled, and inclusive ecosystem,” Nkosi concluded.
Most Read Articles
Have Your Say
What new tech or developments are you most anticipating this year?