The Strategic Migration of Telephony into an Internet Protocol World : a South African Perspective

Abstract

Internet Protocol Telephony (IPT), also known as Voice over Internet Protocol (VoIP), has evolved from a niche technology to one that is adopted fairly well in developed countries. The aim of this research report was to determine whether IPT will also be a success in the Republic of South Africa, which is one of many developing countries. The technology was analysed and it was found that cost reduction, increased productivity and enhanced applications were the most valuable benefits the technology could offer. Particular interesting impediments of the technology were discovered and it was found that there existed both hard issues like security and quality problems, as well as softer issues like internal politics, that could hinder the global success of the technology. The adoption rate of South Africa was compared to that of industrial countries and it was found that South African organisations overall posed a wait-and-see attitude towards IPT. Various implementation models were discussed and it was found that a hybrid approach would be the most viable option for local organisations. The South African environment were analysed and it was discovered that the biggest obstacle for success in South Africa was the regulatory environment. But it was also found that the environment would soon change and that competitors, including Black Economic Empowerment companies, should use the opportunities available. Social factors like HIV/AIDS and theft as well as economic factors like the exchange rate could hamper the competitiveness of local companies using IPT. IPT technology can only be a success in South Africa if it is intensely supported by Government, implemented in the correct manner and adopted aggressively by the local market.