With the exponential growth in the number of connected 'things' and the ability to leverage data and analytics, the 'infrastructure of the information economy' or Internet of Things (IoT) has the potential to radically transform economies.

However, while the IoT is embedded as part of business growth and development in today's market, and has helped give impetus to the establishment of internet-based services like Airbnb, Facebook, and Google, there is a danger of the business market overlooking skills disruption and the impact of imperfect competition in the market.

At SATNAC 2016, hosted in George, South Africa, Telkom COO Dr Brain Armstrong said the internet has democratised information and knowledge. "We are now at the threshold of another wave of progress, what is important to us is to make we share in the prosperity that the IoT offers, but we are careful that as IoT connects everything, that everyone does not become marginalised, ... let's ensure that IoT works for us."

The senior Telkom executive said research firms have taken a closer look at the global economic value of IoT and believe it will generate up to US$20-trillion in revenue by 2025.

Dr Armstrong said IoT is driven by the confluence of five key trends including computing power, miniaturisation, sensors, connectivity and intelligence, which, when converging has the power to make a positive and lasting impact on several sectors, including healthcare, education and service delivery.

Delegates were told from a consumer point of view, the IoT has the potential to facilitate instant and on-demand service, while, from a government perspective, it can be used to enhance cost and revenue collections, with improved participation in public/private consultation.

Speaking on government's role and responsibility in being able to leverage the resource, South Africa's Telecommunications and Postal Services Minister, Dr Siyabonga Cwele said governments must adapt to the convergence of physical, digital and biological world.

"New technology platforms enable citizens to engage rather than being mere recipients. This will require governments to adopt softer regulation and adopt technology to improve service delivery. Business must also adapt or die. The demand side will be affected by transparency and new consumer preferences. The supply side will get efficiency and productivity gains. It will yield safe and rewarding jobs but there could be a risk of greater inequality and unemployment. It's is believed that in future talent more than capital will be a critical factor in production," said Dr Cwele.

The Minister also outlined the South African government's broadband strategy underpinned by the establishment of a broadband war room.

"The broadband war room brings together all the departments that are responsible for the broadband. It is a product of the government's coordinated implementation plan through the cluster system. We are also practicing this coordination at the implementation level through Provincial Broadband Steering Committees that seek to align all broadband activities to the South Africa Connect and remove bottlenecks that impede an accelerated rollout. In the future, we hope to coordinate business because they are our partners and investors," Dr Cwele added.