the african solution for africa - Connect-World

Africa & The Middle East Issue 200442Changing the Way Africa Communicatesby Guy Clarke, Director – UUNET Africa Operations58Network ConvergenceConvergence in the Access systemsby Andrew Furner, Managing Director, Marconi Middle EastAfrican businesses rely heavily on e-mail, Internet and VPNconnectivity. However, the needs of Africa are very differentfrom those in more developed regions and satellite solutionscontinue to be material. The continent is one withmany development opportunities and, with correct advice,true communication capabilities will soon be a reality.Throughout the world, fixed line operators are seeing voicerevenues decline. Even the basic fast Internet serviceoffered by DSL is not generating sufficient revenues.Operators are discovering a real need for convergence. Asoperators work towards convergence, they see a reductionin the number of edge platforms and major operatingexpense reductions.46 The Road to Seamless Computing 61505254ICT Convergenceby Mike Cathie, Business and Marketing Director, Microsoft South AfricaWill PCs become indispensable in the lives of most people?The next great opportunity is to create software that breaksdown barriers between people, systems and information.This is the vision of seamless computing but, if we are tochange the way people think about computers, the focusmust be on building trustworthy systems.WirelessWireless Broadband in Africaby Zvi Slonimsky, CEO, AlvarionThe telecomms challenges are identical throughout theAfrican continent: how to provide broadband connectivityin harsh and unforgiving landscapes. Unsurprisingly, wirelessbroadband emerges as best for delivery of broadbandservices in these tricky environments. The development ofWiMAX is significant for operators in Africa and removesobstacles to broadband adoption worldwide.The Wireless Age in Africa – Embracing theFutureby Frank Opfer, Vice-President, Solutions Management, T-Systems,International Carrier Sales & SolutionsWiFi, Wireless Fidelity, is bringing a host of new communicationopportunities to Africa and Africa is poised to makethe leap from sporadic telephone service to worldwide connectivity.WiMax, a trade organisation created by leadingcommunications companies, is promoting standards for thenext level of wireless networking, creating more broadbandaccess choices in Africa.Mobile ConvergenceConverged Services Networks – NextGeneration Network Architectureby Laith Sadiq, Director of Strategy, Motorola Infrastructure, EMEATo make convergence work, the current network architecturemust evolve: it is not designed with convergence inmind and cannot deliver an optimal customer experience.Operators have already invested in infrastructure, but NextGeneration architecture, which will support convergence,must be phased in. Convergence is already happening – butfull convergence cannot happen without seamless mobility.636669Deregulation and the MarketPacket Voice Telephony Shines Brightly inDeregulating Marketsby Ingrid Simunic, PhD., Marketing Director, VocalTec CommunicationsDeregulating African countries presents a huge opportunityfor telecom service providers and equipment vendorsand Nigeria provides a vivid example of this. Serviceproviders have begun to offer economical services over acost-effective packet voice architecture. A scalable andgranular VoIP solution allows companies to start small andgrow over time.Business DevelopmentValue Proposition for Speedy Telecoms’Growthby Kaul Sanjay, Senior Business Advisor & Director of Service Area Advice,Ericsson, AfricaMany operators on the African continent experience localoperational difficulties. Consumers are paying too muchand businesses are suffering from inadequate communications.Yet research in one developing country shows that aone percent growth in telecommunication services booststhe economy by two percent. Operators and governmentsneed to overcome the problems and do so at speed.Workforce ConnectivityApplication Provisioning for the MobileWorkforceby Pontus Axelsson, Vice-President Product Management, Appear NetworksWeb browsing is a vital part of the way wireless services areused, but it needs strong applications that work both onlineand offline. Mobile work forces require true mobility andwill often prefer handheld devices to the traditional desktopcomputer when carrying out assigned tasks away fromtheir desks.Network DevelopmentLong Live the Network!!!by Marco Daniel Signorini, Chief Executive Officer, Econet Satellite ServicesLtdWe can expect more progress during the next ten years thanduring the last one hundred. Nanotechnology and the bluelaser will make digital processing and bandwidth more costeffective. Satellites will be able to provide enough bandwidthfor everybody on earth and help bring affordableservices to almost everyone in the Africa and Middle Eastregion.4 Africa & The Middle East Issue 2004

THE AFRICAN SOLUTIONFOR AFRICADesign & Production AKTIS - www.aktis.frAlready approved by44 telecom operatorsAvailable from 2006, RascomStar-QAF 1 mission is tailored for :Rural Communication Services : including telephonyfax internet and TVConnectivity On-Demand Services : for national andinternational voice services on a call basisTrunking, Broadcasting and Internet ServicesThe one stop-shop solution, adapted to the requirement of theAfrican marketfor more about us :http://www.rascomstar.com

CONNECTIONS, CONEXÕES, CONEXIÓNES, CONNEXIONS…Satellite Connectivity – In much of the world, the lack of communications infrastructure deprives peopleof everyday communications services. Oren Most of Gilat Satellite Networks points out that satellitebasedcommunications are the best, if not the only, way to give people access to communications servicesin many developing regions.In Africa, notes Guy Clarke of UUNET, businesses rely heavily on e-mail, Internet and VPN connectivity.Still, the connectivity needs of Africa are very different from those in more developed regions; in Africa,satellite solutions are the key to fast expansion.ICT Convergence – Mike Cathie at Microsoft thinks that seamless computing, which breaks down barriersbetween people, systems and information, is the next great ICT opportunity; but the focus mustbe on building trustworthy systems.Wireless – The challenge in Africa is to provide broadband connectivity in harsh and unforgivinglandscapes. Zvi Slonimsky of Alvarion makes the case that wireless is the best delivery system for broadbandservices in these tricky environments and that Wi-Max can remove obstacles to operator broadbandadoption in Africa.Frank Opfer of T-Systems focuses upon how Wi-Fi – Wireless Fidelity and Wi-Max, the next level of broadbandwireless networking, can help Africa move from sporadic telephone service to worldwideconnectivity.Mobile Convergence – To make convergence work, Next Generation architecture must be phased in,concludes Laith Sadiq at Motorola. The current network architecture is not designed with convergencein mind; without convergence, without seamless mobility, you cannot deliver an optimal customerexperience.Network Convergence – Fixed line operators' voice revenues are declining, observes Andrew Furner ofMarconi. Not even DSL generates sufficient revenues. Operators are hoping convergence will reduce thenumber of edge platforms and provide major operating expense reductions.Deregulation and the Market – Ingrid Simunic of VocalTec Communications expects that, by deregulating,countries in Africa will create a huge opportunity for telecom service providers and equipmentvendors. Nigeria is an example: service providers now offer cost-effective services with scalable VoIPsolutions that work for both large and small companies.Business Development – Many African telecom operators have difficulties and, as Kaul Sanjay ofEricsson observes, consumers pay too much and businesses are suffering from inadequate communications.Since research shows that a one per cent growth in telecommunication services can boost theeconomy by two per cent, operators and governments need to work quickly to find a solution.Workforce Connectivity – Pontus Axelsson at Appear Networks discusses the vital role Web browsingplays in the way wireless services are used. Applications that facilitate use by mobile workers should behandheld-based to permit easy use when working away from the desk.Network Development – Marco Daniel Signorini of Econet Satellite Services expects more progressduring the next 10 years than during the last 100. More powerful chips, blue lasers, digital processing,cost-effective bandwidth and satellite delivery will provide enough bandwidth for everybody on earthincluding Africa and the Middle East.Africa & The Middle East Issue 2004 7

ZTEwww.zte.com.cnZTE CDMA2000 1x-EVDOCommunication SystemEV-DO Technology OverviewCDMA2000 1xEV-DO is a member of theCDMA2000 standards family, which is the optimisedtechnology for the realisation of high-speedwireless packet data service. CDMA2000 1xEV-DOand CDMA2000 1x are downward compatible,thus enabling smooth upgrade of 1X networks andprotecting the investment of the communicationservice carriers. Data optimisation: CDMA2000 1xEV-DO hasbeen optimised for data applications; it is capableof providing signals of up to 2.4576M using a1.25MHz carrier. Downward compatibility: CDMA2000 1xEV-DOis compatible with CDMA2000 1x and they bothuse the same PCF and PDSN, as well as commonantenna and feeder systems. This makes 1xEV-DOservice possible using the carriers' original CDMAnetwork, resulting in lower cost and, consequently,increased return on the original investment inequipment. Mature technology: CDMA2000 1xEV-DO is amature technology with diversified, standardised,interfaces.ZTE CDMA2000 1x EV-DO SystemZTE is China's leading manufacturer and developerof CDMA2000 1xEV-DO mobile communicationsystems. ZTE presented its products at the 3G summitheld in Hong Kong on June 10, 2002, where itdemonstrated wireless data service speeds of up to2.4Mbps. In October 2003, a CDMA2000 1xEV-DOtest office was inaugurated; today, ZTE can providelarge, commercial batches of CDMA2000 1xEV-DOproducts.Fig. 1 ZTE CDMA2000 1xEV-DO system networkingThe leading edge equipment and core technologyof ZTE's, third generation, 3G CDMA2000 products,including CDMA2000 1xEV-DO systems, provideworld-class services. The features of the highlyintegrated products include industry leading performance,complete compatibility and full serialisationto enable the higher reliability of radio frequencyring networking.ZTE CDMA2000 1xEV-DO mobile communicationsystems feature the following characteristics: High integration and convenient maintenance Radio frequency ring networking and networkreliability A range of base stations to satisfy diversifiednetworking requirements.ZTE offers a range of base stations, such as macrobase stations, micro base stations, compact basestations, super far-coverage base stations, remoteend radio frequency modules, etc. The unitedarchitecture of the system supports multiple frequencies– such as 450M, 800M, 1.9G and 2.1G –for each of the different types of base station. This satisfies the diversified requirements ofcommunication service carriers for high-grade configurations,low-grade configurations, high capacitycoverage within relatively limited areas in urbanregions, or relatively low capacity coverage over awide area for suburban districts. This range of products features mutual cooperation,or compatibility, of the complementaryproducts in the series, thus enabling effectiveoptimisation of network quality and improvedcommunications capabilities.8 Africa & The Middle East Issue 2004

ZTE Module generalisation: Most of the base stationswithin the series may be used as general stations;this facilitates future maintenance by the carriers. Modular, extensible structures permit easyexpansion in accordance with the requirements ofeach office. Integration with WLAN, co-complementaryadvantages and improved network quality. Provides wide coverage for voice and low-speeddata services via the 1x network and provides highspeeddata service via 1xEV-DO in busy districts.Because of the inter-operationality of 1x and 1xEV-DO, the double-mode terminals switchoverbetween the two networks without interruptingdata service. This makes the deployment of 1xEV-DO service convenient for the carriers; they canbegin with isolated services and gradually, economically,expand their coverage as the traffic increases,thereby reducing their short term investmentneeds. By taking advantage of the wider coverage ofCDMA2000 1x and 1xEV-DO networks, WLAN coverageproblems can be resolved, giving the userseamless mobile communication service and flexibleaccess methods. Using the 11M bandwidth of WLAN and 1xEV-DO, forward peak speeds of up to 2.4576Mbps canbe provided, thereby resolving the problem oflower data transmission speeds with CDMA20001x. It provides carriers with united back end authentication,billing and management for the two networks.Full-compatibility, SmoothUpgrade and Investment SecurityZTE's CDMA2000 1xEV-DO base transceiver station,or BTS, is capable of perfect cross-carrier frequencychannel sharing. The external interfaces support aflexible mixture of diversified types of standardchannel boards in the same base station, regardlessof standard. Accordingly, the CDMA2000 1x, EV-DO and EV-DV systems are upward and downwardcompatible; this ensures smooth system upgrades,makes complete use of existing network resourcesand protects the carrier's investment. Africa & The Middle East Issue 2004 9

REGIONAL DEVELOPMENTAfrica’s Wireless Internet Opportunityby José Maria Figueres Olsen, Chairman, United Nations ICT Task Force; Managing Director, World Economic Forum;and Ex-President, Costa RicaConnectivity – roads, flight connections, or telephone lines – can economically empowerpeople. Information connectivity unleashes human capital and increases productivity andknowledge sharing. In much of the world where, for geographical, technical and economicreasons, there are no wired telephones or Internet connections, wireless fidelity, Wi-Fi, maybe the way to provide connectivity. In the developing world, wireless Internet provides anunprecedented opportunity for people who have been, until now, excluded from the globaleconomy to join the information society.Mr José Maria Figueres Olsen is the Chairman of the United Nations ICT Task Force. He is the ManagingDirector, World Economic Forum and responsible for the Centre for the Global Agenda. Mr Figueres, Presidentof Costa Rica from 1994 to 1998, began his political career at the request of Costa Rica's President and NobelPeace Laureate Oscar Arias, serving as Minister of Foreign Trade and then as Minister of Agriculture. AsPresident, he was noted for his programmes on behalf of sustainable development and economic growth. MrFigueres is the President of the Board of Leadership and Environment Development (LEAD) and has served onthe boards of the World Wildlife Fund (WWF), FUNDES Internacional and the Stockholm Environment Institute(SEI). He continues to serves on the board of the World Resources Institute and the Costa Rican Foundation forSustainable Development. José Maria Figueres earned a degree in engineering from the United States MilitaryAcademy at West Point and a Masters in Public Administration from the John F. Kennedy School of Governmentat Harvard University. He has lectured extensively on the subjects of Sustainable Development and Technologyand is the recipient of many international awards in these fields.The world is experiencing a revolution inwhich industrial societies are transformingthemselves into information-basedsocieties. Unlike the industrial or agriculturalrevolutions, though, where largeamounts of physical and financial capitalwere necessary to stimulate growth, thisinformation revolution has the prospectof unlocking the potential of human capitaleverywhere. Still, this promise cannotbegin to be realised without first providingthe vast numbers of humanity excludedfrom international networks withaccess to the Internet and other informationand communication technologies(ICTs). Wireless Fidelity, or Wi-Fi, maybe the key to unlocking that promise inremote, poor areas.Digital divideThe information revolution has beenquick to take off in developed countries,but much of the rest of the world lagsbehind, the most serious case beingAfrica. The resulting inequalities arereferred to collectively as the ‘digitaldivide.’ The international community isconvinced that ICTs can play a vital rolein facilitating economic and social development,so the ‘divide’ is cause for greatconcern. Fortunately, there is the emergingpromise of proven and inexpensivetechnologies to bridge the connectivitygap that is at the root of the divide.Cumulatively, global connectivity hasbeen on the rise. At 2001, 95 per cent ofthe world’s countries were connected tothe Internet. However, in many countries,access remains limited to very few.The ‘information gap’ (measured by thenumber of Internet hosts per 10,000)between high-income economies and thelow, lower-middle and upper-middleeconomies has widened substantially.In many countries, for varying economic,geographic, social and technical reasons,there are no wired alternatives availableby which to surf the web or speak on thetelephone. National and internationalconnectivity is in short supply, especiallyin Africa, where satellite links are limitedand expensive, optical fibre is not availableand where internal telecommunicationinfrastructures are concentrated inthe few main cities and hardly exist inrural areas. Technical barriers togetherwith weak market economies and limitedpolitical support for telecom policies, hasdeterred investment and supported highprices, thereby hindering the penetrationof communication services among thepoor.Digital opportunityThrough any kind of connectivity – betterroads, flight connections or telephonelines – people can be economicallyempowered. Development is notresource transfer from rich countries topoor ones, but engagement of citizens ineconomically meaningful ways.Access has become such a hot topicamong the international developmentcommunity because several internationalorganisations argue that it is directlylinked to poverty reduction.Connectivity and the information accessit brings, unleashes human capital andincreases productivity and knowledgesharing in underserved areas where it hasbeen most constrained. In the developingworld, then, the promise of wirelessInternet technologies presents anunprecedented opportunity for peoplewho have been excluded from the globaleconomy and its communication networks.More than just linking huge numbers ofnew users to the Internet, Wi-Fi presentsattractive opportunities for developingcountries to leapfrog several generationsof telecommunications infrastructure,including wireline and wireless local looptelephony, to the forefront of broadbandcommunications technology. Wi-Fi canbecome a critical factor in shrinking thedigital divide by providing high-speedInternet access to whole new segments ofunderserved populations throughout theAfrica & The Middle East Issue 2004 11

REGIONAL DEVELOPMENTcreativity in the deployment of wirelessInternet among early adopters in developingcountries.Demonstrating the practicality of thetechnology for rural connectivity,researchers from the Indian Institute ofTechnology at Kanpur, working withMedia Lab Asia, have ‘unwired’ a 100-sq-km area of the Gangetic Plain in centralIndia. This project provides broadbandconnectivity to the homes ofalmost one million people at under $40per home.Wirelesss communication – opportunity or obstacle for poor countries?world at a fraction of the cost of wiredtechnologies.Today’s wireless economics are alreadycompelling: wireless local loops areabout one third the cost of copper orfibre land-line service, while packetbasedbroadband computer networkscost one ninth of land-line service. Easeof set-up, use and maintenance areaffordable for both users and providers.Tests in rural settings show that a $30wireless PC card can provide good connectivityup to a half-kilometre radiuswith line-of-sight and up to 20 kilometreswith antennas and repeaters.Moreover, Wi-Fi access points can bepurchased for $80. Wireless systems areeasy to deploy and expand and they aremore reliable, safer and easier to maintainthan landlines.E-mail, voice and video mail are themost popular uses of wireless broadbandnetworks in the developing world.Nevertheless, the more quickly theInternet can be mobilised to providesolutions and products for e-governance,e-health, e-education and e-commerce,the sooner the significant effectsof ICTs on development will be felt.Field experiments suggest that wirelessInternet can be sustainably – and insome cases profitably – deployed in supportof economic and social developmentobjectives.For a continent like Africa, where thepoor or absent infrastructure has beenan obstacle for traditional Internet connection,the possibility of a low cost connectivityin the form of wireless Internetwould have tremendous effects. Withthese new kinds of solutions the digitaldivide could more easily be narrowedand African nations could more quickly“For a continent like Africa,where the poor or absentinfrastructure has been anobstacle for traditionalInternet connection, thepossibility of a low costconnectivity in the form ofwireless Internet wouldhave tremendous effects.”benefit from e-society. Through betterconnectivity, brought about by Wi-Fi, e-government, e-education, e-health, e-business and e-agriculture would suddenlybe within the reach of even thepoorest countries.Leading by exampleWhen affordable and relevant, ICTs –including wireless technology – havebeen adopted at a fast pace within developingcountries, leapfrogging traditionalinfrastructure. There has beenconsiderable evidence of innovation andThanks to wireless infrastructure,Africa-Online in Blantyre has managedto provide broadband Internet service inMalawi for more than three years.Internet access has helped rural agriculturalclients, for example, get access tocommodity pricing to maximise theirreturns. Because of the poor state of thetelephone network, e-mail is now theprimary medium for doing business withboth national and international clients.Some businesses with websites hostedby Africa-Online have begun to increasetheir exports because of their ability totake online orders.In Senegal and Kenya the deployment ofwireless technology has been critical toprovide distance education. Over thepast couple of years, the JohnMcCormack Graduate School of PolicyStudies at the University ofMassachusetts in Boston has partneredwith universities to build communityresource centres. The universities'Internet links have enabled the instituteto wirelessly connect the centres.Realising the visionThe wealth of opportunities presentedby wireless internet technologies hasbeen recognized by the United NationsSecretary-General, who expressed abold vision in this November 5th, 2002declaration: "We need to think of waysto bring wireless fidelity applications tothe developing world, so as to make useof unlicensed radio spectrum to delivercheap and fast Internet access." KofiAnnan set up the United Nations ICTTask Force in 2001 as multi-stakeholdergroup aimed at forging linkages andexploring ways to use information andcommunication technologies to reachthe Millennium Development Goals andbridge the digital divide. The Task Forceworks to bring the benefits of the digitalrevolution to the developing world,focusing on vital areas such as povertyreduction, education, health care, theenvironment and gender equality. It12 Africa & The Middle East Issue 2004

REGIONAL DEVELOPMENTprovides a global forum in which to discussand share best practices on integratinginformation and communicationtechnologies into development programmesand a platform to promotepartnerships between public, private,non-profit, civil society and multilateralstakeholders in order to address theissues of the digital divide and digitalopportunity more comprehensively.On June 26, 2003, the UN ICT TaskForce held a conference at the UN headquartersin New York, ‘The Wi-FiOpportunity for Developing Nations.’The conference brought representativesof developing countries together withleading technology producers, carriers,investors, regulators, entrepreneurs andfield practitioners from around the worldto examine the development potentialcreated by emerging wireless technologiesand discuss recommendations togovernments, regulators and WirelessInternet stakeholders to foster rapidmarket growth and bridge the digitaldivide.Wireless fidelity was also on the agendaat the first phase of the World Summiton the Information Society (WSIS) inGeneva on 10-12 December 2003 andwill be addressed during the secondphase, which will take place in Tunis inNovember 2005. The objective of theSummit is to develop and foster a clearstatement of political will and take concretesteps to establish the foundationsfor an Information Society for all. Anessential foundation for the InformationSociety is the information and communicationinfrastructure, which is to enablethe universal, sustainable, ubiquitousand affordable access to ICTs even in theremotest and poorest of areas. In orderto achieve this goal the Summit encouragesthe use of unused wireless capacity,including satellite and the further implementationof low-cost connectivity inWi-Fi is relatively inexpensive to propagatedeveloping countries. The potential ofWi-Fi to contribute to the infrastructureand access-building was brought up inseveral WSIS background papers androundtable discussions.A critical mass of support is building upbehind the spread of wireless technologiesthanks to these and other fora andthe engagement of enthusiastic andinfluential stakeholders from all sectorsof society.Barriers remainWi-Fi alone is not a panacea for theworld’s development problems. To start,it isn’t yet a perfect technology.“Wireless fidelity was also on the agenda at the firstphase of the World Summit on the Information Society(WSIS) in Geneva on 10-12 December 2003 and willbe addressed during the second phase, which will takeplace in Tunis in November 2005. The objective of theSummit is to develop and foster a clear statement ofpolitical will and take concrete steps to establish thefoundations for an Information Society for all.”Compared to wired infrastructure, forinstance, wireless provides lower levelsof performance. However, technologiesare under development to address theknown weaknesses of wireless systemsand improvements in effectiveness andefficiency can be expected. Wi-Fi is relativelyinexpensive to propagate, but necessaryinterconnection equipment andservice to a backbone remain a majorexpense for countries or private actors.In remote areas, absent or erratic powersupply remains a challenge to furtherimplementation.Rigid spectrum policies, protective regulatoryenvironments and lack of sustainablebusiness models remain criticalobstacles to faster and broader deploymentof wireless Internet technologies,though they will vary with every market.One step of manyWireless Internet may be a very effectiveand inexpensive connectivity tool, but itdoes not carry any magic in itself. It canonly be successfully deployed for developmentas demand for connectivity andbandwidth emerges in support of relevantapplications for the populationsserved. These include e-government, e-education, e-health, e-business ore-agriculture applications. These,though, are not easily implemented inthe developing world.Consequently, the demand for wirelessInternet connectivity, which aggregatesaccording to applications, needs to beexplored and documented to supportwireless infrastructure investmentneeds.Even after content that is relevant tousers is on place, there will be the need toinform and train users to capitalise onthe benefits of ICTs.Wireless broadband technologies offerthe potential to shift the goal of theInformation Society from the oft-quotedtelephone in every village to broadbandconnectivity everywhere.It is now within reach. Africa & The Middle East Issue 2004 15

NATIONAL DEVELOPMENTEgypt's Telecom Regulatory Authority – A Model forTelecom Regulationby Engr. Alaa El-Din Mohamed Fahmy, Executive President, National Telecommunication Regulatory Authority, Egypt (NTRA)Egypt's telecommunications sector has seen a five-fold expansion in recent years stimulated,in great part, by the Egyptian telecommunications regulator – the NTRA. The NTRA ischarged with regulating and monitoring the telecom industry, optimising the use of the radiofrequency spectrum and the licensing of new services and service providers. The NTRA isresponsible for a dramatic increase in the number of licences issued and, with the Ministry,for implementing Internet services for the price of a local phone call.Engr. Alaa El-Din Mohamed Fahmy is the Executive President of Egypt's National Telecommunication RegulatoryAuthority (NTRA) and the elected Chairman of the ITU WG-ITR, the International Telecommunication Union's WorkingGroup for International Telecommunication Regulation. Previously, Eng. Alaa Fahmy served the government as theDirector of the Armed Forces Main Information Centre (AFMIC), as vice-president of the Information SystemsDepartment in the Ministry of Defense and as the manager of a number of telecommunication and IT departments of theCabinet Information and Decision Support Centre (IDSC). In the private sector, Eng. Alaa Fahmy, was the GeneralManager of a well-known company, Chief Technical officer and stakeholder, in the company that built Egypt's firstInternet and Public Data Network backbone. For many years, he has also led a number of important Telecommunicationand IT Industry associations in Egypt. In recognition of his achievements, he was nominated, in 2002, for the prestigiousWorld Technology Network international award in communications technology. Engr. Alaa Fahmy earned his BSc. fromthe Military Technical College and his post-graduate studies were from Ain Shams University, Cairo University andAmerican Institute.President Hosni Mubarak’s informationsociety initiative, four years ago, hastransformed Egypt into a regionaltelecommunication hub.The many value added services incorporatedinto the Egyptian telecom industry'sportfolio led to a five-fold expansionof the sector. Fixed lines have doubled,mobile users grew from two to six millionsubscribers and there are now sixpublic data networks and 150 ISPs.Meanwhile, the number of Internet usershas climbed to over three and a half million,thanks to the free-Internet and PCfor every home initiatives.In line with these developments, othervalue added services were added to theportfolio of the sector; these include prepaidcards, pay phones, call centers andbulk SMS, among others. New technologies,such as voice over IP, Wi-Fi and Wi-Max wireless data, are being readied forlocal use. Today, Egypt’s telecom servicesstand shoulder to shoulder with thoseof any developed nation.Central to the successful development ofEgypt's telecommunications, since theliberalisation and privatisation of thesector, was the establishment of anenabling legal framework for Egypt'sNational Telecommunication RegulatoryAuthority, the NTRA, in 1998.The Telecom Act of 1998 laid the foundationfor the NTRA as a regulatory bodycharged with monitoring the telecomindustry. The role of the NTRA is toguarantee high quality telecom services,equally, to all citizens at an adequateprice. The NTRA is also charged withoptimising the use of such nationalresources as the radio frequency spectrumand, with respect to telecommunications,ensuring the preservation ofEgypt's national security.The NTRA strives to reconcile and harmonisethe varied interests of Egypt'sprivate companies, the public users andthe government to best meet the country'sneeds.The regulatory mechanism in any countryis derived from and has to be centeredon, that country’s culture.Therefore, there is a need to tightly linkthe political issues with the regulatoryones; and this is where the Ministry ofCommunications and InformationTechnology, MCIT, plays a vital role.Egypt's telecommunication sector is intransition and the concept of a regulatorybody is a new one for the country. If aregulator is to work effectively, thingshave to be done gradually but steadily, sothat they can be accepted and effectiveand, at the same time, not suffer anyserious drawbacks.Hence, the need to draw a balancebetween the service providers – and providethem with a good working environment– so they can develop and offertheir customers services that are up tointernational standards.The new Telecom Act put the responsibilityof coordinating and developingtelecom policies on the NTRA’s shoulders.With this, went also the responsibilityof building a detailed frameworkfor telecommunication licensing – toauthorise telecom operators and services– in Egypt.The NTRA licensing decisions are basedon a policy of non-discriminationbetween operators; they take the costs ofproviding a service into account andallow reasonable service provider profitmargins.The NTRA also sets standards for the differenttelecom services and monitorscompliance with the standards and the16 Africa & The Middle East Issue 2004

NATIONAL DEVELOPMENTquality of service. It adheres to the implementationof approved engineering practicesfor the different types of telecomequipment that are authorised for use inEgypt.In addition, the Regulatory Authority verifiesand reviews customer complaints.The NTRA is working to define telecommarket indicators and set benchmarks foreach service, be it for mobile or any otherservice. The current micro-indicators areused as a base line for standards for theimplementation of new services.“The Act also gave the NTRA jurisdiction to manage andlicense the frequency spectrum, protect consumer andpublic interests and set-up tariff caps. Recently, it wasgranted the right to impose sanctions, including fines andpenalties and was freed from bureaucratic red tape andprocedures. Moreover, it became entrusted with an independentfinancial strategy to fund service requirements.”The NTRA also manages the allocation ofthe frequency spectrum, in accordancewith the rules and recommendations ofthe International TelecommunicationUnion, to ensure its best utilisationThe NTRA has established special modesof communication to interact with thepublic. This is done through the contactcentre established by the authority toreceive complaints and inquiries and tryto resolve any issues or conflicts. The contactcentre relies on market survey studiesconducted to set the benchmarkmechanisms used to measure customersatisfaction.The Telecom Act gave the NTRA theNTRA jurisdiction to manage and licensethe frequency spectrum, protect consumerand public interests and set-uptariff caps. Recently, it was granted theright to impose sanctions, including finesand penalties and was freed from bureaucraticred tape and procedures.Moreover, it became entrusted with anindependent financial strategy to fundservice requirements.On NTRA’s achievement list is a dramaticincrease in the number of licencesissued and the finalising of an inter-connectionagreement between serviceproviders (mobile – Internet – V-Sat –GMPCS). The Authority, in full cooperationwith the Ministry of Communicationand Information Technology – the MCIT,took giant leaps implementing Internetservice for the price of the phone call andstimulating the upgrading of the NationalTelephone Network to provide the servicewithout interruption.The NTRA contributed to the establishmentof the first phase of the RadioFrequency Management and Monitoringproject, revising and establishing anational frequency allocation plan forEgypt, hence, enabling the country toissue 2,300 frequency licenses last year.Priority was given to issuing an environmentalsafety and health protocol formacro and micro model stations andinstallations and performing the requiredtests to ensure the proper implementationof the protocol.ICT Market environment – CeBIT Hannover, 2004The NTRA’s achievements have led Egyptto a boom in IT and telecommunicationadvancement; they have given the country'shuman resources a competitive edgewhich created an environment conduciveto winning consumer confidence andincreasing foreign investments. mandate to act independently to carry outits responsibilities efficiently. It now hasthe right to set standards for performance,either from a technical or infrastructureperspective, of the services providedby the operators. The NTRA developsregimes for communications equipment,conformity, assessment and typeapproval and ensures conformity with thestandards set. The Act also gave theThe NTRA’s decentralised environment,its independent entities with their mandatesto activate the Authority’s objectivesand very well defined business proceduresthat interlink the various departments,enable the Authority to perform athighest standards. The NTRA has playeda major role in leading Egypt upon theright path, helping it become a part of theglobal market for the exportation oftelecommunication technology.Africa & The Middle East Issue 2004 17

NATIONAL DEVELOPMENTFull Connectivity – A Regulatory Challenge and a SocialHopeby Jean-Louis Beh Mengue, Director General , Telecommunications Regulatory Board of CameroonHistorically, telecommunications started in the form of telegraphy, which was soon overtakenby voice telephony. A century and a half later we are seeing telephony itself being overtakenby the migration to IP platforms. The convergence of networks and technologies is blurringthe line between telephone, audio-visual and data services that were traditionally providedover separate networks. Although liberalisation of the telecommunications sector inCameroon has brought significant changes, especially in mobile telephone service, full networkconnectivity is still a long way off.Jean-Louis Beh Mengue has been the Director General of the Telecommunications Regulatory Board ofCameroon since it was founded in 1998.Before this, serving as the Permanent Secretary in the Ministry of Postsand Telecommunications, he coordinated the reform of the telecommunications and postal sectors, which led tothe creation of the Telecommunications Regulatory Board and two public corporations for posts and telecommunications.Mr Beh Mengue is also Cameroon’s representative to the Commonwealth TelecommunicationsOrganisation (CTO) Council, where his main responsibility is to ensure that the Cameroon's ICT sectorparticipates fully in the CTO and benefits from its programmes.IntroductionThe telecommunications network inCameroon has developed along the linesof separate networks for particular services,notably telex, data transmissionand telegraph services. However, thesenetworks all shared the same trunktransmission facilities, the backbone, ofthe Public Switched Telephone Network(PSTN). This infrastructure is also usedfor transporting television and audiosignals from the production centre in thecapital city, Yaounde, to the broadcastingstations located in different localitiesthroughout the national territory. Theexpansion of the various telecommunicationsservices is therefore conditionedon the development of the transmissionsinfrastructure of the incumbent.Services like telex and telegraphy havebeen losing ground to the Internet whichprovides substitutes services such asemail. The Internet and other dedicatedIP networks can also carry voice and thisis posing serious regulatory problems.Corporate private independent networksare growing in importance. They providea bouquet of services, which mainlyinclude data transmission, videoconferenceand telephony to their users. Theprivate networks that have internationalgateways and are connected to theInternet are being used as a bypass fortraffic that would otherwise have beenrouted through the PSTN.The backbone telephone network is“Services like telexand telegraphy have beenlosing ground to theInternet which providessubstitutes services suchas email. The Internet andother dedicated IP networkscan also carry voiceand this is posing seriousregulatory problems.”therefore vital to the development of theother services and is going to be more soas the convergence of network andservices gain grounds. In a bid to acceleratenetwork development and the contributionof telecommunications sectorto the socio-economic life of the country,the government of Cameroon decided tofast-track the reform of the telecommunicationssector in the mid 1990s. Thisculminated with the enactment of lawNo: 98/014 of 14 July 1998, governingtelecommunications in Cameroon. Thislaw and subsequent regulatory instrumentsdefined the legal, regulatory andinstitutional framework of the sector; itliberalised certain markets and set thestage for privatisation and restructuringof public telecommunications entities.The law created the TelecommunicationsRegulatory Board (TRB) withresponsibilities to regulate, control andmonitor the activities of the sector. Themain functions of the TRB are to facilitatemarket entry, to ensure marketdevelopment through fair competitionbetween market players, to settle disputes,to manage scares resources, topromote service provision to underservedand rural areas and to defineprinciples for tariff setting by thetelecommunications operators.The TRB is working to change thetelecommunications sector by improvingthe level of access to services,encouraging the liberalisation of the sectorand by promoting a high level of faircompetition. To achieve these goals, thechallenging issues below have to beaddressed.18 Africa & The Middle East Issue 2004

NATIONAL DEVELOPMENTConvergence is blurring the line between data, voice and audio-visual servicesUniversal service within the context of acountry with teledensity as low asCameroon is normally taken to mean universalaccess. Accordingly, it will be necessaryto set minimum access standardslike average distance to a public telephoneaccess point or minimum time towalk to such an access point. There is alsoneed to review the scope of universalservice. With the constant decline in theuse of telex and telegraphy, which formpart of the USO, it will not be cost effectivefor the incumbent to continue to providethese services. On the other hand,the mobile telephone networks operatorshave extended their national coverageinto more and more rural areas.Nevertheless, the rural population has yetto benefit adequately from the servicesoffered since the operators are prohibitedin their licence from providing and operatingpublic telephone access points.There is a need for a framework for universalservice that would include mobiletelephone services and Internet access.The telecentre concept is gaining groundand Cameroon is engaged in installingsome trial centres in the very near future.Inadequate infrastructureBefore the advent of liberalisation, thebackbone trunk transmission system ofthe incumbent operator consisted mainlyof digital and analogue PDH(Plesiochronous Digital Hierarchy)microwave radio links, with the main digitallink between the political capital,Yaounde and the economic capital,Douala. The current regulatory frameworkgives the incumbent the exclusiverights to provide trunk transmissionfacilities to all other operators on a leasebasis. However, with the rapid build-outof mobile networks and the shortage oftransmission facilities to lease from theincumbent, the mobile operators weregiven special authorisation to build transmissioninfrastructures for their exclusiveuse. These infrastructures enabledthe mobile operators to respect the coveragecondition in their licence and provideservice in additional and mostly urbanand economically viable areas.The mobile subscriber base increasedsubstantially from about 5000 in 2000 to701,507 in 2002 overtaking the fixed subscriberbase in 2001. During this sameperiod, The fixed subscriber baseincreased by 14 per cent to 112,881 in2002. This exponential growth in thenumber of mobile subscribers is mainlydue to under-provision of the fixed linesduring the years of monopoly provisionby the ministry of posts and telecommunications.The backlog of waiting-list customerskept increasing, with the delay forservice reaching as long as ten years. Alook at a nationwide picture with regardsto the availability of telephone service(fixed or mobile) shows great disparitybetween the ten provinces and in eachprovince between the urban and ruralareas. By the end of 2002 only 34 per centof the 321 council areas benefited fromfixed or mobile telephone service. A greatmajority of the 213 unserved councilareas are found in the rural zones.Universal serviceThe law governing telecommunicationsin Cameroon created a TelecommunicationsSpecial Fund destined for theprovision of Universal service and for thedevelopment of telecommunicationswithin the national territory. The fund ismanaged by the TRB and its revenue willcome mainly from contributions made bytelecommunications operators and serviceproviders. So far no operator has contributedto the fund because there is noestablished framework for its proper,transparent, management. The frameworkhas to include: a special licensingregime for operators; a mode of attributionof contract for networks build-outand/or provision of universal service,such as the least cost bidding widely usedin South America; and a compensationmechanism for the universal serviceprovider.The law defines the Universal ServiceObligation (USO) as the provision ofbasic telecommunications services. Theseinclude telephone (local, national andinternational), facsimile, telex and telegraphservices; the provision of emergencyservices; and the provision of anofficial universal telephone directory.Tariff rebalancingTariff rebalancing is usually applied in asituation where the fixed line incumbentoperator is given a period to graduallyreduce its cross-subsidy from long distanceand international communicationsservices, charged above cost, to localcommunications services, charged belowcost. The incumbent normally providesfixed services on a monopoly basis duringan exclusivity period. It is then constrainedby the regulator to completelyeliminate cross subsidies and align tariffswith cost, by the end of the period. In thecase of Cameroon, since the internationalmarket was liberalised the competitionthat ensued caused a dramatic reductionin the incumbent’s tariff. The incumbenthas reduced its tariff on some internationaldestinations by 70 per centbetween 2000 and 2002. On the otherhand, although the local communicationstariff has increased by 200 per cent duringthis same period to its present 40Francs CFA per three minutes, it is stillwell below the true cost of providing theservice. The incumbent is still sufferingloses in the local market and no compensationmechanism has been put in place.This situation is unsustainable; it needsto be addressed, taking into considerationthe effect a tariff increase would haveon the low income customers and theimpact on the growth of ‘dial-up’ Internetservice.Introduction of innovativeservicesThe fastpace of technological change,coupled with the drastic reduction inequipment and operation cost, has led torapid deployment of cost effective newservices. The provision of some of theseAfrica & The Middle East Issue 2004 19

KEYMILEwww.keymile.comAccess network migrationscenarioIn the race for market share and benefits, fixed network operatorshave had to elaborate plans to evolve their infrastructure toremain competitive. In the long term, all agree that NGN (NextGeneration Networks) packet architecture is the right way to go.The key issue for operators is how to migrate to NGN.The telecommunication world is continuously evolving. Eachyear sees the emergence of new services, new technologies andimprovements to existing services. In the last couple of years,the main service evolution was Internet access over ADSL andthe associated traffic explosion due to applications like musicand video-sharing using peer-to-peer file transfers. In the sameperiod, other technologies and services like Private & PublicWireless LAN and Wireless MAN have emerged.Status of fixed network operators todayFixed network telecom operators have to continuously improveand extend their offerings, reduce their costs, react to and anticipatecompetition. They are faced with several issues: Sustaining revenues while increasing market share Keeping pace with broadband deployment without cannibalizingexisting business Ensuring future proof investments with quick return oninvestment cycles Reducing prices of services while continuously enhance serviceoffering.The fact that a large part of the revenues of an operator isderived from access fees and retail traffic, has considerable influenceon the strategic decisions and directions an operator cantake.Dark clouds on the horizonIn the next years, fixed network operators will face declining revenuesfor basic services. Apart from competition, they have alsoto resolve the issue of substitution services (i.e. mainly mobiletelephony). A situation clearly illustrated in Western Europewhere the growth in DSL revenues does not compensate for thedrop in prices for basic services in the stagnant, if not declining,fixed voice line – analogue and digital telephony – market. Onecan observe a similar trend in other parts of the world.Fixed network operators, therefore, have no other alternativebut to improve their business by reducing operational costs andlooking for ways to increase their ARPU (Average Revenue PerUser).What to do in the long term?Faced with the stagnation of telephone line growth, operatorssee the possibility of increasing ARPU providing broadband services.In this market, the main competitive threats come from bothcable TV network operators, with their broadband infrastructureand content provisioning and mobile network operators focusingon mobility and connectivity everywhere, including mobileInternet access.So, for the fixed wire line telecom operators, there is no choicebut to offer more than just basic telephony service. This meansmainly broadband Internet access over ADSL.So far, operators have been just aiming at signing up as manyInternet access subscribers as possible, using all kinds of offers.Now, the question on the table is: how to increase the revenues.So are the days of ‘free’ Internet at an end?As operators evolve their DSL deployment from ADSL to ADSL2+or even VDSL, it is opening the way for innovative Triple-Playentertainment services for residential subscribers, or even highspeedVLAN or VPN Business services.To push these new services, operators have to have attractiveofferings for the market, with bundled packages, which will nodoubt mean reduced prices for the present basic services. Theend result is that operators have no other alternative but tostreamline their operations and existing network architectures toaddress new services.Impact on the networkAs the traffic from broadband services increases it will clearlyimpact the operator's network.In the service provider’s core network, the relatively small varietyof equipment makes a bandwidth upgrade easy and does notrequire a huge investment as new services are introduced.On the other hand, upgrading the access network is anotherstory. Multiple technologies, with multiple types of services,make access networks very complex. Once network cabling andthe different types of equipment are in place, it requires a hugeinvestment for any modification or upgrade.20 Africa & The Middle East Issue 2004

www.keymile.comKEYMILEOperators are faced with the dilemma ofdetermining the ideal way to introducenew technologies in their network asrequired to offer new services alongsideexisting ones.The trend amongst many operators is toevolve from single service access networksto a multi-service network by introducingMulti-Service Access Nodes. This way, theoperator reduces access infrastructure andoperational costs and ensures the ability tointroduce new revenue generating services.An example of this is in UK, where BritishTelecom has defined the network theywant for the future under their 21stCentury Network architecture definition.In a step-by-step approach, BT intendsover time to replace over 100,000 existingsingle service access systems with 30,000Multi-Service Access Nodes (MSAN). Thereare similar examples in several parts of theworld.MSAN as a long-termsolution?Clearly, the motivation is to move frommultiple single service access networks toone converged NGN infrastructure for allservices. ATM was long glorified as theanswer. Now, one sees that it is too complexand too expensive to serve as a commontechnology for the whole network.Today, MPLS in conjunction with an all-IPnetwork appears to be a better way totransport packets across a routed network.The migration to a converged packetbasednetwork should improve existingnetworks in two ways: Increased bandwidth delivery capabilityto each end-user with guaranteed qualityof service Optimised network resource utilisationdue to packet based technologies.Equipment suppliers’positionMulti-Service Access Nodes have been onthe market for some time, but now thenew generation of these systems supportboth traditional and new emergingservices.These systems not only digitalise and packetisethe voice services directly, but alsohandle data and video. Their core is similarto an ATM switch or an IP/MPLS router.They are even built with multiple coretechnologies with protocol bridgesbetween the cores to ensure lower interfacemodule prices.KEYMILE Multi-Service Access Node(MSAN), UMUX, exactly fits this categoryof products and provides an operator withmigration paths, both for the various fixedaccess network technologies and servicesof today and for the future Triple-Play servicesin an NGN network.The objective of the UMUX platform is togive the operator a choice of whichservices, technology and network architectures,deploy. Above all, it ensures that thefuture path for new services can be basedon the same platform. In this way, therewill be no future need for new equipmentfor new services. This allows substantialsavings in operational costs and capitalexpenditure.How to get to NGNarchitectures?The operator can start network migrationfrom either the core of the network orfrom the edge of its network. Whicheverpath is chosen, any Multi-Service AccessNode must support a smooth migration ofthe network from services of today tothose of the future. Be it the support ofbasic V5.1 or V5.2 for today’s voice services,they must be capable of a gradualmigration to NGN, with Ethernet andMPLS, for VoIP and Multimedia services,by network extensions.ConclusionsAccess network migration will not takeplace overnight. The existing and the newinfrastructures will have to cohabit foryears to come. The evolution to NGNrequires a MSAN approach to provide asmooth migration to future services.The KEYMILE UMUX platform, is installedin over 100 countries and already providesthis migration to NGN for its customers.KEYMILE, with over 15 years of experiencein access networks and a full fixed accessnetwork portfolio, is convinced that it isonly in a step-by-step approach that operatorscan find the key to business successin their move to NGN. KEYMILE is a specialist in accesssolutions. Delivering class-leadingsolutions today for multi-serviceaccess, with seamless migrationto packet convergence (ATM orIP) and Next Generation Networkarchitecture.www.keymile.comAfrica & The Middle East Issue 2004 21

NATIONAL DEVELOPMENTservices has not been clearly definedunder the current regulations. They willcontinue to be provided within an irregularlegal framework if the TRB continue toexercise regulatory forbearance. One ofthe areas of contention is the provision ofIP telephony by Internet ServiceProviders (ISPs) at very little additioncost. On the other hand, the licencesissued in Cameroon are technologicallyneutral, which implies IP telephony of thesame quality is functionally equivalent tothe traditional telephony through thePSTN. The ISP may be infringing theexclusivity of the incumbent fixed lineoperator by providing IP telephony to thepublic. However, banning its provisionwill stifle technological progress and willbe detrimental to the sector's development,considering the worldwide migrationto IP platforms for fixed and mobileservice.The need for an effective ICTpolicyThe vital role ICT is playing in the socioeconomicdevelopment of nations hasbeen recognised by the UN and also byworld leaders who, in the recent WorldSummit for Information Society (WSIS)held in Geneva in December 2003, committedtheir governments to implementingthe WSIS action plan. Any ICT policyframework in Cameroon needs to takeinto consideration the present telecommunicationsector legislative frameworkand to incorporate the needs of the otherstakeholders. These include sectors likeeducation, agriculture, commerce, healthand the civil society. There is also a needfor top-level government direction andsupervision, as ICT policy formulationwill need an all inclusive, multi-sectoral,approach. We hope to gain from themomentum of the preparation for theWSIS (World Summit on the InformationSociety) and to establish a body to drawup this policy and oversee its implementation.Such a policy will include importantissues, such as: the reduction of import duties and thecreation of conditions favourable for localmanufacture/assembly of ICT products,such as PCs Measures to be taken to reduce thecosts of ‘dial-up’ Internet access andinternational bandwidth, as Internet trafficfrom/to Cameroon is very ‘US-centric’ The effective use of ICT in the attainmentof national goals in the areas ofhealth, governance, agriculture andcommerce The creation of relevant local content sothat the Internet can serve as a tool fordevelopment. The present content, whichis mainly in English and text-oriented, isof little value to most of our rural population,the majority of whom are illiterate.As the phenomenon of convergence isblurring the dividing line between data,voice and audio-visual services, there is aneed for the TRB to move from a singlesector telecommunications regulator toencompass the broader ICT sector.Capacity buildingThe creation of the TRB coincided withthe liberalisation of the telecommunicationssector. The first management team,appointed in 1998, had to urgently set upthe organisational chart and make thenecessary recruitments and appointments.The present staff of the TRB consistsmainly of government civil servants,on secondment from the ministry of Postsand Telecommunications and thoserecruited from the job market. Althoughmost of the civil servants had good backgroundsin telecommunication operations,there is still a great need for capacitybuilding in all aspects of regulation. Sofar our capacity building efforts have beenrealised through international organisationslike the World Bank, theCommonwealth TelecommunicationsOrganisation (CTO) and the InternationalTelecommunications Union (ITU). Therea great need for a strategic plan for capacitybuilding that is in line with the TRB’slong-term strategies. Such a plan shouldinclude: Assessing the present needs in capacitybuilding with a view to defining the realtraining needs of the TRB Identifying the training and developmentmethod most appropriate to meetour needs Recognising the critical importance ofcontent development as complimentaryto the infrastructure deployment Building expertise not only within theTRB staff, but also across a broad spectrumof stakeholders, including judgesand lawyers who arbitrate issues relatedto the ICT sector, legislators,operators/investors, civil society and,most importantly, the public and consumers Exploiting the benefits of sharing experiencesthrough regional and, where necessary,international peering arrangementswith other regulatory bodies“The vital role ICT isplaying in the socio-economicdevelopment of nations hasbeen recognised by the UN andalso by world leaders who, inthe recent World Summit forInformation Society held inGeneva in December 2003,committed their governments toimplementing the WSIS actionplan.“ Using long-term, institutional capacity-buildingof training and academicinstitutions to address the skills requirementsof the ICT sector.The main areas of priority in the formulationand implementation of these strategiccapacity building plans would include: Knowledge and skill requirements foreffective regulation, comprising:o legal aspectso standard settingo quality of service (QoS) measuremento interconnection tariff determinationand negotiations. Regulatory governance ICT awareness creation amongst ICTsector members and stakeholders The fostering of innovation, especiallyin mobile and IP-based services Consumer empowerment aimed at creatingan environment for market regulation Definition of the principles for tariffsetting.ConclusionAfter years of stagnation, telecommunicationsector reform has brought about aremarkable increase in product offers,network availability and a continueddecrease in prices. The goal of full connectivityis still a long way off. However,concerted efforts can be made to addressthe challenges in the sector in order toestablish an effective regulatory regime. 22 Africa & The Middle East Issue 2004

NATIONAL DEVELOPMENTRegulations for full connectivity in Botswanaby Twoba Boikaego Koontse, Director, Communications and Consumer Affairs, the Botswana Telecommunications AuthorityToday, technology has developed to a point where single networks can provide all sorts ofservices, from fixed to mobile to Internet and broadcasting. Convergence of technologies isgradually making it difficult to comfortably differentiate between ‘telecommunications’ andother forms of communication. This has made the already complex regulatory function evenmore difficult and sometimes impossible. The regulatory framework is the single mostimportant and difficult area in telecommunications policy today and it is likely to remain sofor many years to come.Mr Twoba Boikaego Koontse is the Director of Communications and Consumer Affairs of the BotswanaTelecommunications Authority. Mr Koontse joined the Botswana Telecommunications Authority (BTA) as ChiefCorporate Affairs Officer and was later appointed to his current post. Mr Koontse began his career in governmentwith Botswana's Department of Foreign Affairs. There, he served as First Secretary to the Botswana HighCommission, first in London then in Harare. He was later named the Deputy High Commissioner in Lusaka. Hebegan professionally as a teacher and rose quickly to the post of Headmaster of the school. Mr Koontse holds aBA and a Diploma in Education from the University of Botswana. In 1996 he earned a Certificate in Diplomacyand International Relations from the University of Pretoria, South Africa.The Botswana TelecommunicationsAuthority, BTA, is a statutory agencyestablished in December 1996 by theTelecommunications Act, 1996 [No. 15 of1996]. The agency is responsible for thelicensing of telecommunications andbroadcasting operators, approving tariffs,promoting and monitoring free andfair competition, allocating and managingthe radio spectrum, type-approvingterminal equipment and protecting consumers.It is also charged with settlingdisputes among operators; its decisionscan only be reviewed by Botswana's HighCourt.Today, technology has developed to apoint where the telecommunicationsindustry is generally in agreement that itis possible to have single networks providingall sorts of services, from fixed tomobile to Internet and broadcasting. Infact, convergence of technologies is graduallymaking it difficult to comfortablytalk about ‘telecommunications’ withoutworrying that one could, be talking aboutother forms of communication that maynot, per se, be telecommunications.The International TelecommunicationUnion (ITU) itself has acknowledged thisfact: "Technology that theoretically providesaccess from any place on Earth isavailable. Universal access is now not anengineering or supply side problem butrather a regulatory and policy challenge"(ITU, WTDR 1998).Difficulties in regulationThis state of current affairs has made thealready complex regulatory functioneven more difficult and sometimesimpossible. With a developing telecommunicationsmarket and a fairly youngregulatory authority, Botswana, likemany other countries, finds herself confrontedwith the regulatory issues thathave arisen as a result of of new technologyand innovations in the sector. Theissue is that technological innovationscreate new opportunities and/or threatsthat can be exploited in the market placefaster than policy and regulation canadapt to the new circumstances. Inshort, technological changes can erodethe ‘natural monopoly’ and alter themarket boundaries, introducing competitionbetween providers of traditionallydifferent services. The dilemma for us asregulators is that, on the one hand, wehave an obligation to level the playingfield so that competition can flourish andoffer consumers choice while, on theother hand, we have to be convinced thatthe innovative technologies that seek tofind their way into the market are notgoing to bring more problems into thevery market they intend to develop.Getting the balance right is at the veryheart of regulation.In Botswana, the current regulatoryregime has opted for issuance of separatelicences for different services. Assuch, a fixed line service requires a separatelicence, as do mobile services, internetservices, or broadcasting services.This, of course, means that there have tobe different networks for each of theseservices. In terms of the law, telecommunicationsservice even falls under a differentregulatory authority than thebroadcasting service.Africa & The Middle East Issue 2004 23

NATIONAL DEVELOPMENTThe Telecommunications Policy forBotswana of 1995 advocated a controlledliberalisation of the telecommunicationsindustry, fearing that introduction ofcompetition would be a threat to theincumbent government-owned fixed lineoperator: "National telecommunicationsservices i.e. services covering more thanone local network would require alicence. As granting of such licenceswould be a major threat to BotswanaTelecommunications Corporation (BTC),it is necessary to decide at Cabinet levelto what extent such competition is desirable.In support of universal service goal,competition in fixed networks i.e. duplicationin infrastructure should initiallybe discouraged. The more of the existingnetwork capacity is used, the easier itbecomes to justify and fund furtherexpansion of the network…"Thus, in the case of Botswana, it was feltthat it would be ideal, in the initial stagesof the introduction of competition, toavoid a sudden increase in the number ofmarket players as this could lead to lowerservice prices, but could also reduce networkoperator profit and lead to disruptionof services.However, the government has realisedthat separating broadcasting regulationfrom telecommunication regulationduplicates duties, especially as the telecomsregulator of the BotswanaTelecommunications Authority (BTA),also serves as the Secretariat to thebroadcasting authority, the NationalBroadcasting Board (NBB). Plans tomerge the two regulatory bodies into oneare already at an advanced stage.Separation of networks: acomplex issueAlthough meant to bring in competition,separation of networks can also add tothe problems of interconnection as quiteoften and this applies to Botswana aswell, the fixed line operators who arecompetitors in the market own the mainbackbone network. As such, competitorsoften see the negotiation of interconnectionrates with the fixed line operator asunfair. Botswana has already dealt withtwo interconnection disputes: betweenthe fixed line operator and mobile operatorscombined; and between the fixedline operator and one of the mobile operators.Suffice to say that interconnectiondisputes will always arise even where thenetworks are seamless, but their focuswould change.“Technology convergence raises a number of issues,both in the interconnection framework and the developmentof competition. The fundamental issue is whethercompetition will develop and what form it will take in thenext generation networks. Is technology a driver of competitionand deregulation, or will it promote industry consolidationand create the need for additional regulation?”Technology convergence raises a numberof issues, both in the interconnectionframework and the development of competition.The fundamental issue iswhether competition will develop andwhat form it will take in the next generationnetworks. Is technology a driver ofcompetition and deregulation, or will itpromote industry consolidation and createthe need for additional regulation?Technological changes have createdeconomies of scope that cut across formerlyseparate markets and thus createincentives for an incumbent in one marketto enter into other markets. Forexample, most of the incumbents haveestablished Internet Service Providersubsidiaries to provide Internet servicesand other data services. This is the currentsituation in Botswana.Technology can improve competition if itcreates new entry incentives and opportunities.However, there is also a possibilitythat technology may be a driver inthe opposite direction. In future we mayhave a single, multi-product monopolistoffering integrated packages of voice,data and video services on a single networkplatform. The IP-based networksare able to carry all three: voice, data andvideo on a single platform. The questionof the vertical scope of telecommunicationsfirms also arises. For instance, doeconomies of scale and scope extend tothe joint provision of content and conduit?In 3G networks, should the cellularproviders also being interested in provisionof content? Network capability isnot valuable unless there are applicationsthat take advantage of it.The bundling strategies and the exploitationof network effects all raise issues ofinterconnection policy. Whetherbundling strategy and network effectswill reduce competition depends criticallyon the development of wholesale marketsand the interconnection regulatoryframework. The interconnection regulatoryframework will shape whether technologypromotes new and increasedcompetition, or results in further consolidationand concentration of marketpowers. The regulatory framework ofinterconnection and local loopunbundling is the single most importantand difficult, area in telecommunicationspolicy today and it is likely to remain sofor many years to come.ConclusionSeamless networks theoretically have thepotential to increase connectivity substantially,but whether or not that reallywould be practicable remains to be seen.Again, seamless networks are still as farfetched,particularly for us, as for most ofthe developing world. While they promiseultimately to benefit the consumer,they also threaten to undermine the hugeinvestments already in place by reducingthe potential return on capital investment.It also remains to be seen howcompensation between networks will beworked out under a seamless arrangement.As it is, compensation betweennetworks is already complicated enoughunder the current arrangement. Lastly,before seamless network arrangementcan be fully implemented and supported,the world needs to be assured that thetechnology will not, one day, hold theentire world incommunicado due to themalfunctioning of a single part of thatnetwork. 24 Africa & The Middle East Issue 2004

REGIONAL CONNECTIVITYRascomstar: A Pan African ICT Platform for Connectivityand Developmentby Mustapha Elriz, CEO, Rascomstar-QAFThe world has entered an era of revolution where information transmission is the driving forceof development and economic growth. However, the information revolution requires massiveinvestment in infrastructure to connect populations. The Regional African SatelliteCommunications Organisation, RASCOM, is an all-African initiative to provide the Africancontinent with a telecommunications infrastructure capable of giving telecommunicationsaccess at low cost to every citizen in Africa. This initiative will ensure telephone, informationand entertainment access to rural populations at highly competitive rates.Mr Mustapha Elriz is the CEO of Rascomstar-QAF. As the Rascomstar Project Director, (1999-2002), hesuccessfully coordinated the implementation of the Rascomstar-QAF Company, a private African joint ventureset up to finance and operate the RASCOM System. Previously, Mr Elriz was Alcatel's satellite division vicepresidentfor Africa and the Middle East until his election as Rascomstar-QAF's first CEO. Mustapha Elrizgraduated in 1979 from the Ecole Nationale Supérieure des Télécommunications in Paris and holds an MBAfrom the Open Business School in Great-Britain.Information eraThe world has entered an era of revolutionwhere information transmission isthe driving force of human developmentand economic growth. Most Africaneconomies are handicapped by poorsocial and economical development, yetthe new information economy is technology-driven.Without access to technology,the gap between Africa and thewestern world will widen dramatically.Given the right infrastructure, access toinformation through connectivity isinexpensive and is not geographicallydiscriminating. Thus, this new era representsa unique opportunity to bridge thedigital divide between the wealthy andpoor and between urban and rural populations.The information revolution is capitalintensive,requiring massive investmentin infrastructure to connect populationsto telecommunications networks, theinformation superhighway and broadcastchannels. The very nature of businessis to pursue profit. The same is truein information transmission. This willnaturally result in service providersseeking the high monetary returnsoffered by urban and corporate markets.It is imperative that, in realising theseopportunities, purely financial concernsdo not overshadow the needs of marginalisedrural people. The information ageoffers Africa a unique opportunity toexpand these advantages for economic,social and competitive gains to and fromthe African continent.Benefits of connectivityConnectivity includes telephony, linkageto the information superhighway andvital literacy, education and medicalplatforms as well as entertainment andinformation broadcasting. By embracingthe information age and its comprehensivelinkage channels, access to literacy,education, healthcare and informationcan be enjoyed equally by all populations,regardless of their location andincome level. Similarly, the distributionof entertainment and informationbroadcasting can be increased withoutdiscriminating by income or location.Finally and most importantly, peoplecan achieve critical social links with thesimple benefit of telephone connections.Connectivity through telephony orInternet will reduce distances and differencesbetween people and dramaticallyimprove human development indexes.The status of AfricanconnectivityAfrica is far behind the developed worldin information infrastructure. This is afunction of: Lack of economic development – historically,colonisation stunted Africaneconomic growth Population distribution – Africa haslow population density and great distancesbetween population centres Low funding availability – Africa is notconsidered an attractive continent forinvestment, so it is difficult and costly toraise the funds for capital investment Lower return on capital investment –the combination of the above factorsresults in a lower return on investment.Because of the low investment priorityplaced on Africa, there is no viable satellitewholly dedicated to the African continent.This has further increased thecost of connection and reduced accessibilitywhilst limiting the quality andspread of connection.26 Africa & The Middle East Issue 2004

REGIONAL CONNECTIVITYFigure 1: Actors of the RascomStar systemThe RASCOM projectorganisationThe Regional African SatelliteCommunications Organisation, RAS-COM, was created in May 1992 by allAfrican governments to provide theAfrican continent with appropriatetelecommunications infrastructure capableof fostering the development oftelecommunications in every Africancountry and giving access to telecommunicationsservices at low cost to every citizenin Africa.RASCOM provides the African continentwith dedicated satellite facilities.Rascom-QAF1 provides comprehensive,high quality, telephone, broadcasting andInternet connection, at low cost. It complementsthe services of existing telecommunicationscompanies, Internet serviceproviders and broadcasters. The initiativedoes not compete with, but complements,existing national or privateground operations.By being continentally based, the capitalcost of the satellite programme is spreadover several countries, diluting countrycosts and risks dramatically and increasingproject returns.Notably, RASCOM will ensure telephone,information and entertainment access torural populations at highly competitiverates. The initiative includes VillageEmpowerment Terminals using the nextgeneration of VSats. These are integratedcommunication centres connected viasatellite to telephone networks; they providethe local population with telephones,television, computer and DVB access toTV and media broadcasters and theInternet. The centres will be owned andoperated by local telecommunicationorganisations.RASCOM has secured a prime satelliteposition with the best footprint for Africafrom the ITU (International TelecommunicationUnion) and has the supportof 44 African countries. The first Rascomsatellite should be launched in early2006.RASCOMSTAR-QAF, an affiliate privatecompany headquartered in Port-LouisMauritius, is developing the space andground system infrastructure. Its firstround of financing has entirely ensuredthe construction of the satellite and thedevelopment of the ground segment.Mission and servicesThe RascomStar mission will provideAfrica with three categories of services:Rural communication servicesRascomStar provides satellite services toAfrican telco’s, who in turn can offer lowcostcommunication services – voice, fax,low rate data and Internet access – totheir end-users often in rural areas wherefixed public telephone networks do notoften reach.Connect- on-demand servicesThese include direct interconnection, ona call-by-call basis, between stationslocated anywhere on the African continentto provide inter-urban or internationallinks for telephony, fax and datatransmission.Bandwidth lease servicesDifferent services, based on satellitebandwidth capacity leasing, are providedon a static basis: Trunking services for low and highrate links, within African and betweenAfrica and Europe or Middle East GSM back-hauling networks TV and sound broadcasting services Internet networking/access solutions Other services, such as VSAT corporatenetworks and news-gathering.General concept of operationAfrica & The Middle East Issue 2004 27

REGIONAL CONNECTIVITYFigure2: The RascomStar-QAF mission segmentsThe RascomStar-QAF system consists of ageostationary satellite covering theAfrican continent, using two spot beamsin Ku-band and global coverage in C band,with the associated ground control, missionand communications facilities.The satellite has twenty-four 36MHzequivalenttransponders. The Ku-bandfootprints have the power and bandwidthfor reception and transmission by smallsatellite terminals.Alcatel Space, under a turnkey contract, isresponsible for putting the satellite inorbit. The contract includes building thesatellite, launch services, the ground controlsegment and risk management(launch and satellite insurance).Rural communications andconnectivity-on-demandThe system is made up of many ‘RuralTerminals’ with small, 1.2m, antennaseach with two telephone interfaces – normallyconnected to a phone booth.Telephones in the booth support prepaidcards, scratch cards and the like to collectrevenues under the control of theNetwork Station. The Rural Terminalshould cost about US$1400.Figure 3: Ku-band coverageGateways provide connections to andfrom the public telephone network. Theycan be equipped with a few channels – 15for on-demand connectivity for a smallcity, to several hundred channels for largeregional gateways. The number of gatewaysfor a fully deployed network canreach 100.There are two network stations (NS), aprimary and a back up, to control all thesignalling over the network. These controland manage all stations and all calls, theycollect all usage information and remotelycontrol public phones.ConnectivityThroughout Africa, the rural terminalswill operate in Ku-band. Gateways andnetwork stations will operate in C-band tocommunicate with each other over theentire African footprint. In addition,either within the northern or southernbeam, direct terminal-to-terminalconnections can be established.The RascomStar-QAF system consists ofthree segments: The space segment The traffic management facilities The integrated communication segment,including rural communication andconnectivity-on-demand facilities.The space segmentRural terminalA rural terminal provides three interfaces.Two are telephone or Fax/Data lineswhich have all the features needed, suchas ring generator and tax pulse. There isone L-band interface to connect a DVB-Sreceiver for TV or Internet multicastingreception.The terminal consists of a single outdoorAfrica & The Middle East Issue 2004 29

REGIONAL CONNECTIVITYFigure 4: C-band coverageo Fixed 3.7 m C-band antennao Redundant solid-state power amplifierfor transmissiono Redundant low-noise block converterfor the reception The gateway management subsystem The gateway telecom system (modemand traffic functions.)Gateway capacity can range from 120 circuitsto 960 circuits, in 120 circuit modulesfor rural communication services andfrom 15 circuits to 60 circuits, in 15 circuitmodules for connectivity-on-demand.Depending on the needs of the telco, agateway might carry only rural communicationservices, connectivity-on-demandservices, or both.Central management architectureunit containing: A small antenna (typically 1.2 m) One block-up converter (BUC) of typically2W One low-noise block converter (LNB) One base-band unit (BBU)Power supply and telephone interfaces.The rugged terminal is designed for therural environment. Outdoor units arepackaged within a sealed, weatherproofenclosure. The rural terminal is poweredby direct current, using solar/batterypower. It is equipped to shut downunused circuits to reduce power requirements.To minimise field maintenance, noadjustment or calibration is required.Monitoring and control is performedautomatically by the centralised networkmanagement. Software can be downloadedthrough signalling circuits.GatewayGateways are the key elements to interconnectthe Public Switched TelephonyNetworks (PSTN) to the RASCOMNetwork. Each gateway consists of: The gateway radio system using:“Connectivity includes telephony, linkage to the informationsuperhighway and vital literacy, education andmedical platforms as well as entertainment and informationbroadcasting. By embracing the informationage and its comprehensive linkage channels, access toliteracy, education, healthcare and information can beenjoyed equally by all populations, regardless of theirlocation and income level.”The rural communication service andconnectivity-on-demand networks arecontrolled from a single point – the networkstation. This optimises on-boardspectrum allocation to maximise the saleof satellite circuit capacity during peakhours. It also makes it possible to minimisethe usage of terrestrial infrastructureand optimise routing between terminalsand the public telephone network.This optimised routing can be used forinternational calls, when authorised bynational operators, or for nationwide callingif there are several gateways in thecountry.Control and management functions havebeen simplified to ease the tasks ofnational and regional operators. Thesetasks are mainly administrative and relatedto the network's subscribers and terminals:registration, call parameter modificationand deletion of the terminal accesswithin the network. National operatorswill have full management control overtheir networks, thanks to intensive developmentsin the area of intelligent networking.ConclusionThe information age offers Africa a uniqueopportunity to bridge the digital divide,bringing human and economic developmentto all of the people of Africa, includingrural populations. The RASCOM projectis a key instrument in the realisation ofthe NEPAD vision. 30 Africa & The Middle East Issue 2004

REGIONAL CONNECTIVITYSubmarine Cables – Unlocking Broadband in the MiddleEast and Asiaby Walid Irshaid, President, Middle East and Africa, Flag TelecomThe submarine telecom cable industry has been suffering through one of the most difficultperiods in its 150-year history. However, during the past two years the industry has been inthe process of restructuring and, while some markets remain in the doldrums, others arepowering ahead. A new cable system has been announced. It will run from Egypt through theMiddle East and, from there, on to India to China. It is the first major submarine cable infrastructureinvestment of this century.Walid Irshaid is the President for Middle East and Africa of Flag Telecom and is a member of the Executive Boardof FLAG Telecom. Based in Dubai. Walid Irshaid is responsible for all FLAG’s operations in the Middle East andAfrica. Before joining FLAG Telecom, he served as the Director General of Palestine Telecom Corporation (PAL-TEL), the emerging telecom services provider that has an exclusive 10 year licence for all voice and data servicesin Palestine. Before that he was Managing Director for the Investcom Group in Beirut developing data andbusiness communication services in Lebanon. His experience in the Middle East also includes 17 years withEmirates Telecom (ETISALAT) as Corporate Manager. There, he was actively involved in the deployment anddevelopment of major projects and key services, including cellular, data, value-added services and multimedia.Mr Irshaid holds a Bachelor of Engineering Degree in Electronics.Despite the uncertainties on the politicalfront, there is now a sense ofrenewed optimism regarding the globaleconomy. McKinsey’s recent quarterlyreport showed that an overwhelmingnumber of executives fromcompanies of all sizes and in allregions believe the economy is healthierthan it was six months ago. While adegree of levelling off is expected inthe second half of the year, stronggreen shoots are appearing.Particularly strong signals are comingfrom many parts of the telecommunicationsand information technologysector, spurred on by substantialgrowth in affordable broadbandaccess in many parts of the MiddleEast and Asia.Within that sector, the submarinetelecom cable industry has been passingthrough one of the most difficultperiods in its 150-year history. It iscurrently struggling to adjust to theeffects of the crisis created by thebursting telecom investment bubblewhich left over-leveraged companieswith unwanted infrastructure, rapidlyfalling returns and market capitalisationheading towards zero.Restructuring andresurgenceOver the past two years the industryhas been in the process of restructuringand, while some markets remainin the doldrums, others are poweringahead. Problems of overcapacityremain on the overbuilt routes acrossthe Atlantic and Pacific, but in regionsunder-served by international cablesystems, demand is already outstrippingsupply. Leading this surge arecountries in the Middle East, togetherwith India and China, where demandfor telecommunications services isforecast to explode in the comingyears. It’s a demand being fuelled byincreasing use of the Internet, by newbroadband services and by global outsourcingof call centres and back officeoperations by European and AmericancompaniesIn India, for example, NASSCOMforecasts that bandwidth demand willgrow from 7.31Gbits/s in 2003 to92.56Gbits/s in 2009. While much ofthis demand will come from increasedInternet usage, forecast growth inmobile and fixed services will be substantial.The number of mobile sub-“Throughout the recenteconomic downturn,across the telecomsindustry – even in maturemarkets, traffic volumesnever stopped increasing.The ‘bust’ for the submarinecable industry wasone of a supply-demandimbalance caused by overinvestment ...”32 Africa & The Middle East Issue 2004

REGIONAL CONNECTIVITYthat several hundred million dollarswill be invested in a new cable systemrunning from Egypt in the west,around the Gulf, across India and onto China in the east. The cable systemwill be the first major submarine cableinfrastructure investment of this century.It will be inaugurated within 12months and will provide the first terabit/sresilient loop around the Gulfand the first direct terabit/s linkbetween India and China, the world’stwo fastest growing economies.Unlocking broadband in the Middle East and Asiascribers is expected to grow from thecurrent figure of 30 million to 70 millionby 2007, with fixed subscribersgrowing from 50 million to nearly 70million in the same period.Forecasts of significant growth arealso coming from the Middle Eastregion, where demand for internationalbandwidth for the Gulf States isforecast to grow from its current levelof 3Gbits/s to 30Gbits/s by 2010. Butit is China that is forecast to outstripall other markets; Ovum predicts thatdemand is set to rise from 45Gbits/sthis year to over 2,000Gbits/s in2010.The accelerating pace of market liberalisationin these regions is serving tofuel growth in all telecommunicationssectors. Market liberalisation in somecountries has been slow and, in anumber of cases, ineffective regulationof incumbent monopolies hasinhibited market growth. However, aswas the case in the US and Europe,where there is a strong customerdemand for services coupled with thetechnology available to deliver them,governments are quickly sweepingsuch growth inhibitors aside.Explosive growth in demand shouldnot come as a great surprise. Whenthe telecoms bubble burst it was notlack of demand for telecommunicationsservices, nor the Internet, thatcaused it. It was caused by over-supplyof infrastructure and over-investmentdriven by all the hype, illusionand over-optimism surrounding theindustry. Traffic volumes have neverstopped increasing. For example,according to Telegeography, privatedata networks grew by 56 per centbetween 2001 and 2002, the time thatthe industry hit the rocks, whileInternet bandwidth grew 73 per centduring the same period.The entire global economy is heavilyreliant on the world’s telecommunicationsinfrastructure and internationalcommerce would effectively ceasewithout it. It has been repeatedlydemonstrated that the pace of GNPgrowth of the emerging economicnations is directly related to telecommunicationsnetwork and service penetration.Throughout the recent economicdownturn, across the telecomsindustry – even in mature markets,traffic volumes never stopped increasing.The ‘bust’ for the submarine cableindustry was one of a supply-demandimbalance caused by over investment,but that problem of imbalance wasalways much less of a problem inmuch of the Middle East and Asia.New linksIndeed, we are now seeing a reverseddemand-supply imbalance in manyparts of those regions, a situation thatled to the announcement last monthThis is not another joust at an illusionarymarket. The investment isbeing made in a climate very differentfrom that of the 1990s boom. Strongsustainable demand is already presentin the market. This investment isbeing made privately without recourseto vendors or public financing.Importantly, detailed discussionshave taken place with customers andleading operators. Egypt and the Gulfstates of Oman, Bahrain, Kuwait, Iran,Qatar and Iraq have all expressedinterest in joining the effort and mostare in an advanced stage of discussionabout their participation.At a time when parts of the industryremain in a depressed state, the cableis expected to dramatically change theglobal communications infrastructurebalance. It has been recognised forsome time that the exploding marketdemand from major growtheconomies could not be served by thecurrent level of bandwidth connectivityserving the Middle East and India.This is true, not only in terms of“The entire global economyis heavily reliant on theworld’s telecoms infrastructureand internationalcommerce would effectivelycease without it. It has beenrepeatedly demonstratedthat the pace of GNPgrowth of the emergingeconomic nations is directlyrelated to telecommunicationsnetwork and servicepenetration.”Africa & The Middle East Issue 2004 33

REGIONAL CONNECTIVITYcapacity, but also in levels of servicereliability. The new cable will addressboth issues, bringing world-standardlevels of quality and reliability to eachof its landing points with service levelagreements for customers of 99.997per cent across the entire associatedglobal network. Service quality is alsoenhanced by the provision of east andwest routing across the network,meaning traffic can be switched at anytime to avoid a cable cut or naturaldisaster.The western link of the cable systemwill land at Telecom Egypt’s landingstation at Suez, where the cable willintegrate with the global network. Thecable, following a route through theRed Sea along the East African coastand across the top of the Arabian Seabefore landing in Oman, will includethe Gulf region’s first self-healing submarinenetwork ring, providing allconnected countries with the reliabilityand high quality that comes from alternativetwo-way routing.Travelling from Oman along its easterlylink, the cable will cross the ArabianSea to a new landing station at Mumbaiin India. From there, it will interconnectseamlessly to a pan-India 80,000km high-speed backbone network linkingapprox 1,100 cities and townsacross the length and breadth of thecountry. When completed, it will bepart of a 200,000 kilometre networkproviding broadband connections to1.7 million homes and offices. The networkoffers customers direct connectivityinto and across one of the world’slargest growth economies from anymetropolitan centre connected to thisglobal network.At Chennai, on the East coast of Indiawhere a second landing station is beingbuilt, network traffic will again flowinto a submarine system, linking Indiato Hong Kong, where the cable willonce again integrate with a global network.The new cables will create thefirst direct, high-capacity linksbetween many of the countries that thecable passes through.The more challenging routes such asthe Atlantic, of course, are not beingabandoned. While trans-Atlanticcapacity, per se, remains heavily overprovisioned,the route is a crucial elementin providing customers withglobal connectivity in and out of theUS, particularly to and from the“The winners from this industry realignment will be thoseable to maintain both their near-term financial stabilityand a clear and sustainable long-term strategic focus. Atthe heart of any long-term strategy must be efficientoperational cost management. This will depend on beingable to deliver what customers want at the right pricepoints, understanding and anticipating the price curveand establishing market leadership either through scaleor a position in a defensible niche.“growing economies of the Middle Eastand Asia.This new cable and other initiatives area welcome sign of the industry's recovery,but can this recovery be sustainedinto the future? It is clear, that furtherconsolidation is needed and thatcost/pricing structures need to berealigned. Many industries have sufferedcatastrophic collapses as a resultof over-investment, over-commitmentand over-expansion. In every case, asmaller number of highly enduringcompanies emerged from the chaos tolead the industry into a new phase ofprofitability. There is no reason tobelieve that the submarine cable industrywill be any different.Winning in a demandingmarketThe opportunities in the telecommunicationsand information technologymarket, said to be worth an estimated1.5 trillion US dollars a year, are huge,but there will be winners and losers.The winners from this industryrealignment will be those able to maintainboth their near-term financial stabilityand a clear and sustainable longtermstrategic focus. At the heart of anylong-term strategy must be efficientoperational cost management. Thiswill depend on being able to deliverwhat customers want at the right pricepoints, understanding and anticipatingthe price curve and establishing marketleadership either through scale or aposition in a defensible niche.Becoming a winner in the globalwholesale services space will requirethe successful integration of a numberof key elements. Financial disciplinewill be absolutely critical – drivingoptimisation of operational supportcosts and network efficiency, as well asa focus on customer profitability.Survivors will have to be able to retaina stable and loyal customer base bydelivering services that they value,which are differentiated from competitiveofferings. A focused business strategymust address the needs of a targetedcustomer base, rather than attemptingto be ‘all things to all men’. Finally,the leading players will be those thatdeliver high quality service globallywhilst maintaining strong relationshipswith local operators and influencers.With hindsight it’s easy to see the mistakesthat were made in the past.Competitors chasing after the perceivedpot of gold all made one fundamentalerror of judgement – this wasnot a 100-metre dash to the winningpost but a long and arduous 26-milemarathon. The industry may have shedthe spikes of the sprinter and adjustedto the tempo of the marathon, but thepotential rewards for those up with thepace and for the customers they serve,remain considerable. 34 Africa & The Middle East Issue 2004

EDUCATION AND THE DIGITAL DIVIDEClosing the Technology Skills Gap for SustainableDevelopment in Africaby Reza Mahdavi, Vice-President, Europe, the Middle East and Africa, Cisco SystemsTechnology is seen as the key to bridging the digital divide. International agencies, in strategicpartnerships with businesses, have developed and funded projects to help train studentsin the Least Developed Countries (LDCs). These programmes use e-learning tools to deliverWeb-based educational content, provide online testing, track student performance and supporthands-on labs and instructor training. Other such initiatives train government officials,provide an information-sharing network for schools, connect LDCs' agricultural institutes andprovide hospitals with life-saving health education.Reza Mahdavi is Cisco Systems Vice-President of Europe, the Middle East and Africa. As a Vice-President of Emergingand Developing Markets he has helped create a culture that builds partnerships with government and business leadershipteams. He is considered a trusted advisor to many senior government and business leaders and is a permanent member ofthe Presidential Advisory Council for President Mbeki of South Africa. Mr Mahdavi was named Vice-President of the Year2002 by the Cisco’s board. Before joining Cisco, Mr Mahdavi was a Director at nCube, a provider of massively parallelarchitecture systems for interactive television, multimedia and data warehousing. Mr Mahdavi spent several years earlyin his career at Sequent Systems and at CLSI. Mr Mahdavi holds a BSc in Computer Science from MassachusettsUniversity at Bridgewater and resides in Paris, France.The Digital Divide and how to end it, is atheme that constantly tops the developmentagenda for Africa – and technologyis seen as a key to closing that gap. Itis not simply about giving computers tovillage schools; it is about Web-enablingentire countries so they can enter theinformation age and compete economicallyon the global stage. Moreover, it isnot just about hardware and software.Leaders and experts increasingly recognisethat a vital ingredient for creatingan information society is the humanresource capacity in a country – in otherwords, you need skilled people if you areto independently build and maintaincommunications networks that will connectyour businesses, governments,schools, hospitals and citizens to eachother and to the rest of the world. Forthat, it is necessary to provide accessibleand affordable training.In July 2000, following the G-8 Summit,Cisco Systems, Inc., the United NationsDevelopment Programme, the USAgency for International Developmentand the United Nations Volunteersannounced the formation of a strategicpartnership to help train students inLeast Developed Countries (LDCs) forjobs in the Internet economy. An initialinvestment of $3.5 million establishedthe global Cisco Networking AcademyProgramme in LDCs, a comprehensive,eight-course, 560-hour curriculum thattrains students and in-transition workershow to design, build and maintaincomputer networks. Employing an e-learning model, the NetworkingAcademies deliver Web-based educationalcontent, online testing, studentperformance tracking, hands-on labsand instructor training and support.The LDC initiative provides a compellingexample of how business, internationalorganisations and governmentscan work together to meet the urgentneeds of LDCs and promote digitalopportunity. We rely upon the expertiseand local relationships of its partners tofacilitate implementation of theNetworking Academy Programme inLDCs. By the end of last year, theNetworking Academy Programme hadexpanded to include 40 of the 49 LDCs,surpassing the initial goal of 24. Anadditional 13 non-LDCs in Africa areparticipating in the LDC initiative.The initiative has been further strengthenedby the addition of the InternationalTelecommunication Union (ITU) in2002 and their Internet TrainingCentres Initiative for DevelopingCountries, which had a set of more specificgoals to: Establish 50 Internet TrainingCentres across the globe by end of 2003,targeting Least Developed Countrieswhere possible Train a minimum of 50 students perinstitution in the Certified NetworkAssociate curriculum annually Achieve 30 per cent female enrolment Strengthen the Internet and networkingskills of the staff within nationaltelecommunication companies.Many of the goals have already beenreached – or in some cases exceeded.The Internet Training Centres Initiativehas established 55 centres and morethan 2,500 students have enrolled sofar, of which 30 per cent are female.Additionally, 18 per cent of the 147instructors trained to date are alsofemale and 181 people have graduated.People who have benefited include awoman in her forties working for amedia services company in Uganda, whoachieved her Certified NetworkAssociate certification at the MakerereUniversity in Kampala. Her companywas expanding into computer networking.Not only did she learn the skills tonetwork her company's computers, butalso to give advice to my clients on computerspecifications and to introduceand set up LANs for organisations, companiesand schools.Another student from MakereUniversity, who had recently lost the use36 Africa & The Middle East Issue 2004

EDUCATION AND THE DIGITAL DIVIDEAt the World Summit for theInformation Society in Geneva lastDecember, Cisco and the ITU signed aMemorandum of Understanding to open20 more Internet Training Centres indeveloping countries. This extended collaborationincludes establishing 20 newcentres in Ministries ofCommunications, or their equivalent, allrunning the Networking AcademyProgramme and using a 'train the trainers'approach to prepare institutions forthe delivery of Academy courses to students.Of the 20 new centres, half will bein the Central and Eastern Europe,Middle East and Africa region. In addition,we are working with the ITU toextend the curriculum in 20 of the bestperformingAcademies currentlywithin the ITCI, to enhance the ITcompetencies of students. Theexpanded Academy curricula –sponsored by HP, Panduit andSun – will cover PC hardware andsoftware, network operating systems,fundamentals of voice anddata cabling systems and UNIXand Java programming besidesthe Certified Network Associatecourse.Cisco: affordable and accessible training make people’s lives betterof his right hand in a sporting accident,believed his mission after graduatingwas to enhance education in Africancommunities, starting with his homecountry, Uganda. He wanted to reach outto communities through electronicmeans, give them hope and prove thateven with a physical disability it is stilltheir right to be educated.Then there is the example of the womanin Rwanda who won a scholarship tostudy at the Networking AcademyProgramme at Addis Ababa in Ethiopia,1,000 miles from her home and her husband.She took the opportunity, despitebeing pregnant with twin boys andknowing she would give birth whilststudying. Her goal was to use the knowledgeshe gained to help many women inRwanda learn a skill that could help raisethem out of poverty and contribute to therebuilding of their country.These stories are all testaments to thechanges affordable and accessible trainingcan make to people’s lives and to thebenefits training can bring theeconomies of the student's countries.Most of the students want to remain intheir countries and make a contributionto their country’s development.“The ITU believes governments in developing countriesrecognise the importance of having skilled professionalsto help them bridge the digital divide and always welcomethe opportunity to have adequate IT training facilities totrain their own staff responsible for telecommunicationspolicy. One of the ITU’s goals for the Internet TrainingCentres Initiative is to strengthen Internet skills on a largescale”The ITU believes governments indeveloping countries recognisethe importance of having skilledprofessionals to help them bridgethe digital divide and always welcomethe opportunity to have adequateIT training facilities to traintheir own staff responsible fortelecommunications policy. Oneof the ITU’s goals for the InternetTraining Centres Initiative is tostrengthen Internet skills on a largescale. It believes extending the initiativeto include government officials can onlybenefit the economy of each country.No one is suggesting that technology ismore important than food, water, medicineand electricity, but it is a key toincreasing a nation’s productivity and, inturn, boosting its GDP. A productive,connected country invites investment –which in turn boosts the economy. Lookat the example of Ethiopia; it wishes totransform itself from an agrarian economyto an information economy. Ethiopiais starting its transformation with an e-government initiative that will connect600 regional government offices, someof them very isolated, to the central governmentoffices in Addis Ababa. Otherinitiatives include: building an information-sharingnetwork for schools; ascheme to connect 32 agricultural institutesaround the country and a projectaimed at connecting 100 regional hospitals,enabling them to share life-savinghealth education. People with the rightIT skills are an essential part of projectslike these. The technology cannot do italone. With properly trained people,anything is possible. Africa & The Middle East Issue 2004 37

SATELLITE CONNECTIVITYVSAT Networks: Changing Lives in Africaby Oren Most, President and CEO, Gilat Satellite NetworksIn many parts of the world communications infrastructure is either not available or is tooexpensive to deploy in areas outside the main city centres. This prevents large numbers ofpeople from benefiting from everyday communications services such as telephone connectivityand Internet access. In these areas, satellite-based communication networks stand outas being the best, if not perhaps the only way, to provide communications services. Africahas many good examples of the advantages to be gained from satellite.Mr Oren Most is the President and Chief Executive Officer of Gilat. He was a founder of Cellcom, Israel's largest andmost successful cellular phone company, where he served as Deputy CEO and Head of the Customers Division. BeforeCellcom, Mr Most led two successful corporate turnarounds, as CEO of Keter, one of Israel’s largest book publishingand printing companies and as Managing Director of Gibor-Sabrina’s Pantyhose Division. Oren Most’s experiencealso includes management positions in banking and venture capital in the United States. Mr Most, earned his MBAdegree from New York University.As technology continues to advanceand our communications needs aremet at the snap of our fingers, webecome less and less aware of the networksoperating behind the scenes tobring us the services we have come totake for granted. However, in manyparts of the world, such luxuries don’texist. Communications infrastructureis either not available or is too expensiveto deploy in areas outside themain city centres, thereby deprivinglarge numbers of people from benefitingfrom everyday communicationsservices such as telephone connectivityand Internet access.In these areas, the advantages of satellite-basedcommunication networksstand out as being the best, if not perhapsthe only way, to provide communicationsservices.African governments are taking thetask of ‘bridging the digital divide’seriously, creating an improved regulatoryenvironment and dedicating thebudgets for rural telephony andInternet access projects. Ultimately,the goal is to close the gap betweenthose who live in urban areas and benefitfrom communications infrastructureand those who do not.Many countries throughout continent,such as South Africa, Namibia, Kenyaand Uganda and others, have takenthe lead in deregulation, allowing forthe introduction of satellite-basedVery Small Aperture Terminal (VSAT)technology into their countries.Wishing to meet their UniversalService Obligations (USO) to providebasic communication services to ruralareas as they do to urban locations,governments are turning to VSATtechnology to rapidly and cost effectivelyprovide solutions.VSAT advantages in AfricaIt was clear to authorities that standardterrestrial communications networkscouldn’t efficiently serveAfrica’s remote, outlying areas. VSATson the other hand, can be deployedquickly and are optimised to meet thechallenge of Africa’s dispersed populationcentres and rugged terrain. VSATtechnology is providing an ‘instantinfrastructure’ in many Africannations by providing benefits such asquick installation (hundreds of sitesper month); low initial investment;low per-minute operating costs thatenable service providers to offeraffordable rates; utilisation of existingsatellite technology and frequencieswith no topographical barriers.In general, in all parts of the world,there are many reasons why satellitetechnology is preferable to terrestrialnetworks in many situations. In Africa,these reasons become even more pronounced.Consider the following: Terrestrialnetworks are comprised of many hundredsof kilometers of buried cable andbuilding upon building of centralswitches and equipment. The overheadcosts to support this infrastructure(which also includes maintenancepersonnel, telephone poles, constructioncrews and equipment and managementcentres across the country)are very high. Digging up streets to laynew cables or find a problem is bothtime-consuming and expensive.Africa & The Middle East Issue 2004 39

SATELLITE CONNECTIVITYAnother important factor is that terrestrialnetworks are extremely distance-sensitive.With the vast distancesand large areas of sparse populationdensities, it would be prohibitivelyexpensive to service the whole ofAfrica with only terrestrial alternatives.The economics of a satellite network,by contrast, are much simpler. Theindividual VSAT units are relativelyinexpensive and can be quickly andeasily deployed by a field technician.Hub and satellite costs are sharedamong thousands of customer sites, sothe per-site cost of equipment, maintenanceand management is low and itgets lower as more sites are added tothe network.Unlike terrestrial services, satellitenetworks are distance independent.The costs for a satellite network arethe same for 1km as they are for 2,000km or even 10,000 km. In Africa,where we are faced with all types ofphysical barriers that have to be overcomewhen deploying terrestrial networks,such as mountains, rivers, jungleand desert, the advantages of satellitedirectly translate to a lower pricefor the customer.VSATs in AfricaVSAT networks are already well establishedin several African countries.Successful marriage of VSATs andrural networksThanks to partnerships between VSATproviders, national PTTs, Telcos andservice providers, thousands of sitesnow use VSAT equipment for corporatenetworking applications, broadbandInternet access, rural telephonyand distance learning in countriessuch as South Africa, Nigeria,Ethiopia, Ghana, Ivory Coast,“VSAT networks are already well established in severalAfrican countries. Thanks to partnerships between VSATproviders, national PTTs, Telcos and service providers,thousands of sites now use VSAT equipment for corporatenetworking applications, broadband Internet access, ruraltelephony and distance learning in countries such asSouth Africa, Nigeria, Ethiopia, Ghana, Ivory Coast,Namibia, Kenya, Angola, Mozambique, Rwanda, theDemocratic Republic of Congo and Uganda.”Namibia, Kenya, Angola, Rwanda,Mozambique, Uganda and theDemocratic Republic of Congo.The main markets for VSAT technologyare the same in Africa as they arearound the world: the corporate/enterprise market, the rural telephonymarket and the broadband Internetaccess market. Within these markets,the applications supported are wideand far ranging.Corporate marketThe corporate market includes thousandsof sites at many of Africa’s leadingcompanies in the airline, lotteryand hospitality industries, in additionto institutions such as post offices andgovernment agencies. For these users,VSATs facilitate a wide-area networkfor their communications, connectingeach separate office LAN and providingsecure data, voice and video communications– all on one private network.For example, an exciting recent applicationwas the Kenyan Post Offices.Kenya Post selected a VSAT networkto connect all of its post offices acrossthe country for both their internal networkrequirements and, as well, tooffer customers access to Internet, e-mail, fax, printer and telephony servicesthrough the same network. In additionto the VSAT system itself, everysite is built with two kiosk PCs for publicuse and one commercial PC for theuse of the Post Office manager. EachPC supports fax, telephone, printer,Internet access and e-mail services.Access to the kiosks is via prepaidcards sold by the Post Office, the firstsuch application of its kind in Africa.Another example is the South AfricaNational Lottery, which selected aVSAT backbone network to supportsome 1,000 sites, because of the superiorreliability, ubiquitous availabilityand broadcast capability of VSAT networks.Also, many banks in Nigeria and SouthAfrica and elsewhere, have selectedVSAT technology to connect ATMmachines across the country and toimplement internal data transferapplications. The reliability, availability,cost and speed of deployment areimportant factors in the decision to gowith VSAT networks.Rural telephonyVSATs are ideal for rural telephonyapplications. In areas with no terrestrialinfrastructure, VSAT sites can bedeployed in as little as two hours andcan provide several public telephonelines as well as Internet access for peoplewho, up to that moment, had nocommunications services at all, thustruly changing their lives. The VSAT,attached to a pole with solar panels forenergy, is generally hooked up to acentral location in a village. That spotusually becomes the centre of thetown’s activity as people come to usethe phones as well as the Internet.These applications are truly some ofthe best examples of bridging the digitaldivide.One example of the successful marriageof VSATs and rural networks is40 Africa & The Middle East Issue 2004

SATELLITE CONNECTIVITYAfrican education officials have begunto embrace VSAT technology. Forexample, the World Bank recentlydecided to provide a VSAT networkthat will bring broadband Internetaccess to African schools and reachstudents throughout the continent,especially in Uganda, Senegal, Ghanaand Tanzania.Markets for VSAT technology are the same in Africa as they arearound the worldthe project by Telkom South Africa toinitially implement a 3,050-site telephonenetwork to serve tens of thousandsof rural customers. More than1,600 VSAT sites were successfullydeployed in the first two months,enabling Telkom SA to carry out itsUniversal Service Obligation (USO): toprovide a large number of rural sitessuch as rural clinics, post offices,police stations and schools with basictelephone service, where none hadexisted. Telkom’s rural telephonydeployment has since been significantlyexpanded.Broadband Internet accessand distance educationprojectsThe need for broadband access isstrong in Africa. The continent mayvery well be one of the fastest growingbroadband markets. Small businesses,small office/home office (SOHO) andsmall to medium-sized enterprises(SME), have a need and a budget forbroadband networks; when locatedoutside the main urban areas, theyturn to satellite-based solutions.Again using the Telkom SA experience,that company recently introduceda broadband service whichoffers always-available Internet connectivityand data connectivity forenterprise customers anywhere inSouth Africa at data rates rangingfrom 64 kbps download and 16 kbpsupload to the top end of 512 kbpsdownload and 128 kbps upload.Illustrating the potential strongdemand, over the next five years thenetwork is expected to grow to some26,000 sites. At that level, it wouldmake this network the largest of itskind in the world.Another application is bringingInternet access to rural schools andmaking possible continuing universityeducation for rural residents via theInternet. Again, VSAT technology providesa unique solution. Already inplace in major projects in Brazil (thegovernmental GESAC programme hasmore than 3,000 rural schools linkedto the networks) and in Australia(where a government programmethrough the telecom company Optushas deployed a large VSAT network toallow distance learning for residents inrural parts of the country), Africa too,is a prime location for distancelearning and Internet for schoolsapplications.Looking aheadVSATs have proven themselves to be acost effective solution for numerousapplications throughout the world.Africa, a continent with tremendouspotential and growing demand, isproving to be an important area ofbusiness for VSAT vendors and serviceoperators. New technology becomingavailable will only make the businesscase even stronger. For example,recently introduced products allow forthe use of different VSATs supportinga variety of applications, all on a singlehub. This is a revolutionary concept inthe industry and one that shouldexpand the business horizons of manyservice operators. The combination ofgrowing demand, the available technology,the ease of deployment,“The need for broadband access is strong in Africa. Thecontinent may very well be one of the fastest growingbroadband markets. Small businesses, small office/homeoffice (SOHO) and small to medium-sized enterprises(SME), have a need and a budget for broadband networks;when located outside the main urban areas, theyturn to satellite-based solutions.”together with the moves by governmentsto deregulate, allow communicationsservices to be enjoyed andtaken for granted by many peoplearound the world.Telecommunications can soon be partof the day-to-day lives of people livinganywhere in Africa. Africa & The Middle East Issue 2004 41

SATELLITE CONNECTIVITYChanging the Way Africa Communicatesby Guy Clarke, Director – UUNET Africa OperationsAfrican businesses rely heavily on e-mail, Internet and VPN connectivity as key tools in conductingbusiness, giving rise to numerous opportunities. However, the needs of Africa arevery different from those in more developed regions and satellite solutions continue to bematerial in solving a number of business communication problems. The continent has manydevelopment opportunities and, by taking advantage of what has been learned throughoutthe world by ICT service providers, universal communication capabilities can soon be a realityfor the continent.Guy Clark is the Director of UUNET, Africa Operations and COO of the UUNET/Africa Online Joint Venture,in Nairobi. After restructuring the venture, Mr Clark returned to South Africa, where he is now responsible forall of the company's African operations. Mr Clark is currently the Executive Director on the board of the JointVenture Company between UUNET SA and Africa Online, as well as the Director of UUNET companies withinMauritius, Kenya, Zambia, Botswana and Namibia.Globally, there has been a steadilygrowing acceptance of the value ofsatellite Internet connectivity, not onlybecause of its reliability, consistencyand stability, but also due to its sustainableuse as a business communicationstool, especially in remote or congestedareas.African businesses rely heavily on e-mail, Internet access and VPN (virtualprivate network) connectivity as keytools, giving rise to numerous opportunities,to conduct business bothlocally and internationally. However,these markets can only afford so muchin terms of technology infrastructure.In these markets one finds that the terrestrialor wireless bandwidth capabilitiesare limited due to high costs, thelack of reach associated with the locallyavailable technology, limitations ofthe service delivery platform or theservice delivery partner. Therefore,when a company’s network limit isreached, business activity and growthis stifled, as the network is eitherslowed dramatically or simply cannotcope with the growing business needs.The congestion of e-mail and otherapplications that results, adverselyinfluences business efficiency, providesa poor customer service experienceand makes it difficult to adapt tochanging market needs. Together,these problems hurt both a business'scompetitive edge and its bottom linefinancial results.Globally, the Compound AnnualGrowth Rate (CAGR) for VSAT solutionsis approximately 20 per cent;there are now close to 800,000 VSATsatellite installations deployed worldwide.The increasing acceptance ofVSAT is not due only to the technology’sinherent ability to deliver highspeed Internet, IP-VPN connectivityand improved time to market. VSATgrowth is also the result of investment,by companies, like ours, in using thetechnology to effectively deliver innovative,flexible and reliable businesssolutions for Africa.Businesses in Africa require the abilityto communicate to all the links in theirvalue chain – with their customers,suppliers and employees – no matterwhere they are located. They need tobe assured of service stability, which,in turn, will help facilitate communicationsand business efficiencies.Satellite solutions answer these needs;they can help materially to resolve anumber of business communicationproblems and can co-exist harmoniouslywith a wide range of existingnetwork solutions.The impact that satellite network solutionswill have on the African continentare numerous and exciting. Thefact that more than 60 per cent of allISPs connected on the African continentuse satellite solutions to ensureeffective service delivery to customersis proof of this. Opportunities are createdby the flexible solutions thatsatellites bring: multicasting informationto update applications; communicatingconsistent brand messages to allpoints of presence at the same instant;making educational opportunitiesavailable to all; enabling Internet ortelephony access for workers in thefield; and many others.Satellites can reach across valuechains, enabling true communication.The implementation of this technologywill ensure Africa’s success. It will leadto increased productivity, sustainable42 Africa & The Middle East Issue 2004

SATELLITE CONNECTIVITYdevelopment, skills transfer and acceleratedsocial development. It will openthe world of education or the world ofbusiness, or even a world of art andculture to millions who were neverbefore able to make even a simple callor access the Internet. Satellite connectivitygives businesses the ability toimprove customer services, to costeffectively deliver products and servicesusing transaction-orientated solutionsand provide high quality servicequality at every customer touch point.The benefits of satellitetechnology in AfricaThe benefits of satellite technology inAfrica should be examined from both atechnical perspective and an economicperspective to be understood.As to its technical benefits, satellite: complements existing infrastructuremechanisms is reliable and provides a stable networkconnection provides efficient network structuresand availability for increasedservice functionality allows for a multi-faceted approachto the delivery of business solutionsacross the value-chain and enables the use of a variety of platformsto serve the varied aspects of anorganisation’s business model.These technical benefits, understood interms of the needs of Africa's countries,indicate the sort of impact thatsatellite technology will have on thecontinent. What do these technicalbenefits mean for businesses? Theywill: enable businesses to improve theirtime to market for new service solutions address mission critical businesscommunication and continuityrequirements provide more reliable communicationswith customers, suppliers andvendors increase productivity and deliver an“... the entire continent has only some 40-million cellularsubscribers, 25 million fixed line subscribers and 6.5 millionInternet users. Satellite solutions will, if implementedcorrectly, boost these statistics and make universalaccess to communications services a reality for theAfrican continent.”enhanced service experience due toincreased availability and reach facilitate the widespread rollout ofapplications decrease downtime.One of the main challenges is that theneeds of Africa are very different fromthose of more developed regions.Because of Africa's cultural and geographicaldiversity, the deployment ofICT and applications will have to bespecifically tailored to meet theregion's needs.Providers of business solutions realisethat to address these challenges theyneed to take the initiative and educatethe continent regarding the selection ofthe appropriate technologies, includingsatellite communications, thattruly meet the local needs of eachAfrican market. To this end, suppliersneed to be involved in the process, thediscussion, of regulatory developmentof each country to promote proven,effective solutions.Satellite technology enables a numberof different communication options,especially from a network managementperspective, by enabling: flexible and scalable bandwidth configuration increased flexibility and reach hybrid applications with guaranteedthroughput to limit or relieve congestionon complementary networks multimedia transmission of voice,text, data, Internet and content richmultimedia applications cost efficiencies derived from moreefficient routing of traffic.Satellite technology andsocio-economic developmentDespite the dramatic developmentsthat have taken place in the ICT sectorthroughout the continent over the pastdecade, including the exponentialgrowth of mobile telephony and theentry of Internet into every Africancountry, there is little said about whathas been successful and why. There is alarge disparity between the networkcapacity available in Africa and the restof the world. The teledensity in Africais the lowest of all the regions in theworld. In fact, Africa accounts for lessthan two percent of the world's totaltelephones and barely half of one percentof the world's Internet host computers.Today, many of Africa's countries areinvesting in telecommunications, butmuch remains to be done to bring ICTto everybody's doorstep. Since much ofAfrica's population resides in remoteregions, service delivery can be quitedifficult.Currently, the entire continent hasonly some 40-million cellularsubscribers, 25-million fixed linesubscribers and 6.5-million Internetusers. Satellite solutions will, if implementedcorrectly, boost these statisticsand make universal access to communicationsservices a reality for theAfrican continent.When we look at countries such asNigeria, which operates mostly withsatellite solutions, we find that thistechnology, which enables effectiveand efficient communication, hasplayed a fundamental role in the developmentof the country over the pastfew years. Nigeria has seen an important,fundamental, increase in job creation;satellite technology has createdan entirely new industry. This growthcan be attributed to:44 Africa & The Middle East Issue 2004

SATELLITE CONNECTIVITYBy emulating the continent's bestpractices for technical and infrastructuredevelopment much can be done toalleviate the isolation and lack of educationand structural inefficiencies,that plague the live of Africa's citizens.This will ensure: that ICTs are used effectively tosocially, economically and politicallyuplift the population rapid strengthening of Africa's economicvalue chain locally and internationally the creation of a competitive andefficient business environment.African development will depend uponeducational initiatives, making gooduse of available technology, heedingthe many lessons learnt by the rest ofthe world and, importantly, takingadvantage of the opportunities thatinformation and communication technologybring to take part in the globaleconomy and information society. Satellite launch - satellite solutions answer these needs the high levels of service qualitythat satellite technology enables a managed deregulation process the economic stimulation of theeconomy through job creation the availability of a solid communicationsvehicle with which to tradewith the rest of the world new business opportunities forNigerian satellite users that enablethem to expand and develop.Ethiopia provides another great exampleof how satellite technology,through its education sector initiative,has helped national development.Satellite communications have givenInternet access to most secondaryinstitutions and schools in Ethiopia,making distance learning a reality forthe nation’s youth.Kenya has a similar initiative, itsELIMU Net project, for distance education.Satellite technology is now inuse in most of the country’sUniversities. Initiatives such as thesehave given students access to a wealthof information and training and arehelping prepare the country's youth toparticipate in the local portion of theglobal economy's job market.ConclusionAfrica has tremendous potential andmany development opportunities waitto be explored. Africa, by heeding theexperience of other countries and oforganisations throughout the world,can learn from the pioneering effortsof others and use this opportunity toaccelerate its own development. Bytaking advantage of the experience oftelecommunications service providersthroughout the world, the dream ofuniversal access to world-classtelecommunications can soon becomea reality for the continent.African countries focusing on telecommunicationsgrowth also need to lookat the many excellent projects alreadyundertaken or being implementedacross the continent for insight intoand understanding of, how the issuesof continental development can bestbe tackled.We welcome yourcomments ...If you have anycomments or opinionaboutPervasive Connectivity As aTool For Developmentin Africa, the Middle East andbeyond, we would like to hearfrom you.Simply complete the replycard and fax it back to oureditorial team.Fax no:+44 20 7474 0900or send an email toeditorial@connect-world.comAll article are available online atwww.connect-world.comAfrica & The Middle East Issue 2004 45

ICT CONVERGENCEThe Road to Seamless Computingby Mike Cathie, Business and Marketing Director at Microsoft South AfricaWill PCs grow in importance to the point that they start to play an indispensable part in thelives of most people? By the end of this decade, will few want to live without one? The nextgreat opportunity for the technology industry is to create software that breaks down the barriersbetween people, systems and information. This is the vision of seamless computing; but,if we are to change the way people think about computers, the focus must be on building systemsthat can be wholly trusted.Mike Cathie is the Business and Marketing Director of Microsoft South Africa. He has an extensive consumermarketing background, Mike’s responsibilities included managing Microsoft’s consumer marketing operation,their business marketing portfolio and the local MSN portal. In this role, he focuses on developing Microsoft’sSouth African marketplace and their vision of an interconnected environment. Mike Cathie has a national higherdiploma in marketing from Technikon Witwatersrand, the IMM AAA diploma and is currently completing hisMBA.No one can deny that the personal computerhas had a huge impact on ourworld in the past quarter century.Ironically though, the PC has notreached the same level of importance tomost people as other technological revolutions.Most people could survive withouta computer – could they get alongwithout their car or telephone?Integrated worldPerhaps this is because, for much of thelast 25 years, the typical person’s adaptationto the computer has usuallyinvolved sitting down at the PC andinteracting through the keyboard andmouse. Then came the Internet and theidea that computers were just powerfulstorage and number crunchingmachines went swiftly out the window.Now computers are connected to thesocial and emotional aspects of life.People use their PCs to exchange e-mailand instant messages with friends andfamily. People use computers for day-todayorganisation and collaboration withother people. Computer technology hasindeed moved from the desktop topower a wide range of devices that surroundus and make computing truly personal.The intelligence of the PC has found itsway into more and more devices, frompersonal gadgets such as pagers, tomobile phones, to PDAs. Many peopledo not leave home without at least oneof these. Powerful computer technologyis also finding its way into the car.Similarly, wireless networking technologiesare becoming more commonplacein homes, offices and public spaces suchas airports and coffee shops. The reachof the Internet has moved far beyondthe desktop.Is it evident that PCs will grow in importanceto the point that they start to playan indispensable part in the lives ofmost people? Would we agree that, bythe end of this decade, few would wantto live without one?Technology’s potentialIf you can conceive the idea that, by theend of the decade, we'll have over half abillion people who, for so many thingsthat they do – whether it's scheduling,photos, music, organising meetings,planning forecasts – will need softwareto carry out the tasks, then you’ll realisethat there is more productivity to begained in the advances that will come inthe rest of this decade than the industryhas delivered in our entire history up tothis date. Technology's potential is stillfar from being realised.Realising this potential creates thevision of businesses achieving optimalefficiency, productivity and agility. Itmeans doing more with less at lowercost. It means totally streamlined businessprocesses.For knowledge workers, it is the visionof easy-to-use computers that takework, efficiency and productivity to thelimit – whether in the office, on the roador at home. It means software that helpsachieve career ambitions.For consumers it is the realisation ofaffordable access to the latest, greatesttechnology. It means being connectedwherever you want to be. It means takingeverything you enjoy – photography,music, home videos, gaming – to awhole new level. It means empoweringyour children to learn in ways you neverdreamed of.For developers, it means the opportunityto create cutting-edge applicationsand services on the best, most flexibleplatform. It means enabling a new era ofunlimited business opportunity.46 Africa & The Middle East Issue 2004

ICT CONVERGENCEFor underserved communities, it meansgaining access to technology that enablesthem to succeed at work, at school andthroughout their lives.The next great opportunityThe next great opportunity for the technologyindustry is to create software thatbreaks down the barriers between people,systems and information. This is thevision of seamless computing.A seamless computing world is a world inwhich today’s technology boundaries aretranscended – boundaries between peopleand the technology they use, betweensystems, between work and home,between applications and between networks,are eliminated. Seamless computingwill enable this because it mirrors theway the real world works – it is all aboutusing the power of advanced software tobring computers into your world, ratherthan forcing you into theirs.Seamless computing unlocks the potentialof the incredible advances of software,hardware and connectivity of thecoming years. It expands the possibilitiesof computing, offering new opportunitiesfor software and hardware companies tocreate compelling services and new customerexperiences. The entire industryhas the opportunity to drive the nextwave of innovation and to make computersan even more significant and essentialpart of the way we live and work.Software, obviously, plays a key role here.Ultimately, seamless computing puts theuser in control of the technology, creatinga personalised and consistent experienceno matter where they are or what devicethey’re using. It enables richer and morenatural communication across differentmedia, bringing together the best of e-mail, instant messaging, Weblogs, telephonesand in-person meetings. It buildssecurity, identity and trust relationshipsinto every layer of the computing ecosystem,hardware to software and services.In the workplace, seamless computingmoves beyond isolated applications anddata towards tools and services that helpevery worker easily and quickly findinformation, make decisions and collaboratein ways that simply aren’t possibletoday.“The vision for seamless computing is both evolutionaryand revolutionary. The changes you’ll see are gradual,but the differences between the computing experienceof today and the computing experiences five years fromnow will be like night and day.”It seamlessly connects the people,processes, information and relationshipsthat are critical to business success. Itenables powerful and capable systemsthat dynamically organise and managethemselves, making implementation andmanagement chores less of a barrier totechnology adoption. It can help companiesmove beyond one-way customerrelationships and create real, productivepartnerships with customers. And it cantransform the ‘real-time enterprise’ intothe ‘real-time industry,’ where companiesand their partner and supplier networksoperate as a single, coordinated entity.Trustworthy before seamlessYet with the goal to change the way peoplethink about computers, the objectivemust be focused on trust. How do weengender the same kind of trust and confidencein computing as one would havewhen using the phone or flipping a lightswitch?Software does some amazing things, butwill the network be reliable enough,robust enough to protect information sothat people feel that their privacy is preserved?Against the backdrop of cybercrimewill users be willing to use e-mailand avoid the spam and will their computersbe reliable and not subject to theseattacks? A key piece to realising seamlesscomputing is getting the fundamentals ofcomputing right, namely security, reliabilityand manageability.The only way to do this is to invest inbuilding these software platforms. Themove is toward systems that will recognisespeech, that will use ink, provideimproved business intelligence and workflow,will give people new ways to communicate.There are, however, a number of differentchallenges. We need to combine the righttools, the right processes and the rightpeople. Attacks are simply getting moreand more sophisticated and every timewe eliminate a threat a new opportunityopens up. It’s an unending process. Wecan make it dramatically more difficult tofind vulnerabilities, but we continue towork in a measure-countermeasure typeenvironment.The current statistics on the size of thesechallenges and the costs of dealing theseissues are dramatic. They are also enormouslydifficult to plan for.Understanding exactly what has to bedone has traditionally been difficult.It's not a case of simply fixing a few vulnerabilitiesand moving on. The traditionalresponses, the way that systemsare architected and the way they are puttogether, have to change. In this way wecan reduce the threat opportunity, counter-balancingthe fact that the attackersget more and more sophisticated. Theresults are positive. We see progress inthis regard but there are many years ofwork ahead of us.The challengeThe vision for seamless computing isboth evolutionary and revolutionary. Thechanges you’ll see are gradual, but thedifferences between the computing experienceof today and the computing experiencesfive years from now will be likenight and day.Hardware development continues toadvance and provide increased functionality.The dramatic growth in processorpower, disk capacity and network capacitywill lead to computers and smartdevices that are much more powerfulthan the PCs of today. We can only beginto imagine what kind of uses we will findfor this computing power.Nevertheless, it is important to rememberthat technology is still out of reach formany who need it most. Bridging the digitaldivide and fully realising the potentialof computing technology will be one ofthe biggest challenges of the DigitalDecade. Industry outreach combinedwith more advanced, less costly softwareand hardware could extend technology'sreach beyond the wealthy elite and earlyadopters using it today.Seamless computing needs to be anindustry-wide vision: one that willrequire continued cooperation at all levelsto develop the platform, with standardsand technology, upon which thenext generation of connected applicationsand devices can be built; one thatcan truly help realise people’s potential.Africa & The Middle East Issue 2004 47

XCEEDwww.xceedcc.comEgypt Rides the Outsourcing WaveBusinesses are continually searching for new and innovativepractices to become more influential players in the globalmarketplace. As a result, outsourcing non-core and IT serviceshas become the ultimate corporate strategy for growth anddevelopment. In the last decade, Business ProcessOutsourcing (BPO) and contact centre business have becomebuilding blocks for economic growth in countries such asIndia and the Philippines. This trend will continue as contactcentres strengthen their position as indispensable assets byreinforcing business relationships with customers and enhancingquality assurance.Egypt has proven it can compete in the BPO market. Egypt'ssupport of the contact centre industry is evident in its commitmentto steadfast infrastructure,cutting edge technology and afavourable business environment. Bycapitalising on its leadership role inBPO and the overall boom in theindustry, Egypt has achieved a 30 percent growth rate. Investment in theICT sector totalled more than EGP3.1bn in 2003.Making the most of Egypt's promising telecommunicationsand service sectors, the Xceed contact centre serves as apremier provider of customer contact solutions worldwide.Xceed operates one of the largest, most advanced, customercontact centres in the southern Mediterranean region, locatedin Egypt’s recent Smart Village technology park justoutside Cairo. Xceed supports a wide range of customisedinbound and outbound services ranging from simple inquiriesand telemarketing campaigns to technical support and a myriadof back office services. In addition to serving TelecomEgypt's 8.8-million customers, Xceed caters to clients inGermany, the UK and the US. Xceed's valued relationshipswith its global clients are rooted in its core competencies: efficienttechnologies, superior infrastructure and highly qualifiedcustomer service representatives (CSRs).Who is behind the project?Xceed is the brainchild of Egyptian businessman and SiliconValley veteran, Dr Adel Danish, Chairman and CEO of Xceed.Dr Danish, while visiting Ireland, saw how it had transformeditself by marketing itself as a contact centre outpost for USand European companies. Seeing this, Xceed was developedto give companies the high quality they expect at even lowercost.Egypt provides great incentives forBusiness Process Outsourcers. Itboasts an educated, multilingual,labour pool with 200,000 universitygraduates annually and wages thatare as much as 50 per cent less thanthose in the US or Europe. It is worthnoting that Egyptians commonlyspeak English with a neutral Americanor British accent. Egypt's competitivewages and highly qualified, professionalworkforce give it an advantagein the outsourcing market.Cairo by nightEgypt is located close to the major European and Asian markets,an advantage compared to many of its competitors.Moreover, the government's commitment to promotinginternational investment provides a strong incentive for companiesto base their BPO business in Egypt.Outsourcing experience in EgyptWhat challenges do offshore outsourcersface?It is estimated that between now and 2015 the US will outsourceapproximately three million jobs. Everything from contactcentres to reviewing insurance claims will be done outsidethe country. There will be technical and political challenges,but most of these are associated with the quality ofhuman resources available. At Xceed, we have an extensivetraining programme that focuses on consistent service quality,customer retention and cross-cultural awareness.How does Xceed meet these challenges?Each Xceed CSR is handpicked and highly trained to assurethat our clients have the best representatives for their business.With our CSRs' multilingual skills, neutral English accents48 Africa & The Middle East Issue 2004

XCEEDand university education our clients canrest assured that their customers willreceive the level of professionalism, reliabilityand experience they expect.Why should your businesschoose to Xceed?Xceed is the most modern, technologicallyadvanced contact centre in the southernMediterranean region. With services andinfrastructure specifically designed to handleBPO clients in international markets,Xceed offers extremely competitive ratesand geographical proximity to the majorworld markets. Moreover, Egypt's labour force perceives contactcentre employment as prestigious and well paid whencompared to other jobs in the Egyptian market. Consequently,Xceed recruits are all exceptionally dedicated multilingual professionalswith university degrees that can maximise the contactcentre experience and exceed the most exacting client'sexpectations.An Xceed employee in perspectiveWhat is your job at Xceed?I work as a contact centre customer service representative on atelemarketing campaign for a US-based account. We are helpingto promote awareness about the software the companyproduces for corporations based in the US.What’s your educational background?Xceed Headquarterscareer. We also get benefits that are seldom found in othercompanies in Egypt, including the largest multinationals.An Xceed client XceedingWhy did you choose Xceed?Establishing operations in Egypt is much easier than one mightthink. No doubt, there are challenges but they can be overcomeby the positive attitudes and the top-notch facilities inEgypt today. The country is quite cost effective with an educatedmultilingual labour pool that could be secured at a wagerate 60 per cent lower than the US/Europe. Perhaps moreimportantly, Xceed has effective models for retaining CSRs andestablishing standards to maintain a high level of quality. Also,the working environment is well equipped with redundantphone lines and Internet connectivity, which help distinguishEgypt from many other outsourcing players.I am a graduate of the American University in Cairo. I majoredin Business Administration. As for my pre-university background,I graduated from the German school in Egypt. I studiedFrench throughout middle and high school. As for Englishand German, I studied them in parallel until I graduated fromhigh school.How do you find working in this industry and especially atXceed?The concept of CSR is rather new to Egypt, but I believe companieslike Xceed that offer a great working environment andabove average pay can help build on the positive perceptionsabout this job. As a matter of fact, I already have friends workingas accountants and administrative assistants in large companieswho want to join Xceed. I've had several work opportunitiesin multinational companies, but neither the pay nor thework environment is comparable to Xceed.What makes Xceed a good place to work?How is your business doing with Xceed?The CSRs and the training methodologies are highly effective.I was impressed at how the learning curve improved after onlya couple of weeks of our outbound/inbound operations. We'veexperienced an increase in website activity and productinquiries following the Xceed telemarketing campaign to promoteour new product line.Would you recommend Xceed to others who are looking tooutsource their activities?Yes. We see Egypt as an unexplored mine in the field of BPO.Actually, CS Monitor, an international daily newspaper, hasidentified Egypt as a strong newcomer in the field. We choseEgypt for our outsourcing needs and the Xceed contact centrein particular because they offer a large labour market of multilingualCSRs at very competitive prices. In addition, they offerreliable infrastructure and cutting edge technology that isapparent in every aspect of the Xceed contact centre. Xceed offers its employees state-of-the-art technology, themost modern infrastructure in the region and an extensivetraining programme. The skills I learned during the threemonthtraining period will support me throughout my entireAfrica & The Middle East Issue 2004 49

WIRELESSWireless Broadband in Africaby Zvi Slonimsky, CEO, AlvarionThe challenges facing telecom service providers are identical throughout the African continent:how to provide broadband connectivity in harsh and unforgiving landscapes.Unsurprisingly, wireless broadband (also known as broadband wireless access or fixed wirelessaccess) emerges as ‘best in class’ for delivery of broadband services in these trickyenvironments. However, there is a vital new technology available, WiMAX, which is highlysignificant for operators in Africa. WiMAX may well be the key to removing the obstacles tobroadband adoption throughout the World.Mr Zvi Slonimsky has been CEO of Alvarion since the merger between BreezeCOM and Floware. He was originallyCEO of BreezeCOM, having served previously as its President. Before this, Mr Slonimsky served as President andCEO of MTS Ltd. and General Manager of DSP Group, Israel. Mr Slonimsky has held senior positions in a varietyof telecommunication companies, including C.Mer and Tadiran. Mr Slominsky is widely acknowledged as one of theworld’s foremost experts on fixed wireless systems. He advises carriers, ILECs and cellular operators on rolling outbroadband networks in rural and urban areas with relatively poor telecoms infrastructures. Mr Slonimsky has aBSc.E.E. and MSc.E.E. degree from the Technion Israel Institute for Technology and an MBA degree from Tel-AvivUniversity.On the face of it, the tiny tropical islandof La Reunion has very little in commonwith Namibia. One is a tiny tropicalisland east of Madagascar with an activevolcano and periodic, devastatingcyclones. It is loved by surfers andclimbers alike for its dramatic mountainranges, deep gorges and beautiful coastline.The other spans over 800,000square kilometres, much of it hot, drydesert, with sparse rainfall and prolongedperiods of drought.To the layman, there are no similarities.But for telecoms professionals the challengesare identical in La Reunion,Namibia and throughout the Africancontinent: how to provide broadbandconnectivity in such harsh and unforgivinglandscapes; how to best connect thebusinesses, public institutions and residentswho are demanding fast, reliableand inexpensive internet access; andhow to build a scalable broadband networkquickly, whilst minimising initialcapital costs.Having weighed up the challenges andconsidered and dismissed, the majorityof the options available – namely, ADSL,Satellite and Cable Modems – it comesas no surprise that wireless broadband –also known as broadband wireless access(BWA) or fixed wireless access –emerges as ‘best in class’ for delivery ofbroadband services in tricky environments.But before we examine how and whyBWA claims this position, a quick reviewof how it works. In a nutshell, a fixedwireless network comprises one or morebase stations to cover a town or area of acity and the many customer premisesequipments (CPEs) used by customers toget service. The base stations are connectedto the backhaul network and sendand receive transmissions from the CPEsusing radio links. Each CPE can serve anentire building – whether it contains onefamily or 20 companies.The base stations and CPEs can communicateover ranges of up to 50 miles,enabling operators to deliver broadbandIP-based voice and data services acrossvirtually any landscape – including themountainous terrain of La Reunion andthe deserts of Namibia, which both boasthighly successful wireless broadbandnetworks.So successful are they, in fact, thatSchoolNet in Namibia was recentlynamed "best network in an under-servedinternational community" by theWireless Communications Association(WCA). SchoolNet, in partnership withTelecom Namibia, has deployed a wirelessbroadband network in the 5.8 Ghzfrequency band to provide Internetaccess and voice services to more than900 rural schools in a region spanningan area of 54,000 square kilometres. It isall the more remarkable that, previously,more than two-thirds of the schools nowconnected did not even have a telephoneline.Given Namibia’s sparse copper and cableinfrastructure, Internet access has beenan unattainable dream for schools outsideof Namibia’s municipal centres.Now, wireless technology has saved theday – by providing an affordable way tobring the Internet to the majority ofNamibian schools and students and givethem the same opportunities as the restof us enjoy. It is not just Namibia thatthis model is important, it could potentiallybe replicated in many other parts ofAfrica.Meanwhile, in French-ruled La Reunion,Cegetel – the telecom arm of French conglomerateVivendi and France’s secondlargest ISP – has overcome the island’srugged terrain, which makes the layingof fibre impossible, by deploying a wire-50 Africa & The Middle East Issue 2004

WIRELESSless network. The network was firstdeployed to feed the base stations ofCegetel’s GSM voice network and thenused to provide Internet access to customersaround the island.What makes wireless soattractive in Africa?Wireless connectivity is proving to beextremely attractive to telecom operatorsin Africa because: It is ideal for delivering voice andhigh speed data over the same infrastructure It requires low initial capital expenditures. It is easy to upgrade, grow andexpand. Base stations share the samefrequency spectrum and so, if a base stationneeds more channels (capacity),additional bandwidth is simply allocatedon the backhaul link.Moreover, it enables operators to: Provide a full broadband servicewithout any pre-existing copper infrastructure Provide ‘always-on’ broadband services,such as high-speed Internet accessand data transmission, as well as highqualityvoice services. Additional servicesinclude: VPNs, LAN interconnectaccess, telephony VoIP, data networkaccess, video conferencing, ASP (applicationservice provider) services, webhosting and E-commerce Reach areas not serviced by a traditionalcopper infrastructure Reach new subscribers quickly. Oncethe wireless network is established, newcustomers can be connected in hours Pay very low network operating coststhat are proportional to the customerbase and associated capacity needs.The non-line-of-sightconundrum: OFDM – abreakthrough for BWAOrthogonal Frequency DivisionMultiplexing (OFDM) – a modulationtechnique for transmitting largeamounts of digital data over radio frequencies– has achieved a major breakthroughin the BWA market. It enablesfixed wireless to operate not only inareas where there is a direct, unobstructed,line-of-sight, but, as well, inareas where the line-of-sight isobstructed.This means that BWA can be deployedanywhere and can overcome obstaclessuch as mountains in rural areas such asin La Reunion and buildings in suburbanand dense urban areas.The other broadband optionsWhat are the other access technologiesused around the world that, in theory atleast, are also available to African operators.ADSLThis is the best-known access technology,which runs over cables already usedfor telephone connections. It has justone problem – in most countries acrossAfrica many rural areas don’t even havea telephone line to upgrade to DSL. Evenwhen they do, it is usually far too old tobe used for this ‘piggybacking’ operationwithout a major upgrade, which isexpensive and economically unfeasiblefor the operator. In addition, even if thecable is upgraded, customers that livemore than 5.8 km from the main telecomsexchange are beyond the reach ofthis service.SatelliteTwo-way broadband satellite servicesare still under trial worldwide. However,satellites are massively expensive tolaunch and, often, are not economicalfor smaller projects.Cable modemsSince there is little or no cable infrastructurethroughout most of the Africancontinent, broadband via this technologyis also a non-starter.WiMAX: the future of BWAtechnologyIn 2003 Sean Mahoney of Inteldescribed WiMAX as "more importantthan the Internet itself". and PyramidResearch has described WiMAX as "thelatest and most-hyped generation offixed wireless technology in years".Statements which, naturally enough,have got tongues wagging around theglobe.How then does WiMAX tie into BWAand what are the implications forAfrican operators? WiMAX is a not-forprofitindustry organisation which isrolling out a certification programme toensure that all the different types ofwireless access equipment conformingto the 802.16a standard, including basestations and CPEs, are compatible andinteroperable with other systems.Wireless networks built using WiMAXcompatibleequipment will be capable oftransmitting around 70 Mbps over a distanceof tens of miles to thousands ofusers from a single base station.The development of WiMAX is significantfor operators in Africa and throughoutthe world for a number of reasons: standards-based, interoperableequipment available from a variety ofvendors will drive price and performanceto levels unachievable by proprietaryapproaches. Plug-and-play productswill result and service providers willbe able to combine equipment frommultiple equipment manufacturerssecure in the knowledge that it will becompatible lower equipment prices will resultfrom volume production of certain components service providers will be able to useWiMAX systems to provide broadbandbackhaul infrastructure to the growingnumber of WiFi ‘hot spots’ and addressthe evolution of mobile cellular networks.With over 67 organisations – includingprominent operators, infrastructureproviders and BWA innovators – workingtogether, WiMAX is the key toremoving the obstacles to broadbandadoption throughout the world. Theyear 2004 will be a significant milestonefor the provision of broadband. As thefirst WiMAX-compatible equipment isunveiled, the number of BWA networksaround the world will explode; WiMAXwill be deployed in many instances inpreference to DSL and other technologies.Fixed wireless WiMAXnetworks – the future ofbroadband in AfricaMillions of users around the worldalready rely on BWA to provide broadbandconnectivity; with the advent ofWiMAX, these millions will become billions.Broadband need no longer be seenas a luxury available only to those livingin Africa's large urban areas. Thanks tofixed wireless and the WiMAX networksof the future, operators will continue toconnect villages and towns in theremotest areas, which have never hadany kind of telecoms infrastructurebefore. Imagine how the lives of peoplein these areas are changing – the worldhas gotten significantly smaller. Africa & The Middle East Issue 2004 51

WIRELESSThe Wireless Age in Africa – Embracing the Futureby Frank Opfer, Vice-President, Solutions Management, T-Systems, International Carrier Sales & SolutionsWiFi, Wireless Fidelity, is the current buzzword in Africa. It is bringing a host of new opportunitiesfor communicating with anyone anywhere in the world. Thanks to wireless communicationcovering everything from mobile telephony to WiFi roaming, Africa is poised to makethe leap from sporadic telephone service to full-time, worldwide, connectivity. WiMax, a tradeorganisation created by leading communications companies, aims to promote an industrywidestandard for the next level of wireless networking, creating more broadband accesschoices in Africa.Frank Opfer is Vice-President of Solutions Management for T-Systems International Carrier Sales & Solutions(ICSS). He is responsible for solutions strategy and sales worldwide. He previously worked for Equant as the Directorof the Regional Product Management Team for Data & IP in Europe, for Betrelsmann/mediaWays and DeutscheTelekom. Mr Opfer has an engineering degree in Information Processing and a dual MBA degree from the J.L.Kellogg Graduate School of Management at Northwestern University in Chicago and the Otto Beisheim GraduateSchool (WHU) in Germany.Everyone in the telecommunicationsindustry is talking about hot new technologies.WiFi (Wireless Fidelity) is thecurrent buzzword that, along with othercomplex solutions, is bringing a host ofnew opportunities for communicatingwith anyone anywhere in the world. Thisis all well and good for subscribers inParis or New York, eagerly awaiting thenext hotspot island, but what do thesetechnologies mean for developing partsof the world?Recent trends in Central and EasternEurope can give us some hints to whatlies ahead for other developing nations.After the fall of the Berlin wall, Westernculture streamed across the old divide tocountries whose infrastructures werecrumbling. With decrepit legacy telephonynetworks not up to speed, the regionturned to new wireless technologies tobridge the gap, namely mobile telephony.In a matter of a few short years, theface of Central and Eastern Europechanged from one of a doddering traditionalgrandmother to young, hip andtechnologically advanced, sometimesmore so than their Western Europeanpeers.As we look at Africa, many similaritiesbetween the two geographical areasemerge. Today’s landline infrastructurein Africa is even less developed than thecommunist-era networks in Central andEastern Europe. In addition, conventionalwisdom dictates that African governmentsand private companies areshying away from costly, time-consumingand largely ineffective investments intraditional fixed-line networks.However, thanks to wireless communicationcovering everything from mobiletelephony to WiFi roaming, Africa ispoised to make the leap from sporadictelephone service to world-ranging connectivity.Mobile telephony: drivinggrowthMobile telephony is clearly the majordriving factor in telecommunicationsgrowth in Africa, proven by the boom inbasic telephone access on the Africancontinent. According to the WorldTelecommunication DevelopmentReport, Africa now has more than 20million mobile subscribers and over halfof all African nations have more mobilethan fixed subscribers.Even the concept of subscribers is differentin Africa, as the conventional wisdomof attracting only ‘value’ subscribers toone’s network has evolved into a strategyof bringing in as many users as possible,even if they use alternative means ofaccess, such as mobile calling cards.Pyramid Research reports that these newdynamics result in a total mobile penetration1.5 to 2 times higher than theactual subscriber penetration.Sweeping cultural changes are alsoaffecting the way Africans use the newwireless technology in their daily lives.International television hits such as "BigBrother" are tweaked to reflect Africantastes and values, but the basic principleremains the same: the audience decideswho will make it to the next round bymobile text voting. This kind of highmargintraffic obviously boosts mobileoperators’ revenue, but also presents anopportunity for traditional operators toextend their current portfolio to supportthe vast number of mobile messages thatare sent during special televised events.Mobile message delivery platforms areone of the new breed of solutionsenabling traditional carriers to breakinto the lucrative SMS and MMS sector.Africa and the InternetThe Internet is another element that hasmajor implications for Africa’s development;however, access is far from widespread.A World Markets ResearchCentre study estimates that the cost ofbroadband circuits in Africa can be up to52 Africa & The Middle East Issue 2004

WIRELESSa hundred times greater than in developedcountries, due to the fact that connectivityinto the Internet backbonerequires an international circuit asopposed to a local loop. In this case,exorbitant costs definitely suppressdemand.“Despite this difficult environment, broadband access isprobably one of the most dynamic sectors in Africa, butnot in the traditional sense.”Despite this difficult environment,broadband access is probably one of themost dynamic sectors in Africa, but notin the traditional sense. Building on KofiAnnan’s statement that WiFi and satellitetechnology are the United Nation’schoice for connecting Africa to theInternet, ISPs are largely investing inwireless solutions.Unfazed by the lack of fixed-line infrastructure,these companies are wiselytaking advantage of ISM (Internet servicesmodel) bands. Since these bands areunlicensed and the customer equipmentis inexpensive, wireless bandwidthreduces costs for both service providersand end customers.Wireless Fidelity: puttingnetworks on fast-forwardWith the advent of WiFi comes a varietyof new solutions for growth and development.As more and more Africans gainaccess to the Internet, services such ashotspots become a viable option.Although, for the moment, few Africanhouseholds use computers, hotspots canbe an advantage for business travellers,intra-continental and international.As hotspots pop up in countries such asSouth Africa, Uganda, Tanzania andKenya, Africa will soon face the sameproblems as the United States andEurope in terms of WiFi roaming. Whenhotspot clusters emerge, it is necessaryto link them in some way in order toreach the technology’s full potential.Sophisticated solutions like WirelessLAN Roaming platforms have practicalapplications in Africa. Wireless LANRoaming effectively links hotspot operators,otherwise known as WirelessInternet Service Providers (WISPs) andWLAN service providers in differentcountries.Via this intelligent platform, end userscan benefit from hotspots not only acrossAfrica but anywhere in the world.Carriers who deploy them expand theirportfolios as an entrée to new sources ofrevenue and end users gain flexibility.Ultimately, this technology can breakdown barriers for doing business inAfrica, thus driving economic growth.WLAN platforms also have implicationsfor a new generation of voice services.While potential for growth in traditionalfixed-line voice may be limited, voice isstill the preferred communication medium,confirmed by the surge in Africanmobile use. Voice over IP (VoIP) isbeginning to take off as an alternative tofixed-line communication, but hasn’tcome into its own. WiFi has the potentialto change this scenario, shifting its usefrom a data-only application to a multipurposetechnology.With VoIP-enabled mobile phones, endusers can bypass the pricey mobile networkand make phone calls anywhere inthe world via the public Internet. It is inthis case that hotspots begin to transformfrom a novelty into a viable communicationsolution for Africa.Perhaps the main benefit of mixing voiceand data over a wireless is to make use ofa common infrastructure, a significantadvantage for developing African networks.Not only is a common system forboth data and voice traffic generally simplerand less expensive than two separateones, but the ability to bypass technologylayers in order to build up a stateof-the-art,cost-effective network is aboon for third-world countries.WiMAX – Africa’s ultimateconnectivity solution?When introducing any new standard formass adoption, there are many things toconsider, including equipment interoperabilityand deployment time. WiMax, atrade organisation created by leadingcommunications companies, aims topromote an industry-wide standard forthe next level of wireless networking,thus eliminating these concerns and creatingmore broadband access choices.The WiMax technology, also known as802.16a, is a wireless standard offeringmore range and bandwidth that the currentWiFi service. WiFi is generally usedto connect hotspots in proximity to oneanother, whereas WiMax is capable oftransmitting large volumes of data overdistances of up to 50 kilometres. In addition,WiMax maximises coverage, linkingthousands of end users from a singlebase station.Due for commercial release in 2005,WiMax will have an impact worldwide inseveral different environments, fromcrowded urban centres where build-outis difficult, to suburban areas where subscribersare located far from centralbroadband facilities.WiMax could very well serve as thedeciding factor for the future of Africa’sInternet connectivity. Despite WiFi’sability to remotely link laptop users tothe World Wide Web, the fact remainsthat PC penetration on the continent isvery low. In the current environment, asimple cyber café with docked computersis a more practical answer for Africanusers. However, infrastructure constraintsmean that cyber cafés are bynecessity located in cities, far from thereach of many Africans.With WiMax’s long-range reach eliminatingthe need for the so-called ‘lastmile’, rural hotspot clusters take on anew significance. It is in this capacitythat the hotspot revolution can trulyreach out to rural communities.ConclusionJudging from the recent attention thatorganisations such as the United Nationshave given the subject and the plethoraof ICT trade shows and forums appearingin all African regions, it is clear thatthe focus of the coming years will be onharnessing the power of new technologiesto benefit African society.Will the wireless age boom in Africa?Based on worldwide trends in developingmarkets, the answer is definitivelyyes. The world is looking to Africa fornew business opportunities and Africansthemselves are embracing new solutionsthat will change the face of the continentas we know it today. Africa & The Middle East Issue 2004 53

MOBILE CONVERGENCEConverged Services Networks – Next GenerationNetwork Architectureby Laith Sadiq, Director of Strategy, Motorola Infrastructure, EMEATo make convergence a valuable proposition for operators, the current network architectureneeds to evolve. Current network architecture is not designed with convergence in mind andcannot deliver an optimal customer experience and cost structure. Given that operators havealready made large investments in network infrastructure, the roadmap for the NextGeneration architecture, which will support convergence, should incorporate a phasedapproach. Convergence is already happening in the home, office and outside world – but theultimate convergence cannot happen without seamless mobility.Dr Laith Sadiq is director of strategy for Motorola’s Global Telecom Solutions Sector (GTSS) in Europe, Middle East andAfrica. Before his current position, Dr Sadiq was Sales Director for GTSS Middle East. Before joining Motorola, Dr Sadiqheld senior positions at Nortel. and British Telecom. Dr Sadiq holds a BSc in Communication, Computer and InformationServices from the University of Manchester and a Masters and PhD in Telecommunications from Kings College, London.Operators in the emerging markets haveexperienced a high level of growth, butderegulation and increased competitionwill put pressure on price and retention,making it increasingly challenging foroperators to maintain this growth.To overcome the potential negativeimpact of industry trends and to stimulatefurther growth, operators need tomove into other environments, such asthe home, office, mobile and hot spots,integrating their products and services.This is what we define as convergence.To execute convergence successfullyoperators need a network architecturethat supports cost effective delivery ofservices with a differentiated customerexperience.Next generation architectureIn order to deal with the business driversthat make convergence a valuable propositionfor operators, the current networkarchitecture needs to evolve. The issuewith operators’ current network architectureis that it was not designed withconvergence in mind and cannot deliveran optimal customer experience and coststructure.Given that operators have already madelarge investments in network infrastructure,the roadmap for the NextGeneration architecture, which will supportconvergence, should incorporate aphased approach. This will allow operatorsto overlay new network elements ontop of the legacy network to minimiseincremental investments and provide aflexible transition based on customerdemand and funding availability.The business requirementWireless and wireline operators alreadyrecognise that the move towards convergencewill help them to capture a largershare of wallet and increase customerloyalty, it is not a new effort. However,until now, operators have been focusingmostly on front-end convergence, suchas developing service bundles and marketing,whilst leveraging existing backendinfrastructure.Front-end convergence without the parallelback-end convergence does not providethe full value of convergence. Theissue, from a technology standpoint, isthat current network architectures werenot developed with convergence in mindand they cannot deliver front-end convergencewith the optimum customerexperience and cost.Evolution towards the Next GenerationNetwork (NGN) Architecture will enableback-end convergence of existing infrastructure,improve the customer experienceand reduce the costs of front-endconvergence. In addition, it will allowoperators to create differentiated convergentoffers and deliver a cost advantagedirect to the customer.The NGN Architecture has been developedto meet the following six businessdrivers: Simple Migration and InvestmentProtection: Migration to the NGN architecturecan be implemented as an overlayto existing network investment andits scalability allows for further technologyevolution at minimum incrementalcost. Operators migrating to and fromthe NGN architecture can base this oncustomer demand and funding availabilitywhilst protecting existing networkinvestment Multiple environments at the lowestcost: Customers can use the lowest costtechnology available in whatever environmentthey find themselves, be thathome, office, hot-spots or on the move.The NGN architecture can accommodatemultiple access and core technologies, aswell as the use of third parties’ networksin order to minimise costs. This willallow operators to not only reduce the54 Africa & The Middle East Issue 2004

MOBILE CONVERGENCEcost of providing the service, improvingmargins; but also to serve a largeraddressable market, enlarging theirpotential revenue base Mass market usability and commonuser experience: The NGN architecturewill provide an end user interface that issimple for mass market use and whichprovides a common, seamless experienceacross multiple environments andservices. The mass-market usability andcommon user experience will allowoperators to stimulate take up, improvingrevenues and retention Quality of service (QoS) based onapplications: With the NGN architecture,different services and applications(e.g. voice, video streaming, messaging,push-to-talk, video-conferencing, gaming,etc.) have sufficient dedicated networkresources to ensure desired QoS.This can be adjusted, based on priorityand the importance of applications, toallow operators to optimise networkresource allocation, minimising costsand improving retentionPersonalisation and self-provisioning:Customers want to be able tochoose their services and applicationsand personalise how these are deliveredto them, wherever they are. By empoweringcustomers to tailor their servicesand applications through the NGNarchitecture, operators will not onlyincrease revenues and retention, butalso minimise costs Multi-source of application: By beingable to multi-source applications fromexisting third party developer communities,operators can expand their applicationsportfolio at a lower cost than inhousedevelopment or technology-specificapplication providers.The technologyWhat drives the need for the NGN architecturefrom a business level determineswhat is required at a technology level.The NGN architecture can be representedby the overlay of these technologyelements on top of the existing networklayers (service, core, access) and enduserdevices.The technology elements and their relationshipwith the business drivers, areas follows:Services“Customers want to be able to choose their services andapplications and personalise how these are delivered tothem, wherever they are. By empowering customers totailor their services and applications through the NGNArchitecture, operators will not only increase revenuesand retention, but also minimise costs.” Network independent applicationprogramme interfaces (APIs): A commonset of APIs means that applicationproviders do not need to rewrite applicationsfor different access technologiesand network providers. The access/networkindependent APIs will primarilysupport the demand for multi-sourcedapplications, as independent applicationproviders will be more attracted toAPIs that are ported to multipleaccess/networks. Also, the commonAPIs will allow application developmentcosts to be spread over a larger user baseCommon Operational SupportSystems/Business Support System(OSS/BSS) interface: By providing acommon OSS/BSS interface, applicationproviders do not have to rewriteapplications to adapt to different interfaces.The common OSS/BSS interfacewill primarily support personalisationand choice, since application providerswill have more controlled and securedaccess to the underlying OSS/BSS. Also,it will support an evolutionary pathfrom current networks, preserving theexisting OSS/BSS platforms.Core network Access-independent provisioningmodel and new network elements:Through a series of connectors to existingOSS/BSS in multiple networks operatorscan abstract existing and new networkelements. The access-independentprovisioning model and new networkelements will support personalisationand choice since existing OSS/BSS willshare a common open interface toaccess existing and new network elements. Multi-media service control: Themultimedia service control will supportservice provision across different environmentsat reduced costs. This is dueto significant OpEx (OperatingExpense) and CapEx (Capital Expense)savings from consolidating the transportand switching infrastructure forvoice, data and video. The multi-mediaservice control will also support an evolutionarypath from legacy networks,adapting to the existing transport infrastructurein the core network. Self-optimisation (core network):Switching in the core network is dynamicallyconfigured and optimised to routetraffic to the lowest cost path at adesired QoS. Self-optimisation in thecore network will support low cost serviceacross different environments andtiered QoS based on applications. Mobility management (core network):The core network manages verticalhand-offs between access technologiesand network providers deliveringend-users a seamless experience acrossdifferent environments. Mobility managementin the core network will supportlow cost service across differentenvironments and mass-market usabilityand common experience.Access network Self-optimisation (access network):The access network is dynamically configuredand optimised to route traffic tothe lowest cost path at a desired QoS.Self-optimisation in the access networkwill also support low cost service acrossdifferent environments and tiered QoS. Mobility management (access network):The access network also managesvertical hand offs between accesstechnologies and network providersdelivering end-users a seamless connectionacross different environments. Themobility management in the access networkwill also support low-cost serviceacross different environments andmass-market usability.DevicesDevice independent APIs:Application providers are not requiredto rewrite applications to adapt to differentdevices. The common APIs willalso support low cost service across dif-56 Africa & The Middle East Issue 2004

WIRELESSferent environments since applicationdevelopment costs can be spread acrossa potentially larger device base. Multi-mode devices: Multi-modehandsets and devices will work acrossmultiple wireless access technologies(e.g. 802.11 and cellular 2.5G/3G).Multi-mode devices will support lowcost-to-service across different environmentsand tiered QoS. Multi-modal user interfaces (UIs):Multiple UIs, depending on the type ofinteraction, user preference, access technologyand device, will optimise the userexperience. Multi-modal UIs will supportmass-market usability and commonexperience across environments as wellas personalisation and choice.The business driver for a mobile operatormoving into the home can be mappedagainst the customer experience in buying,using and paying for the service.This is tied to operators’ requirements inacquiring and serving the customer andbilling and providing them with care.Most importantly a mobile operatorlooking to move into the home will needto ensure it is providing competitiveaccess costs and differentiation throughseamless home-mobile environmentservice integration.The NGN architecture addresses thebusiness requirements of mobile operatorsmoving into the home, offering competitivecosts and differentiated seamlessvoice and data services across the mobileand home environments.Scenario B: A fixed operatormoving into the hot-spot andmobile environmentsOne device fits allConvergence is an exciting proposition –customers will experience a number ofsignificant benefits that will no doubtboost their loyalty to the operator. Thecustomer will only need a single deviceand have a single user-provider relationship,with the ability to personalise theservices. The converged network willalso enable customers to seamlessly usea diverse portfolio of applications whilston the move anytime, anywhere at anaffordable price.Leaders in wireless infrastructure andother broadband access technologiesshare with operators a common visionfor convergence and a common understandingof the business requirementsand technology elements of the convergednetwork architecture. There isconfidence that vendors are well positionedto support operators in the migrationeffort towards the converged architectureand full realisation of the value ofconvergence. “Convergence is an exciting proposition – customers willexperience a number of significant benefits that will nodoubt boost their loyalty to the operator. The customerwill only need a single device and have a single userproviderrelationship, with the ability to personalise theservices.”So far, we have discussed the high-levelbusiness requirements of the NGN architectureto enable back-end convergenceand the technology elements that arenecessary to realise these requirements.The following two scenarios illustratehow operators could move into a convergedenvironment. Scenario A considersa mobile operator moving in to thehome environment, while Scenario Bconsiders a fixed operator moving intothe mobile environment.Scenario A: A mobile operatormoving into the homeenvironmentIn this scenario we consider a mobileoperator moving into the home with alandline displacement voice and dataoffering with different tiers of service.The voice component of the offer featureslandline equivalent voice service(with QoS and lifeline) or cellular gradeservice, while the data component featuresbroadband or narrowband alwaysonaccess.In this scenario we consider a fixed operatormoving into the hot-spot and mobileenvironments with portable and mobilevoice and data services. Portable voicefeatures landline-equivalent voice service,while mobile voice features cellulargradevoice service. Portable data featuresbroadband access by leveragingpublic (owned or leased facilities) andprivate (e.g. enterprise) hotspots, whilemobile data features narrowband tobroadband access by leasing capacityfrom cellular network providers(GSM/GPRS, 1X, EDGE, SO/DV,WCDMA).The most important business driver forthe fixed operator moving into the hotspotand home environments is differentiationthrough seamless home-hotspotmobileenvironment service integration.In summary, converged networks thatintegrate cellular networks enable wirelineproviders to offer their narrowbandvoice customers mobility in wide areaand hot spot environments. In turn,wireless providers can offer their subscribershigher bandwidth multi-mediaservices in the home and office.We welcome yourcomments ...If you have anycomments or opinionaboutPervasive Connectivity As aTool For Developmentin Africa, the Middle East andbeyond, we would like to hearfrom you.Simply complete the replycard and fax it back to oureditorial team.Fax no:+44 20 7474 0900or send an email toeditorial@connect-world.comAll article are available online atwww.connect-world.comAfrica & The Middle East Issue 2004 57

NETWORK CONVERGENCEConvergence in the Access Systemsby Andrew Furner, Managing Director, Marconi Middle EastThroughout the world, fixed line operators are seeing voice revenues decline and the voicenetworks are showing signs of obsolescence. In many markets, even the basic, fast, Internetservice offered by DSL is not generating sufficient revenues. Operators are discovering a realbusiness need to make convergence happen. Operators working towards convergence findthey need fewer edge platforms and have reaped major operating expense reductions. Theneed to plan evolution to packet voice technology is compelling.Mr Andrew Furner, the Managing Director of Marconi Middle East, has over twenty years experience intelecommunications, information technology services, software and management consulting in a variety ofsenior management roles. Before assuming responsibility for Marconi’s operations in the Middle East, heserved as head of Technology Strategy for Marconi Corporation. In this role, he led the high level team thatdefined and developed Marconi’s Next Generation Telecommunications Network vision and Marconi’s technologyinvestment strategy.Convergence presents a new window ofopportunity for telecommunicationoperators to explore as they seekgreater business efficiencies and strivefor new levels of growth and profitability.Throughout the world, fixed line operatorsare seeing their traditional voicerevenues decline and their existingvoice network investment is showingsigns of obsolescence. Residentialbroadband over DSL (DigitalSubscriber Line) is a big success indeveloped markets and its growthrequires substantial investment.However, in many markets, the basicfast Internet service offered by DSL isnot generating sufficient revenues onits own to justify network investmentor to create a powerful business case.As a consequence, operators have twomajor objectives: To achieve a substantial reductionin ongoing network operational costsand obtain incremental capacity at amuch lower cost-per-bit Find new service revenue opportunities.Since it is unlikely there will beany single ‘killer application,’ thismeans many new services must bedeployed.Operators are at different stages in theprocess of emerging from corporatereconstruction and debt reduction programmesand many are in the processof privatisation and deregulation.Moreover, operators' views differ onthe appropriateness of basic networkinfrastructure. Nonetheless, growingnumbers of them are beginning to considernew programmes of capitalinvestment to reduce operatingexpenses and provide multiserviceflexibility. These investment programmeswill have major consequencesboth in network infrastructureand operating support systems (OSS)architecture.Operators are discovering a real businessneed to make convergence happen.Convergence provides operatorswith the opportunity to reduce thenumber of edge platforms deployed intheir networks and to cut the numberof service-specific overlay networks(‘stovepipes’). At the same time, operatorsneed to find new revenues, to buildon sales of basic fast Internet accessservice and create new profitable solutionsfor small businesses. The newservices must be delivered with appropriatequality and will need usagebasedcharging. Many operators arenow considering how to shape aninvestment programme to addressthese issues, whilst migrating highlyprofitable voice services onto their IPbaseddata network, as legacy equipmentbecomes obsolete.Multiservice access nodes(MSANs)As operators work to enable convergence,they see a reduction in the numberof edge platforms, deployed in highvolume in their networks, as a majoropportunity for operating expensereduction. In addition to deliveringnew revenue generating services, theysee the need to plan their evolution topacket voice even where no compellingshort term reason for implementationexists.In this context, ‘first generation’DSLAMs (Digital Subscriber LineAccess Multiplexers) are beingreplaced by much more flexible multiserviceaccess nodes (MSANs), capable58 Africa & The Middle East Issue 2004

NETWORK CONVERGENCEof terminating a wide variety of accesstechnologies. MSANs will continue tosupport the DSLAM functionality. Theyincreasingly require terminatingEthernet bearers over copper, fibre andeven fixed wireless and can also supportEthernet backhaul (transmission from aremote to a central site) on the networkside. They will support ‘combo’POTS/DSL (POTS – plain old telephoneservice) line cards as well as packetvoice gateways, allowing a graceful evolutionfrom old to new voice networkswithout on-site intervention.A key enabler for new service revenuesis the ability to support ‘session-basedservices’ – that is, charging for contentstreams based on guaranteed levels ofquality and usage. There will also be aneed for a ‘media firewall’ that providesflow identification and policing functionsfor packet-based access to multipleservices.The predominant trend today is thedeployment of MSANs in copper wirednetworks together with existing switchremotes and DSLAMs. Many operatorsare also considering the possibility ofelectronic nodes on the street as an evolutionbringing fibre nearer to the customerand allowing higher bandwidth(e.g. VDSL). This can be accommodatedwithin an MSAN architecture usingsmall remote line shelves and aggregatornodes.Finally, there is obviously scope forbringing together MSANs with edgetransport functions. The likely outcomeis an architecture allowing for ‘remoteline shelves’ subtended from aggregationnodes.MPLS and ATMMost profitable data services today arecarried over Asynchronous TransferMode (ATM) networks. Moreover, themost important new source of bandwidthin operator networks is residentialbroadband, which is aggregatedusing ATM. Hence, ‘rumours of thedeath of ATM have been greatly exaggerated.’Most operators have substantialand profitable ATM networks whichthey will not abandon quickly andwhich they will require to evolve withoutservice disruption. Whilst besteffortIP traffic has huge volume, mostsuch traffic does not support profitableservices. Operators recognise thatobtaining such profitability requiresservice delivery with appropriate anddependable quality.“The predominant trend today is the deployment ofMSANs in copper wired networks together with existingswitch remotes and DSLAMs. Many operators are alsoconsidering the possibility of electronic nodes on thestreet as an evolution bringing fibre nearer to the customerand allowing higher bandwidth (e.g. VDSL). This can beaccommodated within an MSAN architecture using smallremote line shelves and aggregator nodes.”In the context of real attempts at networkconvergence, including voice andvideo, differentiated Quality of Service(QoS) is completely essential. However,Quality of Service is not completelyassured by Class of Service technologieswhich, although they can ensure thatsome packets are treated with priority,cannot ensure that there is sufficientnetwork capacity to provide appropriatequality for the delivery of any particularservice flow. This requires thereservation of resources and admissioncontrol.MPLS (Multiprotocol Label Switching)is intended to solve this problem byintegrating a hierarchical ‘virtual circuit’technology with IP forwarding thatsupports QoS. As currently standardised,MPLS does not fulfil that promisecompletely. Scalable QoS supportrequires either changes to existing gatewayprotocols or the adoption of a scalableQoS-aware alternatives, whichaddresses these problems.We believe these problems can besolved, but they are not solved yet.Current generation routers are notappropriate and probably cannot beextended to handle these functions. Wethink, therefore, that MPLS is the mostlikely medium-term solution to a convergedcore network, but that the necessarypreconditions are not yet in place.When MPLS is deployed for that purpose,it will need to interwork effectivelywith the ATM installed base.Multimedia softswitchesPacket voice technology has been"emerging" for a long time in publicnetworks. Whilst there has been substantialdeployment of IP PBXs(Internet protocol switchboard equipment),most operators have not mademajor investments in public networksystems. There are several reasons forthis: Existing voice systems are stable,dependable and do not require majornew investment Basic fixed-voice demand is notgrowing. There has been growth, in particularbecause of dial-up Internetaccess, but this has been addressedwhere necessary by specialised bypasssolutions and is now disappearingbecause of broadband substitution Whilst basic packet voice technologyis not in doubt, there are still majorconcerns about quality, security andscalability for the public network andthe evolution issues are complex.In our view, this situation is now changing.Operators are beginning to havereal obsolescence concerns about theirvoice infrastructure and they recognisethat any replacement strategy will takesome time to deploy. Moreover, it isbecoming clear that they cannot surviveon their traditional revenues and thereforeneed a flexible service architecture.The challenge in designing a publicnetwork packet voice solution is to balanceseveral issues: Internet-derived technologies, suchas SIP, give great flexibility for rapiddeployment of new services. Operatorsmust be able to support new kinds ofservices and new media if they are toinvest in a whole new service infrastructure A totally ‘transparent’ IP networkgives operators no opportunity to provideappropriate quality and dependabilityfor a public network offering andno way of charging for their servicesAfrica & The Middle East Issue 2004 59

NETWORK CONVERGENCEThey offer: Controlled access to resources andother networks based on ‘media firewalls’,which police and translatebetween multiple IP address spacesand also manage QoS for mediastreams on the boundaries of an operator'sIP domain A full range of gateway protocols Controlled access to SIP (SessionInitiated Protocol – a signalling protocolfor IP telephony, among others)servers and devices. Full interoperability with existingnetwork features and protocols Flexible service intelligence Service interworking with 2.5G and3G mobile networks using CAMEL &Parlay (applications interfaces for networks) High dependability and networkwide fault tolerance Flexibility in size and location,allowing deployment at sites convenientto the operator.Network operators and voice and data service providers demonstratehow fixed, mobile and radio networks can be fused into a singlecommunications unit at CeBIT 2004 Hannover (18 – 24 March). Commercial service depends onuniversal interoperability with existingfixed and mobile networks and hencemust interface to current standardsand feature sets and support currentregulatory and government requirements.Once again, we believe that this technologyis now becoming sufficientlymature to address these concerns.State of the art softswitch systems consistof a set of components connectedtogether by standardised interfaces.“Basic fixed-voice demand is not growing. There hasbeen growth, in particular because of dial-up Internetaccess, but this has been addressed where necessaryby specialised bypass solutions and is now disappearingbecause of broadband substitution.”Convergence in services, applicationsand devices is largely driven by marketdemands and the need for operators tomaintain their competitive position.Cost optimisation considerations aswell as new service delivery will drivenetwork convergence.Whatever the driving considerations,operators ignoring the benefits of convergednetwork architectures may doso at their own peril. The same technologyis available to all players so, ifan operator fails to adopt next-generationnetwork architectures, their revenueswill eventually fall to an alternativeservice provider. This alternativeservice provider will offer new andlegacy services at a lower cost thantheir ‘stovepiped’ competitors. Thecombination of multiservice flexibilityand low operating expense is a combinationthat no network operator canafford to ignore. 60 Africa & The Middle East Issue 2004

Packet Voice Telephony Shines Brightly in DeregulatingMarketsby Ingrid Simunic, PhD., Marketing Director, VocalTec CommunicationsDEREGULATION AND THE MARKETDeregulating countries in Africa present a huge opportunity for telecom service providersand equipment vendors. In Africa, the limited infrastructure results in repressed demand fortelecom services. Nigeria, which has a recently deregulated telecom market, provides a vividexample of this. A number of competitive fixed line and mobile service providers have begunto offer economical services to the phone-starved Nigerian public over a cost-effectivepacket voice architecture. A scalable and granular VoIP solution allows companies to startsmall and grow over time.Dr Ingrid Simunic is the marketing director of VocalTec Communications. She has led marketing operations for telecomcompanies in both developed markets, such as the US, as well as emerging markets in Europe. Her internationalexperience of equipment vendors and service providers includes working with startups and established companies.She writes for and has been quoted in, many business and trade journals. Ingrid holds a doctorate in marketing science.IntroductionWhile the global telecom markets havebeen under a shadow from the recessionin the large North American andWestern European telecom sectors,refreshing pockets of opportunity andgrowth surfaced in emerging and deregulatingmarkets in Africa, Asia, EasternEurope and elsewhere. In these emergingeconomies, deregulation, combinedwith the increased availability of provenpacket telephony technologies, is drivinggrowth and a wide range of opportunitiesfor telecommunications serviceproviders.This paper discusses current dynamicsdriving telecom growth in numerousemerging economies, which hold longtermimplications for the future of theglobal telecom industry. In particular,this paper highlights the benefits ofpacket-based telephony networks foremerging economies, as well as the typesof services and applications that arebeing offered to meet the needs of thesemarkets.Deregulation spurs growth inemerging economies: Africaand NigeriaDeregulating countries in Africa presenta huge opportunity for both telecomservice providers and equipment vendorsbecause they have insufficient infrastructurebuild-out, low teledensity andhigh call tariffs, coupled with an unsatisfiedappetite for telecom services. It isestimated that in the next five years, thebulk of telecom industry revenue growthwill occur in emerging countries worldwide.It is also expected that emergingcountries will continue to have a higheradoption rate of new advanced telecomtechnologies, particularly packet voiceand mobile infrastructure.Nigeria, Africa’s most populous country,which has a recently deregulated telecommarket, provides a vivid example of thistrend and drivers shaping such markets.With a growing domestic market of over130-million people, a prominent role as atrading hub in West Africa and beyondand one of the least developed telecommunicationnetworks on the continent,Nigeria is a country of potentially vastopportunities in the communicationssector.The current fixed line network ofNigeria’s incumbent carrier, NITEL,does not adequately address the needs ofthe expanding business sector or thedemand in the residential sector. Out ofsome 700,000 lines installed, only492,000 are operational – the vastmajority of them concentrated in a fewmajor cities. Nigeria’s teledensity isamong the lowest in the world, estimatedat 0.38 telephones per 100 inhabitantsaccording to analyst reports.The licensing of four GSM operators wasa watershed event for the Nigerian telecomindustry, successfully launchingNigeria into the digital world. The country’sregulatory body, NigeriaCommunications Commission, grantedlicences to 13 private companies to operatefixed wireless access services. Shortlyafter, it endorsed Globalcom as the secondnational operator, alongside severalregional private telephone operators.The onset of competition has also ledNITEL to take steps to modernise andupgrade its own network. It is in themidst of implementing a fiber opticbackbone and has announced plans tohave eight million lines installed by2008.After a prolonged telecom deregulationprocess, a number of competitive fixedline and mobile service providers, suchas Adesemi Nigeria Ltd. (Adesemi), havebegun to offer economical local and longdistance services to the phone-starvedNigeria public.Case study: AdesemiAdesemi Nigeria Limited is a leadingprovider of both communication equipmentsolutions and communicationsservices for businesses and consumers.As a leader in the telecom and Internetindustry in Nigeria, its products provideenormous revenue generating opportu-Africa & The Middle East Issue 2004 61

DEREGULATION AND THE MARKET“ ...the high growth of wireless communications in emergingeconomies – often to the exclusion of fixed line telephony– has further eroded the fixed line carrier’s bottom line.”nities for other players in the industry.Adesemi’s customer base is spread over13 states of Southern Nigeria.The company’s various business divisionsoffer value-added services for provisioningInternet access and onlineservices, VPN (virtual private network)and Voice over IP (VoIP), payphone andcalling card services. It also has numerousother product divisions, such as:cybercafe franchises; customised softwaredesign, development sale and thedesign and development of e-commercesolutions and rich content information.Adesemi’s strategy is to provide highqualityvoice and data services at reasonableprices to the Nigerian public andcorporate customers. Branded byAdesemi’s Komtone division asCallpoint, it uses a VoIP platform tosupport cybercafes and public pay phoneservices in densely populated urbanareas. At a later stage, the companyplans to expand these services to all ofNigeria, including remote rural areas.Business Challenge andRequirementsTo support its low-cost business model,Adesemi sought a solution that wouldenable it to reach the large masses of thepopulation, mainly in urban areas, thatdo not have basic telephone service,without substantial deployment ofexpensive equipment. Like most competitivecarriers in emerging economies,it required a low budget solutionenabling the rollout of basic telephonyservice in the shortest possible timeframe. The solution had to be capable ofsurmounting the lack of fixed line infrastructureand physical obstacles, as wellas facilitating the addition of newadvanced services.Packet Telephony Solution MeetsAdesemi Nigeria Business RequirementsAdesemi selected a field-proven multiserviceplatform to support local, nationallong distance and international prepaidcalling card voice services over acost-effective packet voice architecture.This provides a scalable and granularVoIP solution, which allows Adesemi tostart small with low entry costs and growover time.Voice over IP technology, integratedwith Wireless Local Loop (WLL) andsatellite remote gateways at the transportlayer, provides Adesemi with a completesolution by providing the billing(postpaid and prepaid), managementand provisioning functions. The VoIP/WLL/ satellite solution matches theneeds of cybercafes and telecentres inboth urban areas and outlying villagesfor voice connectivity. The VoIP/ WLL/satellite solution also provides access todata networks (Internet) for e-mail, filetransfer, electronic databases, governmentand community information systems,market and price information, etc.Next Generation voicedeploymentsPacket telephony (or VoIP) solutions areoptimized to support long distance/international services in deregulatingmarkets. Packet tandem switching solutionsdramatically reduce time to revenue,allowing carriers to begin to transfertraffic in very short time frames, aswell as slashing the capital and operationalexpenses normally required tobuild traditional circuit-switched networks.Globally, many carriers are still in ‘testmode’ with packet telephony.Nevertheless, these packet telephonynetworks are already generating trafficthat represents approximately 18 percent of the world’s international trafficand are being operated by some of theworld’s largest international carriers.Deployment of packet voice solutionscan be regarded as capital expenditurespending that directly translates intooperating cost reductions (30 per cent-40 per cent less than traditional TDMnetworks). Packet tandem switchingtechnology requires fewer ports per calland lowers transport costs based on IPtopology. Carriers with existing data networksentering the voice market are ableto deploy such solutions over their existingIP network infrastructure. This convergentnetwork saves the substantialcosts of operating and, also, managingseparate networks for voice and data.Additionally, the high growth of wirelesscommunications in emerging economies– often to the exclusion of fixed linetelephony – has further eroded the fixedline carrier’s bottom line. Packet telephonysolutions offer the promise of newrevenue streams via new, highly targeted,enhanced, application services, suchas voice VPNs (private networks forenterprises that enable low-cost intraofficephone calls between branchesworldwide) and new calling card services,while at the same time maintainingexisting revenue streams. As mentioned,carriers will only evaluate new enhancedservices if they provide short-term economicbenefits. Basic voice VPN and IPcalling card services meet these criteriaand allow for a migration to the true nextgeneration all IP network, where allphone service applications are offered onan IP platform.Another advantage of packet architectureis that it does not disturb or threatenthe existing successful ‘vertical services’business of the telcos. The capitalexpenditure is focused on retaining theserevenue streams on a less costly platform,allowing the carrier to achieve highrevenue retention from existing services.New competitive environments in deregulatingcountries inevitably result inshrinking margins as more players enterthe market. Packet telephony allows forbetter margin management by enablinglucrative services while reducing operatingcosts.ConclusionThe market opportunity for packettelephony is huge and growing, especiallyin deregulating telecom markets forwhich packet voice technology’s low coststructure is well suited. As case studies inAfrica and elsewhere have demonstrated,packet telephony solutions can acceleratedeployments in these markets,enabling carriers to achieve rapid returnon low initial investment. Teledensitycontinues to increase throughout theworld’s emerging economies, while costsare continually driven lower by theeconomies of scale and technologicalinnovation. While overall market growthwill develop more slowly than was originallyanticipated, it will be driven to alarger extent by carriers in emergingeconomies. By leveraging new packetbasedtechnologies, the larger carriers inthese markets are likely to be a drivingforce for the growth of new networks andassociated next generation services. 62 Africa & The Middle East Issue 2004

Value Proposition for Speedy Telecoms’ GrowthBUSINESS DEVELOPMENTby Kaul Sanjay, Senior Business Advisor & Director of Service Area Advice, Ericsson, AfricaMany operators on the African continent lack local competence, operational frameworks andfinancing capabilities. Penetration levels are low and the consumer is paying too much forwhat they are receiving. Businesses are suffering from the absence of a proper communicationsinfrastructure. Yet research in one developing country shows that a one per centgrowth in telecommunication services boosts the economy by two per cent. The case isclear, operators and governments need to overcome the problems and do so at speed.Kaul Sanjay is a Senior Business Advisor and the Director of Service Area Advice for Ericsson Global Services inAfrica with a focus on telecoms strategy and services operations. Kaul Sanjay has had broad international experienceworking with mobile markets around Europe, Asia Pacific and Africa. Before joining Ericsson, Mr Sanjay workedwith BT and Telia for a number of years. Mr Kaul has a BE in Electronics & Telecommunications and an MBA inmarketing and strategy.Today, if we take a deeper look at thetelecommunication market in theAfrican continent, we see a paradigmshift in strategic thinking. Over the lastdecade, especially, mobile subscriberturnover has exceeded all forecasts,despite the fact that there has been asharp focus on satisfying and retainingthe high ARPU (average revenue peruser) subscribers. As a result, we arebeginning to see a change in strategicthinking. Where the old strategic thinkinghad an upstream focus, calculated tobring only high-value subscribers ontothe networks, the new strategic thinkingconcentrates on the downstream – lowerin value, but greater in number -subscribers.This is bringing in as manyusers as operator network capacity andresources will allow and requires theoperators to set up the operationalframework to keep them active.Sustainable growthThe above-said paradigm shift in strategicthinking is having a dramatic impacton subscriber growth and active subscribercounts. African operators aregrowing much faster than their peers inthe developed economies; even the slowest-growingAfrican players haveachieved compound annual growth ratesof up to 30 per cent between the years2001 and 2003. EBITDA (EarningsBefore Interest, Taxes, Depreciation andAmortisation) levels are as high as thosefor successful operators around theworld. The African subscriber base hasgrown phenomenally over the last threeyears and will continue to grow.Nevertheless, it is expected that theoperator's margins will fall and theirprofits per unit will decrease.Africa was the first continent of theworld where mobile penetration exceededfixed line telephones and it continuesto lead the way. In Nigeria, growth isincredible: in the last four years it hasgone from almost nothing to about threemillion and is almost twenty times higherthan fixed telephones in the country.In Algeria growth has been enormous -from 100,000 mobile subscribers twoyears ago to close on 1.5 million today. InUganda, mobile penetration has growntenfold over fixed line telephones; and soit goes.The rise of regulatory bodies and theexpansion of mobile and fixed telephonylicense awards has stabilised the Africanbusiness environment for furthergrowth. The current strong subscribergrowth is sustainable for at least three tofive years.The shift in strategic thinking of the continent'snations offers a significantopportunity for all suppliers, operatorsand governments. The key task is toanalyse the business models that canaddress the challenges faced by the telecomservices industry. Some of theproven business models – primarily followedby the telecom suppliers in theregion are: establish, operate and transfer;manage capacity; and full-fledgedoutsourcing.Key challengesNetwork coverage and capacityEven though much has been invested intelecom infrastructure during the lastfive years, there is still a tremendousneed for network capacity. Subscribersare still queuing up for both mobile andfixed connections. For instance, in bothNigeria and Algeria, the telecom marketshave seen enormous growth in the last 3years; nevertheless almost all the playersstill lack capacity.Quality of serviceMaintaining quality of service in theregion is seen as a fundamental challenge.Network downtime is high andspeech quality is poor and must beaddressed. The network across the continentneeds to be optimised and utilisedto the maximum, while making sure theAfrica & The Middle East Issue 2004 63

BUSINESS DEVELOPMENTSources: World Bank, ITU Yearbook of Statistics, UNDP, Human Development Report 2003. Africancountries presented in alphabetical orderquality parameters are not suffering.There has to be a shift from CAPEX(capital expense) to OPEX (operatingexpense) to make sure the investmentsmade in CAPEX are sweated to the maximum.High operational costsTelecom service operations in Africa arerun very inefficiently compared to theoperators in other developing parts ofthe world. The cost of the operationsvis-à-vis the quality level ratios arepoor. The fundamental reasons for thehigh OPEX are the following: High churn rates – Largely owing toa predominantly pre-paid subscriberbase, the churn rates are higher comparedto more developed markets andthe main reason is the lack of churnmanagement strategies. Average churnrates across the continent are exceeding15 to 20 per cent Capacity and coverage – It is quitecostly for operators to reach people inremote areas; the cost of rolling out telecomnetworks there is high; this is due,in part, to the lack of local competenceand inadequate operational frameworks High price levels - The main obstaclesto increased penetration are notARPU and profitability, they are thehandsets costs and the operator abilityto reach the customer. Also, mobile tariffsare still very high for the quality provided.There are various initiatives drivenby telecom suppliers to address theseproblems, but governments and regulatorshave not been innovative enough toexplore and exploit these initiatives andpossibilities Lack of local competence – Manycountries, because of the lack of telecomand mobile operations experience in theregion, depend upon the skills of expatriateworkers. This adds an increasedload to the OPEXAdequate fundingThere are many obstacles to increasingthe penetration levels of telecommunicationsservices. The cost of building orexpanding network capacity and coverageis high, as is the cost of the handsetsand the cost of reaching and servicingthe end user. Developing customerawareness and the reach of marketingrequires extensive sales channels andwell-targeted promotions. Customercare and, overall, QoS (Quality ofService) are also essential to captureand retain subscribers. All of theserequire funding. There is a pressingneed to find an innovative model thatcan catalyse the funding process andensure speedy financing and a shortertime to marketBusiness models worthconsideringThe shift in strategic thinking offers asignificant opportunity for suppliers,network operators and serviceproviders. Regulators and governmentsplay a catalytic role and can encouragemodels that meet the challenges andadminister the weaknesses alreadydescribed. Some of the successful businessmodels, as mentioned above, are:establish, operate and transfer; managecapacity; full-fledged outsourcingEstablish, operate and transferEstablish, operate and transfer servicesare aimed at operators entering a newmarket, migrating between technologiesor facing a major expansion. This set ofservices targets network planning,design and performance optimisation,service and network assurance and serviceprovisioning. The purpose is toestablish a successful operation within64 Africa & The Middle East Issue 2004

BUSINESS DEVELOPMENTthese areas in a smooth and efficient wayand to ensure fast time to market. Thesupplier takes responsibility for the operationof the network for an agreed period,delivering – it is expected – optimal networkperformance according to definedand agreed targets.Transfer of knowledge, processes androutines should then enable operators toeasily take over the responsibility fortheir network operations at an agreedpoint in time. The proven processes, onthe-jobtraining and certification programmeswill bring the operator's organisationto the necessary level of competenceand result in high performancecapability.The benefits of the model are: Shorter time to market State-of-the-art network performance Investment in proven operationalpractice In-house, high-performance, operationcapability Operational performance at predictablecost Knowledge transfer to operator staff.Manage capacityThis model is especially of interest tothose governments and operators thathave problems of funding expansion onone side and lack of competence andoperational experience in running thetelecom networks on the other. In thismodel, the supplier manages and buildsthe capacity rapidly and at a lower totalcost.The benefits of the model are: Built-in financing – the supplier andoperator work as a team Network capacity is provided at predictablecosts Faster network capacity build Guaranteed quality levels and operationalperformance.OutsourcingThis business model has been very successfulin the West. The operator outsourcesall the non-core elements of its“The shift in strategic thinking offers a significant opportunityfor suppliers, network operators and serviceproviders. Regulators and governments play a catalyticrole and can encourage models that meet the challengesand administer the weaknesses already described. Someof the successful business models, as mentioned above,are: establish, operate and transfer, manage capacityand full-fledged outsourcing.”business (for example, managing technologyand operating customers and network)and focuses on marketing, the customeroffering and customer care.The benefits of the model are: Shorter time to market and earliercashflow State-of-the-art operational performance Network capacity at predictable costs Guaranteed quality levels and operationalperformance Proven operational frameworks aspart of the package In-house, high performance, operationcapability Operational performance at predictablecost.Value addedThe value added by all the above businessmodels, apart from cost saving, includesthe following advantages: Improved quality – guaranteed qualityat predictable costs Cost-reduction – cost reduction due toefficient processes and economy of scale Competence transfer – transfer of theoperations framework and competenceto the local staff, enhances the humancapital of the region Better prices for end-users – efficientlyorganized telecom networks ensurelow OPEX, which in turn gives the operatorsthe ability to offer better prices ontariff and subsidies on handsets.SummaryTelecoms in Africa are driven by successin the prepaid market. This segment ofthe market quickly becomes unprofitableif the costs are not controlled adequately.Indeed, in some cases prepaid is alreadyshowing negative net present values. Theaverage value of the African subscriberwill decline over the next few years as thesubscriber base expands. As competitionincreases so will the churn and the ARPUlevels will go down. The only way to sustainprofits is to manage and cut, costs inorder to improve margins. The abovebusiness models present clear valuepropositions, in terms of managing margins,for both the telecom players andgovernments. They provide the means toexpand the telecommunication infrastructurefaster and to ensure lowerprices, better quality and superior enduserexperience. Isn’t that a ‘win-win’solution for all? Africa & The Middle East Issue 2004 65

WORKFORCE CONNECTIVITYApplication Provisioning for the Mobile Workforceby Pontus Axelsson, Vice-President Product Management, Appear NetworksWeb browsing is and will continue to be, a vital part of the way wireless services are used,but it needs a strong partner delivering applications that work both online and offline. Mobileworkforces require true mobility and will often prefer powerful handheld devices to the traditionaldesktop computer in order to carry out assigned tasks away from their desks.Standardised software will inevitably lead to the development of more applications for handhelddevices, such as application provisioning.Mr Pontus Axelsson, the Vice-President Product Management at Appear Networks, is widely experienced in thewireless and technology sector. He has been involved in major innovations in the market. He convinced Motorolaand Swedish GSM network operator Tele2 to fund a project to build the world's first WAP unified messagingapplication. More recently, he has worked for the Swedish wireless startup Goyada AB as VP of ProductManagement and as Chief Technical Officer. Mr Axelsson holds a Master of Science in Computer Science andEngineering from KTH, the Royal Institute of Technology, Stockholm and was recently a delegate of the WAPForum.Web browsing is and will continue tobe, a vital part of the way wireless servicesare used, but it is evident that itneeds a strong partner delivering applicationsthat consume less battery timeand work both online and offline. Thissuggests a shift in wireless thinking,away from the traditional wirelessInternet browsing model and towards amodel centred on provisioning of fullapplications. Important to remember isthat communication systems shouldalso be able to take the new dimensionof physical location into account whendistributing applications: some applicationsmay be exclusively provided incertain areas only.The wireless arena today is very fragmented,with several different accesstechnologies and a variety of handhelddevices. These facts, combined with thedifferences between users of desktopsand mobile devices, lead to a number ofkey features that should be provided byapplication provisioning solutions.Application provisioning can be dividedinto six consecutive steps (Figure 1): Step 1, Device detection, when a userequipped with a wireless device entersinto network coverage Step 2, Service discovery, when theclient and server negotiate and decidewhich services the client can access Steps 3 to 5, Download, install andexecute application, when the userselects an application to use and it isautomatically installed, configured andstarted Step 6, Discard application, whenthe user leaves the network.All of these steps must be supported byan application provisioning solution.Furthermore, they must be performedwithout unnecessary user interaction –advanced client side intelligence isclearly needed to perform the entirechain of events automatically.Mobile workforces require true mobilityand will often prefer powerful handhelddevices, data-enabled handsets ortablet computers to the traditionaldesktop computer in order to carry outassigned tasks away from their desks.In the future, hand-held devices will usemore data and, therefore, the role ofthese devices and the requirements onthe hardware will undergo profoundchanges. A maintenance worker walks up to atrain set that he or she is supposed toservice and uses a wireless device tolook for available applications. The application provisioning systemautomatically detects his or her presenceand notifies the maintenanceworker of available applications byshowing them as new icons on the PDA. The maintenance worker sees thatone of the icons represents the servicemanual for this particular train set andclicks on it to automatically downloadand install an interactive guide showingwhat to do. As the maintenance worker leavesthe area after completing the work, theservice manual is automaticallyremoved from the handheld device tosave space and to avoid using out-ofdateinformation later. Optional storageshould also be available since the maintenanceworker might want to use theapplication offline as well.Deployment scenariosTo understand fully the need for applicationprovisioning it is necessary toexamine how it will evolve over the next66 Africa & The Middle East Issue 2004