the african solution for africa - Connect-World
the african solution for africa - Connect-World
the african solution for africa - Connect-World
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Africa & The Middle East Issue 200442Changing <strong>the</strong> Way Africa Communicatesby Guy Clarke, Director – UUNET Africa Operations58Network ConvergenceConvergence in <strong>the</strong> Access systemsby Andrew Furner, Managing Director, Marconi Middle EastAfrican businesses rely heavily on e-mail, Internet and VPNconnectivity. However, <strong>the</strong> needs of Africa are very differentfrom those in more developed regions and satellite <strong>solution</strong>scontinue to be material. The continent is one withmany development opportunities and, with correct advice,true communication capabilities will soon be a reality.Throughout <strong>the</strong> world, fixed line operators are seeing voicerevenues decline. Even <strong>the</strong> basic fast Internet serviceoffered by DSL is not generating sufficient revenues.Operators are discovering a real need <strong>for</strong> convergence. Asoperators work towards convergence, <strong>the</strong>y see a reductionin <strong>the</strong> number of edge plat<strong>for</strong>ms 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 <strong>the</strong> lives of most people?The next great opportunity is to create software that breaksdown barriers between people, systems and in<strong>for</strong>mation.This is <strong>the</strong> vision of seamless computing but, if we are tochange <strong>the</strong> way people think about computers, <strong>the</strong> focusmust be on building trustworthy systems.WirelessWireless Broadband in Africaby Zvi Slonimsky, CEO, AlvarionThe telecomms challenges are identical throughout <strong>the</strong>African continent: how to provide broadband connectivityin harsh and un<strong>for</strong>giving landscapes. Unsurprisingly, wirelessbroadband emerges as best <strong>for</strong> delivery of broadbandservices in <strong>the</strong>se tricky environments. The development ofWiMAX is significant <strong>for</strong> operators in Africa and removesobstacles to broadband adoption worldwide.The Wireless Age in Africa – Embracing <strong>the</strong>Futureby 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 make<strong>the</strong> leap from sporadic telephone service to worldwide connectivity.WiMax, a trade organisation created by leadingcommunications companies, is promoting standards <strong>for</strong> <strong>the</strong>next 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, <strong>the</strong> 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 <strong>the</strong> MarketPacket Voice Telephony Shines Brightly inDeregulating Marketsby Ingrid Simunic, PhD., Marketing Director, VocalTec CommunicationsDeregulating African countries presents a huge opportunity<strong>for</strong> 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 <strong>solution</strong> allows companies to start small andgrow over time.Business DevelopmentValue Proposition <strong>for</strong> Speedy Telecoms’Growthby Kaul Sanjay, Senior Business Advisor & Director of Service Area Advice,Ericsson, AfricaMany operators on <strong>the</strong> 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 boosts<strong>the</strong> economy by two percent. Operators and governmentsneed to overcome <strong>the</strong> problems and do so at speed.Work<strong>for</strong>ce <strong>Connect</strong>ivityApplication Provisioning <strong>for</strong> <strong>the</strong> MobileWork<strong>for</strong>ceby Pontus Axelsson, Vice-President Product Management, Appear NetworksWeb browsing is a vital part of <strong>the</strong> way wireless services areused, but it needs strong applications that work both onlineand offline. Mobile work <strong>for</strong>ces require true mobility andwill often prefer handheld devices to <strong>the</strong> traditional desktopcomputer when carrying out assigned tasks away from<strong>the</strong>ir desks.Network DevelopmentLong Live <strong>the</strong> Network!!!by Marco Daniel Signorini, Chief Executive Officer, Econet Satellite ServicesLtdWe can expect more progress during <strong>the</strong> next ten years thanduring <strong>the</strong> last one hundred. Nanotechnology and <strong>the</strong> bluelaser will make digital processing and bandwidth more costeffective. Satellites will be able to provide enough bandwidth<strong>for</strong> everybody on earth and help bring af<strong>for</strong>dableservices to almost everyone in <strong>the</strong> 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 <strong>for</strong> :Rural Communication Services : including telephonyfax internet and TV<strong>Connect</strong>ivity On-Demand Services : <strong>for</strong> national andinternational voice services on a call basisTrunking, Broadcasting and Internet ServicesThe one stop-shop <strong>solution</strong>, adapted to <strong>the</strong> requirement of <strong>the</strong>African market<strong>for</strong> more about us :http://www.rascomstar.com
CONNECTIONS, CONEXÕES, CONEXIÓNES, CONNEXIONS…Satellite <strong>Connect</strong>ivity – In much of <strong>the</strong> world, <strong>the</strong> lack of communications infrastructure deprives peopleof everyday communications services. Oren Most of Gilat Satellite Networks points out that satellitebasedcommunications are <strong>the</strong> best, if not <strong>the</strong> 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, <strong>the</strong> connectivity needs of Africa are very different from those in more developed regions; in Africa,satellite <strong>solution</strong>s are <strong>the</strong> key to fast expansion.ICT Convergence – Mike Cathie at Microsoft thinks that seamless computing, which breaks down barriersbetween people, systems and in<strong>for</strong>mation, is <strong>the</strong> next great ICT opportunity; but <strong>the</strong> focus mustbe on building trustworthy systems.Wireless – The challenge in Africa is to provide broadband connectivity in harsh and un<strong>for</strong>givinglandscapes. Zvi Slonimsky of Alvarion makes <strong>the</strong> case that wireless is <strong>the</strong> best delivery system <strong>for</strong> broadbandservices in <strong>the</strong>se 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, <strong>the</strong> 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 <strong>the</strong>number of edge plat<strong>for</strong>ms and provide major operating expense reductions.Deregulation and <strong>the</strong> Market – Ingrid Simunic of VocalTec Communications expects that, by deregulating,countries in Africa will create a huge opportunity <strong>for</strong> telecom service providers and equipmentvendors. Nigeria is an example: service providers now offer cost-effective services with scalable VoIP<strong>solution</strong>s that work <strong>for</strong> 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 <strong>the</strong>economy by two per cent, operators and governments need to work quickly to find a <strong>solution</strong>.Work<strong>for</strong>ce <strong>Connect</strong>ivity – Pontus Axelsson at Appear Networks discusses <strong>the</strong> vital role Web browsingplays in <strong>the</strong> way wireless services are used. Applications that facilitate use by mobile workers should behandheld-based to permit easy use when working away from <strong>the</strong> desk.Network Development – Marco Daniel Signorini of Econet Satellite Services expects more progressduring <strong>the</strong> next 10 years than during <strong>the</strong> last 100. More powerful chips, blue lasers, digital processing,cost-effective bandwidth and satellite delivery will provide enough bandwidth <strong>for</strong> everybody on earthincluding Africa and <strong>the</strong> 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 <strong>the</strong>CDMA2000 standards family, which is <strong>the</strong> optimisedtechnology <strong>for</strong> <strong>the</strong> realisation of high-speedwireless packet data service. CDMA2000 1xEV-DOand CDMA2000 1x are downward compatible,thus enabling smooth upgrade of 1X networks andprotecting <strong>the</strong> investment of <strong>the</strong> communicationservice carriers. Data optimisation: CDMA2000 1xEV-DO hasbeen optimised <strong>for</strong> 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 <strong>the</strong>y bothuse <strong>the</strong> same PCF and PDSN, as well as commonantenna and feeder systems. This makes 1xEV-DOservice possible using <strong>the</strong> carriers' original CDMAnetwork, resulting in lower cost and, consequently,increased return on <strong>the</strong> 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 <strong>the</strong> 3G summi<strong>the</strong>ld 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 <strong>the</strong> highlyintegrated products include industry leading per<strong>for</strong>mance,complete compatibility and full serialisationto enable <strong>the</strong> higher reliability of radio frequencyring networking.ZTE CDMA2000 1xEV-DO mobile communicationsystems feature <strong>the</strong> 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 <strong>the</strong> system supports multiple frequencies– such as 450M, 800M, 1.9G and 2.1G –<strong>for</strong> each of <strong>the</strong> different types of base station. This satisfies <strong>the</strong> diversified requirements ofcommunication service carriers <strong>for</strong> high-grade configurations,low-grade configurations, high capacitycoverage within relatively limited areas in urbanregions, or relatively low capacity coverage over awide area <strong>for</strong> suburban districts. This range of products features mutual cooperation,or compatibility, of <strong>the</strong> complementaryproducts in <strong>the</strong> series, thus enabling effectiveoptimisation of network quality and improvedcommunications capabilities.8 Africa & The Middle East Issue 2004
ZTE Module generalisation: Most of <strong>the</strong> base stationswithin <strong>the</strong> series may be used as general stations;this facilitates future maintenance by <strong>the</strong> carriers. Modular, extensible structures permit easyexpansion in accordance with <strong>the</strong> requirements ofeach office. Integration with WLAN, co-complementaryadvantages and improved network quality. Provides wide coverage <strong>for</strong> voice and low-speeddata services via <strong>the</strong> 1x network and provides highspeeddata service via 1xEV-DO in busy districts.Because of <strong>the</strong> inter-operationality of 1x and 1xEV-DO, <strong>the</strong> double-mode terminals switchoverbetween <strong>the</strong> two networks without interruptingdata service. This makes <strong>the</strong> deployment of 1xEV-DO service convenient <strong>for</strong> <strong>the</strong> carriers; <strong>the</strong>y canbegin with isolated services and gradually, economically,expand <strong>the</strong>ir coverage as <strong>the</strong> traffic increases,<strong>the</strong>reby reducing <strong>the</strong>ir short term investmentneeds. By taking advantage of <strong>the</strong> wider coverage ofCDMA2000 1x and 1xEV-DO networks, WLAN coverageproblems can be resolved, giving <strong>the</strong> userseamless mobile communication service and flexibleaccess methods. Using <strong>the</strong> 11M bandwidth of WLAN and 1xEV-DO, <strong>for</strong>ward peak speeds of up to 2.4576Mbps canbe provided, <strong>the</strong>reby resolving <strong>the</strong> problem oflower data transmission speeds with CDMA20001x. It provides carriers with united back end au<strong>the</strong>ntication,billing and management <strong>for</strong> <strong>the</strong> 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 <strong>the</strong> same base station, regardlessof standard. Accordingly, <strong>the</strong> 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 <strong>the</strong> 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, <strong>World</strong> Economic Forum;and Ex-President, Costa Rica<strong>Connect</strong>ivity – roads, flight connections, or telephone lines – can economically empowerpeople. In<strong>for</strong>mation connectivity unleashes human capital and increases productivity andknowledge sharing. In much of <strong>the</strong> world where, <strong>for</strong> geographical, technical and economicreasons, <strong>the</strong>re are no wired telephones or Internet connections, wireless fidelity, Wi-Fi, maybe <strong>the</strong> way to provide connectivity. In <strong>the</strong> developing world, wireless Internet provides anunprecedented opportunity <strong>for</strong> people who have been, until now, excluded from <strong>the</strong> globaleconomy to join <strong>the</strong> in<strong>for</strong>mation society.Mr José Maria Figueres Olsen is <strong>the</strong> Chairman of <strong>the</strong> United Nations ICT Task Force. He is <strong>the</strong> ManagingDirector, <strong>World</strong> Economic Forum and responsible <strong>for</strong> <strong>the</strong> Centre <strong>for</strong> <strong>the</strong> Global Agenda. Mr Figueres, Presidentof Costa Rica from 1994 to 1998, began his political career at <strong>the</strong> request of Costa Rica's President and NobelPeace Laureate Oscar Arias, serving as Minister of Foreign Trade and <strong>the</strong>n as Minister of Agriculture. AsPresident, he was noted <strong>for</strong> his programmes on behalf of sustainable development and economic growth. MrFigueres is <strong>the</strong> President of <strong>the</strong> Board of Leadership and Environment Development (LEAD) and has served on<strong>the</strong> boards of <strong>the</strong> <strong>World</strong> Wildlife Fund (WWF), FUNDES Internacional and <strong>the</strong> Stockholm Environment Institute(SEI). He continues to serves on <strong>the</strong> board of <strong>the</strong> <strong>World</strong> Resources Institute and <strong>the</strong> Costa Rican Foundation <strong>for</strong>Sustainable Development. José Maria Figueres earned a degree in engineering from <strong>the</strong> United States MilitaryAcademy at West Point and a Masters in Public Administration from <strong>the</strong> John F. Kennedy School of Governmentat Harvard University. He has lectured extensively on <strong>the</strong> subjects of Sustainable Development and Technologyand is <strong>the</strong> recipient of many international awards in <strong>the</strong>se fields.The world is experiencing a revolution inwhich industrial societies are trans<strong>for</strong>ming<strong>the</strong>mselves into in<strong>for</strong>mation-basedsocieties. Unlike <strong>the</strong> industrial or agriculturalrevolutions, though, where largeamounts of physical and financial capitalwere necessary to stimulate growth, thisin<strong>for</strong>mation revolution has <strong>the</strong> prospectof unlocking <strong>the</strong> potential of human capitaleverywhere. Still, this promise cannotbegin to be realised without first providing<strong>the</strong> vast numbers of humanity excludedfrom international networks withaccess to <strong>the</strong> Internet and o<strong>the</strong>r in<strong>for</strong>mationand communication technologies(ICTs). Wireless Fidelity, or Wi-Fi, maybe <strong>the</strong> key to unlocking that promise inremote, poor areas.Digital divideThe in<strong>for</strong>mation revolution has beenquick to take off in developed countries,but much of <strong>the</strong> rest of <strong>the</strong> world lagsbehind, <strong>the</strong> most serious case beingAfrica. The resulting inequalities arereferred to collectively as <strong>the</strong> ‘digitaldivide.’ The international community isconvinced that ICTs can play a vital rolein facilitating economic and social development,so <strong>the</strong> ‘divide’ is cause <strong>for</strong> greatconcern. Fortunately, <strong>the</strong>re is <strong>the</strong> emergingpromise of proven and inexpensivetechnologies to bridge <strong>the</strong> connectivitygap that is at <strong>the</strong> root of <strong>the</strong> divide.Cumulatively, global connectivity hasbeen on <strong>the</strong> rise. At 2001, 95 per cent of<strong>the</strong> world’s countries were connected to<strong>the</strong> Internet. However, in many countries,access remains limited to very few.The ‘in<strong>for</strong>mation gap’ (measured by <strong>the</strong>number of Internet hosts per 10,000)between high-income economies and <strong>the</strong>low, lower-middle and upper-middleeconomies has widened substantially.In many countries, <strong>for</strong> varying economic,geographic, social and technical reasons,<strong>the</strong>re are no wired alternatives availableby which to surf <strong>the</strong> web or speak on <strong>the</strong>telephone. 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 in<strong>the</strong> few main cities and hardly exist inrural areas. Technical barriers toge<strong>the</strong>rwith weak market economies and limitedpolitical support <strong>for</strong> telecom policies, hasdeterred investment and supported highprices, <strong>the</strong>reby hindering <strong>the</strong> penetrationof communication services among <strong>the</strong>poor.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 <strong>the</strong> international developmentcommunity because several internationalorganisations argue that it is directlylinked to poverty reduction.<strong>Connect</strong>ivity and <strong>the</strong> in<strong>for</strong>mation accessit brings, unleashes human capital andincreases productivity and knowledgesharing in underserved areas where it hasbeen most constrained. In <strong>the</strong> developingworld, <strong>the</strong>n, <strong>the</strong> promise of wirelessInternet technologies presents anunprecedented opportunity <strong>for</strong> peoplewho have been excluded from <strong>the</strong> globaleconomy and its communication networks.More than just linking huge numbers ofnew users to <strong>the</strong> Internet, Wi-Fi presentsattractive opportunities <strong>for</strong> developingcountries to leapfrog several generationsof telecommunications infrastructure,including wireline and wireless local looptelephony, to <strong>the</strong> <strong>for</strong>efront of broadbandcommunications technology. Wi-Fi canbecome a critical factor in shrinking <strong>the</strong>digital divide by providing high-speedInternet access to whole new segments ofunderserved populations throughout <strong>the</strong>Africa & The Middle East Issue 2004 11
REGIONAL DEVELOPMENTcreativity in <strong>the</strong> deployment of wirelessInternet among early adopters in developingcountries.Demonstrating <strong>the</strong> practicality of <strong>the</strong>technology <strong>for</strong> rural connectivity,researchers from <strong>the</strong> Indian Institute ofTechnology at Kanpur, working withMedia Lab Asia, have ‘unwired’ a 100-sq-km area of <strong>the</strong> Gangetic Plain in centralIndia. This project provides broadbandconnectivity to <strong>the</strong> homes ofalmost one million people at under $40per home.Wirelesss communication – opportunity or obstacle <strong>for</strong> poor countries?world at a fraction of <strong>the</strong> cost of wiredtechnologies.Today’s wireless economics are alreadycompelling: wireless local loops areabout one third <strong>the</strong> cost of copper orfibre land-line service, while packetbasedbroadband computer networkscost one ninth of land-line service. Easeof set-up, use and maintenance areaf<strong>for</strong>dable <strong>for</strong> 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 <strong>for</strong> $80. Wireless systems areeasy to deploy and expand and <strong>the</strong>y aremore reliable, safer and easier to maintainthan landlines.E-mail, voice and video mail are <strong>the</strong>most popular uses of wireless broadbandnetworks in <strong>the</strong> developing world.Never<strong>the</strong>less, <strong>the</strong> more quickly <strong>the</strong>Internet can be mobilised to provide<strong>solution</strong>s and products <strong>for</strong> e-governance,e-health, e-education and e-commerce,<strong>the</strong> sooner <strong>the</strong> 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 <strong>the</strong>poor or absent infrastructure has beenan obstacle <strong>for</strong> traditional Internet connection,<strong>the</strong> possibility of a low cost connectivityin <strong>the</strong> <strong>for</strong>m of wireless Internetwould have tremendous effects. With<strong>the</strong>se new kinds of <strong>solution</strong>s <strong>the</strong> digitaldivide could more easily be narrowedand African nations could more quickly“For a continent like Africa,where <strong>the</strong> poor or absentinfrastructure has been anobstacle <strong>for</strong> traditionalInternet connection, <strong>the</strong>possibility of a low costconnectivity in <strong>the</strong> <strong>for</strong>m 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 <strong>the</strong> reach of even <strong>the</strong>poorest countries.Leading by exampleWhen af<strong>for</strong>dable 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 <strong>for</strong> more than three years.Internet access has helped rural agriculturalclients, <strong>for</strong> example, get access tocommodity pricing to maximise <strong>the</strong>irreturns. Because of <strong>the</strong> poor state of <strong>the</strong>telephone network, e-mail is now <strong>the</strong>primary medium <strong>for</strong> doing business withboth national and international clients.Some businesses with websites hostedby Africa-Online have begun to increase<strong>the</strong>ir exports because of <strong>the</strong>ir ability totake online orders.In Senegal and Kenya <strong>the</strong> deployment ofwireless technology has been critical toprovide distance education. Over <strong>the</strong>past couple of years, <strong>the</strong> JohnMcCormack Graduate School of PolicyStudies at <strong>the</strong> University ofMassachusetts in Boston has partneredwith universities to build communityresource centres. The universities'Internet links have enabled <strong>the</strong> instituteto wirelessly connect <strong>the</strong> centres.Realising <strong>the</strong> visionThe wealth of opportunities presentedby wireless internet technologies hasbeen recognized by <strong>the</strong> United NationsSecretary-General, who expressed abold vision in this November 5th, 2002declaration: "We need to think of waysto bring wireless fidelity applications to<strong>the</strong> developing world, so as to make useof unlicensed radio spectrum to delivercheap and fast Internet access." KofiAnnan set up <strong>the</strong> United Nations ICTTask Force in 2001 as multi-stakeholdergroup aimed at <strong>for</strong>ging linkages andexploring ways to use in<strong>for</strong>mation andcommunication technologies to reach<strong>the</strong> Millennium Development Goals andbridge <strong>the</strong> digital divide. The Task Forceworks to bring <strong>the</strong> benefits of <strong>the</strong> digitalrevolution to <strong>the</strong> developing world,focusing on vital areas such as povertyreduction, education, health care, <strong>the</strong>environment and gender equality. It12 Africa & The Middle East Issue 2004
REGIONAL DEVELOPMENTprovides a global <strong>for</strong>um in which to discussand share best practices on integratingin<strong>for</strong>mation and communicationtechnologies into development programmesand a plat<strong>for</strong>m to promotepartnerships between public, private,non-profit, civil society and multilateralstakeholders in order to address <strong>the</strong>issues of <strong>the</strong> digital divide and digitalopportunity more comprehensively.On June 26, 2003, <strong>the</strong> UN ICT TaskForce held a conference at <strong>the</strong> UN headquartersin New York, ‘The Wi-FiOpportunity <strong>for</strong> Developing Nations.’The conference brought representativesof developing countries toge<strong>the</strong>r withleading technology producers, carriers,investors, regulators, entrepreneurs andfield practitioners from around <strong>the</strong> worldto examine <strong>the</strong> development potentialcreated by emerging wireless technologiesand discuss recommendations togovernments, regulators and WirelessInternet stakeholders to foster rapidmarket growth and bridge <strong>the</strong> digitaldivide.Wireless fidelity was also on <strong>the</strong> agendaat <strong>the</strong> first phase of <strong>the</strong> <strong>World</strong> Summiton <strong>the</strong> In<strong>for</strong>mation Society (WSIS) inGeneva on 10-12 December 2003 andwill be addressed during <strong>the</strong> secondphase, which will take place in Tunis inNovember 2005. The objective of <strong>the</strong>Summit is to develop and foster a clearstatement of political will and take concretesteps to establish <strong>the</strong> foundations<strong>for</strong> an In<strong>for</strong>mation Society <strong>for</strong> all. Anessential foundation <strong>for</strong> <strong>the</strong> In<strong>for</strong>mationSociety is <strong>the</strong> in<strong>for</strong>mation and communicationinfrastructure, which is to enable<strong>the</strong> universal, sustainable, ubiquitousand af<strong>for</strong>dable access to ICTs even in <strong>the</strong>remotest and poorest of areas. In orderto achieve this goal <strong>the</strong> Summit encourages<strong>the</strong> use of unused wireless capacity,including satellite and <strong>the</strong> fur<strong>the</strong>r implementationof low-cost connectivity inWi-Fi is relatively inexpensive to propagatedeveloping countries. The potential ofWi-Fi to contribute to <strong>the</strong> infrastructureand access-building was brought up inseveral WSIS background papers androundtable discussions.A critical mass of support is building upbehind <strong>the</strong> spread of wireless technologiesthanks to <strong>the</strong>se and o<strong>the</strong>r <strong>for</strong>a and<strong>the</strong> engagement of enthusiastic andinfluential stakeholders from all sectorsof society.Barriers remainWi-Fi alone is not a panacea <strong>for</strong> <strong>the</strong>world’s development problems. To start,it isn’t yet a perfect technology.“Wireless fidelity was also on <strong>the</strong> agenda at <strong>the</strong> firstphase of <strong>the</strong> <strong>World</strong> Summit on <strong>the</strong> In<strong>for</strong>mation Society(WSIS) in Geneva on 10-12 December 2003 and willbe addressed during <strong>the</strong> second phase, which will takeplace in Tunis in November 2005. The objective of <strong>the</strong>Summit is to develop and foster a clear statement ofpolitical will and take concrete steps to establish <strong>the</strong>foundations <strong>for</strong> an In<strong>for</strong>mation Society <strong>for</strong> all.”Compared to wired infrastructure, <strong>for</strong>instance, wireless provides lower levelsof per<strong>for</strong>mance. However, technologiesare under development to address <strong>the</strong>known 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 <strong>for</strong> countries or private actors.In remote areas, absent or erratic powersupply remains a challenge to fur<strong>the</strong>rimplementation.Rigid spectrum policies, protective regulatoryenvironments and lack of sustainablebusiness models remain criticalobstacles to faster and broader deploymentof wireless Internet technologies,though <strong>the</strong>y 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 <strong>for</strong> developmentas demand <strong>for</strong> connectivity andbandwidth emerges in support of relevantapplications <strong>for</strong> <strong>the</strong> populationsserved. These include e-government, e-education, e-health, e-business ore-agriculture applications. These,though, are not easily implemented in<strong>the</strong> developing world.Consequently, <strong>the</strong> demand <strong>for</strong> 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, <strong>the</strong>re will be <strong>the</strong> need toin<strong>for</strong>m and train users to capitalise on<strong>the</strong> benefits of ICTs.Wireless broadband technologies offer<strong>the</strong> potential to shift <strong>the</strong> goal of <strong>the</strong>In<strong>for</strong>mation Society from <strong>the</strong> 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 <strong>for</strong>Telecom 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 <strong>the</strong> Egyptian telecommunications regulator – <strong>the</strong> NTRA. The NTRA ischarged with regulating and monitoring <strong>the</strong> telecom industry, optimising <strong>the</strong> use of <strong>the</strong> radiofrequency spectrum and <strong>the</strong> licensing of new services and service providers. The NTRA isresponsible <strong>for</strong> a dramatic increase in <strong>the</strong> number of licences issued and, with <strong>the</strong> Ministry,<strong>for</strong> implementing Internet services <strong>for</strong> <strong>the</strong> price of a local phone call.Engr. Alaa El-Din Mohamed Fahmy is <strong>the</strong> Executive President of Egypt's National Telecommunication RegulatoryAuthority (NTRA) and <strong>the</strong> elected Chairman of <strong>the</strong> ITU WG-ITR, <strong>the</strong> International Telecommunication Union's WorkingGroup <strong>for</strong> International Telecommunication Regulation. Previously, Eng. Alaa Fahmy served <strong>the</strong> government as <strong>the</strong>Director of <strong>the</strong> Armed Forces Main In<strong>for</strong>mation Centre (AFMIC), as vice-president of <strong>the</strong> In<strong>for</strong>mation SystemsDepartment in <strong>the</strong> Ministry of Defense and as <strong>the</strong> manager of a number of telecommunication and IT departments of <strong>the</strong>Cabinet In<strong>for</strong>mation and Decision Support Centre (IDSC). In <strong>the</strong> private sector, Eng. Alaa Fahmy, was <strong>the</strong> GeneralManager of a well-known company, Chief Technical officer and stakeholder, in <strong>the</strong> 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, <strong>for</strong> <strong>the</strong> prestigious<strong>World</strong> Technology Network international award in communications technology. Engr. Alaa Fahmy earned his BSc. from<strong>the</strong> Military Technical College and his post-graduate studies were from Ain Shams University, Cairo University andAmerican Institute.President Hosni Mubarak’s in<strong>for</strong>mationsociety initiative, four years ago, hastrans<strong>for</strong>med Egypt into a regionaltelecommunication hub.The many value added services incorporatedinto <strong>the</strong> Egyptian telecom industry'sportfolio led to a five-fold expansionof <strong>the</strong> sector. Fixed lines have doubled,mobile users grew from two to six millionsubscribers and <strong>the</strong>re are now sixpublic data networks and 150 ISPs.Meanwhile, <strong>the</strong> number of Internet usershas climbed to over three and a half million,thanks to <strong>the</strong> free-Internet and PC<strong>for</strong> every home initiatives.In line with <strong>the</strong>se developments, o<strong>the</strong>rvalue added services were added to <strong>the</strong>portfolio of <strong>the</strong> sector; <strong>the</strong>se include prepaidcards, pay phones, call centers andbulk SMS, among o<strong>the</strong>rs. New technologies,such as voice over IP, Wi-Fi and Wi-Max wireless data, are being readied <strong>for</strong>local use. Today, Egypt’s telecom servicesstand shoulder to shoulder with thoseof any developed nation.Central to <strong>the</strong> successful development ofEgypt's telecommunications, since <strong>the</strong>liberalisation and privatisation of <strong>the</strong>sector, was <strong>the</strong> establishment of anenabling legal framework <strong>for</strong> Egypt'sNational Telecommunication RegulatoryAuthority, <strong>the</strong> NTRA, in 1998.The Telecom Act of 1998 laid <strong>the</strong> foundation<strong>for</strong> <strong>the</strong> NTRA as a regulatory bodycharged with monitoring <strong>the</strong> telecomindustry. The role of <strong>the</strong> NTRA is toguarantee high quality telecom services,equally, to all citizens at an adequateprice. The NTRA is also charged withoptimising <strong>the</strong> use of such nationalresources as <strong>the</strong> radio frequency spectrumand, with respect to telecommunications,ensuring <strong>the</strong> preservation ofEgypt's national security.The NTRA strives to reconcile and harmonise<strong>the</strong> varied interests of Egypt'sprivate companies, <strong>the</strong> public users and<strong>the</strong> government to best meet <strong>the</strong> country'sneeds.The regulatory mechanism in any countryis derived from and has to be centeredon, that country’s culture.There<strong>for</strong>e, <strong>the</strong>re is a need to tightly link<strong>the</strong> political issues with <strong>the</strong> regulatoryones; and this is where <strong>the</strong> Ministry ofCommunications and In<strong>for</strong>mationTechnology, MCIT, plays a vital role.Egypt's telecommunication sector is intransition and <strong>the</strong> concept of a regulatorybody is a new one <strong>for</strong> <strong>the</strong> country. If aregulator is to work effectively, thingshave to be done gradually but steadily, sothat <strong>the</strong>y can be accepted and effectiveand, at <strong>the</strong> same time, not suffer anyserious drawbacks.Hence, <strong>the</strong> need to draw a balancebetween <strong>the</strong> service providers – and provide<strong>the</strong>m with a good working environment– so <strong>the</strong>y can develop and offer<strong>the</strong>ir customers services that are up tointernational standards.The new Telecom Act put <strong>the</strong> responsibilityof coordinating and developingtelecom policies on <strong>the</strong> NTRA’s shoulders.With this, went also <strong>the</strong> responsibilityof building a detailed framework<strong>for</strong> telecommunication licensing – toauthorise telecom operators and services– in Egypt.The NTRA licensing decisions are basedon a policy of non-discriminationbetween operators; <strong>the</strong>y take <strong>the</strong> costs ofproviding a service into account andallow reasonable service provider profitmargins.The NTRA also sets standards <strong>for</strong> <strong>the</strong> differenttelecom services and monitorscompliance with <strong>the</strong> standards and <strong>the</strong>16 Africa & The Middle East Issue 2004
NATIONAL DEVELOPMENTquality of service. It adheres to <strong>the</strong> implementationof approved engineering practices<strong>for</strong> <strong>the</strong> different types of telecomequipment that are authorised <strong>for</strong> use inEgypt.In addition, <strong>the</strong> Regulatory Authority verifiesand reviews customer complaints.The NTRA is working to define telecommarket indicators and set benchmarks <strong>for</strong>each service, be it <strong>for</strong> mobile or any o<strong>the</strong>rservice. The current micro-indicators areused as a base line <strong>for</strong> standards <strong>for</strong> <strong>the</strong>implementation of new services.“The Act also gave <strong>the</strong> NTRA jurisdiction to manage andlicense <strong>the</strong> frequency spectrum, protect consumer andpublic interests and set-up tariff caps. Recently, it wasgranted <strong>the</strong> 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 <strong>the</strong> allocation of<strong>the</strong> frequency spectrum, in accordancewith <strong>the</strong> rules and recommendations of<strong>the</strong> International TelecommunicationUnion, to ensure its best utilisationThe NTRA has established special modesof communication to interact with <strong>the</strong>public. This is done through <strong>the</strong> contactcentre established by <strong>the</strong> authority toreceive complaints and inquiries and tryto resolve any issues or conflicts. The contactcentre relies on market survey studiesconducted to set <strong>the</strong> benchmarkmechanisms used to measure customersatisfaction.The Telecom Act gave <strong>the</strong> NTRA <strong>the</strong>NTRA jurisdiction to manage and license<strong>the</strong> frequency spectrum, protect consumerand public interests and set-uptariff caps. Recently, it was granted <strong>the</strong>right 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 <strong>the</strong> number of licencesissued and <strong>the</strong> finalising of an inter-connectionagreement between serviceproviders (mobile – Internet – V-Sat –GMPCS). The Authority, in full cooperationwith <strong>the</strong> Ministry of Communicationand In<strong>for</strong>mation Technology – <strong>the</strong> MCIT,took giant leaps implementing Internetservice <strong>for</strong> <strong>the</strong> price of <strong>the</strong> phone call andstimulating <strong>the</strong> upgrading of <strong>the</strong> NationalTelephone Network to provide <strong>the</strong> servicewithout interruption.The NTRA contributed to <strong>the</strong> establishmentof <strong>the</strong> first phase of <strong>the</strong> RadioFrequency Management and Monitoringproject, revising and establishing anational frequency allocation plan <strong>for</strong>Egypt, hence, enabling <strong>the</strong> country toissue 2,300 frequency licenses last year.Priority was given to issuing an environmentalsafety and health protocol <strong>for</strong>macro and micro model stations andinstallations and per<strong>for</strong>ming <strong>the</strong> requiredtests to ensure <strong>the</strong> proper implementationof <strong>the</strong> protocol.ICT Market environment – CeBIT Hannover, 2004The NTRA’s achievements have led Egyptto a boom in IT and telecommunicationadvancement; <strong>the</strong>y have given <strong>the</strong> country'shuman resources a competitive edgewhich created an environment conduciveto winning consumer confidence andincreasing <strong>for</strong>eign investments. mandate to act independently to carry outits responsibilities efficiently. It now has<strong>the</strong> right to set standards <strong>for</strong> per<strong>for</strong>mance,ei<strong>the</strong>r from a technical or infrastructureperspective, of <strong>the</strong> services providedby <strong>the</strong> operators. The NTRA developsregimes <strong>for</strong> communications equipment,con<strong>for</strong>mity, assessment and typeapproval and ensures con<strong>for</strong>mity with <strong>the</strong>standards set. The Act also gave <strong>the</strong>The NTRA’s decentralised environment,its independent entities with <strong>the</strong>ir mandatesto activate <strong>the</strong> Authority’s objectivesand very well defined business proceduresthat interlink <strong>the</strong> various departments,enable <strong>the</strong> Authority to per<strong>for</strong>m athighest standards. The NTRA has playeda major role in leading Egypt upon <strong>the</strong>right path, helping it become a part of <strong>the</strong>global market <strong>for</strong> <strong>the</strong> exportation oftelecommunication technology.Africa & The Middle East Issue 2004 17
NATIONAL DEVELOPMENTFull <strong>Connect</strong>ivity – A Regulatory Challenge and a SocialHopeby Jean-Louis Beh Mengue, Director General , Telecommunications Regulatory Board of CameroonHistorically, telecommunications started in <strong>the</strong> <strong>for</strong>m of telegraphy, which was soon overtakenby voice telephony. A century and a half later we are seeing telephony itself being overtakenby <strong>the</strong> migration to IP plat<strong>for</strong>ms. The convergence of networks and technologies is blurring<strong>the</strong> line between telephone, audio-visual and data services that were traditionally providedover separate networks. Although liberalisation of <strong>the</strong> 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 <strong>the</strong> Director General of <strong>the</strong> Telecommunications Regulatory Board ofCameroon since it was founded in 1998.Be<strong>for</strong>e this, serving as <strong>the</strong> Permanent Secretary in <strong>the</strong> Ministry of Postsand Telecommunications, he coordinated <strong>the</strong> re<strong>for</strong>m of <strong>the</strong> telecommunications and postal sectors, which led to<strong>the</strong> creation of <strong>the</strong> Telecommunications Regulatory Board and two public corporations <strong>for</strong> posts and telecommunications.Mr Beh Mengue is also Cameroon’s representative to <strong>the</strong> Commonwealth TelecommunicationsOrganisation (CTO) Council, where his main responsibility is to ensure that <strong>the</strong> Cameroon's ICT sectorparticipates fully in <strong>the</strong> CTO and benefits from its programmes.IntroductionThe telecommunications network inCameroon has developed along <strong>the</strong> linesof separate networks <strong>for</strong> particular services,notably telex, data transmissionand telegraph services. However, <strong>the</strong>senetworks all shared <strong>the</strong> same trunktransmission facilities, <strong>the</strong> backbone, of<strong>the</strong> Public Switched Telephone Network(PSTN). This infrastructure is also used<strong>for</strong> transporting television and audiosignals from <strong>the</strong> production centre in <strong>the</strong>capital city, Yaounde, to <strong>the</strong> broadcastingstations located in different localitiesthroughout <strong>the</strong> national territory. Theexpansion of <strong>the</strong> various telecommunicationsservices is <strong>the</strong>re<strong>for</strong>e conditionedon <strong>the</strong> development of <strong>the</strong> transmissionsinfrastructure of <strong>the</strong> incumbent.Services like telex and telegraphy havebeen losing ground to <strong>the</strong> Internet whichprovides substitutes services such asemail. The Internet and o<strong>the</strong>r 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 <strong>the</strong>ir users. Theprivate networks that have internationalgateways and are connected to <strong>the</strong>Internet are being used as a bypass <strong>for</strong>traffic that would o<strong>the</strong>rwise have beenrouted through <strong>the</strong> PSTN.The backbone telephone network is“Services like telexand telegraphy have beenlosing ground to <strong>the</strong>Internet which providessubstitutes services suchas email. The Internet ando<strong>the</strong>r dedicated IP networkscan also carry voiceand this is posing seriousregulatory problems.”<strong>the</strong>re<strong>for</strong>e vital to <strong>the</strong> development of <strong>the</strong>o<strong>the</strong>r services and is going to be more soas <strong>the</strong> convergence of network andservices gain grounds. In a bid to acceleratenetwork development and <strong>the</strong> contributionof telecommunications sectorto <strong>the</strong> socio-economic life of <strong>the</strong> country,<strong>the</strong> government of Cameroon decided tofast-track <strong>the</strong> re<strong>for</strong>m of <strong>the</strong> telecommunicationssector in <strong>the</strong> mid 1990s. Thisculminated with <strong>the</strong> enactment of lawNo: 98/014 of 14 July 1998, governingtelecommunications in Cameroon. Thislaw and subsequent regulatory instrumentsdefined <strong>the</strong> legal, regulatory andinstitutional framework of <strong>the</strong> sector; itliberalised certain markets and set <strong>the</strong>stage <strong>for</strong> privatisation and restructuringof public telecommunications entities.The law created <strong>the</strong> TelecommunicationsRegulatory Board (TRB) withresponsibilities to regulate, control andmonitor <strong>the</strong> activities of <strong>the</strong> sector. Themain functions of <strong>the</strong> 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 <strong>for</strong> tariff setting by <strong>the</strong>telecommunications operators.The TRB is working to change <strong>the</strong>telecommunications sector by improving<strong>the</strong> level of access to services,encouraging <strong>the</strong> liberalisation of <strong>the</strong> sectorand by promoting a high level of faircompetition. To achieve <strong>the</strong>se goals, <strong>the</strong>challenging issues below have to beaddressed.18 Africa & The Middle East Issue 2004
NATIONAL DEVELOPMENTConvergence is blurring <strong>the</strong> line between data, voice and audio-visual servicesUniversal service within <strong>the</strong> 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 <strong>the</strong> scope of universalservice. With <strong>the</strong> constant decline in <strong>the</strong>use of telex and telegraphy, which <strong>for</strong>mpart of <strong>the</strong> USO, it will not be cost effective<strong>for</strong> <strong>the</strong> incumbent to continue to provide<strong>the</strong>se services. On <strong>the</strong> o<strong>the</strong>r hand,<strong>the</strong> mobile telephone networks operatorshave extended <strong>the</strong>ir national coverageinto more and more rural areas.Never<strong>the</strong>less, <strong>the</strong> rural population has yetto benefit adequately from <strong>the</strong> servicesoffered since <strong>the</strong> operators are prohibitedin <strong>the</strong>ir licence from providing and operatingpublic telephone access points.There is a need <strong>for</strong> a framework <strong>for</strong> universalservice that would include mobiletelephone services and Internet access.The telecentre concept is gaining groundand Cameroon is engaged in installingsome trial centres in <strong>the</strong> very near future.Inadequate infrastructureBe<strong>for</strong>e <strong>the</strong> advent of liberalisation, <strong>the</strong>backbone trunk transmission system of<strong>the</strong> incumbent operator consisted mainlyof digital and analogue PDH(Plesiochronous Digital Hierarchy)microwave radio links, with <strong>the</strong> main digitallink between <strong>the</strong> political capital,Yaounde and <strong>the</strong> economic capital,Douala. The current regulatory frameworkgives <strong>the</strong> incumbent <strong>the</strong> exclusiverights to provide trunk transmissionfacilities to all o<strong>the</strong>r operators on a leasebasis. However, with <strong>the</strong> rapid build-outof mobile networks and <strong>the</strong> shortage oftransmission facilities to lease from <strong>the</strong>incumbent, <strong>the</strong> mobile operators weregiven special authorisation to build transmissioninfrastructures <strong>for</strong> <strong>the</strong>ir exclusiveuse. These infrastructures enabled<strong>the</strong> mobile operators to respect <strong>the</strong> coveragecondition in <strong>the</strong>ir 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 <strong>the</strong> fixed subscriberbase in 2001. During this sameperiod, The fixed subscriber baseincreased by 14 per cent to 112,881 in2002. This exponential growth in <strong>the</strong>number of mobile subscribers is mainlydue to under-provision of <strong>the</strong> fixed linesduring <strong>the</strong> years of monopoly provisionby <strong>the</strong> ministry of posts and telecommunications.The backlog of waiting-list customerskept increasing, with <strong>the</strong> delay <strong>for</strong>service reaching as long as ten years. Alook at a nationwide picture with regardsto <strong>the</strong> availability of telephone service(fixed or mobile) shows great disparitybetween <strong>the</strong> ten provinces and in eachprovince between <strong>the</strong> urban and ruralareas. By <strong>the</strong> end of 2002 only 34 per centof <strong>the</strong> 321 council areas benefited fromfixed or mobile telephone service. A greatmajority of <strong>the</strong> 213 unserved councilareas are found in <strong>the</strong> rural zones.Universal serviceThe law governing telecommunicationsin Cameroon created a TelecommunicationsSpecial Fund destined <strong>for</strong> <strong>the</strong>provision of Universal service and <strong>for</strong> <strong>the</strong>development of telecommunicationswithin <strong>the</strong> national territory. The fund ismanaged by <strong>the</strong> TRB and its revenue willcome mainly from contributions made bytelecommunications operators and serviceproviders. So far no operator has contributedto <strong>the</strong> fund because <strong>the</strong>re is noestablished framework <strong>for</strong> its proper,transparent, management. The frameworkhas to include: a special licensingregime <strong>for</strong> operators; a mode of attributionof contract <strong>for</strong> networks build-outand/or provision of universal service,such as <strong>the</strong> least cost bidding widely usedin South America; and a compensationmechanism <strong>for</strong> <strong>the</strong> universal serviceprovider.The law defines <strong>the</strong> Universal ServiceObligation (USO) as <strong>the</strong> provision ofbasic telecommunications services. Theseinclude telephone (local, national andinternational), facsimile, telex and telegraphservices; <strong>the</strong> provision of emergencyservices; and <strong>the</strong> provision of anofficial universal telephone directory.Tariff rebalancingTariff rebalancing is usually applied in asituation where <strong>the</strong> 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 <strong>the</strong>n constrainedby <strong>the</strong> regulator to completelyeliminate cross subsidies and align tariffswith cost, by <strong>the</strong> end of <strong>the</strong> period. In <strong>the</strong>case of Cameroon, since <strong>the</strong> internationalmarket was liberalised <strong>the</strong> competitionthat ensued caused a dramatic reductionin <strong>the</strong> incumbent’s tariff. The incumbenthas reduced its tariff on some internationaldestinations by 70 per centbetween 2000 and 2002. On <strong>the</strong> o<strong>the</strong>rhand, although <strong>the</strong> local communicationstariff has increased by 200 per cent duringthis same period to its present 40Francs CFA per three minutes, it is stillwell below <strong>the</strong> true cost of providing <strong>the</strong>service. The incumbent is still sufferingloses in <strong>the</strong> local market and no compensationmechanism has been put in place.This situation is unsustainable; it needsto be addressed, taking into consideration<strong>the</strong> effect a tariff increase would haveon <strong>the</strong> low income customers and <strong>the</strong>impact on <strong>the</strong> growth of ‘dial-up’ Internetservice.Introduction of innovativeservicesThe fastpace of technological change,coupled with <strong>the</strong> drastic reduction inequipment and operation cost, has led torapid deployment of cost effective newservices. The provision of some of <strong>the</strong>seAfrica & The Middle East Issue 2004 19
KEYMILEwww.keymile.comAccess network migrationscenarioIn <strong>the</strong> race <strong>for</strong> market share and benefits, fixed network operatorshave had to elaborate plans to evolve <strong>the</strong>ir infrastructure toremain competitive. In <strong>the</strong> long term, all agree that NGN (NextGeneration Networks) packet architecture is <strong>the</strong> right way to go.The key issue <strong>for</strong> operators is how to migrate to NGN.The telecommunication world is continuously evolving. Eachyear sees <strong>the</strong> emergence of new services, new technologies andimprovements to existing services. In <strong>the</strong> last couple of years,<strong>the</strong> main service evolution was Internet access over ADSL and<strong>the</strong> associated traffic explosion due to applications like musicand video-sharing using peer-to-peer file transfers. In <strong>the</strong> sameperiod, o<strong>the</strong>r 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 <strong>the</strong>ir offerings, reduce <strong>the</strong>ir 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 <strong>the</strong> revenues of an operator isderived from access fees and retail traffic, has considerable influenceon <strong>the</strong> strategic decisions and directions an operator cantake.Dark clouds on <strong>the</strong> horizonIn <strong>the</strong> next years, fixed network operators will face declining revenues<strong>for</strong> basic services. Apart from competition, <strong>the</strong>y have alsoto resolve <strong>the</strong> issue of substitution services (i.e. mainly mobiletelephony). A situation clearly illustrated in Western Europewhere <strong>the</strong> growth in DSL revenues does not compensate <strong>for</strong> <strong>the</strong>drop in prices <strong>for</strong> basic services in <strong>the</strong> stagnant, if not declining,fixed voice line – analogue and digital telephony – market. Onecan observe a similar trend in o<strong>the</strong>r parts of <strong>the</strong> world.Fixed network operators, <strong>the</strong>re<strong>for</strong>e, have no o<strong>the</strong>r alternativebut to improve <strong>the</strong>ir business by reducing operational costs andlooking <strong>for</strong> ways to increase <strong>the</strong>ir ARPU (Average Revenue PerUser).What to do in <strong>the</strong> long term?Faced with <strong>the</strong> stagnation of telephone line growth, operatorssee <strong>the</strong> possibility of increasing ARPU providing broadband services.In this market, <strong>the</strong> main competitive threats come from bothcable TV network operators, with <strong>the</strong>ir broadband infrastructureand content provisioning and mobile network operators focusingon mobility and connectivity everywhere, including mobileInternet access.So, <strong>for</strong> <strong>the</strong> fixed wire line telecom operators, <strong>the</strong>re 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, <strong>the</strong> question on <strong>the</strong> table is: how to increase <strong>the</strong> revenues.So are <strong>the</strong> days of ‘free’ Internet at an end?As operators evolve <strong>the</strong>ir DSL deployment from ADSL to ADSL2+or even VDSL, it is opening <strong>the</strong> way <strong>for</strong> innovative Triple-Playentertainment services <strong>for</strong> residential subscribers, or even highspeedVLAN or VPN Business services.To push <strong>the</strong>se new services, operators have to have attractiveofferings <strong>for</strong> <strong>the</strong> market, with bundled packages, which will nodoubt mean reduced prices <strong>for</strong> <strong>the</strong> present basic services. Theend result is that operators have no o<strong>the</strong>r alternative but tostreamline <strong>the</strong>ir operations and existing network architectures toaddress new services.Impact on <strong>the</strong> networkAs <strong>the</strong> traffic from broadband services increases it will clearlyimpact <strong>the</strong> operator's network.In <strong>the</strong> service provider’s core network, <strong>the</strong> relatively small varietyof equipment makes a bandwidth upgrade easy and does notrequire a huge investment as new services are introduced.On <strong>the</strong> o<strong>the</strong>r hand, upgrading <strong>the</strong> access network is ano<strong>the</strong>rstory. Multiple technologies, with multiple types of services,make access networks very complex. Once network cabling and<strong>the</strong> different types of equipment are in place, it requires a hugeinvestment <strong>for</strong> any modification or upgrade.20 Africa & The Middle East Issue 2004
www.keymile.comKEYMILEOperators are faced with <strong>the</strong> dilemma ofdetermining <strong>the</strong> ideal way to introducenew technologies in <strong>the</strong>ir 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, <strong>the</strong>operator reduces access infrastructure andoperational costs and ensures <strong>the</strong> ability tointroduce new revenue generating services.An example of this is in UK, where BritishTelecom has defined <strong>the</strong> network <strong>the</strong>ywant <strong>for</strong> <strong>the</strong> future under <strong>the</strong>ir 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 <strong>the</strong>world.MSAN as a long-term<strong>solution</strong>?Clearly, <strong>the</strong> motivation is to move frommultiple single service access networks toone converged NGN infrastructure <strong>for</strong> allservices. ATM was long glorified as <strong>the</strong>answer. Now, one sees that it is too complexand too expensive to serve as a commontechnology <strong>for</strong> <strong>the</strong> 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 on<strong>the</strong> market <strong>for</strong> some time, but now <strong>the</strong>new generation of <strong>the</strong>se systems supportboth traditional and new emergingservices.These systems not only digitalise and packetise<strong>the</strong> 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 <strong>the</strong> 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 <strong>for</strong> <strong>the</strong> various fixedaccess network technologies and servicesof today and <strong>for</strong> <strong>the</strong> future Triple-Play servicesin an NGN network.The objective of <strong>the</strong> UMUX plat<strong>for</strong>m is togive <strong>the</strong> operator a choice of whichservices, technology and network architectures,deploy. Above all, it ensures that <strong>the</strong>future path <strong>for</strong> new services can be basedon <strong>the</strong> same plat<strong>for</strong>m. In this way, <strong>the</strong>rewill be no future need <strong>for</strong> new equipment<strong>for</strong> new services. This allows substantialsavings in operational costs and capitalexpenditure.How to get to NGNarchitectures?The operator can start network migrationfrom ei<strong>the</strong>r <strong>the</strong> core of <strong>the</strong> network orfrom <strong>the</strong> edge of its network. Whicheverpath is chosen, any Multi-Service AccessNode must support a smooth migration of<strong>the</strong> network from services of today tothose of <strong>the</strong> future. Be it <strong>the</strong> support ofbasic V5.1 or V5.2 <strong>for</strong> today’s voice services,<strong>the</strong>y must be capable of a gradualmigration to NGN, with E<strong>the</strong>rnet andMPLS, <strong>for</strong> VoIP and Multimedia services,by network extensions.ConclusionsAccess network migration will not takeplace overnight. The existing and <strong>the</strong> newinfrastructures will have to cohabit <strong>for</strong>years to come. The evolution to NGNrequires a MSAN approach to provide asmooth migration to future services.The KEYMILE UMUX plat<strong>for</strong>m, is installedin over 100 countries and already providesthis migration to NGN <strong>for</strong> 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 <strong>the</strong> key to business successin <strong>the</strong>ir move to NGN. KEYMILE is a specialist in access<strong>solution</strong>s. Delivering class-leading<strong>solution</strong>s today <strong>for</strong> 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 <strong>the</strong> current regulations. They willcontinue to be provided within an irregularlegal framework if <strong>the</strong> TRB continue toexercise regulatory <strong>for</strong>bearance. One of<strong>the</strong> areas of contention is <strong>the</strong> provision ofIP telephony by Internet ServiceProviders (ISPs) at very little additioncost. On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong> licencesissued in Cameroon are technologicallyneutral, which implies IP telephony of <strong>the</strong>same quality is functionally equivalent to<strong>the</strong> traditional telephony through <strong>the</strong>PSTN. The ISP may be infringing <strong>the</strong>exclusivity of <strong>the</strong> incumbent fixed lineoperator by providing IP telephony to <strong>the</strong>public. However, banning its provisionwill stifle technological progress and willbe detrimental to <strong>the</strong> sector's development,considering <strong>the</strong> worldwide migrationto IP plat<strong>for</strong>ms <strong>for</strong> fixed and mobileservice.The need <strong>for</strong> an effective ICTpolicyThe vital role ICT is playing in <strong>the</strong> socioeconomicdevelopment of nations hasbeen recognised by <strong>the</strong> UN and also byworld leaders who, in <strong>the</strong> recent <strong>World</strong>Summit <strong>for</strong> In<strong>for</strong>mation Society (WSIS)held in Geneva in December 2003, committed<strong>the</strong>ir governments to implementing<strong>the</strong> WSIS action plan. Any ICT policyframework in Cameroon needs to takeinto consideration <strong>the</strong> present telecommunicationsector legislative frameworkand to incorporate <strong>the</strong> needs of <strong>the</strong> o<strong>the</strong>rstakeholders. These include sectors likeeducation, agriculture, commerce, healthand <strong>the</strong> civil society. There is also a need<strong>for</strong> top-level government direction andsupervision, as ICT policy <strong>for</strong>mulationwill need an all inclusive, multi-sectoral,approach. We hope to gain from <strong>the</strong>momentum of <strong>the</strong> preparation <strong>for</strong> <strong>the</strong>WSIS (<strong>World</strong> Summit on <strong>the</strong> In<strong>for</strong>mationSociety) and to establish a body to drawup this policy and oversee its implementation.Such a policy will include importantissues, such as: <strong>the</strong> reduction of import duties and <strong>the</strong>creation of conditions favourable <strong>for</strong> localmanufacture/assembly of ICT products,such as PCs Measures to be taken to reduce <strong>the</strong>costs of ‘dial-up’ Internet access andinternational bandwidth, as Internet trafficfrom/to Cameroon is very ‘US-centric’ The effective use of ICT in <strong>the</strong> attainmentof national goals in <strong>the</strong> areas ofhealth, governance, agriculture andcommerce The creation of relevant local content sothat <strong>the</strong> Internet can serve as a tool <strong>for</strong>development. The present content, whichis mainly in English and text-oriented, isof little value to most of our rural population,<strong>the</strong> majority of whom are illiterate.As <strong>the</strong> phenomenon of convergence isblurring <strong>the</strong> dividing line between data,voice and audio-visual services, <strong>the</strong>re is aneed <strong>for</strong> <strong>the</strong> TRB to move from a singlesector telecommunications regulator toencompass <strong>the</strong> broader ICT sector.Capacity buildingThe creation of <strong>the</strong> TRB coincided with<strong>the</strong> liberalisation of <strong>the</strong> telecommunicationssector. The first management team,appointed in 1998, had to urgently set up<strong>the</strong> organisational chart and make <strong>the</strong>necessary recruitments and appointments.The present staff of <strong>the</strong> TRB consistsmainly of government civil servants,on secondment from <strong>the</strong> ministry of Postsand Telecommunications and thoserecruited from <strong>the</strong> job market. Althoughmost of <strong>the</strong> civil servants had good backgroundsin telecommunication operations,<strong>the</strong>re is still a great need <strong>for</strong> capacitybuilding in all aspects of regulation. Sofar our capacity building ef<strong>for</strong>ts have beenrealised through international organisationslike <strong>the</strong> <strong>World</strong> Bank, <strong>the</strong>Commonwealth TelecommunicationsOrganisation (CTO) and <strong>the</strong> InternationalTelecommunications Union (ITU). Therea great need <strong>for</strong> a strategic plan <strong>for</strong> capacitybuilding that is in line with <strong>the</strong> TRB’slong-term strategies. Such a plan shouldinclude: Assessing <strong>the</strong> present needs in capacitybuilding with a view to defining <strong>the</strong> realtraining needs of <strong>the</strong> TRB Identifying <strong>the</strong> training and developmentmethod most appropriate to meetour needs Recognising <strong>the</strong> critical importance ofcontent development as complimentaryto <strong>the</strong> infrastructure deployment Building expertise not only within <strong>the</strong>TRB staff, but also across a broad spectrumof stakeholders, including judgesand lawyers who arbitrate issues relatedto <strong>the</strong> ICT sector, legislators,operators/investors, civil society and,most importantly, <strong>the</strong> public and consumers Exploiting <strong>the</strong> benefits of sharing experiencesthrough regional and, where necessary,international peering arrangementswith o<strong>the</strong>r regulatory bodies“The vital role ICT isplaying in <strong>the</strong> socio-economicdevelopment of nations hasbeen recognised by <strong>the</strong> UN andalso by world leaders who, in<strong>the</strong> recent <strong>World</strong> Summit <strong>for</strong>In<strong>for</strong>mation Society held inGeneva in December 2003,committed <strong>the</strong>ir governments toimplementing <strong>the</strong> WSIS actionplan.“ Using long-term, institutional capacity-buildingof training and academicinstitutions to address <strong>the</strong> skills requirementsof <strong>the</strong> ICT sector.The main areas of priority in <strong>the</strong> <strong>for</strong>mulationand implementation of <strong>the</strong>se strategiccapacity building plans would include: Knowledge and skill requirements <strong>for</strong>effective 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 <strong>for</strong> market regulation Definition of <strong>the</strong> principles <strong>for</strong> tariffsetting.ConclusionAfter years of stagnation, telecommunicationsector re<strong>for</strong>m 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 ef<strong>for</strong>ts can be made to address<strong>the</strong> challenges in <strong>the</strong> sector in order toestablish an effective regulatory regime. 22 Africa & The Middle East Issue 2004
NATIONAL DEVELOPMENTRegulations <strong>for</strong> full connectivity in Botswanaby Twoba Boikaego Koontse, Director, Communications and Consumer Affairs, <strong>the</strong> 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 com<strong>for</strong>tably differentiate between ‘telecommunications’ ando<strong>the</strong>r <strong>for</strong>ms of communication. This has made <strong>the</strong> already complex regulatory function evenmore difficult and sometimes impossible. The regulatory framework is <strong>the</strong> single mostimportant and difficult area in telecommunications policy today and it is likely to remain so<strong>for</strong> many years to come.Mr Twoba Boikaego Koontse is <strong>the</strong> Director of Communications and Consumer Affairs of <strong>the</strong> BotswanaTelecommunications Authority. Mr Koontse joined <strong>the</strong> 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 <strong>the</strong> Botswana HighCommission, first in London <strong>the</strong>n in Harare. He was later named <strong>the</strong> Deputy High Commissioner in Lusaka. Hebegan professionally as a teacher and rose quickly to <strong>the</strong> post of Headmaster of <strong>the</strong> school. Mr Koontse holds aBA and a Diploma in Education from <strong>the</strong> University of Botswana. In 1996 he earned a Certificate in Diplomacyand International Relations from <strong>the</strong> University of Pretoria, South Africa.The Botswana TelecommunicationsAuthority, BTA, is a statutory agencyestablished in December 1996 by <strong>the</strong>Telecommunications Act, 1996 [No. 15 of1996]. The agency is responsible <strong>for</strong> <strong>the</strong>licensing of telecommunications andbroadcasting operators, approving tariffs,promoting and monitoring free andfair competition, allocating and managing<strong>the</strong> 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 <strong>the</strong> 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 com<strong>for</strong>tablytalk about ‘telecommunications’ withoutworrying that one could, be talking abouto<strong>the</strong>r <strong>for</strong>ms of communication that maynot, per se, be telecommunications.The International TelecommunicationUnion (ITU) itself has acknowledged thisfact: "Technology that <strong>the</strong>oretically providesaccess from any place on Earth isavailable. Universal access is now not anengineering or supply side problem butra<strong>the</strong>r a regulatory and policy challenge"(ITU, WTDR 1998).Difficulties in regulationThis state of current affairs has made <strong>the</strong>already complex regulatory functioneven more difficult and sometimesimpossible. With a developing telecommunicationsmarket and a fairly youngregulatory authority, Botswana, likemany o<strong>the</strong>r countries, finds herself confrontedwith <strong>the</strong> regulatory issues thathave arisen as a result of of new technologyand innovations in <strong>the</strong> sector. Theissue is that technological innovationscreate new opportunities and/or threatsthat can be exploited in <strong>the</strong> market placefaster than policy and regulation canadapt to <strong>the</strong> new circumstances. Inshort, technological changes can erode<strong>the</strong> ‘natural monopoly’ and alter <strong>the</strong>market boundaries, introducing competitionbetween providers of traditionallydifferent services. The dilemma <strong>for</strong> us asregulators is that, on <strong>the</strong> one hand, wehave an obligation to level <strong>the</strong> playingfield so that competition can flourish andoffer consumers choice while, on <strong>the</strong>o<strong>the</strong>r hand, we have to be convinced that<strong>the</strong> innovative technologies that seek tofind <strong>the</strong>ir way into <strong>the</strong> market are notgoing to bring more problems into <strong>the</strong>very market <strong>the</strong>y intend to develop.Getting <strong>the</strong> balance right is at <strong>the</strong> veryheart of regulation.In Botswana, <strong>the</strong> current regulatoryregime has opted <strong>for</strong> issuance of separatelicences <strong>for</strong> different services. Assuch, a fixed line service requires a separatelicence, as do mobile services, internetservices, or broadcasting services.This, of course, means that <strong>the</strong>re have tobe different networks <strong>for</strong> each of <strong>the</strong>seservices. In terms of <strong>the</strong> law, telecommunicationsservice even falls under a differentregulatory authority than <strong>the</strong>broadcasting service.Africa & The Middle East Issue 2004 23
NATIONAL DEVELOPMENTThe Telecommunications Policy <strong>for</strong>Botswana of 1995 advocated a controlledliberalisation of <strong>the</strong> telecommunicationsindustry, fearing that introduction ofcompetition would be a threat to <strong>the</strong>incumbent 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 <strong>the</strong> existingnetwork capacity is used, <strong>the</strong> easier itbecomes to justify and fund fur<strong>the</strong>rexpansion of <strong>the</strong> network…"Thus, in <strong>the</strong> case of Botswana, it was feltthat it would be ideal, in <strong>the</strong> initial stagesof <strong>the</strong> introduction of competition, toavoid a sudden increase in <strong>the</strong> number ofmarket players as this could lead to lowerservice prices, but could also reduce networkoperator profit and lead to disruptionof services.However, <strong>the</strong> government has realisedthat separating broadcasting regulationfrom telecommunication regulationduplicates duties, especially as <strong>the</strong> telecomsregulator of <strong>the</strong> BotswanaTelecommunications Authority (BTA),also serves as <strong>the</strong> Secretariat to <strong>the</strong>broadcasting authority, <strong>the</strong> NationalBroadcasting Board (NBB). Plans tomerge <strong>the</strong> 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 to<strong>the</strong> problems of interconnection as quiteoften and this applies to Botswana aswell, <strong>the</strong> fixed line operators who arecompetitors in <strong>the</strong> market own <strong>the</strong> mainbackbone network. As such, competitorsoften see <strong>the</strong> negotiation of interconnectionrates with <strong>the</strong> fixed line operator asunfair. Botswana has already dealt withtwo interconnection disputes: between<strong>the</strong> fixed line operator and mobile operatorscombined; and between <strong>the</strong> fixedline operator and one of <strong>the</strong> mobile operators.Suffice to say that interconnectiondisputes will always arise even where <strong>the</strong>networks are seamless, but <strong>the</strong>ir focuswould change.“Technology convergence raises a number of issues,both in <strong>the</strong> interconnection framework and <strong>the</strong> developmentof competition. The fundamental issue is whe<strong>the</strong>rcompetition will develop and what <strong>for</strong>m it will take in <strong>the</strong>next generation networks. Is technology a driver of competitionand deregulation, or will it promote industry consolidationand create <strong>the</strong> need <strong>for</strong> additional regulation?”Technology convergence raises a numberof issues, both in <strong>the</strong> interconnectionframework and <strong>the</strong> development of competition.The fundamental issue iswhe<strong>the</strong>r competition will develop andwhat <strong>for</strong>m it will take in <strong>the</strong> next generationnetworks. Is technology a driver ofcompetition and deregulation, or will itpromote industry consolidation and create<strong>the</strong> need <strong>for</strong> additional regulation?Technological changes have createdeconomies of scope that cut across <strong>for</strong>merlyseparate markets and thus createincentives <strong>for</strong> an incumbent in one marketto enter into o<strong>the</strong>r markets. Forexample, most of <strong>the</strong> incumbents haveestablished Internet Service Providersubsidiaries to provide Internet servicesand o<strong>the</strong>r data services. This is <strong>the</strong> currentsituation in Botswana.Technology can improve competition if itcreates new entry incentives and opportunities.However, <strong>the</strong>re is also a possibilitythat technology may be a driver in<strong>the</strong> opposite direction. In future we mayhave a single, multi-product monopolistoffering integrated packages of voice,data and video services on a single networkplat<strong>for</strong>m. The IP-based networksare able to carry all three: voice, data andvideo on a single plat<strong>for</strong>m. The questionof <strong>the</strong> vertical scope of telecommunicationsfirms also arises. For instance, doeconomies of scale and scope extend to<strong>the</strong> joint provision of content and conduit?In 3G networks, should <strong>the</strong> cellularproviders also being interested in provisionof content? Network capability isnot valuable unless <strong>the</strong>re are applicationsthat take advantage of it.The bundling strategies and <strong>the</strong> exploitationof network effects all raise issues ofinterconnection policy. Whe<strong>the</strong>rbundling strategy and network effectswill reduce competition depends criticallyon <strong>the</strong> development of wholesale marketsand <strong>the</strong> interconnection regulatoryframework. The interconnection regulatoryframework will shape whe<strong>the</strong>r technologypromotes new and increasedcompetition, or results in fur<strong>the</strong>r consolidationand concentration of marketpowers. The regulatory framework ofinterconnection and local loopunbundling is <strong>the</strong> single most importantand difficult, area in telecommunicationspolicy today and it is likely to remain so<strong>for</strong> many years to come.ConclusionSeamless networks <strong>the</strong>oretically have <strong>the</strong>potential to increase connectivity substantially,but whe<strong>the</strong>r or not that reallywould be practicable remains to be seen.Again, seamless networks are still as farfetched,particularly <strong>for</strong> us, as <strong>for</strong> most of<strong>the</strong> developing world. While <strong>the</strong>y promiseultimately to benefit <strong>the</strong> consumer,<strong>the</strong>y also threaten to undermine <strong>the</strong> hugeinvestments already in place by reducing<strong>the</strong> 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 <strong>the</strong> current arrangement. Lastly,be<strong>for</strong>e seamless network arrangementcan be fully implemented and supported,<strong>the</strong> world needs to be assured that <strong>the</strong>technology will not, one day, hold <strong>the</strong>entire world incommunicado due to <strong>the</strong>malfunctioning of a single part of thatnetwork. 24 Africa & The Middle East Issue 2004
REGIONAL CONNECTIVITYRascomstar: A Pan African ICT Plat<strong>for</strong>m <strong>for</strong> <strong>Connect</strong>ivityand Developmentby Mustapha Elriz, CEO, Rascomstar-QAFThe world has entered an era of revolution where in<strong>for</strong>mation transmission is <strong>the</strong> driving <strong>for</strong>ceof development and economic growth. However, <strong>the</strong> in<strong>for</strong>mation revolution requires massiveinvestment in infrastructure to connect populations. The Regional African SatelliteCommunications Organisation, RASCOM, is an all-African initiative to provide <strong>the</strong> Africancontinent with a telecommunications infrastructure capable of giving telecommunicationsaccess at low cost to every citizen in Africa. This initiative will ensure telephone, in<strong>for</strong>mationand entertainment access to rural populations at highly competitive rates.Mr Mustapha Elriz is <strong>the</strong> CEO of Rascomstar-QAF. As <strong>the</strong> Rascomstar Project Director, (1999-2002), hesuccessfully coordinated <strong>the</strong> implementation of <strong>the</strong> Rascomstar-QAF Company, a private African joint ventureset up to finance and operate <strong>the</strong> RASCOM System. Previously, Mr Elriz was Alcatel's satellite division vicepresident<strong>for</strong> Africa and <strong>the</strong> Middle East until his election as Rascomstar-QAF's first CEO. Mustapha Elrizgraduated in 1979 from <strong>the</strong> Ecole Nationale Supérieure des Télécommunications in Paris and holds an MBAfrom <strong>the</strong> Open Business School in Great-Britain.In<strong>for</strong>mation eraThe world has entered an era of revolutionwhere in<strong>for</strong>mation transmission is<strong>the</strong> driving <strong>for</strong>ce of human developmentand economic growth. Most Africaneconomies are handicapped by poorsocial and economical development, yet<strong>the</strong> new in<strong>for</strong>mation economy is technology-driven.Without access to technology,<strong>the</strong> gap between Africa and <strong>the</strong>western world will widen dramatically.Given <strong>the</strong> right infrastructure, access toin<strong>for</strong>mation through connectivity isinexpensive and is not geographicallydiscriminating. Thus, this new era representsa unique opportunity to bridge <strong>the</strong>digital divide between <strong>the</strong> wealthy andpoor and between urban and rural populations.The in<strong>for</strong>mation revolution is capitalintensive,requiring massive investmentin infrastructure to connect populationsto telecommunications networks, <strong>the</strong>in<strong>for</strong>mation superhighway and broadcastchannels. The very nature of businessis to pursue profit. The same is truein in<strong>for</strong>mation transmission. This willnaturally result in service providersseeking <strong>the</strong> high monetary returnsoffered by urban and corporate markets.It is imperative that, in realising <strong>the</strong>seopportunities, purely financial concernsdo not overshadow <strong>the</strong> needs of marginalisedrural people. The in<strong>for</strong>mation ageoffers Africa a unique opportunity toexpand <strong>the</strong>se advantages <strong>for</strong> economic,social and competitive gains to and from<strong>the</strong> African continent.Benefits of connectivity<strong>Connect</strong>ivity includes telephony, linkageto <strong>the</strong> in<strong>for</strong>mation superhighway andvital literacy, education and medicalplat<strong>for</strong>ms as well as entertainment andin<strong>for</strong>mation broadcasting. By embracing<strong>the</strong> in<strong>for</strong>mation age and its comprehensivelinkage channels, access to literacy,education, healthcare and in<strong>for</strong>mationcan be enjoyed equally by all populations,regardless of <strong>the</strong>ir location andincome level. Similarly, <strong>the</strong> distributionof entertainment and in<strong>for</strong>mationbroadcasting can be increased withoutdiscriminating by income or location.Finally and most importantly, peoplecan achieve critical social links with <strong>the</strong>simple benefit of telephone connections.<strong>Connect</strong>ivity through telephony orInternet will reduce distances and differencesbetween people and dramaticallyimprove human development indexes.The status of AfricanconnectivityAfrica is far behind <strong>the</strong> developed worldin in<strong>for</strong>mation 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 <strong>for</strong>investment, so it is difficult and costly toraise <strong>the</strong> funds <strong>for</strong> capital investment Lower return on capital investment –<strong>the</strong> combination of <strong>the</strong> above factorsresults in a lower return on investment.Because of <strong>the</strong> low investment priorityplaced on Africa, <strong>the</strong>re is no viable satellitewholly dedicated to <strong>the</strong> African continent.This has fur<strong>the</strong>r increased <strong>the</strong>cost of connection and reduced accessibilitywhilst limiting <strong>the</strong> quality andspread of connection.26 Africa & The Middle East Issue 2004
REGIONAL CONNECTIVITYFigure 1: Actors of <strong>the</strong> RascomStar systemThe RASCOM projectorganisationThe Regional African SatelliteCommunications Organisation, RAS-COM, was created in May 1992 by allAfrican governments to provide <strong>the</strong>African continent with appropriatetelecommunications infrastructure capableof fostering <strong>the</strong> development oftelecommunications in every Africancountry and giving access to telecommunicationsservices at low cost to every citizenin Africa.RASCOM provides <strong>the</strong> African continentwith dedicated satellite facilities.Rascom-QAF1 provides comprehensive,high quality, telephone, broadcasting andInternet connection, at low cost. It complements<strong>the</strong> services of existing telecommunicationscompanies, Internet serviceproviders and broadcasters. The initiativedoes not compete with, but complements,existing national or privateground operations.By being continentally based, <strong>the</strong> capitalcost of <strong>the</strong> satellite programme is spreadover several countries, diluting countrycosts and risks dramatically and increasingproject returns.Notably, RASCOM will ensure telephone,in<strong>for</strong>mation and entertainment access torural populations at highly competitiverates. The initiative includes VillageEmpowerment Terminals using <strong>the</strong> nextgeneration of VSats. These are integratedcommunication centres connected viasatellite to telephone networks; <strong>the</strong>y provide<strong>the</strong> local population with telephones,television, computer and DVB access toTV and media broadcasters and <strong>the</strong>Internet. The centres will be owned andoperated by local telecommunicationorganisations.RASCOM has secured a prime satelliteposition with <strong>the</strong> best footprint <strong>for</strong> Africafrom <strong>the</strong> ITU (International TelecommunicationUnion) and has <strong>the</strong> supportof 44 African countries. The first Rascomsatellite should be launched in early2006.RASCOMSTAR-QAF, an affiliate privatecompany headquartered in Port-LouisMauritius, is developing <strong>the</strong> space andground system infrastructure. Its firstround of financing has entirely ensured<strong>the</strong> construction of <strong>the</strong> satellite and <strong>the</strong>development of <strong>the</strong> 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 – to<strong>the</strong>ir end-users often in rural areas wherefixed public telephone networks do notoften reach.<strong>Connect</strong>- on-demand servicesThese include direct interconnection, ona call-by-call basis, between stationslocated anywhere on <strong>the</strong> African continentto provide inter-urban or internationallinks <strong>for</strong> telephony, fax and datatransmission.Bandwidth lease servicesDifferent services, based on satellitebandwidth capacity leasing, are providedon a static basis: Trunking services <strong>for</strong> 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 <strong>solution</strong>s O<strong>the</strong>r services, such as VSAT corporatenetworks and news-ga<strong>the</strong>ring.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 <strong>the</strong>African continent, using two spot beamsin Ku-band and global coverage in C band,with <strong>the</strong> associated ground control, missionand communications facilities.The satellite has twenty-four 36MHzequivalenttransponders. The Ku-bandfootprints have <strong>the</strong> power and bandwidth<strong>for</strong> reception and transmission by smallsatellite terminals.Alcatel Space, under a turnkey contract, isresponsible <strong>for</strong> putting <strong>the</strong> satellite inorbit. The contract includes building <strong>the</strong>satellite, launch services, <strong>the</strong> 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 <strong>the</strong> booth support prepaidcards, scratch cards and <strong>the</strong> like to collectrevenues under <strong>the</strong> control of <strong>the</strong>Network Station. The Rural Terminalshould cost about US$1400.Figure 3: Ku-band coverageGateways provide connections to andfrom <strong>the</strong> public telephone network. Theycan be equipped with a few channels – 15<strong>for</strong> on-demand connectivity <strong>for</strong> a smallcity, to several hundred channels <strong>for</strong> largeregional gateways. The number of gateways<strong>for</strong> a fully deployed network canreach 100.There are two network stations (NS), aprimary and a back up, to control all <strong>the</strong>signalling over <strong>the</strong> network. These controland manage all stations and all calls, <strong>the</strong>ycollect all usage in<strong>for</strong>mation and remotelycontrol public phones.<strong>Connect</strong>ivityThroughout Africa, <strong>the</strong> rural terminalswill operate in Ku-band. Gateways andnetwork stations will operate in C-band tocommunicate with each o<strong>the</strong>r over <strong>the</strong>entire African footprint. In addition,ei<strong>the</strong>r within <strong>the</strong> nor<strong>the</strong>rn or sou<strong>the</strong>rnbeam, 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 <strong>the</strong> features needed, suchas ring generator and tax pulse. There isone L-band interface to connect a DVB-Sreceiver <strong>for</strong> 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 amplifier<strong>for</strong> transmissiono Redundant low-noise block converter<strong>for</strong> <strong>the</strong> reception The gateway management subsystem The gateway telecom system (modemand traffic functions.)Gateway capacity can range from 120 circuitsto 960 circuits, in 120 circuit modules<strong>for</strong> rural communication services andfrom 15 circuits to 60 circuits, in 15 circuitmodules <strong>for</strong> connectivity-on-demand.Depending on <strong>the</strong> needs of <strong>the</strong> 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 <strong>for</strong> <strong>the</strong>rural environment. Outdoor units arepackaged within a sealed, wea<strong>the</strong>rproofenclosure. 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 per<strong>for</strong>medautomatically by <strong>the</strong> centralised networkmanagement. Software can be downloadedthrough signalling circuits.GatewayGateways are <strong>the</strong> key elements to interconnect<strong>the</strong> Public Switched TelephonyNetworks (PSTN) to <strong>the</strong> RASCOMNetwork. Each gateway consists of: The gateway radio system using:“<strong>Connect</strong>ivity includes telephony, linkage to <strong>the</strong> in<strong>for</strong>mationsuperhighway and vital literacy, education andmedical plat<strong>for</strong>ms as well as entertainment and in<strong>for</strong>mationbroadcasting. By embracing <strong>the</strong> in<strong>for</strong>mationage and its comprehensive linkage channels, access toliteracy, education, healthcare and in<strong>for</strong>mation can beenjoyed equally by all populations, regardless of <strong>the</strong>irlocation and income level.”The rural communication service andconnectivity-on-demand networks arecontrolled from a single point – <strong>the</strong> networkstation. This optimises on-boardspectrum allocation to maximise <strong>the</strong> saleof satellite circuit capacity during peakhours. It also makes it possible to minimise<strong>the</strong> usage of terrestrial infrastructureand optimise routing between terminalsand <strong>the</strong> public telephone network.This optimised routing can be used <strong>for</strong>international calls, when authorised bynational operators, or <strong>for</strong> nationwide callingif <strong>the</strong>re are several gateways in <strong>the</strong>country.Control and management functions havebeen simplified to ease <strong>the</strong> tasks ofnational and regional operators. Thesetasks are mainly administrative and relatedto <strong>the</strong> network's subscribers and terminals:registration, call parameter modificationand deletion of <strong>the</strong> terminal accesswithin <strong>the</strong> network. National operatorswill have full management control over<strong>the</strong>ir networks, thanks to intensive developmentsin <strong>the</strong> area of intelligent networking.ConclusionThe in<strong>for</strong>mation age offers Africa a uniqueopportunity to bridge <strong>the</strong> digital divide,bringing human and economic developmentto all of <strong>the</strong> people of Africa, includingrural populations. The RASCOM projectis a key instrument in <strong>the</strong> realisation of<strong>the</strong> NEPAD vision. 30 Africa & The Middle East Issue 2004
REGIONAL CONNECTIVITYSubmarine Cables – Unlocking Broadband in <strong>the</strong> MiddleEast and Asiaby Walid Irshaid, President, Middle East and Africa, Flag TelecomThe submarine telecom cable industry has been suffering through one of <strong>the</strong> most difficultperiods in its 150-year history. However, during <strong>the</strong> past two years <strong>the</strong> industry has been in<strong>the</strong> process of restructuring and, while some markets remain in <strong>the</strong> doldrums, o<strong>the</strong>rs arepowering ahead. A new cable system has been announced. It will run from Egypt through <strong>the</strong>Middle East and, from <strong>the</strong>re, on to India to China. It is <strong>the</strong> first major submarine cable infrastructureinvestment of this century.Walid Irshaid is <strong>the</strong> President <strong>for</strong> Middle East and Africa of Flag Telecom and is a member of <strong>the</strong> Executive Boardof FLAG Telecom. Based in Dubai. Walid Irshaid is responsible <strong>for</strong> all FLAG’s operations in <strong>the</strong> Middle East andAfrica. Be<strong>for</strong>e joining FLAG Telecom, he served as <strong>the</strong> Director General of Palestine Telecom Corporation (PAL-TEL), <strong>the</strong> emerging telecom services provider that has an exclusive 10 year licence <strong>for</strong> all voice and data servicesin Palestine. Be<strong>for</strong>e that he was Managing Director <strong>for</strong> <strong>the</strong> Investcom Group in Beirut developing data andbusiness communication services in Lebanon. His experience in <strong>the</strong> Middle East also includes 17 years withEmirates Telecom (ETISALAT) as Corporate Manager. There, he was actively involved in <strong>the</strong> 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 <strong>the</strong> uncertainties on <strong>the</strong> politicalfront, <strong>the</strong>re is now a sense ofrenewed optimism regarding <strong>the</strong> globaleconomy. McKinsey’s recent quarterlyreport showed that an overwhelmingnumber of executives fromcompanies of all sizes and in allregions believe <strong>the</strong> economy is healthierthan it was six months ago. While adegree of levelling off is expected in<strong>the</strong> second half of <strong>the</strong> year, stronggreen shoots are appearing.Particularly strong signals are comingfrom many parts of <strong>the</strong> telecommunicationsand in<strong>for</strong>mation technologysector, spurred on by substantialgrowth in af<strong>for</strong>dable broadbandaccess in many parts of <strong>the</strong> MiddleEast and Asia.Within that sector, <strong>the</strong> submarinetelecom cable industry has been passingthrough one of <strong>the</strong> most difficultperiods in its 150-year history. It iscurrently struggling to adjust to <strong>the</strong>effects of <strong>the</strong> crisis created by <strong>the</strong>bursting telecom investment bubblewhich left over-leveraged companieswith unwanted infrastructure, rapidlyfalling returns and market capitalisationheading towards zero.Restructuring andresurgenceOver <strong>the</strong> past two years <strong>the</strong> industryhas been in <strong>the</strong> process of restructuringand, while some markets remainin <strong>the</strong> doldrums, o<strong>the</strong>rs are poweringahead. Problems of overcapacityremain on <strong>the</strong> overbuilt routes across<strong>the</strong> Atlantic and Pacific, but in regionsunder-served by international cablesystems, demand is already outstrippingsupply. Leading this surge arecountries in <strong>the</strong> Middle East, toge<strong>the</strong>rwith India and China, where demand<strong>for</strong> telecommunications services is<strong>for</strong>ecast to explode in <strong>the</strong> comingyears. It’s a demand being fuelled byincreasing use of <strong>the</strong> Internet, by newbroadband services and by global outsourcingof call centres and back officeoperations by European and AmericancompaniesIn India, <strong>for</strong> example, NASSCOM<strong>for</strong>ecasts that bandwidth demand willgrow from 7.31Gbits/s in 2003 to92.56Gbits/s in 2009. While much ofthis demand will come from increasedInternet usage, <strong>for</strong>ecast growth inmobile and fixed services will be substantial.The number of mobile sub-“Throughout <strong>the</strong> recenteconomic downturn,across <strong>the</strong> telecomsindustry – even in maturemarkets, traffic volumesnever stopped increasing.The ‘bust’ <strong>for</strong> <strong>the</strong> 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 <strong>the</strong> west,around <strong>the</strong> Gulf, across India and onto China in <strong>the</strong> east. The cable systemwill be <strong>the</strong> first major submarine cableinfrastructure investment of this century.It will be inaugurated within 12months and will provide <strong>the</strong> first terabit/sresilient loop around <strong>the</strong> Gulfand <strong>the</strong> first direct terabit/s linkbetween India and China, <strong>the</strong> world’stwo fastest growing economies.Unlocking broadband in <strong>the</strong> Middle East and Asiascribers is expected to grow from <strong>the</strong>current figure of 30 million to 70 millionby 2007, with fixed subscribersgrowing from 50 million to nearly 70million in <strong>the</strong> same period.Forecasts of significant growth arealso coming from <strong>the</strong> Middle Eastregion, where demand <strong>for</strong> internationalbandwidth <strong>for</strong> <strong>the</strong> Gulf States is<strong>for</strong>ecast to grow from its current levelof 3Gbits/s to 30Gbits/s by 2010. Butit is China that is <strong>for</strong>ecast to outstripall o<strong>the</strong>r markets; Ovum predicts thatdemand is set to rise from 45Gbits/sthis year to over 2,000Gbits/s in2010.The accelerating pace of market liberalisationin <strong>the</strong>se 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 <strong>the</strong> case in <strong>the</strong> US and Europe,where <strong>the</strong>re is a strong customerdemand <strong>for</strong> services coupled with <strong>the</strong>technology available to deliver <strong>the</strong>m,governments are quickly sweepingsuch growth inhibitors aside.Explosive growth in demand shouldnot come as a great surprise. When<strong>the</strong> telecoms bubble burst it was notlack of demand <strong>for</strong> telecommunicationsservices, nor <strong>the</strong> Internet, thatcaused it. It was caused by over-supplyof infrastructure and over-investmentdriven by all <strong>the</strong> hype, illusionand over-optimism surrounding <strong>the</strong>industry. Traffic volumes have neverstopped increasing. For example,according to Telegeography, privatedata networks grew by 56 per centbetween 2001 and 2002, <strong>the</strong> time that<strong>the</strong> industry hit <strong>the</strong> rocks, whileInternet bandwidth grew 73 per centduring <strong>the</strong> same period.The entire global economy is heavilyreliant on <strong>the</strong> world’s telecommunicationsinfrastructure and internationalcommerce would effectively ceasewithout it. It has been repeatedlydemonstrated that <strong>the</strong> pace of GNPgrowth of <strong>the</strong> emerging economicnations is directly related to telecommunicationsnetwork and service penetration.Throughout <strong>the</strong> recent economicdownturn, across <strong>the</strong> telecomsindustry – even in mature markets,traffic volumes never stopped increasing.The ‘bust’ <strong>for</strong> <strong>the</strong> 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 <strong>the</strong> Middle East and Asia.New linksIndeed, we are now seeing a reverseddemand-supply imbalance in manyparts of those regions, a situation thatled to <strong>the</strong> announcement last monthThis is not ano<strong>the</strong>r joust at an illusionarymarket. The investment isbeing made in a climate very differentfrom that of <strong>the</strong> 1990s boom. Strongsustainable demand is already presentin <strong>the</strong> market. This investment isbeing made privately without recourseto vendors or public financing.Importantly, detailed discussionshave taken place with customers andleading operators. Egypt and <strong>the</strong> Gulfstates of Oman, Bahrain, Kuwait, Iran,Qatar and Iraq have all expressedinterest in joining <strong>the</strong> ef<strong>for</strong>t and mostare in an advanced stage of discussionabout <strong>the</strong>ir participation.At a time when parts of <strong>the</strong> industryremain in a depressed state, <strong>the</strong> cableis expected to dramatically change <strong>the</strong>global communications infrastructurebalance. It has been recognised <strong>for</strong>some time that <strong>the</strong> exploding marketdemand from major grow<strong>the</strong>conomies could not be served by <strong>the</strong>current level of bandwidth connectivityserving <strong>the</strong> Middle East and India.This is true, not only in terms of“The entire global economyis heavily reliant on <strong>the</strong>world’s telecoms infrastructureand internationalcommerce would effectivelycease without it. It has beenrepeatedly demonstratedthat <strong>the</strong> pace of GNPgrowth of <strong>the</strong> 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 <strong>for</strong> customers of 99.997per cent across <strong>the</strong> entire associatedglobal network. Service quality is alsoenhanced by <strong>the</strong> provision of east andwest routing across <strong>the</strong> network,meaning traffic can be switched at anytime to avoid a cable cut or naturaldisaster.The western link of <strong>the</strong> cable systemwill land at Telecom Egypt’s landingstation at Suez, where <strong>the</strong> cable willintegrate with <strong>the</strong> global network. Thecable, following a route through <strong>the</strong>Red Sea along <strong>the</strong> East African coastand across <strong>the</strong> top of <strong>the</strong> Arabian Seabe<strong>for</strong>e landing in Oman, will include<strong>the</strong> Gulf region’s first self-healing submarinenetwork ring, providing allconnected countries with <strong>the</strong> reliabilityand high quality that comes from alternativetwo-way routing.Travelling from Oman along its easterlylink, <strong>the</strong> cable will cross <strong>the</strong> ArabianSea to a new landing station at Mumbaiin India. From <strong>the</strong>re, it will interconnectseamlessly to a pan-India 80,000km high-speed backbone network linkingapprox 1,100 cities and townsacross <strong>the</strong> length and breadth of <strong>the</strong>country. 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 <strong>the</strong> world’slargest growth economies from anymetropolitan centre connected to thisglobal network.At Chennai, on <strong>the</strong> East coast of Indiawhere a second landing station is beingbuilt, network traffic will again flowinto a submarine system, linking Indiato Hong Kong, where <strong>the</strong> cable willonce again integrate with a global network.The new cables will create <strong>the</strong>first direct, high-capacity linksbetween many of <strong>the</strong> countries that <strong>the</strong>cable passes through.The more challenging routes such as<strong>the</strong> Atlantic, of course, are not beingabandoned. While trans-Atlanticcapacity, per se, remains heavily overprovisioned,<strong>the</strong> route is a crucial elementin providing customers withglobal connectivity in and out of <strong>the</strong>US, particularly to and from <strong>the</strong>“The winners from this industry realignment will be thoseable to maintain both <strong>the</strong>ir near-term financial stabilityand a clear and sustainable long-term strategic focus. At<strong>the</strong> heart of any long-term strategy must be efficientoperational cost management. This will depend on beingable to deliver what customers want at <strong>the</strong> right pricepoints, understanding and anticipating <strong>the</strong> price curveand establishing market leadership ei<strong>the</strong>r through scaleor a position in a defensible niche.“growing economies of <strong>the</strong> Middle Eastand Asia.This new cable and o<strong>the</strong>r initiatives area welcome sign of <strong>the</strong> industry's recovery,but can this recovery be sustainedinto <strong>the</strong> future? It is clear, that fur<strong>the</strong>rconsolidation 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 <strong>the</strong> chaos tolead <strong>the</strong> industry into a new phase ofprofitability. There is no reason tobelieve that <strong>the</strong> submarine cable industrywill be any different.Winning in a demandingmarketThe opportunities in <strong>the</strong> telecommunicationsand in<strong>for</strong>mation technologymarket, said to be worth an estimated1.5 trillion US dollars a year, are huge,but <strong>the</strong>re will be winners and losers.The winners from this industryrealignment will be those able to maintainboth <strong>the</strong>ir near-term financial stabilityand a clear and sustainable longtermstrategic focus. At <strong>the</strong> heart of anylong-term strategy must be efficientoperational cost management. Thiswill depend on being able to deliverwhat customers want at <strong>the</strong> right pricepoints, understanding and anticipating<strong>the</strong> price curve and establishing marketleadership ei<strong>the</strong>r through scale or aposition in a defensible niche.Becoming a winner in <strong>the</strong> globalwholesale services space will require<strong>the</strong> 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 <strong>the</strong>y value,which are differentiated from competitiveofferings. A focused business strategymust address <strong>the</strong> needs of a targetedcustomer base, ra<strong>the</strong>r than attemptingto be ‘all things to all men’. Finally,<strong>the</strong> leading players will be those thatdeliver high quality service globallywhilst maintaining strong relationshipswith local operators and influencers.With hindsight it’s easy to see <strong>the</strong> mistakesthat were made in <strong>the</strong> past.Competitors chasing after <strong>the</strong> perceivedpot of gold all made one fundamentalerror of judgement – this wasnot a 100-metre dash to <strong>the</strong> winningpost but a long and arduous 26-milemarathon. The industry may have shed<strong>the</strong> spikes of <strong>the</strong> sprinter and adjustedto <strong>the</strong> tempo of <strong>the</strong> marathon, but <strong>the</strong>potential rewards <strong>for</strong> those up with <strong>the</strong>pace and <strong>for</strong> <strong>the</strong> customers <strong>the</strong>y serve,remain considerable. 34 Africa & The Middle East Issue 2004
EDUCATION AND THE DIGITAL DIVIDEClosing <strong>the</strong> Technology Skills Gap <strong>for</strong> SustainableDevelopment in Africaby Reza Mahdavi, Vice-President, Europe, <strong>the</strong> Middle East and Africa, Cisco SystemsTechnology is seen as <strong>the</strong> key to bridging <strong>the</strong> digital divide. International agencies, in strategicpartnerships with businesses, have developed and funded projects to help train studentsin <strong>the</strong> Least Developed Countries (LDCs). These programmes use e-learning tools to deliverWeb-based educational content, provide online testing, track student per<strong>for</strong>mance and supporthands-on labs and instructor training. O<strong>the</strong>r such initiatives train government officials,provide an in<strong>for</strong>mation-sharing network <strong>for</strong> schools, connect LDCs' agricultural institutes andprovide hospitals with life-saving health education.Reza Mahdavi is Cisco Systems Vice-President of Europe, <strong>the</strong> 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 of<strong>the</strong> Presidential Advisory Council <strong>for</strong> President Mbeki of South Africa. Mr Mahdavi was named Vice-President of <strong>the</strong> Year2002 by <strong>the</strong> Cisco’s board. Be<strong>for</strong>e joining Cisco, Mr Mahdavi was a Director at nCube, a provider of massively parallelarchitecture systems <strong>for</strong> 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 a<strong>the</strong>me that constantly tops <strong>the</strong> developmentagenda <strong>for</strong> 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 <strong>the</strong>y can enter <strong>the</strong>in<strong>for</strong>mation age and compete economicallyon <strong>the</strong> global stage. Moreover, it isnot just about hardware and software.Leaders and experts increasingly recognisethat a vital ingredient <strong>for</strong> creatingan in<strong>for</strong>mation society is <strong>the</strong> humanresource capacity in a country – in o<strong>the</strong>rwords, you need skilled people if you areto independently build and maintaincommunications networks that will connectyour businesses, governments,schools, hospitals and citizens to eacho<strong>the</strong>r and to <strong>the</strong> rest of <strong>the</strong> world. Forthat, it is necessary to provide accessibleand af<strong>for</strong>dable training.In July 2000, following <strong>the</strong> G-8 Summit,Cisco Systems, Inc., <strong>the</strong> United NationsDevelopment Programme, <strong>the</strong> USAgency <strong>for</strong> International Developmentand <strong>the</strong> United Nations Volunteersannounced <strong>the</strong> <strong>for</strong>mation of a strategicpartnership to help train students inLeast Developed Countries (LDCs) <strong>for</strong>jobs in <strong>the</strong> Internet economy. An initialinvestment of $3.5 million established<strong>the</strong> 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, <strong>the</strong> NetworkingAcademies deliver Web-based educationalcontent, online testing, studentper<strong>for</strong>mance tracking, hands-on labsand instructor training and support.The LDC initiative provides a compellingexample of how business, internationalorganisations and governmentscan work toge<strong>the</strong>r to meet <strong>the</strong> urgentneeds of LDCs and promote digitalopportunity. We rely upon <strong>the</strong> expertiseand local relationships of its partners tofacilitate implementation of <strong>the</strong>Networking Academy Programme inLDCs. By <strong>the</strong> end of last year, <strong>the</strong>Networking Academy Programme hadexpanded to include 40 of <strong>the</strong> 49 LDCs,surpassing <strong>the</strong> initial goal of 24. Anadditional 13 non-LDCs in Africa areparticipating in <strong>the</strong> LDC initiative.The initiative has been fur<strong>the</strong>r streng<strong>the</strong>nedby <strong>the</strong> addition of <strong>the</strong> InternationalTelecommunication Union (ITU) in2002 and <strong>the</strong>ir Internet TrainingCentres Initiative <strong>for</strong> DevelopingCountries, which had a set of more specificgoals to: Establish 50 Internet TrainingCentres across <strong>the</strong> globe by end of 2003,targeting Least Developed Countrieswhere possible Train a minimum of 50 students perinstitution in <strong>the</strong> Certified NetworkAssociate curriculum annually Achieve 30 per cent female enrolment Streng<strong>the</strong>n <strong>the</strong> Internet and networkingskills of <strong>the</strong> staff within nationaltelecommunication companies.Many of <strong>the</strong> 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 <strong>the</strong> 147instructors trained to date are alsofemale and 181 people have graduated.People who have benefited include awoman in her <strong>for</strong>ties working <strong>for</strong> amedia services company in Uganda, whoachieved her Certified NetworkAssociate certification at <strong>the</strong> MakerereUniversity in Kampala. Her companywas expanding into computer networking.Not only did she learn <strong>the</strong> skills tonetwork her company's computers, butalso to give advice to my clients on computerspecifications and to introduceand set up LANs <strong>for</strong> organisations, companiesand schools.Ano<strong>the</strong>r student from MakereUniversity, who had recently lost <strong>the</strong> use36 Africa & The Middle East Issue 2004
EDUCATION AND THE DIGITAL DIVIDEAt <strong>the</strong> <strong>World</strong> Summit <strong>for</strong> <strong>the</strong>In<strong>for</strong>mation Society in Geneva lastDecember, Cisco and <strong>the</strong> ITU signed aMemorandum of Understanding to open20 more Internet Training Centres indeveloping countries. This extended collaborationincludes establishing 20 newcentres in Ministries ofCommunications, or <strong>the</strong>ir equivalent, allrunning <strong>the</strong> Networking AcademyProgramme and using a 'train <strong>the</strong> trainers'approach to prepare institutions <strong>for</strong><strong>the</strong> delivery of Academy courses to students.Of <strong>the</strong> 20 new centres, half will bein <strong>the</strong> Central and Eastern Europe,Middle East and Africa region. In addition,we are working with <strong>the</strong> ITU toextend <strong>the</strong> curriculum in 20 of <strong>the</strong> bestper<strong>for</strong>mingAcademies currentlywithin <strong>the</strong> ITCI, to enhance <strong>the</strong> 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 besides<strong>the</strong> Certified Network Associatecourse.Cisco: af<strong>for</strong>dable 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 <strong>the</strong>m hope and prove thateven with a physical disability it is still<strong>the</strong>ir right to be educated.Then <strong>the</strong>re is <strong>the</strong> example of <strong>the</strong> womanin Rwanda who won a scholarship tostudy at <strong>the</strong> Networking AcademyProgramme at Addis Ababa in Ethiopia,1,000 miles from her home and her husband.She took <strong>the</strong> opportunity, despitebeing pregnant with twin boys andknowing she would give birth whilststudying. Her goal was to use <strong>the</strong> knowledgeshe gained to help many women inRwanda learn a skill that could help raise<strong>the</strong>m out of poverty and contribute to <strong>the</strong>rebuilding of <strong>the</strong>ir country.These stories are all testaments to <strong>the</strong>changes af<strong>for</strong>dable and accessible trainingcan make to people’s lives and to <strong>the</strong>benefits training can bring <strong>the</strong>economies of <strong>the</strong> student's countries.Most of <strong>the</strong> students want to remain in<strong>the</strong>ir countries and make a contributionto <strong>the</strong>ir country’s development.“The ITU believes governments in developing countriesrecognise <strong>the</strong> importance of having skilled professionalsto help <strong>the</strong>m bridge <strong>the</strong> digital divide and always welcome<strong>the</strong> opportunity to have adequate IT training facilities totrain <strong>the</strong>ir own staff responsible <strong>for</strong> telecommunicationspolicy. One of <strong>the</strong> ITU’s goals <strong>for</strong> <strong>the</strong> Internet TrainingCentres Initiative is to streng<strong>the</strong>n Internet skills on a largescale”The ITU believes governments indeveloping countries recognise<strong>the</strong> importance of having skilledprofessionals to help <strong>the</strong>m bridge<strong>the</strong> digital divide and always welcome<strong>the</strong> opportunity to have adequateIT training facilities to train<strong>the</strong>ir own staff responsible <strong>for</strong>telecommunications policy. Oneof <strong>the</strong> ITU’s goals <strong>for</strong> <strong>the</strong> InternetTraining Centres Initiative is tostreng<strong>the</strong>n Internet skills on a largescale. It believes extending <strong>the</strong> initiativeto include government officials can onlybenefit <strong>the</strong> 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 <strong>the</strong> economy. Lookat <strong>the</strong> example of Ethiopia; it wishes totrans<strong>for</strong>m itself from an agrarian economyto an in<strong>for</strong>mation economy. Ethiopiais starting its trans<strong>for</strong>mation with an e-government initiative that will connect600 regional government offices, someof <strong>the</strong>m very isolated, to <strong>the</strong> central governmentoffices in Addis Ababa. O<strong>the</strong>rinitiatives include: building an in<strong>for</strong>mation-sharingnetwork <strong>for</strong> schools; ascheme to connect 32 agricultural institutesaround <strong>the</strong> country and a projectaimed at connecting 100 regional hospitals,enabling <strong>the</strong>m to share life-savinghealth education. People with <strong>the</strong> rightIT skills are an essential part of projectslike <strong>the</strong>se. 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 <strong>the</strong> world communications infrastructure is ei<strong>the</strong>r not available or is tooexpensive to deploy in areas outside <strong>the</strong> main city centres. This prevents large numbers ofpeople from benefiting from everyday communications services such as telephone connectivityand Internet access. In <strong>the</strong>se areas, satellite-based communication networks stand outas being <strong>the</strong> best, if not perhaps <strong>the</strong> only way, to provide communications services. Africahas many good examples of <strong>the</strong> advantages to be gained from satellite.Mr Oren Most is <strong>the</strong> 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 <strong>the</strong> Customers Division. Be<strong>for</strong>eCellcom, 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 <strong>the</strong> United States. Mr Most, earned his MBAdegree from New York University.As technology continues to advanceand our communications needs aremet at <strong>the</strong> snap of our fingers, webecome less and less aware of <strong>the</strong> networksoperating behind <strong>the</strong> scenes tobring us <strong>the</strong> services we have come totake <strong>for</strong> granted. However, in manyparts of <strong>the</strong> world, such luxuries don’texist. Communications infrastructureis ei<strong>the</strong>r not available or is too expensiveto deploy in areas outside <strong>the</strong>main city centres, <strong>the</strong>reby deprivinglarge numbers of people from benefitingfrom everyday communicationsservices such as telephone connectivityand Internet access.In <strong>the</strong>se areas, <strong>the</strong> advantages of satellite-basedcommunication networksstand out as being <strong>the</strong> best, if not perhaps<strong>the</strong> only way, to provide communicationsservices.African governments are taking <strong>the</strong>task of ‘bridging <strong>the</strong> digital divide’seriously, creating an improved regulatoryenvironment and dedicating <strong>the</strong>budgets <strong>for</strong> rural telephony andInternet access projects. Ultimately,<strong>the</strong> goal is to close <strong>the</strong> 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 o<strong>the</strong>rs, have taken<strong>the</strong> lead in deregulation, allowing <strong>for</strong><strong>the</strong> introduction of satellite-basedVery Small Aperture Terminal (VSAT)technology into <strong>the</strong>ir countries.Wishing to meet <strong>the</strong>ir UniversalService Obligations (USO) to providebasic communication services to ruralareas as <strong>the</strong>y do to urban locations,governments are turning to VSATtechnology to rapidly and cost effectivelyprovide <strong>solution</strong>s.VSAT advantages in AfricaIt was clear to authorities that standardterrestrial communications networkscouldn’t efficiently serveAfrica’s remote, outlying areas. VSATson <strong>the</strong> o<strong>the</strong>r hand, can be deployedquickly and are optimised to meet <strong>the</strong>challenge 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 offeraf<strong>for</strong>dable rates; utilisation of existingsatellite technology and frequencieswith no topographical barriers.In general, in all parts of <strong>the</strong> world,<strong>the</strong>re are many reasons why satellitetechnology is preferable to terrestrialnetworks in many situations. In Africa,<strong>the</strong>se reasons become even more pronounced.Consider <strong>the</strong> 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 <strong>the</strong> 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 CONNECTIVITYAno<strong>the</strong>r important factor is that terrestrialnetworks are extremely distance-sensitive.With <strong>the</strong> vast distancesand large areas of sparse populationdensities, it would be prohibitivelyexpensive to service <strong>the</strong> 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, so<strong>the</strong> per-site cost of equipment, maintenanceand management is low and itgets lower as more sites are added to<strong>the</strong> network.Unlike terrestrial services, satellitenetworks are distance independent.The costs <strong>for</strong> a satellite network are<strong>the</strong> same <strong>for</strong> 1km as <strong>the</strong>y are <strong>for</strong> 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, <strong>the</strong> advantages of satellitedirectly translate to a lower price<strong>for</strong> <strong>the</strong> 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 <strong>for</strong> 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 <strong>for</strong> corporatenetworking applications, broadband Internet access, ruraltelephony and distance learning in countries such asSouth Africa, Nigeria, Ethiopia, Ghana, Ivory Coast,Namibia, Kenya, Angola, Mozambique, Rwanda, <strong>the</strong>Democratic Republic of Congo and Uganda.”Namibia, Kenya, Angola, Rwanda,Mozambique, Uganda and <strong>the</strong>Democratic Republic of Congo.The main markets <strong>for</strong> VSAT technologyare <strong>the</strong> same in Africa as <strong>the</strong>y arearound <strong>the</strong> world: <strong>the</strong> corporate/enterprise market, <strong>the</strong> rural telephonymarket and <strong>the</strong> broadband Internetaccess market. Within <strong>the</strong>se markets,<strong>the</strong> applications supported are wideand far ranging.Corporate marketThe corporate market includes thousandsof sites at many of Africa’s leadingcompanies in <strong>the</strong> airline, lotteryand hospitality industries, in additionto institutions such as post offices andgovernment agencies. For <strong>the</strong>se users,VSATs facilitate a wide-area network<strong>for</strong> <strong>the</strong>ir communications, connectingeach separate office LAN and providingsecure data, voice and video communications– all on one private network.For example, an exciting recent applicationwas <strong>the</strong> Kenyan Post Offices.Kenya Post selected a VSAT networkto connect all of its post offices across<strong>the</strong> country <strong>for</strong> both <strong>the</strong>ir internal networkrequirements and, as well, tooffer customers access to Internet, e-mail, fax, printer and telephony servicesthrough <strong>the</strong> same network. In additionto <strong>the</strong> VSAT system itself, everysite is built with two kiosk PCs <strong>for</strong> publicuse and one commercial PC <strong>for</strong> <strong>the</strong>use of <strong>the</strong> Post Office manager. EachPC supports fax, telephone, printer,Internet access and e-mail services.Access to <strong>the</strong> kiosks is via prepaidcards sold by <strong>the</strong> Post Office, <strong>the</strong> firstsuch application of its kind in Africa.Ano<strong>the</strong>r example is <strong>the</strong> South AfricaNational Lottery, which selected aVSAT backbone network to supportsome 1,000 sites, because of <strong>the</strong> superiorreliability, ubiquitous availabilityand broadcast capability of VSAT networks.Also, many banks in Nigeria and SouthAfrica and elsewhere, have selectedVSAT technology to connect ATMmachines across <strong>the</strong> country and toimplement internal data transferapplications. The reliability, availability,cost and speed of deployment areimportant factors in <strong>the</strong> decision to gowith VSAT networks.Rural telephonyVSATs are ideal <strong>for</strong> 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 <strong>for</strong> peoplewho, up to that moment, had nocommunications services at all, thustruly changing <strong>the</strong>ir lives. The VSAT,attached to a pole with solar panels <strong>for</strong>energy, is generally hooked up to acentral location in a village. That spotusually becomes <strong>the</strong> centre of <strong>the</strong>town’s activity as people come to use<strong>the</strong> phones as well as <strong>the</strong> Internet.These applications are truly some of<strong>the</strong> best examples of bridging <strong>the</strong> digitaldivide.One example of <strong>the</strong> successful marriageof VSATs and rural networks is40 Africa & The Middle East Issue 2004
SATELLITE CONNECTIVITYAfrican education officials have begunto embrace VSAT technology. Forexample, <strong>the</strong> <strong>World</strong> Bank recentlydecided to provide a VSAT networkthat will bring broadband Internetaccess to African schools and reachstudents throughout <strong>the</strong> continent,especially in Uganda, Senegal, Ghanaand Tanzania.Markets <strong>for</strong> VSAT technology are <strong>the</strong> same in Africa as <strong>the</strong>y arearound <strong>the</strong> world<strong>the</strong> 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 <strong>the</strong> 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 <strong>for</strong> broadband access isstrong in Africa. The continent mayvery well be one of <strong>the</strong> fastest growingbroadband markets. Small businesses,small office/home office (SOHO) andsmall to medium-sized enterprises(SME), have a need and a budget <strong>for</strong>broadband networks; when locatedoutside <strong>the</strong> main urban areas, <strong>the</strong>yturn to satellite-based <strong>solution</strong>s.Again using <strong>the</strong> Telkom SA experience,that company recently introduceda broadband service whichoffers always-available Internet connectivityand data connectivity <strong>for</strong>enterprise customers anywhere inSouth Africa at data rates rangingfrom 64 kbps download and 16 kbpsupload to <strong>the</strong> top end of 512 kbpsdownload and 128 kbps upload.Illustrating <strong>the</strong> potential strongdemand, over <strong>the</strong> next five years <strong>the</strong>network is expected to grow to some26,000 sites. At that level, it wouldmake this network <strong>the</strong> largest of itskind in <strong>the</strong> world.Ano<strong>the</strong>r application is bringingInternet access to rural schools andmaking possible continuing universityeducation <strong>for</strong> rural residents via <strong>the</strong>Internet. Again, VSAT technology providesa unique <strong>solution</strong>. Already inplace in major projects in Brazil (<strong>the</strong>governmental GESAC programme hasmore than 3,000 rural schools linkedto <strong>the</strong> networks) and in Australia(where a government programmethrough <strong>the</strong> telecom company Optushas deployed a large VSAT network toallow distance learning <strong>for</strong> residents inrural parts of <strong>the</strong> country), Africa too,is a prime location <strong>for</strong> distancelearning and Internet <strong>for</strong> schoolsapplications.Looking aheadVSATs have proven <strong>the</strong>mselves to be acost effective <strong>solution</strong> <strong>for</strong> numerousapplications throughout <strong>the</strong> world.Africa, a continent with tremendouspotential and growing demand, isproving to be an important area ofbusiness <strong>for</strong> VSAT vendors and serviceoperators. New technology becomingavailable will only make <strong>the</strong> businesscase even stronger. For example,recently introduced products allow <strong>for</strong><strong>the</strong> use of different VSATs supportinga variety of applications, all on a singlehub. This is a revolutionary concept in<strong>the</strong> industry and one that shouldexpand <strong>the</strong> business horizons of manyservice operators. The combination ofgrowing demand, <strong>the</strong> available technology,<strong>the</strong> ease of deployment,“The need <strong>for</strong> broadband access is strong in Africa. Thecontinent may very well be one of <strong>the</strong> fastest growingbroadband markets. Small businesses, small office/homeoffice (SOHO) and small to medium-sized enterprises(SME), have a need and a budget <strong>for</strong> broadband networks;when located outside <strong>the</strong> main urban areas, <strong>the</strong>yturn to satellite-based <strong>solution</strong>s.”toge<strong>the</strong>r with <strong>the</strong> moves by governmentsto deregulate, allow communicationsservices to be enjoyed andtaken <strong>for</strong> granted by many peoplearound <strong>the</strong> world.Telecommunications can soon be partof <strong>the</strong> day-to-day lives of people livinganywhere in Africa. Africa & The Middle East Issue 2004 41
SATELLITE CONNECTIVITYChanging <strong>the</strong> 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, <strong>the</strong> needs of Africa arevery different from those in more developed regions and satellite <strong>solution</strong>s 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 throughout<strong>the</strong> world by ICT service providers, universal communication capabilities can soon be a reality<strong>for</strong> <strong>the</strong> continent.Guy Clark is <strong>the</strong> Director of UUNET, Africa Operations and COO of <strong>the</strong> UUNET/Africa Online Joint Venture,in Nairobi. After restructuring <strong>the</strong> venture, Mr Clark returned to South Africa, where he is now responsible <strong>for</strong>all of <strong>the</strong> company's African operations. Mr Clark is currently <strong>the</strong> Executive Director on <strong>the</strong> board of <strong>the</strong> JointVenture Company between UUNET SA and Africa Online, as well as <strong>the</strong> Director of UUNET companies withinMauritius, Kenya, Zambia, Botswana and Namibia.Globally, <strong>the</strong>re has been a steadilygrowing acceptance of <strong>the</strong> 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,<strong>the</strong>se markets can only af<strong>for</strong>d so muchin terms of technology infrastructure.In <strong>the</strong>se markets one finds that <strong>the</strong> terrestrialor wireless bandwidth capabilitiesare limited due to high costs, <strong>the</strong>lack of reach associated with <strong>the</strong> locallyavailable technology, limitations of<strong>the</strong> service delivery plat<strong>for</strong>m or <strong>the</strong>service delivery partner. There<strong>for</strong>e,when a company’s network limit isreached, business activity and growthis stifled, as <strong>the</strong> network is ei<strong>the</strong>rslowed dramatically or simply cannotcope with <strong>the</strong> growing business needs.The congestion of e-mail and o<strong>the</strong>rapplications that results, adverselyinfluences business efficiency, providesa poor customer service experienceand makes it difficult to adapt tochanging market needs. Toge<strong>the</strong>r,<strong>the</strong>se problems hurt both a business'scompetitive edge and its bottom linefinancial results.Globally, <strong>the</strong> Compound AnnualGrowth Rate (CAGR) <strong>for</strong> VSAT <strong>solution</strong>sis approximately 20 per cent;<strong>the</strong>re are now close to 800,000 VSATsatellite installations deployed worldwide.The increasing acceptance ofVSAT is not due only to <strong>the</strong> technology’sinherent ability to deliver highspeed Internet, IP-VPN connectivityand improved time to market. VSATgrowth is also <strong>the</strong> result of investment,by companies, like ours, in using <strong>the</strong>technology to effectively deliver innovative,flexible and reliable business<strong>solution</strong>s <strong>for</strong> Africa.Businesses in Africa require <strong>the</strong> abilityto communicate to all <strong>the</strong> links in <strong>the</strong>irvalue chain – with <strong>the</strong>ir customers,suppliers and employees – no matterwhere <strong>the</strong>y are located. They need tobe assured of service stability, which,in turn, will help facilitate communicationsand business efficiencies.Satellite <strong>solution</strong>s answer <strong>the</strong>se needs;<strong>the</strong>y can help materially to resolve anumber of business communicationproblems and can co-exist harmoniouslywith a wide range of existingnetwork <strong>solution</strong>s.The impact that satellite network <strong>solution</strong>swill have on <strong>the</strong> African continentare numerous and exciting. Thefact that more than 60 per cent of allISPs connected on <strong>the</strong> African continentuse satellite <strong>solution</strong>s to ensureeffective service delivery to customersis proof of this. Opportunities are createdby <strong>the</strong> flexible <strong>solution</strong>s thatsatellites bring: multicasting in<strong>for</strong>mationto update applications; communicatingconsistent brand messages to allpoints of presence at <strong>the</strong> same instant;making educational opportunitiesavailable to all; enabling Internet ortelephony access <strong>for</strong> workers in <strong>the</strong>field; and many o<strong>the</strong>rs.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 open<strong>the</strong> world of education or <strong>the</strong> world ofbusiness, or even a world of art andculture to millions who were neverbe<strong>for</strong>e able to make even a simple callor access <strong>the</strong> Internet. Satellite connectivitygives businesses <strong>the</strong> ability toimprove customer services, to costeffectively deliver products and servicesusing transaction-orientated <strong>solution</strong>sand 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 <strong>for</strong> increasedservice functionality allows <strong>for</strong> a multi-faceted approachto <strong>the</strong> delivery of business <strong>solution</strong>sacross <strong>the</strong> value-chain and enables <strong>the</strong> use of a variety of plat<strong>for</strong>msto serve <strong>the</strong> varied aspects of anorganisation’s business model.These technical benefits, understood interms of <strong>the</strong> needs of Africa's countries,indicate <strong>the</strong> sort of impact thatsatellite technology will have on <strong>the</strong>continent. What do <strong>the</strong>se technicalbenefits mean <strong>for</strong> businesses? Theywill: enable businesses to improve <strong>the</strong>irtime to market <strong>for</strong> new service <strong>solution</strong>s address mission critical businesscommunication and continuityrequirements provide more reliable communicationswith customers, suppliers andvendors increase productivity and deliver an“... <strong>the</strong> entire continent has only some 40-million cellularsubscribers, 25 million fixed line subscribers and 6.5 millionInternet users. Satellite <strong>solution</strong>s will, if implementedcorrectly, boost <strong>the</strong>se statistics and make universalaccess to communications services a reality <strong>for</strong> <strong>the</strong>African continent.”enhanced service experience due toincreased availability and reach facilitate <strong>the</strong> widespread rollout ofapplications decrease downtime.One of <strong>the</strong> main challenges is that <strong>the</strong>needs of Africa are very different fromthose of more developed regions.Because of Africa's cultural and geographicaldiversity, <strong>the</strong> deployment ofICT and applications will have to bespecifically tailored to meet <strong>the</strong>region's needs.Providers of business <strong>solution</strong>s realisethat to address <strong>the</strong>se challenges <strong>the</strong>yneed to take <strong>the</strong> initiative and educate<strong>the</strong> continent regarding <strong>the</strong> selection of<strong>the</strong> appropriate technologies, includingsatellite communications, thattruly meet <strong>the</strong> local needs of eachAfrican market. To this end, suppliersneed to be involved in <strong>the</strong> process, <strong>the</strong>discussion, of regulatory developmentof each country to promote proven,effective <strong>solution</strong>s.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 <strong>the</strong> dramatic developmentsthat have taken place in <strong>the</strong> ICT sectorthroughout <strong>the</strong> continent over <strong>the</strong> pastdecade, including <strong>the</strong> exponentialgrowth of mobile telephony and <strong>the</strong>entry of Internet into every Africancountry, <strong>the</strong>re is little said about whathas been successful and why. There is alarge disparity between <strong>the</strong> networkcapacity available in Africa and <strong>the</strong> restof <strong>the</strong> world. The teledensity in Africais <strong>the</strong> lowest of all <strong>the</strong> regions in <strong>the</strong>world. In fact, Africa accounts <strong>for</strong> lessthan two percent of <strong>the</strong> world's totaltelephones and barely half of one percentof <strong>the</strong> 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, <strong>the</strong> entire continent hasonly some 40-million cellularsubscribers, 25-million fixed linesubscribers and 6.5-million Internetusers. Satellite <strong>solution</strong>s will, if implementedcorrectly, boost <strong>the</strong>se statisticsand make universal access to communicationsservices a reality <strong>for</strong> <strong>the</strong>African continent.When we look at countries such asNigeria, which operates mostly withsatellite <strong>solution</strong>s, we find that thistechnology, which enables effectiveand efficient communication, hasplayed a fundamental role in <strong>the</strong> developmentof <strong>the</strong> country over <strong>the</strong> 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 <strong>the</strong> continent's bestpractices <strong>for</strong> technical and infrastructuredevelopment much can be done toalleviate <strong>the</strong> isolation and lack of educationand structural inefficiencies,that plague <strong>the</strong> live of Africa's citizens.This will ensure: that ICTs are used effectively tosocially, economically and politicallyuplift <strong>the</strong> population rapid streng<strong>the</strong>ning of Africa's economicvalue chain locally and internationally <strong>the</strong> creation of a competitive andefficient business environment.African development will depend uponeducational initiatives, making gooduse of available technology, heeding<strong>the</strong> many lessons learnt by <strong>the</strong> rest of<strong>the</strong> world and, importantly, takingadvantage of <strong>the</strong> opportunities thatin<strong>for</strong>mation and communication technologybring to take part in <strong>the</strong> globaleconomy and in<strong>for</strong>mation society. Satellite launch - satellite <strong>solution</strong>s answer <strong>the</strong>se needs <strong>the</strong> high levels of service qualitythat satellite technology enables a managed deregulation process <strong>the</strong> economic stimulation of <strong>the</strong>economy through job creation <strong>the</strong> availability of a solid communicationsvehicle with which to tradewith <strong>the</strong> rest of <strong>the</strong> world new business opportunities <strong>for</strong>Nigerian satellite users that enable<strong>the</strong>m to expand and develop.Ethiopia provides ano<strong>the</strong>r 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 <strong>for</strong><strong>the</strong> nation’s youth.Kenya has a similar initiative, itsELIMU Net project, <strong>for</strong> distance education.Satellite technology is now inuse in most of <strong>the</strong> country’sUniversities. Initiatives such as <strong>the</strong>sehave given students access to a wealthof in<strong>for</strong>mation and training and arehelping prepare <strong>the</strong> country's youth toparticipate in <strong>the</strong> local portion of <strong>the</strong>global economy's job market.ConclusionAfrica has tremendous potential andmany development opportunities waitto be explored. Africa, by heeding <strong>the</strong>experience of o<strong>the</strong>r countries and o<strong>for</strong>ganisations throughout <strong>the</strong> world,can learn from <strong>the</strong> pioneering ef<strong>for</strong>tsof o<strong>the</strong>rs and use this opportunity toaccelerate its own development. Bytaking advantage of <strong>the</strong> experience oftelecommunications service providersthroughout <strong>the</strong> world, <strong>the</strong> dream ofuniversal access to world-classtelecommunications can soon becomea reality <strong>for</strong> <strong>the</strong> continent.African countries focusing on telecommunicationsgrowth also need to lookat <strong>the</strong> many excellent projects alreadyundertaken or being implementedacross <strong>the</strong> continent <strong>for</strong> insight intoand understanding of, how <strong>the</strong> issuesof continental development can bestbe tackled.We welcome yourcomments ...If you have anycomments or opinionaboutPervasive <strong>Connect</strong>ivity As aTool For Developmentin Africa, <strong>the</strong> Middle East andbeyond, we would like to hearfrom you.Simply complete <strong>the</strong> 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 <strong>the</strong> point that <strong>the</strong>y start to play an indispensable part in <strong>the</strong>lives of most people? By <strong>the</strong> end of this decade, will few want to live without one? The nextgreat opportunity <strong>for</strong> <strong>the</strong> technology industry is to create software that breaks down <strong>the</strong> barriersbetween people, systems and in<strong>for</strong>mation. This is <strong>the</strong> vision of seamless computing; but,if we are to change <strong>the</strong> way people think about computers, <strong>the</strong> focus must be on building systemsthat can be wholly trusted.Mike Cathie is <strong>the</strong> Business and Marketing Director of Microsoft South Africa. He has an extensive consumermarketing background, Mike’s responsibilities included managing Microsoft’s consumer marketing operation,<strong>the</strong>ir business marketing portfolio and <strong>the</strong> local MSN portal. In this role, he focuses on developing Microsoft’sSouth African marketplace and <strong>the</strong>ir vision of an interconnected environment. Mike Cathie has a national higherdiploma in marketing from Technikon Witwatersrand, <strong>the</strong> IMM AAA diploma and is currently completing hisMBA.No one can deny that <strong>the</strong> personal computerhas had a huge impact on ourworld in <strong>the</strong> past quarter century.Ironically though, <strong>the</strong> PC has notreached <strong>the</strong> same level of importance tomost people as o<strong>the</strong>r technological revolutions.Most people could survive withouta computer – could <strong>the</strong>y get alongwithout <strong>the</strong>ir car or telephone?Integrated worldPerhaps this is because, <strong>for</strong> much of <strong>the</strong>last 25 years, <strong>the</strong> typical person’s adaptationto <strong>the</strong> computer has usuallyinvolved sitting down at <strong>the</strong> PC andinteracting through <strong>the</strong> keyboard andmouse. Then came <strong>the</strong> Internet and <strong>the</strong>idea that computers were just powerfulstorage and number crunchingmachines went swiftly out <strong>the</strong> window.Now computers are connected to <strong>the</strong>social and emotional aspects of life.People use <strong>the</strong>ir PCs to exchange e-mailand instant messages with friends andfamily. People use computers <strong>for</strong> day-todayorganisation and collaboration witho<strong>the</strong>r people. Computer technology hasindeed moved from <strong>the</strong> desktop topower a wide range of devices that surroundus and make computing truly personal.The intelligence of <strong>the</strong> 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 <strong>the</strong>se. Powerful computer technologyis also finding its way into <strong>the</strong> car.Similarly, wireless networking technologiesare becoming more commonplacein homes, offices and public spaces suchas airports and coffee shops. The reachof <strong>the</strong> Internet has moved far beyond<strong>the</strong> desktop.Is it evident that PCs will grow in importanceto <strong>the</strong> point that <strong>the</strong>y start to playan indispensable part in <strong>the</strong> lives ofmost people? Would we agree that, by<strong>the</strong> end of this decade, few would wantto live without one?Technology’s potentialIf you can conceive <strong>the</strong> idea that, by <strong>the</strong>end of <strong>the</strong> decade, we'll have over half abillion people who, <strong>for</strong> so many thingsthat <strong>the</strong>y do – whe<strong>the</strong>r it's scheduling,photos, music, organising meetings,planning <strong>for</strong>ecasts – will need softwareto carry out <strong>the</strong> tasks, <strong>the</strong>n you’ll realisethat <strong>the</strong>re is more productivity to begained in <strong>the</strong> advances that will come in<strong>the</strong> rest of this decade than <strong>the</strong> industryhas delivered in our entire history up tothis date. Technology's potential is stillfar from being realised.Realising this potential creates <strong>the</strong>vision of businesses achieving optimalefficiency, productivity and agility. Itmeans doing more with less at lowercost. It means totally streamlined businessprocesses.For knowledge workers, it is <strong>the</strong> visionof easy-to-use computers that takework, efficiency and productivity to <strong>the</strong>limit – whe<strong>the</strong>r in <strong>the</strong> office, on <strong>the</strong> roador at home. It means software that helpsachieve career ambitions.For consumers it is <strong>the</strong> realisation ofaf<strong>for</strong>dable access to <strong>the</strong> 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 <strong>the</strong> opportunityto create cutting-edge applicationsand services on <strong>the</strong> best, most flexibleplat<strong>for</strong>m. 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 enables<strong>the</strong>m to succeed at work, at school andthroughout <strong>the</strong>ir lives.The next great opportunityThe next great opportunity <strong>for</strong> <strong>the</strong> technologyindustry is to create software thatbreaks down <strong>the</strong> barriers between people,systems and in<strong>for</strong>mation. This is <strong>the</strong>vision of seamless computing.A seamless computing world is a world inwhich today’s technology boundaries aretranscended – boundaries between peopleand <strong>the</strong> technology <strong>the</strong>y use, betweensystems, between work and home,between applications and between networks,are eliminated. Seamless computingwill enable this because it mirrors <strong>the</strong>way <strong>the</strong> real world works – it is all aboutusing <strong>the</strong> power of advanced software tobring computers into your world, ra<strong>the</strong>rthan <strong>for</strong>cing you into <strong>the</strong>irs.Seamless computing unlocks <strong>the</strong> potentialof <strong>the</strong> incredible advances of software,hardware and connectivity of <strong>the</strong>coming years. It expands <strong>the</strong> possibilitiesof computing, offering new opportunities<strong>for</strong> software and hardware companies tocreate compelling services and new customerexperiences. The entire industryhas <strong>the</strong> opportunity to drive <strong>the</strong> nextwave of innovation and to make computersan even more significant and essentialpart of <strong>the</strong> way we live and work.Software, obviously, plays a key role here.Ultimately, seamless computing puts <strong>the</strong>user in control of <strong>the</strong> technology, creatinga personalised and consistent experienceno matter where <strong>the</strong>y are or what device<strong>the</strong>y’re using. It enables richer and morenatural communication across differentmedia, bringing toge<strong>the</strong>r <strong>the</strong> best of e-mail, instant messaging, Weblogs, telephonesand in-person meetings. It buildssecurity, identity and trust relationshipsinto every layer of <strong>the</strong> computing ecosystem,hardware to software and services.In <strong>the</strong> workplace, seamless computingmoves beyond isolated applications anddata towards tools and services that helpevery worker easily and quickly findin<strong>for</strong>mation, make decisions and collaboratein ways that simply aren’t possibletoday.“The vision <strong>for</strong> seamless computing is both evolutionaryand revolutionary. The changes you’ll see are gradual,but <strong>the</strong> differences between <strong>the</strong> computing experienceof today and <strong>the</strong> computing experiences five years fromnow will be like night and day.”It seamlessly connects <strong>the</strong> people,processes, in<strong>for</strong>mation and relationshipsthat are critical to business success. Itenables powerful and capable systemsthat dynamically organise and manage<strong>the</strong>mselves, 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 cantrans<strong>for</strong>m <strong>the</strong> ‘real-time enterprise’ into<strong>the</strong> ‘real-time industry,’ where companiesand <strong>the</strong>ir partner and supplier networksoperate as a single, coordinated entity.Trustworthy be<strong>for</strong>e seamlessYet with <strong>the</strong> goal to change <strong>the</strong> way peoplethink about computers, <strong>the</strong> objectivemust be focused on trust. How do weengender <strong>the</strong> same kind of trust and confidencein computing as one would havewhen using <strong>the</strong> phone or flipping a lightswitch?Software does some amazing things, butwill <strong>the</strong> network be reliable enough,robust enough to protect in<strong>for</strong>mation sothat people feel that <strong>the</strong>ir privacy is preserved?Against <strong>the</strong> backdrop of cybercrimewill users be willing to use e-mailand avoid <strong>the</strong> spam and will <strong>the</strong>ir computersbe reliable and not subject to <strong>the</strong>seattacks? A key piece to realising seamlesscomputing is getting <strong>the</strong> fundamentals ofcomputing right, namely security, reliabilityand manageability.The only way to do this is to invest inbuilding <strong>the</strong>se software plat<strong>for</strong>ms. 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 <strong>the</strong> righttools, <strong>the</strong> right processes and <strong>the</strong> 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 <strong>the</strong> size of <strong>the</strong>sechallenges and <strong>the</strong> costs of dealing <strong>the</strong>seissues are dramatic. They are also enormouslydifficult to plan <strong>for</strong>.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, <strong>the</strong> way that systemsare architected and <strong>the</strong> way <strong>the</strong>y are puttoge<strong>the</strong>r, have to change. In this way wecan reduce <strong>the</strong> threat opportunity, counter-balancing<strong>the</strong> fact that <strong>the</strong> attackersget more and more sophisticated. Theresults are positive. We see progress inthis regard but <strong>the</strong>re are many years ofwork ahead of us.The challengeThe vision <strong>for</strong> seamless computing isboth evolutionary and revolutionary. Thechanges you’ll see are gradual, but <strong>the</strong>differences between <strong>the</strong> computing experienceof today and <strong>the</strong> 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 <strong>the</strong> PCs of today. We can only beginto imagine what kind of uses we will find<strong>for</strong> this computing power.Never<strong>the</strong>less, it is important to rememberthat technology is still out of reach <strong>for</strong>many who need it most. Bridging <strong>the</strong> digitaldivide and fully realising <strong>the</strong> potentialof computing technology will be one of<strong>the</strong> biggest challenges of <strong>the</strong> DigitalDecade. Industry outreach combinedwith more advanced, less costly softwareand hardware could extend technology'sreach beyond <strong>the</strong> wealthy elite and earlyadopters using it today.Seamless computing needs to be anindustry-wide vision: one that willrequire continued cooperation at all levelsto develop <strong>the</strong> plat<strong>for</strong>m, with standardsand technology, upon which <strong>the</strong>next 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 <strong>the</strong> Outsourcing WaveBusinesses are continually searching <strong>for</strong> new and innovativepractices to become more influential players in <strong>the</strong> globalmarketplace. As a result, outsourcing non-core and IT serviceshas become <strong>the</strong> ultimate corporate strategy <strong>for</strong> growth anddevelopment. In <strong>the</strong> last decade, Business ProcessOutsourcing (BPO) and contact centre business have becomebuilding blocks <strong>for</strong> economic growth in countries such asIndia and <strong>the</strong> Philippines. This trend will continue as contactcentres streng<strong>the</strong>n <strong>the</strong>ir position as indispensable assets byrein<strong>for</strong>cing business relationships with customers and enhancingquality assurance.Egypt has proven it can compete in <strong>the</strong> BPO market. Egypt'ssupport of <strong>the</strong> contact centre industry is evident in its commitmentto steadfast infrastructure,cutting edge technology and afavourable business environment. Bycapitalising on its leadership role inBPO and <strong>the</strong> overall boom in <strong>the</strong>industry, Egypt has achieved a 30 percent growth rate. Investment in <strong>the</strong>ICT sector totalled more than EGP3.1bn in 2003.Making <strong>the</strong> most of Egypt's promising telecommunicationsand service sectors, <strong>the</strong> Xceed contact centre serves as apremier provider of customer contact <strong>solution</strong>s worldwide.Xceed operates one of <strong>the</strong> largest, most advanced, customercontact centres in <strong>the</strong> sou<strong>the</strong>rn 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, <strong>the</strong> UK and <strong>the</strong> 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 <strong>the</strong> project?Xceed is <strong>the</strong> brainchild of Egyptian businessman and SiliconValley veteran, Dr Adel Danish, Chairman and CEO of Xceed.Dr Danish, while visiting Ireland, saw how it had trans<strong>for</strong>meditself by marketing itself as a contact centre outpost <strong>for</strong> USand European companies. Seeing this, Xceed was developedto give companies <strong>the</strong> high quality <strong>the</strong>y expect at even lowercost.Egypt provides great incentives <strong>for</strong>Business 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 <strong>the</strong> US or Europe. It is worthnoting that Egyptians commonlyspeak English with a neutral Americanor British accent. Egypt's competitivewages and highly qualified, professionalwork<strong>for</strong>ce give it an advantagein <strong>the</strong> outsourcing market.Cairo by nightEgypt is located close to <strong>the</strong> major European and Asian markets,an advantage compared to many of its competitors.Moreover, <strong>the</strong> government's commitment to promotinginternational investment provides a strong incentive <strong>for</strong> companiesto base <strong>the</strong>ir BPO business in Egypt.Outsourcing experience in EgyptWhat challenges do offshore outsourcersface?It is estimated that between now and 2015 <strong>the</strong> US will outsourceapproximately three million jobs. Everything from contactcentres to reviewing insurance claims will be done outside<strong>the</strong> country. There will be technical and political challenges,but most of <strong>the</strong>se are associated with <strong>the</strong> 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 <strong>the</strong>se challenges?Each Xceed CSR is handpicked and highly trained to assurethat our clients have <strong>the</strong> best representatives <strong>for</strong> <strong>the</strong>ir business.With our CSRs' multilingual skills, neutral English accents48 Africa & The Middle East Issue 2004
XCEEDand university education our clients canrest assured that <strong>the</strong>ir customers willreceive <strong>the</strong> level of professionalism, reliabilityand experience <strong>the</strong>y expect.Why should your businesschoose to Xceed?Xceed is <strong>the</strong> most modern, technologicallyadvanced contact centre in <strong>the</strong> sou<strong>the</strong>rnMediterranean region. With services andinfrastructure specifically designed to handleBPO clients in international markets,Xceed offers extremely competitive ratesand geographical proximity to <strong>the</strong> majorworld markets. Moreover, Egypt's labour <strong>for</strong>ce perceives contactcentre employment as prestigious and well paid whencompared to o<strong>the</strong>r jobs in <strong>the</strong> Egyptian market. Consequently,Xceed recruits are all exceptionally dedicated multilingual professionalswith university degrees that can maximise <strong>the</strong> contactcentre experience and exceed <strong>the</strong> 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 <strong>for</strong> a US-based account. We are helpingto promote awareness about <strong>the</strong> software <strong>the</strong> companyproduces <strong>for</strong> corporations based in <strong>the</strong> US.What’s your educational background?Xceed Headquarterscareer. We also get benefits that are seldom found in o<strong>the</strong>rcompanies in Egypt, including <strong>the</strong> largest multinationals.An Xceed client XceedingWhy did you choose Xceed?Establishing operations in Egypt is much easier than one mightthink. No doubt, <strong>the</strong>re are challenges but <strong>the</strong>y can be overcomeby <strong>the</strong> positive attitudes and <strong>the</strong> 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 <strong>the</strong> US/Europe. Perhaps moreimportantly, Xceed has effective models <strong>for</strong> retaining CSRs andestablishing standards to maintain a high level of quality. Also,<strong>the</strong> working environment is well equipped with redundantphone lines and Internet connectivity, which help distinguishEgypt from many o<strong>the</strong>r outsourcing players.I am a graduate of <strong>the</strong> American University in Cairo. I majoredin Business Administration. As <strong>for</strong> my pre-university background,I graduated from <strong>the</strong> German school in Egypt. I studiedFrench throughout middle and high school. As <strong>for</strong> Englishand German, I studied <strong>the</strong>m in parallel until I graduated fromhigh school.How do you find working in this industry and especially atXceed?The concept of CSR is ra<strong>the</strong>r new to Egypt, but I believe companieslike Xceed that offer a great working environment andabove average pay can help build on <strong>the</strong> 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 nei<strong>the</strong>r <strong>the</strong> pay nor <strong>the</strong>work environment is comparable to Xceed.What makes Xceed a good place to work?How is your business doing with Xceed?The CSRs and <strong>the</strong> training methodologies are highly effective.I was impressed at how <strong>the</strong> learning curve improved after onlya couple of weeks of our outbound/inbound operations. We'veexperienced an increase in website activity and productinquiries following <strong>the</strong> Xceed telemarketing campaign to promoteour new product line.Would you recommend Xceed to o<strong>the</strong>rs who are looking tooutsource <strong>the</strong>ir activities?Yes. We see Egypt as an unexplored mine in <strong>the</strong> field of BPO.Actually, CS Monitor, an international daily newspaper, hasidentified Egypt as a strong newcomer in <strong>the</strong> field. We choseEgypt <strong>for</strong> our outsourcing needs and <strong>the</strong> Xceed contact centrein particular because <strong>the</strong>y offer a large labour market of multilingualCSRs at very competitive prices. In addition, <strong>the</strong>y offerreliable infrastructure and cutting edge technology that isapparent in every aspect of <strong>the</strong> Xceed contact centre. Xceed offers its employees state-of-<strong>the</strong>-art technology, <strong>the</strong>most modern infrastructure in <strong>the</strong> region and an extensivetraining programme. The skills I learned during <strong>the</strong> 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 <strong>the</strong> African continent:how to provide broadband connectivity in harsh and un<strong>for</strong>giving landscapes.Unsurprisingly, wireless broadband (also known as broadband wireless access or fixed wirelessaccess) emerges as ‘best in class’ <strong>for</strong> delivery of broadband services in <strong>the</strong>se trickyenvironments. However, <strong>the</strong>re is a vital new technology available, WiMAX, which is highlysignificant <strong>for</strong> operators in Africa. WiMAX may well be <strong>the</strong> key to removing <strong>the</strong> obstacles tobroadband adoption throughout <strong>the</strong> <strong>World</strong>.Mr Zvi Slonimsky has been CEO of Alvarion since <strong>the</strong> merger between BreezeCOM and Floware. He was originallyCEO of BreezeCOM, having served previously as its President. Be<strong>for</strong>e 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 <strong>the</strong>world’s <strong>for</strong>emost 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 <strong>the</strong> Technion Israel Institute <strong>for</strong> Technology and an MBA degree from Tel-AvivUniversity.On <strong>the</strong> face of it, <strong>the</strong> 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 <strong>for</strong> its dramatic mountainranges, deep gorges and beautiful coastline.The o<strong>the</strong>r spans over 800,000square kilometres, much of it hot, drydesert, with sparse rainfall and prolongedperiods of drought.To <strong>the</strong> layman, <strong>the</strong>re are no similarities.But <strong>for</strong> telecoms professionals <strong>the</strong> challengesare identical in La Reunion,Namibia and throughout <strong>the</strong> Africancontinent: how to provide broadbandconnectivity in such harsh and un<strong>for</strong>givinglandscapes; how to best connect <strong>the</strong>businesses, 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 <strong>the</strong> challenges andconsidered and dismissed, <strong>the</strong> majorityof <strong>the</strong> 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’ <strong>for</strong> delivery ofbroadband services in tricky environments.But be<strong>for</strong>e 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 <strong>the</strong> many customer premisesequipments (CPEs) used by customers toget service. The base stations are connectedto <strong>the</strong> backhaul network and sendand receive transmissions from <strong>the</strong> CPEsusing radio links. Each CPE can serve anentire building – whe<strong>the</strong>r 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 <strong>the</strong>mountainous terrain of La Reunion and<strong>the</strong> deserts of Namibia, which both boasthighly successful wireless broadbandnetworks.So successful are <strong>the</strong>y, in fact, thatSchoolNet in Namibia was recentlynamed "best network in an under-servedinternational community" by <strong>the</strong>Wireless Communications Association(WCA). SchoolNet, in partnership withTelecom Namibia, has deployed a wirelessbroadband network in <strong>the</strong> 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 <strong>the</strong> more remarkable that, previously,more than two-thirds of <strong>the</strong> schools nowconnected did not even have a telephoneline.Given Namibia’s sparse copper and cableinfrastructure, Internet access has beenan unattainable dream <strong>for</strong> schools outsideof Namibia’s municipal centres.Now, wireless technology has saved <strong>the</strong>day – by providing an af<strong>for</strong>dable way tobring <strong>the</strong> Internet to <strong>the</strong> majority ofNamibian schools and students and give<strong>the</strong>m <strong>the</strong> same opportunities as <strong>the</strong> restof us enjoy. It is not just Namibia thatthis model is important, it could potentiallybe replicated in many o<strong>the</strong>r parts ofAfrica.Meanwhile, in French-ruled La Reunion,Cegetel – <strong>the</strong> telecom arm of French conglomerateVivendi and France’s secondlargest ISP – has overcome <strong>the</strong> island’srugged terrain, which makes <strong>the</strong> layingof fibre impossible, by deploying a wire-50 Africa & The Middle East Issue 2004
WIRELESSless network. The network was firstdeployed to feed <strong>the</strong> base stations ofCegetel’s GSM voice network and <strong>the</strong>nused to provide Internet access to customersaround <strong>the</strong> island.What makes wireless soattractive in Africa?Wireless connectivity is proving to beextremely attractive to telecom operatorsin Africa because: It is ideal <strong>for</strong> delivering voice andhigh speed data over <strong>the</strong> same infrastructure It requires low initial capital expenditures. It is easy to upgrade, grow andexpand. Base stations share <strong>the</strong> samefrequency spectrum and so, if a base stationneeds more channels (capacity),additional bandwidth is simply allocatedon <strong>the</strong> 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. Once<strong>the</strong> wireless network is established, newcustomers can be connected in hours Pay very low network operating coststhat are proportional to <strong>the</strong> customerbase and associated capacity needs.The non-line-of-sightconundrum: OFDM – abreakthrough <strong>for</strong> BWAOrthogonal Frequency DivisionMultiplexing (OFDM) – a modulationtechnique <strong>for</strong> transmitting largeamounts of digital data over radio frequencies– has achieved a major breakthroughin <strong>the</strong> BWA market. It enablesfixed wireless to operate not only inareas where <strong>the</strong>re is a direct, unobstructed,line-of-sight, but, as well, inareas where <strong>the</strong> 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 o<strong>the</strong>r broadband optionsWhat are <strong>the</strong> o<strong>the</strong>r access technologiesused around <strong>the</strong> world that, in <strong>the</strong>ory atleast, are also available to African operators.ADSLThis is <strong>the</strong> best-known access technology,which runs over cables already used<strong>for</strong> telephone connections. It has justone problem – in most countries acrossAfrica many rural areas don’t even havea telephone line to upgrade to DSL. Evenwhen <strong>the</strong>y do, it is usually far too old tobe used <strong>for</strong> this ‘piggybacking’ operationwithout a major upgrade, which isexpensive and economically unfeasible<strong>for</strong> <strong>the</strong> operator. In addition, even if <strong>the</strong>cable is upgraded, customers that livemore than 5.8 km from <strong>the</strong> main telecomsexchange are beyond <strong>the</strong> reach ofthis service.SatelliteTwo-way broadband satellite servicesare still under trial worldwide. However,satellites are massively expensive tolaunch and, often, are not economical<strong>for</strong> smaller projects.Cable modemsSince <strong>the</strong>re is little or no cable infrastructurethroughout most of <strong>the</strong> Africancontinent, broadband via this technologyis also a non-starter.WiMAX: <strong>the</strong> future of BWAtechnologyIn 2003 Sean Mahoney of Inteldescribed WiMAX as "more importantthan <strong>the</strong> Internet itself". and PyramidResearch has described WiMAX as "<strong>the</strong>latest and most-hyped generation offixed wireless technology in years".Statements which, naturally enough,have got tongues wagging around <strong>the</strong>globe.How <strong>the</strong>n does WiMAX tie into BWAand what are <strong>the</strong> implications <strong>for</strong>African operators? WiMAX is a not-<strong>for</strong>profitindustry organisation which isrolling out a certification programme toensure that all <strong>the</strong> different types ofwireless access equipment con<strong>for</strong>mingto <strong>the</strong> 802.16a standard, including basestations and CPEs, are compatible andinteroperable with o<strong>the</strong>r 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 significant<strong>for</strong> operators in Africa and throughout<strong>the</strong> world <strong>for</strong> a number of reasons: standards-based, interoperableequipment available from a variety ofvendors will drive price and per<strong>for</strong>manceto levels unachievable by proprietaryapproaches. Plug-and-play productswill result and service providers willbe able to combine equipment frommultiple equipment manufacturerssecure in <strong>the</strong> 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 <strong>the</strong> growingnumber of WiFi ‘hot spots’ and address<strong>the</strong> evolution of mobile cellular networks.With over 67 organisations – includingprominent operators, infrastructureproviders and BWA innovators – workingtoge<strong>the</strong>r, WiMAX is <strong>the</strong> key toremoving <strong>the</strong> obstacles to broadbandadoption throughout <strong>the</strong> world. Theyear 2004 will be a significant milestone<strong>for</strong> <strong>the</strong> provision of broadband. As <strong>the</strong>first WiMAX-compatible equipment isunveiled, <strong>the</strong> number of BWA networksaround <strong>the</strong> world will explode; WiMAXwill be deployed in many instances inpreference to DSL and o<strong>the</strong>r technologies.Fixed wireless WiMAXnetworks – <strong>the</strong> future ofbroadband in AfricaMillions of users around <strong>the</strong> worldalready rely on BWA to provide broadbandconnectivity; with <strong>the</strong> advent ofWiMAX, <strong>the</strong>se 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 <strong>the</strong> WiMAX networksof <strong>the</strong> future, operators will continue toconnect villages and towns in <strong>the</strong>remotest areas, which have never hadany kind of telecoms infrastructurebe<strong>for</strong>e. Imagine how <strong>the</strong> lives of peoplein <strong>the</strong>se areas are changing – <strong>the</strong> worldhas gotten significantly smaller. Africa & The Middle East Issue 2004 51
WIRELESSThe Wireless Age in Africa – Embracing <strong>the</strong> Futureby Frank Opfer, Vice-President, Solutions Management, T-Systems, International Carrier Sales & SolutionsWiFi, Wireless Fidelity, is <strong>the</strong> current buzzword in Africa. It is bringing a host of new opportunities<strong>for</strong> communicating with anyone anywhere in <strong>the</strong> world. Thanks to wireless communicationcovering everything from mobile telephony to WiFi roaming, Africa is poised to make<strong>the</strong> leap from sporadic telephone service to full-time, worldwide, connectivity. WiMax, a tradeorganisation created by leading communications companies, aims to promote an industrywidestandard <strong>for</strong> <strong>the</strong> next level of wireless networking, creating more broadband accesschoices in Africa.Frank Opfer is Vice-President of Solutions Management <strong>for</strong> T-Systems International Carrier Sales & Solutions(ICSS). He is responsible <strong>for</strong> <strong>solution</strong>s strategy and sales worldwide. He previously worked <strong>for</strong> Equant as <strong>the</strong> Directorof <strong>the</strong> Regional Product Management Team <strong>for</strong> Data & IP in Europe, <strong>for</strong> Betrelsmann/mediaWays and DeutscheTelekom. Mr Opfer has an engineering degree in In<strong>for</strong>mation Processing and a dual MBA degree from <strong>the</strong> J.L.Kellogg Graduate School of Management at Northwestern University in Chicago and <strong>the</strong> Otto Beisheim GraduateSchool (WHU) in Germany.Everyone in <strong>the</strong> telecommunicationsindustry is talking about hot new technologies.WiFi (Wireless Fidelity) is <strong>the</strong>current buzzword that, along with o<strong>the</strong>rcomplex <strong>solution</strong>s, is bringing a host ofnew opportunities <strong>for</strong> communicatingwith anyone anywhere in <strong>the</strong> world. Thisis all well and good <strong>for</strong> subscribers inParis or New York, eagerly awaiting <strong>the</strong>next hotspot island, but what do <strong>the</strong>setechnologies mean <strong>for</strong> developing partsof <strong>the</strong> world?Recent trends in Central and EasternEurope can give us some hints to whatlies ahead <strong>for</strong> o<strong>the</strong>r developing nations.After <strong>the</strong> fall of <strong>the</strong> Berlin wall, Westernculture streamed across <strong>the</strong> old divide tocountries whose infrastructures werecrumbling. With decrepit legacy telephonynetworks not up to speed, <strong>the</strong> regionturned to new wireless technologies tobridge <strong>the</strong> gap, namely mobile telephony.In a matter of a few short years, <strong>the</strong>face of Central and Eastern Europechanged from one of a doddering traditionalgrandmo<strong>the</strong>r to young, hip andtechnologically advanced, sometimesmore so than <strong>the</strong>ir Western Europeanpeers.As we look at Africa, many similaritiesbetween <strong>the</strong> two geographical areasemerge. Today’s landline infrastructurein Africa is even less developed than <strong>the</strong>communist-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 <strong>the</strong> leap from sporadictelephone service to world-ranging connectivity.Mobile telephony: drivinggrowthMobile telephony is clearly <strong>the</strong> majordriving factor in telecommunicationsgrowth in Africa, proven by <strong>the</strong> boom inbasic telephone access on <strong>the</strong> Africancontinent. According to <strong>the</strong> <strong>World</strong>Telecommunication DevelopmentReport, Africa now has more than 20million mobile subscribers and over halfof all African nations have more mobilethan fixed subscribers.Even <strong>the</strong> concept of subscribers is differentin Africa, as <strong>the</strong> conventional wisdomof attracting only ‘value’ subscribers toone’s network has evolved into a strategyof bringing in as many users as possible,even if <strong>the</strong>y use alternative means ofaccess, such as mobile calling cards.Pyramid Research reports that <strong>the</strong>se newdynamics result in a total mobile penetration1.5 to 2 times higher than <strong>the</strong>actual subscriber penetration.Sweeping cultural changes are alsoaffecting <strong>the</strong> way Africans use <strong>the</strong> newwireless technology in <strong>the</strong>ir daily lives.International television hits such as "BigBro<strong>the</strong>r" are tweaked to reflect Africantastes and values, but <strong>the</strong> basic principleremains <strong>the</strong> same: <strong>the</strong> audience decideswho will make it to <strong>the</strong> next round bymobile text voting. This kind of highmargintraffic obviously boosts mobileoperators’ revenue, but also presents anopportunity <strong>for</strong> traditional operators toextend <strong>the</strong>ir current portfolio to support<strong>the</strong> vast number of mobile messages thatare sent during special televised events.Mobile message delivery plat<strong>for</strong>ms areone of <strong>the</strong> new breed of <strong>solution</strong>senabling traditional carriers to breakinto <strong>the</strong> lucrative SMS and MMS sector.Africa and <strong>the</strong> InternetThe Internet is ano<strong>the</strong>r element that hasmajor implications <strong>for</strong> Africa’s development;however, access is far from widespread.A <strong>World</strong> Markets ResearchCentre study estimates that <strong>the</strong> cost ofbroadband circuits in Africa can be up to52 Africa & The Middle East Issue 2004
WIRELESSa hundred times greater than in developedcountries, due to <strong>the</strong> fact that connectivityinto <strong>the</strong> 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 <strong>the</strong> most dynamic sectors in Africa, butnot in <strong>the</strong> traditional sense.”Despite this difficult environment,broadband access is probably one of <strong>the</strong>most dynamic sectors in Africa, but notin <strong>the</strong> traditional sense. Building on KofiAnnan’s statement that WiFi and satellitetechnology are <strong>the</strong> United Nation’schoice <strong>for</strong> connecting Africa to <strong>the</strong>Internet, ISPs are largely investing inwireless <strong>solution</strong>s.Unfazed by <strong>the</strong> lack of fixed-line infrastructure,<strong>the</strong>se companies are wiselytaking advantage of ISM (Internet servicesmodel) bands. Since <strong>the</strong>se bands areunlicensed and <strong>the</strong> customer equipmentis inexpensive, wireless bandwidthreduces costs <strong>for</strong> both service providersand end customers.Wireless Fidelity: puttingnetworks on fast-<strong>for</strong>wardWith <strong>the</strong> advent of WiFi comes a varietyof new <strong>solution</strong>s <strong>for</strong> growth and development.As more and more Africans gainaccess to <strong>the</strong> Internet, services such ashotspots become a viable option.Although, <strong>for</strong> <strong>the</strong> moment, few Africanhouseholds use computers, hotspots canbe an advantage <strong>for</strong> business travellers,intra-continental and international.As hotspots pop up in countries such asSouth Africa, Uganda, Tanzania andKenya, Africa will soon face <strong>the</strong> sameproblems as <strong>the</strong> United States andEurope in terms of WiFi roaming. Whenhotspot clusters emerge, it is necessaryto link <strong>the</strong>m in some way in order toreach <strong>the</strong> technology’s full potential.Sophisticated <strong>solution</strong>s like WirelessLAN Roaming plat<strong>for</strong>ms have practicalapplications in Africa. Wireless LANRoaming effectively links hotspot operators,o<strong>the</strong>rwise known as WirelessInternet Service Providers (WISPs) andWLAN service providers in differentcountries.Via this intelligent plat<strong>for</strong>m, end userscan benefit from hotspots not only acrossAfrica but anywhere in <strong>the</strong> world.Carriers who deploy <strong>the</strong>m expand <strong>the</strong>irportfolios as an entrée to new sources ofrevenue and end users gain flexibility.Ultimately, this technology can breakdown barriers <strong>for</strong> doing business inAfrica, thus driving economic growth.WLAN plat<strong>for</strong>ms also have implications<strong>for</strong> a new generation of voice services.While potential <strong>for</strong> growth in traditionalfixed-line voice may be limited, voice isstill <strong>the</strong> preferred communication medium,confirmed by <strong>the</strong> 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 <strong>the</strong> potentialto change this scenario, shifting its usefrom a data-only application to a multipurposetechnology.With VoIP-enabled mobile phones, endusers can bypass <strong>the</strong> pricey mobile networkand make phone calls anywhere in<strong>the</strong> world via <strong>the</strong> public Internet. It is inthis case that hotspots begin to trans<strong>for</strong>mfrom a novelty into a viable communication<strong>solution</strong> <strong>for</strong> Africa.Perhaps <strong>the</strong> main benefit of mixing voiceand data over a wireless is to make use ofa common infrastructure, a significantadvantage <strong>for</strong> developing African networks.Not only is a common system <strong>for</strong>both data and voice traffic generally simplerand less expensive than two separateones, but <strong>the</strong> ability to bypass technologylayers in order to build up a stateof-<strong>the</strong>-art,cost-effective network is aboon <strong>for</strong> third-world countries.WiMAX – Africa’s ultimateconnectivity <strong>solution</strong>?When introducing any new standard <strong>for</strong>mass adoption, <strong>the</strong>re are many things toconsider, including equipment interoperabilityand deployment time. WiMax, atrade organisation created by leadingcommunications companies, aims topromote an industry-wide standard <strong>for</strong><strong>the</strong> next level of wireless networking,thus eliminating <strong>the</strong>se concerns and creatingmore broadband access choices.The WiMax technology, also known as802.16a, is a wireless standard offeringmore range and bandwidth that <strong>the</strong> currentWiFi service. WiFi is generally usedto connect hotspots in proximity to oneano<strong>the</strong>r, 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 <strong>for</strong> 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 <strong>the</strong>deciding factor <strong>for</strong> <strong>the</strong> future of Africa’sInternet connectivity. Despite WiFi’sability to remotely link laptop users to<strong>the</strong> <strong>World</strong> Wide Web, <strong>the</strong> fact remainsthat PC penetration on <strong>the</strong> continent isvery low. In <strong>the</strong> current environment, asimple cyber café with docked computersis a more practical answer <strong>for</strong> Africanusers. However, infrastructure constraintsmean that cyber cafés are bynecessity located in cities, far from <strong>the</strong>reach of many Africans.With WiMax’s long-range reach eliminating<strong>the</strong> need <strong>for</strong> <strong>the</strong> so-called ‘lastmile’, rural hotspot clusters take on anew significance. It is in this capacitythat <strong>the</strong> hotspot revolution can trulyreach out to rural communities.ConclusionJudging from <strong>the</strong> recent attention thatorganisations such as <strong>the</strong> United Nationshave given <strong>the</strong> subject and <strong>the</strong> plethoraof ICT trade shows and <strong>for</strong>ums appearingin all African regions, it is clear that<strong>the</strong> focus of <strong>the</strong> coming years will be onharnessing <strong>the</strong> power of new technologiesto benefit African society.Will <strong>the</strong> wireless age boom in Africa?Based on worldwide trends in developingmarkets, <strong>the</strong> answer is definitivelyyes. The world is looking to Africa <strong>for</strong>new business opportunities and Africans<strong>the</strong>mselves are embracing new <strong>solution</strong>sthat will change <strong>the</strong> face of <strong>the</strong> 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 <strong>for</strong> operators, <strong>the</strong> 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, <strong>the</strong> roadmap <strong>for</strong> <strong>the</strong> NextGeneration architecture, which will support convergence, should incorporate a phasedapproach. Convergence is already happening in <strong>the</strong> home, office and outside world – but <strong>the</strong>ultimate convergence cannot happen without seamless mobility.Dr Laith Sadiq is director of strategy <strong>for</strong> Motorola’s Global Telecom Solutions Sector (GTSS) in Europe, Middle East andAfrica. Be<strong>for</strong>e his current position, Dr Sadiq was Sales Director <strong>for</strong> GTSS Middle East. Be<strong>for</strong>e joining Motorola, Dr Sadiqheld senior positions at Nortel. and British Telecom. Dr Sadiq holds a BSc in Communication, Computer and In<strong>for</strong>mationServices from <strong>the</strong> University of Manchester and a Masters and PhD in Telecommunications from Kings College, London.Operators in <strong>the</strong> emerging markets haveexperienced a high level of growth, butderegulation and increased competitionwill put pressure on price and retention,making it increasingly challenging <strong>for</strong>operators to maintain this growth.To overcome <strong>the</strong> potential negativeimpact of industry trends and to stimulatefur<strong>the</strong>r growth, operators need tomove into o<strong>the</strong>r environments, such as<strong>the</strong> home, office, mobile and hot spots,integrating <strong>the</strong>ir 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 <strong>the</strong> business driversthat make convergence a valuable proposition<strong>for</strong> operators, <strong>the</strong> 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,<strong>the</strong> roadmap <strong>for</strong> <strong>the</strong> NextGeneration architecture, which will supportconvergence, should incorporate aphased approach. This will allow operatorsto overlay new network elements ontop of <strong>the</strong> legacy network to minimiseincremental investments and provide aflexible transition based on customerdemand and funding availability.The business requirementWireless and wireline operators alreadyrecognise that <strong>the</strong> move towards convergencewill help <strong>the</strong>m to capture a largershare of wallet and increase customerloyalty, it is not a new ef<strong>for</strong>t. 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 <strong>the</strong> parallelback-end convergence does not provide<strong>the</strong> full value of convergence. Theissue, from a technology standpoint, isthat current network architectures werenot developed with convergence in mindand <strong>the</strong>y cannot deliver front-end convergencewith <strong>the</strong> optimum customerexperience and cost.Evolution towards <strong>the</strong> Next GenerationNetwork (NGN) Architecture will enableback-end convergence of existing infrastructure,improve <strong>the</strong> customer experienceand reduce <strong>the</strong> costs of front-endconvergence. In addition, it will allowoperators to create differentiated convergentoffers and deliver a cost advantagedirect to <strong>the</strong> customer.The NGN Architecture has been developedto meet <strong>the</strong> following six businessdrivers: Simple Migration and InvestmentProtection: Migration to <strong>the</strong> NGN architecturecan be implemented as an overlayto existing network investment andits scalability allows <strong>for</strong> fur<strong>the</strong>r technologyevolution at minimum incrementalcost. Operators migrating to and from<strong>the</strong> NGN architecture can base this oncustomer demand and funding availabilitywhilst protecting existing networkinvestment Multiple environments at <strong>the</strong> lowestcost: Customers can use <strong>the</strong> lowest costtechnology available in whatever environment<strong>the</strong>y find <strong>the</strong>mselves, be thathome, office, hot-spots or on <strong>the</strong> move.The NGN architecture can accommodatemultiple access and core technologies, aswell as <strong>the</strong> use of third parties’ networksin order to minimise costs. This willallow operators to not only reduce <strong>the</strong>54 Africa & The Middle East Issue 2004
MOBILE CONVERGENCEcost of providing <strong>the</strong> service, improvingmargins; but also to serve a largeraddressable market, enlarging <strong>the</strong>irpotential revenue base Mass market usability and commonuser experience: The NGN architecturewill provide an end user interface that issimple <strong>for</strong> 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 <strong>the</strong> 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 <strong>the</strong> importance of applications, toallow operators to optimise networkresource allocation, minimising costsand improving retentionPersonalisation and self-provisioning:Customers want to be able tochoose <strong>the</strong>ir services and applicationsand personalise how <strong>the</strong>se are deliveredto <strong>the</strong>m, wherever <strong>the</strong>y are. By empoweringcustomers to tailor <strong>the</strong>ir servicesand applications through <strong>the</strong> 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 <strong>the</strong>ir applicationsportfolio at a lower cost than inhousedevelopment or technology-specificapplication providers.The technologyWhat drives <strong>the</strong> need <strong>for</strong> <strong>the</strong> NGN architecturefrom a business level determineswhat is required at a technology level.The NGN architecture can be representedby <strong>the</strong> overlay of <strong>the</strong>se technologyelements on top of <strong>the</strong> existing networklayers (service, core, access) and enduserdevices.The technology elements and <strong>the</strong>ir relationshipwith <strong>the</strong> business drivers, areas follows:Services“Customers want to be able to choose <strong>the</strong>ir services andapplications and personalise how <strong>the</strong>se are delivered to<strong>the</strong>m, wherever <strong>the</strong>y are. By empowering customers totailor <strong>the</strong>ir services and applications through <strong>the</strong> 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 applications<strong>for</strong> different access technologiesand network providers. The access/networkindependent APIs will primarilysupport <strong>the</strong> demand <strong>for</strong> multi-sourcedapplications, as independent applicationproviders will be more attracted toAPIs that are ported to multipleaccess/networks. Also, <strong>the</strong> 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 <strong>the</strong> underlying OSS/BSS. Also,it will support an evolutionary pathfrom current networks, preserving <strong>the</strong>existing OSS/BSS plat<strong>for</strong>ms.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 <strong>the</strong> transportand switching infrastructure <strong>for</strong>voice, data and video. The multi-mediaservice control will also support an evolutionarypath from legacy networks,adapting to <strong>the</strong> existing transport infrastructurein <strong>the</strong> core network. Self-optimisation (core network):Switching in <strong>the</strong> core network is dynamicallyconfigured and optimised to routetraffic to <strong>the</strong> lowest cost path at adesired QoS. Self-optimisation in <strong>the</strong>core 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 <strong>the</strong> 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 to<strong>the</strong> lowest cost path at a desired QoS.Self-optimisation in <strong>the</strong> 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 <strong>the</strong> 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 <strong>the</strong> type ofinteraction, user preference, access technologyand device, will optimise <strong>the</strong> userexperience. Multi-modal UIs will supportmass-market usability and commonexperience across environments as wellas personalisation and choice.The business driver <strong>for</strong> a mobile operatormoving into <strong>the</strong> home can be mappedagainst <strong>the</strong> customer experience in buying,using and paying <strong>for</strong> <strong>the</strong> service.This is tied to operators’ requirements inacquiring and serving <strong>the</strong> customer andbilling and providing <strong>the</strong>m with care.Most importantly a mobile operatorlooking to move into <strong>the</strong> home will needto ensure it is providing competitiveaccess costs and differentiation throughseamless home-mobile environmentservice integration.The NGN architecture addresses <strong>the</strong>business requirements of mobile operatorsmoving into <strong>the</strong> home, offering competitivecosts and differentiated seamlessvoice and data services across <strong>the</strong> mobileand home environments.Scenario B: A fixed operatormoving into <strong>the</strong> hot-spot andmobile environmentsOne device fits allConvergence is an exciting proposition –customers will experience a number ofsignificant benefits that will no doubtboost <strong>the</strong>ir loyalty to <strong>the</strong> operator. Thecustomer will only need a single deviceand have a single user-provider relationship,with <strong>the</strong> ability to personalise <strong>the</strong>services. The converged network willalso enable customers to seamlessly usea diverse portfolio of applications whilston <strong>the</strong> move anytime, anywhere at anaf<strong>for</strong>dable price.Leaders in wireless infrastructure ando<strong>the</strong>r broadband access technologiesshare with operators a common vision<strong>for</strong> convergence and a common understandingof <strong>the</strong> business requirementsand technology elements of <strong>the</strong> convergednetwork architecture. There isconfidence that vendors are well positionedto support operators in <strong>the</strong> migrationef<strong>for</strong>t towards <strong>the</strong> converged architectureand full realisation of <strong>the</strong> value ofconvergence. “Convergence is an exciting proposition – customers willexperience a number of significant benefits that will nodoubt boost <strong>the</strong>ir loyalty to <strong>the</strong> operator. The customerwill only need a single device and have a single userproviderrelationship, with <strong>the</strong> ability to personalise <strong>the</strong>services.”So far, we have discussed <strong>the</strong> high-levelbusiness requirements of <strong>the</strong> NGN architectureto enable back-end convergenceand <strong>the</strong> technology elements that arenecessary to realise <strong>the</strong>se requirements.The following two scenarios illustratehow operators could move into a convergedenvironment. Scenario A considersa mobile operator moving in to <strong>the</strong>home environment, while Scenario Bconsiders a fixed operator moving into<strong>the</strong> mobile environment.Scenario A: A mobile operatormoving into <strong>the</strong> homeenvironmentIn this scenario we consider a mobileoperator moving into <strong>the</strong> home with alandline displacement voice and dataoffering with different tiers of service.The voice component of <strong>the</strong> offer featureslandline equivalent voice service(with QoS and lifeline) or cellular gradeservice, while <strong>the</strong> data component featuresbroadband or narrowband alwaysonaccess.In this scenario we consider a fixed operatormoving into <strong>the</strong> 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 <strong>for</strong><strong>the</strong> fixed operator moving into <strong>the</strong> hotspotand home environments is differentiationthrough seamless home-hotspotmobileenvironment service integration.In summary, converged networks thatintegrate cellular networks enable wirelineproviders to offer <strong>the</strong>ir narrowbandvoice customers mobility in wide areaand hot spot environments. In turn,wireless providers can offer <strong>the</strong>ir subscribershigher bandwidth multi-mediaservices in <strong>the</strong> home and office.We welcome yourcomments ...If you have anycomments or opinionaboutPervasive <strong>Connect</strong>ivity As aTool For Developmentin Africa, <strong>the</strong> Middle East andbeyond, we would like to hearfrom you.Simply complete <strong>the</strong> 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 <strong>the</strong> Access Systemsby Andrew Furner, Managing Director, Marconi Middle EastThroughout <strong>the</strong> world, fixed line operators are seeing voice revenues decline and <strong>the</strong> voicenetworks are showing signs of obsolescence. In many markets, even <strong>the</strong> 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 find<strong>the</strong>y need fewer edge plat<strong>for</strong>ms and have reaped major operating expense reductions. Theneed to plan evolution to packet voice technology is compelling.Mr Andrew Furner, <strong>the</strong> Managing Director of Marconi Middle East, has over twenty years experience intelecommunications, in<strong>for</strong>mation technology services, software and management consulting in a variety ofsenior management roles. Be<strong>for</strong>e assuming responsibility <strong>for</strong> Marconi’s operations in <strong>the</strong> Middle East, heserved as head of Technology Strategy <strong>for</strong> Marconi Corporation. In this role, he led <strong>the</strong> high level team thatdefined and developed Marconi’s Next Generation Telecommunications Network vision and Marconi’s technologyinvestment strategy.Convergence presents a new window ofopportunity <strong>for</strong> telecommunicationoperators to explore as <strong>the</strong>y seekgreater business efficiencies and strive<strong>for</strong> new levels of growth and profitability.Throughout <strong>the</strong> world, fixed line operatorsare seeing <strong>the</strong>ir traditional voicerevenues decline and <strong>the</strong>ir 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, <strong>the</strong> 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 <strong>the</strong>re will beany single ‘killer application,’ thismeans many new services must bedeployed.Operators are at different stages in <strong>the</strong>process of emerging from corporatereconstruction and debt reduction programmesand many are in <strong>the</strong> processof privatisation and deregulation.Moreover, operators' views differ on<strong>the</strong> appropriateness of basic networkinfrastructure. None<strong>the</strong>less, growingnumbers of <strong>the</strong>m 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 <strong>the</strong> opportunity to reduce <strong>the</strong>number of edge plat<strong>for</strong>ms deployed in<strong>the</strong>ir networks and to cut <strong>the</strong> numberof service-specific overlay networks(‘stovepipes’). At <strong>the</strong> same time, operatorsneed to find new revenues, to buildon sales of basic fast Internet accessservice and create new profitable <strong>solution</strong>s<strong>for</strong> small businesses. The newservices must be delivered with appropriatequality and will need usagebasedcharging. Many operators arenow considering how to shape aninvestment programme to address<strong>the</strong>se issues, whilst migrating highlyprofitable voice services onto <strong>the</strong>ir IPbaseddata network, as legacy equipmentbecomes obsolete.Multiservice access nodes(MSANs)As operators work to enable convergence,<strong>the</strong>y see a reduction in <strong>the</strong> numberof edge plat<strong>for</strong>ms, deployed in highvolume in <strong>the</strong>ir networks, as a majoropportunity <strong>for</strong> operating expensereduction. In addition to deliveringnew revenue generating services, <strong>the</strong>ysee <strong>the</strong> need to plan <strong>the</strong>ir evolution topacket voice even where no compellingshort term reason <strong>for</strong> 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 <strong>the</strong> DSLAM functionality. Theyincreasingly require terminatingE<strong>the</strong>rnet bearers over copper, fibre andeven fixed wireless and can also supportE<strong>the</strong>rnet backhaul (transmission from aremote to a central site) on <strong>the</strong> 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 <strong>for</strong> new service revenuesis <strong>the</strong> ability to support ‘session-basedservices’ – that is, charging <strong>for</strong> contentstreams based on guaranteed levels ofquality and usage. There will also be aneed <strong>for</strong> a ‘media firewall’ that providesflow identification and policing functions<strong>for</strong> packet-based access to multipleservices.The predominant trend today is <strong>the</strong>deployment of MSANs in copper wirednetworks toge<strong>the</strong>r with existing switchremotes and DSLAMs. Many operatorsare also considering <strong>the</strong> possibility ofelectronic nodes on <strong>the</strong> street as an evolutionbringing fibre nearer to <strong>the</strong> customerand allowing higher bandwidth(e.g. VDSL). This can be accommodatedwithin an MSAN architecture usingsmall remote line shelves and aggregatornodes.Finally, <strong>the</strong>re is obviously scope <strong>for</strong>bringing toge<strong>the</strong>r MSANs with edgetransport functions. The likely outcomeis an architecture allowing <strong>for</strong> ‘remoteline shelves’ subtended from aggregationnodes.MPLS and ATMMost profitable data services today arecarried over Asynchronous TransferMode (ATM) networks. Moreover, <strong>the</strong>most important new source of bandwidthin operator networks is residentialbroadband, which is aggregatedusing ATM. Hence, ‘rumours of <strong>the</strong>death of ATM have been greatly exaggerated.’Most operators have substantialand profitable ATM networks which<strong>the</strong>y will not abandon quickly andwhich <strong>the</strong>y will require to evolve withoutservice disruption. Whilst bestef<strong>for</strong>tIP 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 <strong>the</strong> deployment ofMSANs in copper wired networks toge<strong>the</strong>r with existingswitch remotes and DSLAMs. Many operators are alsoconsidering <strong>the</strong> possibility of electronic nodes on <strong>the</strong>street as an evolution bringing fibre nearer to <strong>the</strong> customerand allowing higher bandwidth (e.g. VDSL). This can beaccommodated within an MSAN architecture using smallremote line shelves and aggregator nodes.”In <strong>the</strong> 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 <strong>the</strong>y can ensure thatsome packets are treated with priority,cannot ensure that <strong>the</strong>re is sufficientnetwork capacity to provide appropriatequality <strong>for</strong> <strong>the</strong> delivery of any particularservice flow. This requires <strong>the</strong>reservation of resources and admissioncontrol.MPLS (Multiprotocol Label Switching)is intended to solve this problem byintegrating a hierarchical ‘virtual circuit’technology with IP <strong>for</strong>warding thatsupports QoS. As currently standardised,MPLS does not fulfil that promisecompletely. Scalable QoS supportrequires ei<strong>the</strong>r changes to existing gatewayprotocols or <strong>the</strong> adoption of a scalableQoS-aware alternatives, whichaddresses <strong>the</strong>se problems.We believe <strong>the</strong>se problems can besolved, but <strong>the</strong>y are not solved yet.Current generation routers are notappropriate and probably cannot beextended to handle <strong>the</strong>se functions. Wethink, <strong>the</strong>re<strong>for</strong>e, that MPLS is <strong>the</strong> mostlikely medium-term <strong>solution</strong> to a convergedcore network, but that <strong>the</strong> necessarypreconditions are not yet in place.When MPLS is deployed <strong>for</strong> that purpose,it will need to interwork effectivelywith <strong>the</strong> ATM installed base.Multimedia softswitchesPacket voice technology has been"emerging" <strong>for</strong> a long time in publicnetworks. Whilst <strong>the</strong>re has been substantialdeployment of IP PBXs(Internet protocol switchboard equipment),most operators have not mademajor investments in public networksystems. There are several reasons <strong>for</strong>this: 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 bypass<strong>solution</strong>s and is now disappearingbecause of broadband substitution Whilst basic packet voice technologyis not in doubt, <strong>the</strong>re are still majorconcerns about quality, security andscalability <strong>for</strong> <strong>the</strong> public network and<strong>the</strong> evolution issues are complex.In our view, this situation is now changing.Operators are beginning to havereal obsolescence concerns about <strong>the</strong>irvoice infrastructure and <strong>the</strong>y recognisethat any replacement strategy will takesome time to deploy. Moreover, it isbecoming clear that <strong>the</strong>y cannot surviveon <strong>the</strong>ir traditional revenues and <strong>the</strong>re<strong>for</strong>eneed a flexible service architecture.The challenge in designing a publicnetwork packet voice <strong>solution</strong> is to balanceseveral issues: Internet-derived technologies, suchas SIP, give great flexibility <strong>for</strong> rapiddeployment of new services. Operatorsmust be able to support new kinds ofservices and new media if <strong>the</strong>y are toinvest in a whole new service infrastructure A totally ‘transparent’ IP networkgives operators no opportunity to provideappropriate quality and dependability<strong>for</strong> a public network offering andno way of charging <strong>for</strong> <strong>the</strong>ir servicesAfrica & The Middle East Issue 2004 59
NETWORK CONVERGENCEThey offer: Controlled access to resources ando<strong>the</strong>r networks based on ‘media firewalls’,which police and translatebetween multiple IP address spacesand also manage QoS <strong>for</strong> mediastreams on <strong>the</strong> boundaries of an operator'sIP domain A full range of gateway protocols Controlled access to SIP (SessionInitiated Protocol – a signalling protocol<strong>for</strong> IP telephony, among o<strong>the</strong>rs)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 <strong>for</strong> networks) High dependability and networkwide fault tolerance Flexibility in size and location,allowing deployment at sites convenientto <strong>the</strong> 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 <strong>the</strong>se concerns.State of <strong>the</strong> art softswitch systems consistof a set of components connectedtoge<strong>the</strong>r 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 <strong>solution</strong>s and is now disappearingbecause of broadband substitution.”Convergence in services, applicationsand devices is largely driven by marketdemands and <strong>the</strong> need <strong>for</strong> operators tomaintain <strong>the</strong>ir competitive position.Cost optimisation considerations aswell as new service delivery will drivenetwork convergence.Whatever <strong>the</strong> driving considerations,operators ignoring <strong>the</strong> benefits of convergednetwork architectures may doso at <strong>the</strong>ir own peril. The same technologyis available to all players so, ifan operator fails to adopt next-generationnetwork architectures, <strong>the</strong>ir revenueswill eventually fall to an alternativeservice provider. This alternativeservice provider will offer new andlegacy services at a lower cost than<strong>the</strong>ir ‘stovepiped’ competitors. Thecombination of multiservice flexibilityand low operating expense is a combinationthat no network operator canaf<strong>for</strong>d 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 <strong>for</strong> telecom service providersand equipment vendors. In Africa, <strong>the</strong> limited infrastructure results in repressed demand <strong>for</strong>telecom 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 <strong>the</strong> phone-starved Nigerian public over a cost-effectivepacket voice architecture. A scalable and granular VoIP <strong>solution</strong> allows companies to startsmall and grow over time.Dr Ingrid Simunic is <strong>the</strong> marketing director of VocalTec Communications. She has led marketing operations <strong>for</strong> telecomcompanies in both developed markets, such as <strong>the</strong> 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 <strong>for</strong> and has been quoted in, many business and trade journals. Ingrid holds a doctorate in marketing science.IntroductionWhile <strong>the</strong> global telecom markets havebeen under a shadow from <strong>the</strong> recessionin <strong>the</strong> large North American andWestern European telecom sectors,refreshing pockets of opportunity andgrowth surfaced in emerging and deregulatingmarkets in Africa, Asia, EasternEurope and elsewhere. In <strong>the</strong>se emergingeconomies, deregulation, combinedwith <strong>the</strong> increased availability of provenpacket telephony technologies, is drivinggrowth and a wide range of opportunities<strong>for</strong> telecommunications serviceproviders.This paper discusses current dynamicsdriving telecom growth in numerousemerging economies, which hold longtermimplications <strong>for</strong> <strong>the</strong> future of <strong>the</strong>global telecom industry. In particular,this paper highlights <strong>the</strong> benefits ofpacket-based telephony networks <strong>for</strong>emerging economies, as well as <strong>the</strong> typesof services and applications that arebeing offered to meet <strong>the</strong> needs of <strong>the</strong>semarkets.Deregulation spurs growth inemerging economies: Africaand NigeriaDeregulating countries in Africa presenta huge opportunity <strong>for</strong> both telecomservice providers and equipment vendorsbecause <strong>the</strong>y have insufficient infrastructurebuild-out, low teledensity andhigh call tariffs, coupled with an unsatisfiedappetite <strong>for</strong> telecom services. It isestimated that in <strong>the</strong> next five years, <strong>the</strong>bulk 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 <strong>the</strong> least developed telecommunicationnetworks on <strong>the</strong> continent,Nigeria is a country of potentially vastopportunities in <strong>the</strong> communicationssector.The current fixed line network ofNigeria’s incumbent carrier, NITEL,does not adequately address <strong>the</strong> needs of<strong>the</strong> expanding business sector or <strong>the</strong>demand in <strong>the</strong> residential sector. Out ofsome 700,000 lines installed, only492,000 are operational – <strong>the</strong> vastmajority of <strong>the</strong>m concentrated in a fewmajor cities. Nigeria’s teledensity isamong <strong>the</strong> lowest in <strong>the</strong> world, estimatedat 0.38 telephones per 100 inhabitantsaccording to analyst reports.The licensing of four GSM operators wasa watershed event <strong>for</strong> <strong>the</strong> Nigerian telecomindustry, successfully launchingNigeria into <strong>the</strong> digital world. The country’sregulatory body, NigeriaCommunications Commission, grantedlicences to 13 private companies to operatefixed wireless access services. Shortlyafter, it endorsed Globalcom as <strong>the</strong> 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 <strong>the</strong>midst 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 <strong>the</strong> phone-starvedNigeria public.Case study: AdesemiAdesemi Nigeria Limited is a leadingprovider of both communication equipment<strong>solution</strong>s and communicationsservices <strong>for</strong> businesses and consumers.As a leader in <strong>the</strong> telecom and Internetindustry in Nigeria, its products provideenormous revenue generating opportu-Africa & The Middle East Issue 2004 61
DEREGULATION AND THE MARKET“ ...<strong>the</strong> high growth of wireless communications in emergingeconomies – often to <strong>the</strong> exclusion of fixed line telephony– has fur<strong>the</strong>r eroded <strong>the</strong> fixed line carrier’s bottom line.”nities <strong>for</strong> o<strong>the</strong>r players in <strong>the</strong> industry.Adesemi’s customer base is spread over13 states of Sou<strong>the</strong>rn Nigeria.The company’s various business divisionsoffer value-added services <strong>for</strong> provisioningInternet access and onlineservices, VPN (virtual private network)and Voice over IP (VoIP), payphone andcalling card services. It also has numerouso<strong>the</strong>r product divisions, such as:cybercafe franchises; customised softwaredesign, development sale and <strong>the</strong>design and development of e-commerce<strong>solution</strong>s and rich content in<strong>for</strong>mation.Adesemi’s strategy is to provide highqualityvoice and data services at reasonableprices to <strong>the</strong> Nigerian public andcorporate customers. Branded byAdesemi’s Komtone division asCallpoint, it uses a VoIP plat<strong>for</strong>m tosupport cybercafes and public pay phoneservices in densely populated urbanareas. At a later stage, <strong>the</strong> companyplans to expand <strong>the</strong>se services to all ofNigeria, including remote rural areas.Business Challenge andRequirementsTo support its low-cost business model,Adesemi sought a <strong>solution</strong> that wouldenable it to reach <strong>the</strong> large masses of <strong>the</strong>population, 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 <strong>solution</strong>enabling <strong>the</strong> rollout of basic telephonyservice in <strong>the</strong> shortest possible timeframe. The <strong>solution</strong> had to be capable ofsurmounting <strong>the</strong> lack of fixed line infrastructureand physical obstacles, as wellas facilitating <strong>the</strong> addition of newadvanced services.Packet Telephony Solution MeetsAdesemi Nigeria Business RequirementsAdesemi selected a field-proven multiserviceplat<strong>for</strong>m to support local, nationallong distance and international prepaidcalling card voice services over acost-effective packet voice architecture.This provides a scalable and granularVoIP <strong>solution</strong>, 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 <strong>the</strong> transportlayer, provides Adesemi with a complete<strong>solution</strong> by providing <strong>the</strong> billing(postpaid and prepaid), managementand provisioning functions. The VoIP/WLL/ satellite <strong>solution</strong> matches <strong>the</strong>needs of cybercafes and telecentres inboth urban areas and outlying villages<strong>for</strong> voice connectivity. The VoIP/ WLL/satellite <strong>solution</strong> also provides access todata networks (Internet) <strong>for</strong> e-mail, filetransfer, electronic databases, governmentand community in<strong>for</strong>mation systems,market and price in<strong>for</strong>mation, etc.Next Generation voicedeploymentsPacket telephony (or VoIP) <strong>solution</strong>s areoptimized to support long distance/international services in deregulatingmarkets. Packet tandem switching <strong>solution</strong>sdramatically reduce time to revenue,allowing carriers to begin to transfertraffic in very short time frames, aswell as slashing <strong>the</strong> capital and operationalexpenses normally required tobuild traditional circuit-switched networks.Globally, many carriers are still in ‘testmode’ with packet telephony.Never<strong>the</strong>less, <strong>the</strong>se packet telephonynetworks are already generating trafficthat represents approximately 18 percent of <strong>the</strong> world’s international trafficand are being operated by some of <strong>the</strong>world’s largest international carriers.Deployment of packet voice <strong>solution</strong>scan 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 <strong>the</strong> voice market are ableto deploy such <strong>solution</strong>s over <strong>the</strong>ir existingIP network infrastructure. This convergentnetwork saves <strong>the</strong> substantialcosts of operating and, also, managingseparate networks <strong>for</strong> voice and data.Additionally, <strong>the</strong> high growth of wirelesscommunications in emerging economies– often to <strong>the</strong> exclusion of fixed linetelephony – has fur<strong>the</strong>r eroded <strong>the</strong> fixedline carrier’s bottom line. Packet telephony<strong>solution</strong>s offer <strong>the</strong> promise of newrevenue streams via new, highly targeted,enhanced, application services, suchas voice VPNs (private networks <strong>for</strong>enterprises that enable low-cost intraofficephone calls between branchesworldwide) and new calling card services,while at <strong>the</strong> same time maintainingexisting revenue streams. As mentioned,carriers will only evaluate new enhancedservices if <strong>the</strong>y provide short-term economicbenefits. Basic voice VPN and IPcalling card services meet <strong>the</strong>se criteriaand allow <strong>for</strong> a migration to <strong>the</strong> true nextgeneration all IP network, where allphone service applications are offered onan IP plat<strong>for</strong>m.Ano<strong>the</strong>r advantage of packet architectureis that it does not disturb or threaten<strong>the</strong> existing successful ‘vertical services’business of <strong>the</strong> telcos. The capitalexpenditure is focused on retaining <strong>the</strong>serevenue streams on a less costly plat<strong>for</strong>m,allowing <strong>the</strong> carrier to achieve highrevenue retention from existing services.New competitive environments in deregulatingcountries inevitably result inshrinking margins as more players enter<strong>the</strong> market. Packet telephony allows <strong>for</strong>better margin management by enablinglucrative services while reducing operatingcosts.ConclusionThe market opportunity <strong>for</strong> packettelephony is huge and growing, especiallyin deregulating telecom markets <strong>for</strong>which packet voice technology’s low coststructure is well suited. As case studies inAfrica and elsewhere have demonstrated,packet telephony <strong>solution</strong>s can acceleratedeployments in <strong>the</strong>se markets,enabling carriers to achieve rapid returnon low initial investment. Teledensitycontinues to increase throughout <strong>the</strong>world’s emerging economies, while costsare continually driven lower by <strong>the</strong>economies 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, <strong>the</strong> larger carriers in<strong>the</strong>se markets are likely to be a driving<strong>for</strong>ce <strong>for</strong> <strong>the</strong> growth of new networks andassociated next generation services. 62 Africa & The Middle East Issue 2004
Value Proposition <strong>for</strong> Speedy Telecoms’ GrowthBUSINESS DEVELOPMENTby Kaul Sanjay, Senior Business Advisor & Director of Service Area Advice, Ericsson, AfricaMany operators on <strong>the</strong> African continent lack local competence, operational frameworks andfinancing capabilities. Penetration levels are low and <strong>the</strong> consumer is paying too much <strong>for</strong>what <strong>the</strong>y are receiving. Businesses are suffering from <strong>the</strong> absence of a proper communicationsinfrastructure. Yet research in one developing country shows that a one per centgrowth in telecommunication services boosts <strong>the</strong> economy by two per cent. The case isclear, operators and governments need to overcome <strong>the</strong> problems and do so at speed.Kaul Sanjay is a Senior Business Advisor and <strong>the</strong> Director of Service Area Advice <strong>for</strong> 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. Be<strong>for</strong>e joining Ericsson, Mr Sanjay workedwith BT and Telia <strong>for</strong> 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 <strong>the</strong>telecommunication market in <strong>the</strong>African continent, we see a paradigmshift in strategic thinking. Over <strong>the</strong> lastdecade, especially, mobile subscriberturnover has exceeded all <strong>for</strong>ecasts,despite <strong>the</strong> fact that <strong>the</strong>re has been asharp focus on satisfying and retaining<strong>the</strong> high ARPU (average revenue peruser) subscribers. As a result, we arebeginning to see a change in strategicthinking. Where <strong>the</strong> old strategic thinkinghad an upstream focus, calculated tobring only high-value subscribers onto<strong>the</strong> networks, <strong>the</strong> new strategic thinkingconcentrates on <strong>the</strong> downstream – lowerin value, but greater in number -subscribers.This is bringing in as manyusers as operator network capacity andresources will allow and requires <strong>the</strong>operators to set up <strong>the</strong> operationalframework to keep <strong>the</strong>m 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 <strong>the</strong>ir peers in<strong>the</strong> developed economies; even <strong>the</strong> slowest-growingAfrican players haveachieved compound annual growth ratesof up to 30 per cent between <strong>the</strong> years2001 and 2003. EBITDA (EarningsBe<strong>for</strong>e Interest, Taxes, Depreciation andAmortisation) levels are as high as those<strong>for</strong> successful operators around <strong>the</strong>world. The African subscriber base hasgrown phenomenally over <strong>the</strong> last threeyears and will continue to grow.Never<strong>the</strong>less, it is expected that <strong>the</strong>operator's margins will fall and <strong>the</strong>irprofits per unit will decrease.Africa was <strong>the</strong> first continent of <strong>the</strong>world where mobile penetration exceededfixed line telephones and it continuesto lead <strong>the</strong> way. In Nigeria, growth isincredible: in <strong>the</strong> last four years it hasgone from almost nothing to about threemillion and is almost twenty times higherthan fixed telephones in <strong>the</strong> 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 <strong>the</strong>expansion of mobile and fixed telephonylicense awards has stabilised <strong>the</strong> Africanbusiness environment <strong>for</strong> fur<strong>the</strong>rgrowth. The current strong subscribergrowth is sustainable <strong>for</strong> at least three tofive years.The shift in strategic thinking of <strong>the</strong> continent'snations offers a significantopportunity <strong>for</strong> all suppliers, operatorsand governments. The key task is toanalyse <strong>the</strong> business models that canaddress <strong>the</strong> challenges faced by <strong>the</strong> telecomservices industry. Some of <strong>the</strong>proven business models – primarily followedby <strong>the</strong> telecom suppliers in <strong>the</strong>region are: establish, operate and transfer;manage capacity; and full-fledgedoutsourcing.Key challengesNetwork coverage and capacityEven though much has been invested intelecom infrastructure during <strong>the</strong> lastfive years, <strong>the</strong>re is still a tremendousneed <strong>for</strong> network capacity. Subscribersare still queuing up <strong>for</strong> both mobile andfixed connections. For instance, in bothNigeria and Algeria, <strong>the</strong> telecom marketshave seen enormous growth in <strong>the</strong> last 3years; never<strong>the</strong>less almost all <strong>the</strong> playersstill lack capacity.Quality of serviceMaintaining quality of service in <strong>the</strong>region is seen as a fundamental challenge.Network downtime is high andspeech quality is poor and must beaddressed. The network across <strong>the</strong> continentneeds to be optimised and utilisedto <strong>the</strong> maximum, while making sure <strong>the</strong>Africa & The Middle East Issue 2004 63
BUSINESS DEVELOPMENTSources: <strong>World</strong> 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 <strong>the</strong> investmentsmade in CAPEX are sweated to <strong>the</strong> maximum.High operational costsTelecom service operations in Africa arerun very inefficiently compared to <strong>the</strong>operators in o<strong>the</strong>r developing parts of<strong>the</strong> world. The cost of <strong>the</strong> operationsvis-à-vis <strong>the</strong> quality level ratios arepoor. The fundamental reasons <strong>for</strong> <strong>the</strong>high OPEX are <strong>the</strong> following: High churn rates – Largely owing toa predominantly pre-paid subscriberbase, <strong>the</strong> churn rates are higher comparedto more developed markets and<strong>the</strong> main reason is <strong>the</strong> lack of churnmanagement strategies. Average churnrates across <strong>the</strong> continent are exceeding15 to 20 per cent Capacity and coverage – It is quitecostly <strong>for</strong> operators to reach people inremote areas; <strong>the</strong> cost of rolling out telecomnetworks <strong>the</strong>re is high; this is due,in part, to <strong>the</strong> lack of local competenceand inadequate operational frameworks High price levels - The main obstaclesto increased penetration are notARPU and profitability, <strong>the</strong>y are <strong>the</strong>handsets costs and <strong>the</strong> operator abilityto reach <strong>the</strong> customer. Also, mobile tariffsare still very high <strong>for</strong> <strong>the</strong> quality provided.There are various initiatives drivenby telecom suppliers to address <strong>the</strong>seproblems, but governments and regulatorshave not been innovative enough toexplore and exploit <strong>the</strong>se initiatives andpossibilities Lack of local competence – Manycountries, because of <strong>the</strong> lack of telecomand mobile operations experience in <strong>the</strong>region, depend upon <strong>the</strong> skills of expatriateworkers. This adds an increasedload to <strong>the</strong> OPEXAdequate fundingThere are many obstacles to increasing<strong>the</strong> penetration levels of telecommunicationsservices. The cost of building orexpanding network capacity and coverageis high, as is <strong>the</strong> cost of <strong>the</strong> handsetsand <strong>the</strong> cost of reaching and servicing<strong>the</strong> end user. Developing customerawareness and <strong>the</strong> reach of marketingrequires extensive sales channels andwell-targeted promotions. Customercare and, overall, QoS (Quality ofService) are also essential to captureand retain subscribers. All of <strong>the</strong>serequire funding. There is a pressingneed to find an innovative model thatcan catalyse <strong>the</strong> funding process andensure speedy financing and a shortertime to marketBusiness models worthconsideringThe shift in strategic thinking offers asignificant opportunity <strong>for</strong> suppliers,network operators and serviceproviders. Regulators and governmentsplay a catalytic role and can encouragemodels that meet <strong>the</strong> challenges andadminister <strong>the</strong> weaknesses alreadydescribed. Some of <strong>the</strong> 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 per<strong>for</strong>mance optimisation,service and network assurance and serviceprovisioning. The purpose is toestablish a successful operation within64 Africa & The Middle East Issue 2004
BUSINESS DEVELOPMENT<strong>the</strong>se areas in a smooth and efficient wayand to ensure fast time to market. Thesupplier takes responsibility <strong>for</strong> <strong>the</strong> operationof <strong>the</strong> network <strong>for</strong> an agreed period,delivering – it is expected – optimal networkper<strong>for</strong>mance according to definedand agreed targets.Transfer of knowledge, processes androutines should <strong>the</strong>n enable operators toeasily take over <strong>the</strong> responsibility <strong>for</strong><strong>the</strong>ir network operations at an agreedpoint in time. The proven processes, on<strong>the</strong>-jobtraining and certification programmeswill bring <strong>the</strong> operator's organisationto <strong>the</strong> necessary level of competenceand result in high per<strong>for</strong>mancecapability.The benefits of <strong>the</strong> model are: Shorter time to market State-of-<strong>the</strong>-art network per<strong>for</strong>mance Investment in proven operationalpractice In-house, high-per<strong>for</strong>mance, operationcapability Operational per<strong>for</strong>mance 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 <strong>the</strong>telecom networks on <strong>the</strong> o<strong>the</strong>r. In thismodel, <strong>the</strong> supplier manages and builds<strong>the</strong> capacity rapidly and at a lower totalcost.The benefits of <strong>the</strong> model are: Built-in financing – <strong>the</strong> supplier andoperator work as a team Network capacity is provided at predictablecosts Faster network capacity build Guaranteed quality levels and operationalper<strong>for</strong>mance.OutsourcingThis business model has been very successfulin <strong>the</strong> West. The operator outsourcesall <strong>the</strong> non-core elements of its“The shift in strategic thinking offers a significant opportunity<strong>for</strong> suppliers, network operators and serviceproviders. Regulators and governments play a catalyticrole and can encourage models that meet <strong>the</strong> challengesand administer <strong>the</strong> weaknesses already described. Someof <strong>the</strong> successful business models, as mentioned above,are: establish, operate and transfer, manage capacityand full-fledged outsourcing.”business (<strong>for</strong> example, managing technologyand operating customers and network)and focuses on marketing, <strong>the</strong> customeroffering and customer care.The benefits of <strong>the</strong> model are: Shorter time to market and earliercashflow State-of-<strong>the</strong>-art operational per<strong>for</strong>mance Network capacity at predictable costs Guaranteed quality levels and operationalper<strong>for</strong>mance Proven operational frameworks aspart of <strong>the</strong> package In-house, high per<strong>for</strong>mance, operationcapability Operational per<strong>for</strong>mance at predictablecost.Value addedThe value added by all <strong>the</strong> above businessmodels, apart from cost saving, includes<strong>the</strong> following advantages: Improved quality – guaranteed qualityat predictable costs Cost-reduction – cost reduction due toefficient processes and economy of scale Competence transfer – transfer of <strong>the</strong>operations framework and competenceto <strong>the</strong> local staff, enhances <strong>the</strong> humancapital of <strong>the</strong> region Better prices <strong>for</strong> end-users – efficientlyorganized telecom networks ensurelow OPEX, which in turn gives <strong>the</strong> operators<strong>the</strong> ability to offer better prices ontariff and subsidies on handsets.SummaryTelecoms in Africa are driven by successin <strong>the</strong> prepaid market. This segment of<strong>the</strong> market quickly becomes unprofitableif <strong>the</strong> costs are not controlled adequately.Indeed, in some cases prepaid is alreadyshowing negative net present values. Theaverage value of <strong>the</strong> African subscriberwill decline over <strong>the</strong> next few years as <strong>the</strong>subscriber base expands. As competitionincreases so will <strong>the</strong> churn and <strong>the</strong> 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,<strong>for</strong> both <strong>the</strong> telecom players andgovernments. They provide <strong>the</strong> means toexpand <strong>the</strong> telecommunication infrastructurefaster and to ensure lowerprices, better quality and superior enduserexperience. Isn’t that a ‘win-win’<strong>solution</strong> <strong>for</strong> all? 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WORKFORCE CONNECTIVITYApplication Provisioning <strong>for</strong> <strong>the</strong> Mobile Work<strong>for</strong>ceby Pontus Axelsson, Vice-President Product Management, Appear NetworksWeb browsing is and will continue to be, a vital part of <strong>the</strong> way wireless services are used,but it needs a strong partner delivering applications that work both online and offline. Mobilework<strong>for</strong>ces require true mobility and will often prefer powerful handheld devices to <strong>the</strong> traditionaldesktop computer in order to carry out assigned tasks away from <strong>the</strong>ir desks.Standardised software will inevitably lead to <strong>the</strong> development of more applications <strong>for</strong> handhelddevices, such as application provisioning.Mr Pontus Axelsson, <strong>the</strong> Vice-President Product Management at Appear Networks, is widely experienced in <strong>the</strong>wireless and technology sector. He has been involved in major innovations in <strong>the</strong> market. He convinced Motorolaand Swedish GSM network operator Tele2 to fund a project to build <strong>the</strong> world's first WAP unified messagingapplication. More recently, he has worked <strong>for</strong> <strong>the</strong> 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, <strong>the</strong> Royal Institute of Technology, Stockholm and was recently a delegate of <strong>the</strong> WAPForum.Web browsing is and will continue tobe, a vital part of <strong>the</strong> 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 <strong>the</strong> traditional wirelessInternet browsing model and towards amodel centred on provisioning of fullapplications. Important to remember isthat communication systems shouldalso be able to take <strong>the</strong> 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 <strong>the</strong>differences between users of desktopsand mobile devices, lead to a number ofkey features that should be provided byapplication provisioning <strong>solution</strong>s.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 <strong>the</strong>client and server negotiate and decidewhich services <strong>the</strong> client can access Steps 3 to 5, Download, install andexecute application, when <strong>the</strong> userselects an application to use and it isautomatically installed, configured andstarted Step 6, Discard application, when<strong>the</strong> user leaves <strong>the</strong> network.All of <strong>the</strong>se steps must be supported byan application provisioning <strong>solution</strong>.Fur<strong>the</strong>rmore, <strong>the</strong>y must be per<strong>for</strong>medwithout unnecessary user interaction –advanced client side intelligence isclearly needed to per<strong>for</strong>m <strong>the</strong> entirechain of events automatically.Mobile work<strong>for</strong>ces require true mobilityand will often prefer powerful handhelddevices, data-enabled handsets ortablet computers to <strong>the</strong> traditionaldesktop computer in order to carry outassigned tasks away from <strong>the</strong>ir desks.In <strong>the</strong> future, hand-held devices will usemore data and, <strong>the</strong>re<strong>for</strong>e, <strong>the</strong> role of<strong>the</strong>se devices and <strong>the</strong> requirements on<strong>the</strong> 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 <strong>for</strong> available applications. The application provisioning systemautomatically detects his or her presenceand notifies <strong>the</strong> maintenanceworker of available applications byshowing <strong>the</strong>m as new icons on <strong>the</strong> PDA. The maintenance worker sees thatone of <strong>the</strong> icons represents <strong>the</strong> servicemanual <strong>for</strong> this particular train set andclicks on it to automatically downloadand install an interactive guide showingwhat to do. As <strong>the</strong> maintenance worker leaves<strong>the</strong> area after completing <strong>the</strong> work, <strong>the</strong>service manual is automaticallyremoved from <strong>the</strong> handheld device tosave space and to avoid using out-ofdatein<strong>for</strong>mation later. Optional storageshould also be available since <strong>the</strong> maintenanceworker might want to use <strong>the</strong>application offline as well.Deployment scenariosTo understand fully <strong>the</strong> need <strong>for</strong> applicationprovisioning it is necessary toexamine how it will evolve over <strong>the</strong> next66 Africa & The Middle East Issue 2004