Morocco has a rather attractive broadband network

Morocco’s growing broadband network and an increase in competition for video has placed the region at the forefront for regional ICT  investments.

“Whether it be VOIP providers, broadband Internet repackaging, or pay-TV installers, the smaller companies will be called to duty and therefore present a viable option for investors looking to capture a share of the projected $1.44-billion data segment by 2015, or other promising indicators,” says Majd Hosn, a telecoms analyst for Pyramid.

The North African country’s telecom sector revenue will see a 4.1% annual growth rate over the next five years. The telecommunications projections position the industry at $5.47-billion in 2015.

Moroccan communications ministry official Ibrahim Saeed told ITNewsAfrica that he is hopeful that these projections will maintain excellent prospects.

“We have worked hard to build a strong IT and telecom sector and hopefully Pyramid’s report will turn out true,” says Saeed.

“The leadership changes and popular uprisings that have spread in North Africa will take their toll on the stability and growth of Morocco,” adds Pyramid.

“However, (the country will) maintain a strong position compared to other Middle Eastern and North African communications markets.”

Jonathan Terry

 

Photo: SANGONeT

In my recent interviews with telecoms, NGOs, and governments working in Africa I’ve noticed a common theme.  In a very generalized sense, Internet infrastructure is in place (or under construction) in urban centers throughout Sub-Saharan Africa.  Even in places where connectivity is still lacking, like in South Sudan and Somalia, initiatives are underway to light up those nations.  I think it is appropriate to say that this stage of communication development, which I will call connectivity 1.0, has the necessary foundation for completion.

Connectivity 2.0, then, is focused on rural Africa.  Specifically, it entails:

(1) how to bring connectivity to rural areas in financially sustainable ways

(2) how to make the Internet and mobiles useful and relevant tools for rural lifestyle

Others in the ICT4D space have recognized this need as well.  Infodev’s Program Manager Valerie D’Costa recently spoke on the urgent need to use ICTs especially for rural development projects.  One of the ITU’s new flagship initiatives is to bring ICTs to rural schools and villages.  And USAID leaders repeatedly emphasize the power of mobile phones for agricultural development in rural areas.

SANGONeT, an umbrella NGO specializing in ICT expertise and agricultural development, is taking advantage of this momentum, and is planning an upcoming conference in South Africa on ICT4RD (ICT for rural development), slated for November 1-3, 2011.  The South African Departments of Communication and Rural Development, the Gates Foundation, Cisco, Microsoft, and InfoDev are sponsoring the conference.  They hope to attract national USFs in Sub-Saharan Africa, NGOs, and telecom companies.

The collaboration between these entities is vital to creating sustainable solutions, SANGONeT Program Manager Matthew de Gale explains.  With commitments from government USFs in Zambia, Uganda, and South Africa to attend, de Gale hopes that additional USFs and international organizations like USAID and the World Bank will also send representatives, helping African governments to make the most informed policy decisions regarding rural development.  Hopefully, then, policymakers will meet the challenges posed by connectivity 2.0.

Kenya’s President Mwai Kibaki

Kenya has launched Africa’s first government open data portal. President Mwai Kibaki announced the new portal at the Kenyatta International Conference Center in Nairobi, Kenya.

The new portal will enable Kenya to release data for research purposes, which the government hopes will empower the nation’s information economy. According to the ministry of communications, the data in digitized electronic format will be available through the web address opendata.go.ke

Kibaki says this portal contains data in a flexible and user-friendly format that will allow users to view and compare information at national, province and county level.

The Open data portal provides information on six main categories: education, energy, health, population, poverty as well as water and sanitation.

“I call upon Kenyans to make use of this Government data portal to enhance accountability and improve governance in our country,” says Kibaki.

Janan Yussif

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Child participates in USAID's Interactive Radio Instruction education program, the only possible ICT project currently in Somalia.

Last week, I interviewed Mohamed Ahmed Jama, CEO of Dalkom Somalia and board member of Frontier Optical Networks Ltd (FON) in Kenya.  Mr. Jama described four potential Broadband cables that could be a part of a terrestrial backbone throughout East Africa, including in Somalia.  A fifth was announced yesterday in Somaliland.

Though all three of these proposed links are just that—proposals—they are indicative of the rapid growth of Broadband connectivity in the region.  Most East African governments are actively engaged in rolling out backbone terrestrial networks, while four years ago the World Bank called East African connectivity the world’s only “missing link.” South Sudan is working with the CTO to develop an ICT strategic plan, Burundi recently received funding from the World Bank, and Uganda has also invested as well.  And private companies are facilitating the expansion of Broadband cables as well; they are working with the national governments to lay the cables and to fund the projects.  The East African Backhaul System, recently announced as a combined $400 million partnership between Burundi, Rwanda, Uganda, Tanzania, South Sudan, Kenya, and the Democratic Republic of the Congo governments and a variety of private telecoms.  The unique partnerships between the public and private sector make the ICT space in East Africa distinct from other regions.

Potential backbone networks in Somalia, Ethiopia, and South Sudan are listed here and can be seen on the following map (forgive the rough estimations, I did not draw this exact):

1. Somalia’s Connection to EASSy Cables (blue line)

According to Mr. Jama, Dalkom Somalia has built two cable landing sites in Somalia from the EASSy submarine cable, one in Somaliland and the other in Mogadisho, Somalia.  Unfortunately, the government of Somaliland revoked Dalkom’s license last year before the cable was completed (scheduled to be finished in October, 2010).  The Somaliland government claimed that they had already signed an agreement with a local company, SomCable.  However, no additional work has been carried out since last year, leaving construction at a stand still and the region unconnected.  In Mogadisho, on the other hand, the landing cable lays ready to be used, but remains unconnected due to security issues at the site.  To make matters more frustrating, Dalkom has funding, contracts awarded and the regulatory approval to extend the cables from the landing site inward, creating a national terrestrial backbone.  Security issues in the area are the only contingency.

2. Mombasa—Nairobi—Moyale, Ethiopia Cable (green line)

The EASSy submarine cable has been extended inland previously from Mombasa to Nairobi.  For the past year, discussions have been underway been the Kenyan and Ethiopian government on possibly constructing a terrestrial cable from Nairobi to Moyale, on the Ethiopian border.  However, with FON’s assistance, the cable has been built, but is yet to be lighted.  The only remaining holdup is to sign an agreement of understanding with the Ethiopia government, which has historically been reluctant to work with private sector ICT companies.

3. Somalia—Kenya Connection (black line)

According to Mr. Jama, there is 560 km remaining between fiber optic terrestrial backbone cables in Somalia and the state of Mandera in Northeastern Kenya.  Mr. Jama proposes that the Kenyan government bring the fiber to the border, and then Dalkom Somalia would complete the Somali side.  This connection would connect Somalia to the African backbone network.  However, there has been intermittent violence on the Kenya-Somalia border in Mandera, with the most recent issue being a land mine blast that killed eleven Kenyan officers.  The volatility of the border could potentially lead to another security standstill before lighting the fiber, like in Mogadisho.  Dalkom and the governments, then, need to concern themselves not only with the technical issues and construction of the remaining fiber, but also on the political instability of the region.

4. Juba—Lokichogio Link (red line)

Southern Sudan and Kenya plan to construct a fiber optic cable link between the two nations as part of a larger project entitled “four-in-one.”  The project includes the construction of a railway line from Lodwar-Lokichogio to Juba, road rehabilitation, an oil pipeline, and fiber optic cables.  Currently, the governments need to conduct a feasibility test given the mountainous nature of the route, especially the Great Rift Valley.  In all likelihood, the project will not be finished before 2015.

5. Djibouti—Somaliland SomCable (orange line)

SomCable, supported by the interim government in the territory of Somaliland, reportedly signed an agreement to buy the necessary buildings and licensing in Djibouti to route the EASSy cable into Berbera and throughout Somaliland.  The President of SomCable, Mr. Mohammed Gueti, announced his recent acquisitions just yesterday.  Mr. Gueti has strong ties with the president of Djibouti’s family, arguably giving his company an advantage over Dalkom Somalia at winning the contract.  However, as Mr. Jama points out, construction has yet to begin on this cable line, possibly suggesting that the announcement is merely a political move by the government of Somaliland as Mr. Gueti does has any rights to extend the EASSY Cable. Neither purchases any capacity from the members of the Consortium.

 

Southern Sudan and Kenya plan to construct a fiber optic cable link between the two nations as part of a larger project entitled “four-in-one.”  The project includes the construction of a railway line from Lokichogio to Juba, road rehabilitation, an oil pipeline, and fiber optic cables.

The Deputy Director of Kenya Southern Sudan Liaison Office (KESSULO), Albert Origa explained: “We have developed a paper which has been presented to the Cabinet for approval.  If approved, we will embark on the reconstruction of the railway and roads network, roll out a fiber optic cable and oil pipeline to connect the two countries.”

If connected, the cable will provide a stable information link for South Sudan to connect with the rest of Africa’s terrestrial fiber networks.  And, of course, the railway line and oil pipes are promising economic developments for both nations.

Railroad station in North Sudan, similar to the places where the railway and adjacent fiber will be placed. Photo: Tim McKulka/UN Photo

Mr. Jama Mohammed, board member on Kenya’s Frontier Optical Networks (FON), also confirmed the plans.  In a personal interview last week, before the Kenyan and South Sudan governments reached an agreement, Mr. Mohammed told me that the Kenyan government had built fiber to Lokichogio already, and was looking for a private telecom to manage the system and light the fiber.  FON, however, was originally hesitant to sign until receiving a license in South Sudan, who announced recently a suspension of all telecommunications licenses until further notice.  With the agreement reached this week, however, it appears that the Government of South Sudan will be willing to work with a private business to manage the system.

The interim Government of South Sudan (GoSS) has requested that telecoms companies operating in the region suspend work until the administration publishes new regulations for the sector, with no specific target date for the regulations to be published.  Some early regulation methodologies were discussed in February of this year, when leaders in the ICT industry affiliated with South Sudan met with the Commonwealth Telecommunications Organisation (CTO) and discussed a possible three-year strategic plan for the new nation.

Photo: CIO East Africa

In October 2010, CTO helped GoSS organize a conference, entitled ICT4D: Southern Sudan.  From the conference and a previous ICT strategy report created by Pricewatershouse Coopers LLC in 2008, GoSS and CTO drafted an inception report during the consultation visit in February 2011, but they did not create any official policies.  The strategic plan includes involving ICTs in all sectors of Sudan’s infrastructure and economy.  CEO Dr. Ekwow Spio-Garbrah of the CTO exclaimed his excitement: “This new nation will have the opportunity to not merely leap-frog, but to cheetah pole-vault over other nations, if it is methodical about its approach in the ICT and other sectors.”

Currently, though, telecommunication companies in South Sudan are in limbo.  CEO of Zain telecoms, Hisham Mustafa Allam, said he could not be ‘100 per cent’ sure that the company’s mobile license would be valid in South Sudan after July. ‘There’s potential for South Sudan, but there are big challenges,’ he said, adding: ‘One of the problems we have right now is it costs lots of money to build sites and do a rollout (of fiber) in the south.’  South Sudan will have to rely on fiber from Kenya and Uganda, making the costs potentially quite high.  Zain has reportedly invested 20% of its total expenditures in the south of Sudan, including around 150 base stations.

South Sudan carried out a national survey in 2009, but did not include questions regarding Internet access.  However, only 15% of households own a phone, including 8% in rural areas and 59% in urban areas (primarily in the capital city, Juba).  The lack of households with phones indicates a lack of electricity and connectivity possibilities in general.

Despite these difficulties, broadband connectivity is within reach.  There are three current submarine cables that run to Port Sudan, in the north.  From Port Sudan, there is a terrestrial backbone network that extends to major urban areas in the north of Sudan.  However, no cables have been laid in South Sudan and there are no plans to connect the backhaul cables in the north with the south, as seen in the map pictured.  These cables are:

  • EASSy – (an East Africa Submarine Cable System with endpoints in South Africa and the Sudan)
  • FLAG FALCON – (FLAG Alcatel-Lucent Optical Network) – (Egypt, Sudan, Yemen, Saudi Arabia, Bahrain, Qatar, UAE, Kuwait, Oman, India, Maldives)
  • SAS-1 – (Saudi Arabia-Sudan)

Map: Mohamed El Bashir Hiraika

However, there are a series of cable networks near South Sudan that could potentially be expanded into the country:

  • KDN – Terrestrial cables have been laid and are under-construction in Kenya, Uganda, and Tanzania.  Discussions are underway to route the cables north to Juba.
  • Seacom – Involved in the undersea EASSy cables along the coast of East Africa.  They announced in June 2011 that they were going to move inland, working with governments of Burundi, Southern Sudan, and Somalia to make a terrestrial cable link in the Somali Cluster (also known as the East African Community – EAC).  Most likely, Seacom will partner with KDN and Altech, among other partners.
  • WIOCC – The largest investor at 29% in the EASSy cable system, the West Indian Ocean Cable Company is comprised of the main telecommunications firms in twelve African countries (listed below).  They are constructing East African terrestrial backhaul cables, including a cable line from Kampala, Uganda to Khartoum, Northern Sudan.  This line appears to run directly through Southern Sudan, with no plans to land the cable until Khartoum.
  • INTELSAT – Their satellite New Dawn has alleged potential to cover most of Africa, with the highest bandwidth in West Africa.  No private companies in Sudan, nor the Sudanese government, has partnered with them to construct a point of contact.
  • Umojanet – The African Union program “Nepad” wants to create a terrestrial cable system throughout the African continent, which they call Umojanet.  Nepad first expressed this dream in 2000.

In addition to private sector investments in broadband infrastructure, national governments near in East Africa are also investing in fiber optic cables.  Their willingness to politically and financially support national broadband networks makes the possible of public-private partnerships more possible.  As reported by Seacom in June 2011:

  • The governments of the East African Community (EAC) are investing over US$400 million in their respective national backbone infrastructure.  The cables cover more than 20,600 km.
  • Rwanda completed a 2300km cable costing more than $60 million.
  • Tanzania continues to lay its $170 million, 10,000km plus cable.
  • Burundi is also laying out the cable of 1300 km with the help of $10.5 million grant from the World Bank.
  • Uganda, acquired a Chinese loan of about $102 million to implement the 2,000km plus cable.
  • Kenya is also investing $60 million in the National Optic Fiber Backbone Infrastructure (NOFBI).  Some 5,000km of the cable had been laid down by June 2010.

Given these investments, South Sudan will feel pressure to compete with its neighbors in the ICT industry, potentially leading the government to support their own national networks and backhaul system.  Yet, given the tremendous financial burdens that the government will have in all of its sectors of development, much of the success regarding the ICT and telecommunications industries will depend on public-private partnerships.

Nigerian journalists and government officials; Photo: USAID

While reading a news article in Reuters Africa a couple of weeks ago, I came across some ICT statistics that caught my attention.  Funke Opeke, Chief Executive of the Main One Cable Company, last week estimated that Internet penetration would triple by 2013 in Nigeria, from the current 11% to 35-40%.

What surprised me, though, was not Opeke’s claim that Internet penetration would triple, but instead the statistics themselves.  I knew that the ITU reported Internet penetration at 28.4% in Nigeria, quite different from Opeke’s 11% estimate.  I contacted the author of the article, who forwarded me an excel document from Mrs. Opeke.  The excel document had Internet penetration estimates in Nigeria from nine different hyperlinked sources such as the ITU, Business Monitor International, and the World Bank, with estimates ranging from 7-40%.  Opeke used the 11% estimate in her public statement on increasing Internet access in Nigeria, she explained, to be conservative in announcing Main One’s plans.

However, I followed the hyperlinks to verify the statistics and found that they were in fact quite incorrect.  Most of the websites deferred to the ITU’s 28.4%.  Some of the Internet penetration statistics on the excel document were incorrectly entered, or gathered from the wrong year, or even from a different country, not Nigeria.  The actual statistics reported in various reports on the Internet almost always come back to the ITU.

The root of the problem is that the news agencies are reporting the goals of the telecommunications companies as objective statistical projections.  The motivation for the companies, or government ICT ministries, to exaggerate their projections and manipulate data is inherent.  Instead of reporting private businesses’ “predictions” as facts, journalists should verify businesses’ claims with data from the ITU.

Further examples of inaccurate data reporting are widely available.  Cisco Systems announced earlier this month that global Internet traffic will quadruple by 2015, based on their predictions.  The headline read simply, “Internet traffic set to take off.” Recently, Nigerian journalists published an article entitled “Broadband is the future of our economy,” based solely on the personal comments of the CEO of Nigerian company Geoid Telecommunications:

I quite agree that broadband is the future of Nigeria’s economy.  I think it is obvious given the increased penetration of wireless devices in Nigeria.  …a greater number of Nigerians now have wireless devices such as the BlackBerry, i-Pads and so on.”

Photo: ITU flickr

One critic of Nigerian telecommunications, Nmachi Jidemna, highlights the low amount technological development in Nigeria in comparison to South Africa and Kenya.  The success of M-PESA, Ushahidi, MXit, and Umbono, among other applications in Kenya and South Africa, are attracting foreign attention and, more importantly, foreign investment.  While in Nigeria Internet penetration is relatively high, technological development is comparatively low.

Since the Nigerian telecommunications industry has not attracted as many investors from the private sector or created revolutionary applications, the Nigerian government has created a local technological hub mimicking Silicon Valley in the United States, the Abuja Technology Village.  Since its creation in 2009, though, there have been few positive outcomes of the initiative, leaving technological development at a standstill in Nigeria.

Yet, the Internet can be a powerful tool for development.  Its potential as a tool to facilitate development, though, should not be over-stated.  Claims that demand for Internet access is “insatiable” or that access will triple within two years, should be reported more cautiously.  News agencies should continue to interview telecommunication companies, but should paint a more objective picture of reality.

 

 

Kenya’s Kenyatta University

Kenya’s Kenyatta University’s referral hospital’s doctors and interns are getting a boost in the services they are able to provide to patients with the establishment of an e-care system that will enable them to consult with doctors and experts across the globe.

According to Vice-Chancellor Olive Mugenda, the new e-technology will enable patients to receive the appropriate care needed inside the country, and not be forced to travel abroad to consult other experts. The move is likely to see Kenyans overall health costs reduced.

The KES Sh9 billion (about USD $100 million) hospital,  funded by the Chinese and Kenyan governments, will also connect medics at the referral hospital with those in rural areas.

Mugenda says the facility would have a cancer unit and a geriatric wing to provide health care for the old. ”The need for a cancer unit is justified by the increasing cases of the disease among our people,” says Mugenda.

The university will, on 8 July 2011, officially launch a centre to equip students with the necessary skills to be job creators.

The Business Innovation and Incubation Centre will offer students office space, Internet facilities, capital to start businesses and assistance in marketing their products.

Janan Yussif

 

CEC Executive Chairman Hanson Sindowe

Zambia’s Competition and Consumer Protection Commission has approved a proposed joint venture between Copperbelt Energy Corporation (CEC) and Liquid Telecommunications Holding of Mauritius into one major conglomerate.

The move has investors and analysts excited about the future prospects of the telecom sector in Zambia.

“We have long been left outside major moves and investment so hopefully this will help jumpstart the industry in the right direction,” says John Yubo, a Zambian IT professional.

The agreement will form the new company CEC Liquid Telecommunications Limited. Brian Lingela, CCPC spokesperson, says the commission gave the final authorization as the deal did not infringe upon competition concerns.

The new venture will see each company with an equal 50% share in the new company and is to be incorporated in Zambia. Both companies are also expected to invest some $30 million in the establishment of the new company.

“The transaction did not raise competition concerns in the fiber optic market,” says Lingela.

“Investigations by the commission found that the proposed joint venture would not raise competition concerns in terms of increasing barriers to entry in the market,” he added.

Lingela says that the CCPC did not believe that CEC would abuse its 40 percent market share of the fibre optic market.

“In their deliberations, the board expressed hope that the transaction would result into some efficiencies particularly because Liquid Telecom has a regional reputation in the provision of fiber optic network from which CEC would benefit,” says Lingela.

By: Staff Writer

 

VAS Africa 2011 is currently underway 

Gateway Communications, supplier of pan-African telecommunications services, is showcasing its range of value added services (VAS) for ISPs (internet service providers) and African mobile network operators (MNOs) at the VAS Africa 2011 currently underway at the Sandton Convention Centre, South Africa.

The Gateway Communications VAS products offer turnkey solutions, which can open up new revenue streams for MNOs and ISPs in Africa.

The company has vast voice and data transmission networks experience. Some of Gateway’s VAS products include Cibenix, an on-device service enabling MNOs to have a strategic presence on their customers’ handsets, ranging from smartphones to feature phones.

“Our presence in over 40 African countries, teamed with our rich heritage of successfully delivering critical services that mobile operators depend on to run their networks, makes Gateway Communications the right partner to deliver rapid growth.

Our ever expanding VAS solutions are tailored for the African market so we deliver new services that drive revenue for operators,” says Mike van den Bergh, CEO of Gateway Communications.

Gateway Communications is launching Data on Demand, a pre-paid data solution giving ISPs and MNOs the ability to buy capacity with no long-term commitments.

The VAS Africa event aims to serve the development needs of African operators to extend and expand their VAS offerings.

 

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