Presentation EC project

Presentation EC project

HIPSSA Project Support for Harmonization of the ICT Policies in Sub-Sahara Africa An overview of the international bandwidth market: An African perspective Isabelle Gross Balancing Act International Telecommunication Union

Table of contents Introduction Major changes in the international bandwidth market over the last 2 to 3 years The SAT3 experience International bandwidth: an essential element in the value chain of delivering affordable broadband services in Africa

International bandwidth: the way forward for Africa Introduction: Bandwidth is the petrol of the new global economy (rich content; ecommerce; e-government, etc ) Affordable international bandwidth is an essential component for any African country to remain competitive in an more and more interconnected world. Major changes in the international bandwidth market over the last 2 to 3

years International bandwidth went from scarcity to abundance International bandwidth is progressively switching from satellite to sub-marine fibre cables Several African countries will have for the first time a direct connection to international fibre capacity International bandwidth went from scarcity to abundance Cable

Timing Maximum capacity East coast Seacom Implemented 1.2 Tbps TEAMS

Implemented 1.2 Tbps EASSy Implemented 1.4 Tbps LION 1 and 2 implemented

N/A SAT3 2002 340 Gbps Glo One Implemented 2.5 Tbps

Main One Implemented 2 Tbps WACS Q3, 2012 1.97 Tbps ACE

Q4, 2012 5.2 Tbps West coast International bandwidth is progressively switching from satellite to sub-marine fibre cables yes, in the coastal countries/cities but - national backbones needs still to be built out

- landlocked countries need to be connected too Several African countries will have for the first time a direct connection to international fibre capacity - in East Africa: all countries connected to Team, Seacom, EASSy or Lion - in West Africa: Mauritania, Gambia, Guinea, Sierra Leone, Liberia, Togo, Sao&Principe, Equatorial Guinea - in Central Africa: Congo DRC, Congo, Namibia The SAT3 experience

Learning from the past is essential - mismanagement - artificial scarcity of bandwidth - high prices - major access issues The SAT3 experience Learning from the past is essential - mismanagement: the case of Nitel in Nigeria (alternate exit route to SAT3 via Benin, the neighbouring country) - international capacity remained

scare despite availability The SAT3 experience Learning from the past is essential - prices were very high: +US$5,000 - it was very difficult to access international capacity because of the monopoly of the national incumbent on the international cable and landing station (Camtel in Cameroon; Benin Telecom in Benin, Telkom in South Africa, etc)

International bandwidth: an essential element in the value chain of delivering affordable broadband services in Africa Most African countries have an ICT programme/plan Most ICT programmes/plans pledge to promote the delivery of affordable broadband services to the population Ask participants about the situation in their country? International bandwidth: an essential element in the value chain of delivering affordable broadband services in Africa

the value chain of delivering affordable broadband services can be schematically sliced down to 3 segments: - local access (access to the customer) - national link - international link (submarine cable and landing station) International bandwidth: an essential element in the value chain of delivering affordable broadband services in Africa high prices and/or restricted access (monopoly) in any of these 3 segments will impair the delivery of affordable broadband

services International bandwidth: the way forward for Africa The goals are: - improve access to international capacity - make prices more affordable International bandwidth: the way forward for Africa How to do it? - leave it to free market forces to play their role (possible in countries with more than 3

cables e.g. Nigeria, Kenya, South Africa, Ghana) - regulation (essential in particular in countries with a single landing station) the example of Liberia Thanks a lot for your attention Union Internationale des Tlcommunications International Telecommunication Union

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