BRIDGING THE DIGITAL DIVIDE IN AFRICA AND AROUND THE … · Algeria Algerie Telecom 1900 MHz July 2004 ZTE 43 provinces in Algeria Spectrum Status Vendor Coverage ... • Orascom

BRIDGING THE DIGITAL BRIDGING THE DIGITAL DIVIDE IN AFRICA AND DIVIDE IN AFRICA AND AROUND THE WORLDAROUND THE WORLD

Sofie Maddens,Sofie Maddens,Senior Regulatory and Policy AdviserSenior Regulatory and Policy AdviserTelecommunications Management Group, Inc.Telecommunications Management Group, Inc.Executive Seminar on CDMA450Executive Seminar on CDMA450Nairobi, KenyaNairobi, KenyaMay 14, 2005 May 14, 2005

Sofie MaddensSofie MaddensMay 14, 2005May 14, 2005Nairobi, KenyaNairobi, Kenya

Executive Seminar on CDMA450Executive Seminar on CDMA450

OverviewOverviewImportance of Communications for Importance of Communications for DevelopmentDevelopmentGlobal Impact of Wireless Technology Global Impact of Wireless Technology The African Region The African Region 3G Technologies in Africa3G Technologies in AfricaIntroduction to CDMA 450 Introduction to CDMA 450 Advantages of CDMA 450 TechnologiesAdvantages of CDMA 450 TechnologiesCDMA450 Case Studies: Brazil and the CDMA450 Case Studies: Brazil and the Czech RepublicCzech RepublicWireless Technologies and the Digital Divide Wireless Technologies and the Digital Divide in Africain Africa



IMPORTANCE OF IMPORTANCE OF COMMUNICATIONS FOR COMMUNICATIONS FOR

DEVELOPMENTDEVELOPMENT



ImportanceImportance of Communications of Communications For DevelopmentFor Development

Important economic sectors (banks, insurance Important economic sectors (banks, insurance companies , airlines, import/export, ...) are almost companies , airlines, import/export, ...) are almost entirely dependent on communications to thrive entirely dependent on communications to thrive and to survive on national, regional and and to survive on national, regional and international levelinternational levelCoherence of country can be improved through Coherence of country can be improved through effective means of communicationseffective means of communicationsEducation and health need means of Education and health need means of communication and exchange of information to communication and exchange of information to develop in line with international examplesdevelop in line with international examples



GLOBAL IMPACT OF GLOBAL IMPACT OF WIRELESS TECHNOLOGYWIRELESS TECHNOLOGY



Mobile surpasses fixedMobile surpasses fixed……..

0

500

1,000

1,500

2,000

2,500

2000 2001 2002 2003 2004 2005

Fixed

Mobile

Worldwide fixed-line and mobile telephone subscribers,

millions

Source: Telecommunications Management Group, Inc. (2004 estimate and 2005 forecast).

By 2002, global mobile penetration had surpassed fixed-line penetration, and the gap has grown in each subsequent yearAt the end of 2004, there

were 1.7 billion mobile subscribers around the world, or approximately 25 percent of the world’s population



……and even surpasses 100% penetration in and even surpasses 100% penetration in some countriessome countries

9095

100105110115120125

Luxe

mbo

urg

Hon

g K

ong

Italy

Isra

elC

zech

Rep

.U

KSw

eden

Source: TMG, 2004

By the end of 2004, seven countries already had mobile penetration of over 100 percent and 140 countries had more mobile than fixed

Mobile Subscribers as % of Population, 2004



Countries with more mobile than fixed Countries with more mobile than fixed telephones (2002)telephones (2002)

Source: ITU World Telecommunication Indicators Database



It is not just about voiceIt is not just about voice……..

y = 23995xR2 = 0.6681

$100

$1,000

$10,000

$100,000

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

For each 1% increase in mobile penetration, GDP per capita goes up by US $240 Source: Michael Minges, TMG, and ITU World Telecommunications Database Statistics, 2003



…………it is about voice and datait is about voice and data

y = 48948x + 103.27R2 = 0.7387

$100

$1,000

$10,000

$100,000

0.0% 0.1% 1.0% 10.0% 100.0%

Internet penetration, 2002

GD

P pe

r cap

ita, 2

002

For each 1% increase in Internet penetration, GDP per capita goes up by US $593 Source: Michael Minges, TMG, and ITU World Telecommunications Database Statistics, 2003.



Mobile speedsMobile speeds

GSM cdmaOne GPRS CDMA 1x EDGE WCDMA CDMAEV-DO

"Offical" speed

Typical speed

550

2,400

30

384

IMT-2000 (3G)

Broadband (>256kbps)

200

kbps

60

156

100

35075

10



THE AFRICAN REGION THE AFRICAN REGION



The African RegionThe African RegionIn 2001 mobile subscribers surpassed fixed In 2001 mobile subscribers surpassed fixed subscribers in Africa subscribers in Africa –– the first region in the first region in the world to achieve this.the world to achieve this.In 2003 Africa had 73 million voice telephony In 2003 Africa had 73 million voice telephony subscribers subscribers –– 22 million fixed and 51 million 22 million fixed and 51 million mobile.mobile.In 19 African countries, mobile phones In 19 African countries, mobile phones account for at least three quarters of all account for at least three quarters of all telephones.telephones.It is expected that there will be 67 million It is expected that there will be 67 million mobile subscribers in Africa by the end of mobile subscribers in Africa by the end of 2005.2005.



The African RegionThe African RegionIn the last five years, Africa has added In the last five years, Africa has added more telecommunications users than more telecommunications users than in the last century.in the last century.It is currently the world region with It is currently the world region with the highest level of mobile the highest level of mobile communications growth.communications growth.The number of mobile subscribers, The number of mobile subscribers, however, only represents however, only represents approximately 11% of the regionapproximately 11% of the region’’s s population, and the mobile population, and the mobile penetration rate is estimated to have penetration rate is estimated to have reached only 9%. reached only 9%.



The African RegionThe African Region

Source: ITU World Telecommunications Indicators Database



The Region of AfricaThe Region of Africa

Source: ITU Telecom Africa 2004



The African RegionThe African Region

Source: ITU Telecom Africa 2004

(e) estimated (f) forecast



The African RegionThe African RegionIn Comparison to Other Developing NationsIn Comparison to Other Developing Nations

Source: ITU World Telecommunications Indicators Database



3G Technologies in Africa3G Technologies in Africa



3G wireless could be Africa3G wireless could be Africa’’s solution to s solution to broadbandbroadband

Limited broadband choices on the continent:Limited broadband choices on the continent:•• Hardly any cable television networks (most multiHardly any cable television networks (most multi--

channel television is delivered via satellite or channel television is delivered via satellite or microwave); cable modem access is not a viable optionmicrowave); cable modem access is not a viable option

•• Less than a dozen operators offering ADSL at end of Less than a dozen operators offering ADSL at end of 2004 and only around 1502004 and only around 150’’000 subscribers; relatively 000 subscribers; relatively few fixed lines in most countriesfew fixed lines in most countries

•• Existing fixed wireless offerings (other than CDMA2000) Existing fixed wireless offerings (other than CDMA2000) are typically not broadband speed (<256 kbps) and not are typically not broadband speed (<256 kbps) and not international standardsinternational standards

•• WiWi--Fi is a distribution technology and does not by itself Fi is a distribution technology and does not by itself provide access to Internet; provide access to Internet;

•• WiWi--Max is still unproven and not commercially available Max is still unproven and not commercially available technologytechnology



3G wireless could be Africa3G wireless could be Africa’’s solution to s solution to broadbandbroadband

BUTBUT……....

3G3G••is here today, is here today, •• is an international standard is an international standard ••and provides broadband speed and provides broadband speed •• in the 450 MHz band.in the 450 MHz band.



CDMA2000 1X and WLL in Africa CDMA2000 1X and WLL in Africa

LagosLagosMotorolaMotorolaFeb. 2004Feb. 2004800 MHz800 MHzIntercellularIntercellularNigeriaNigeria

LagosLagosNortelNortelMar. 2003Mar. 20031900 MHz1900 MHzMultiMulti--LinksLinksNigeriaNigeria

NationwideNationwideEricssonEricssonMar. 2003Mar. 20031900 MHz1900 MHzRelianceRelianceNigeriaNigeria

LagosLagosKanoKano

EricssonEricssonHuaweiHuawei

July 2003July 20031900 MHz1900 MHzStarcommsStarcommsNigeriaNigeria

Coverage PendingCoverage PendingHuaweiHuaweiTBATBA450 MHz450 MHzUTLUTL ‡‡UgandaUganda

Coverage PendingCoverage PendingHuaweiHuaweiNov. 2004Nov. 2004800 MHz800 MHzMTN Uganda MTN Uganda UgandaUganda

Abuja, Lagos, Abuja, Lagos, OgunOgunTELOSTELOSSep. 2003Sep. 2003800 MHz800 MHzCell Comm. Cell Comm. NigeriaNigeria

Coverage PendingCoverage PendingHuaweiHuaweiTBATBA450 MHz450 MHzTelekomTelekom Kenya Kenya KenyaKenya

Addis AbabaAddis AbabaNationwideNationwide

HuaweiHuaweiTBATBA800 MHz, 800 MHz, 450 MHz450 MHz

ETCETCEthiopiaEthiopia

Coverage PendingCoverage PendingNortel Nortel 2Q 20042Q 2004800 MHz800 MHzTelecom EgyptTelecom EgyptEgyptEgypt

BenguelaBenguela, , CabindaCabinda, , LuandaLuanda

MotorolaMotorolaNortelNortel

Jan. 2004Jan. 2004800 MHz800 MHzMovicelMovicelAngolaAngola††

43 provinces in Algeria43 provinces in AlgeriaZTEZTEJuly 2004July 20041900 MHz1900 MHzAlgerieAlgerie TelecomTelecomAlgeriaAlgeria

CoverageCoverageVendorVendorStatusStatusSpectrum Spectrum BandBand

OperatorOperatorCountryCountry

† Mobile. ‡ EV-DO. Source: TMG, Inc. adapted from CDG.



3G Milestones in Africa3G Milestones in Africa

26 March 200326 March 2003•• MultiMulti--Links [Nigeria] Launches AfricaLinks [Nigeria] Launches Africa’’s First s First

CDMA2000 1X Wireless NetworkCDMA2000 1X Wireless Network22 September 200322 September 2003•• MovicelMovicel (Angola) awards 1(Angola) awards 1stst mobile 3G contract mobile 3G contract

(CDMA2000 1x)(CDMA2000 1x)April 2004April 2004•• ScancomScancom (Ghana) announces equipment award (Ghana) announces equipment award

for EDGE networkfor EDGE network7 July 20047 July 2004•• OrascomOrascom TTéélléécomcom AlgAlgéérierie introduces multimedia introduces multimedia

EDGE mobile servicesEDGE mobile services



3G Milestones in Africa3G Milestones in Africa

16 September 200416 September 2004•• ZTE claims to make 1ZTE claims to make 1stst 3G call in Africa 3G call in Africa

from from ““experimentalexperimental”” WCDMA network in WCDMA network in TunisiaTunisia

1 December 20041 December 2004•• EMTEL (Mauritius) to launch first 3G EMTEL (Mauritius) to launch first 3G

(WCDMA) network in African region (WCDMA) network in African region 19 December 200419 December 2004•• VodacomVodacom (South Africa) launches 1(South Africa) launches 1stst

WCDMA network on WCDMA network on continentcontinent



2004 milestone year for 3G in Africa2004 milestone year for 3G in Africa

11stst mobilemobile 3G networks in Africa 3G networks in Africa commercially launched:commercially launched:

•• MovicelMovicel (Angola) CDMA2000 1x(Angola) CDMA2000 1x•• EmtelEmtel (Mauritius) WCDMA(Mauritius) WCDMA•• VodacomVodacom (South Africa) WCDMA(South Africa) WCDMA



MovicelMovicel Angola Angola –– CDMA 2000 1XCDMA 2000 1X

Launched: December 2004Launched: December 2004Initial Phase: rollInitial Phase: roll--out network equipment to out network equipment to provide CDMA voice, data access, SMS, and provide CDMA voice, data access, SMS, and international roaming to nearly 120,000 international roaming to nearly 120,000 subscribers in 32 remote sites in eight Angolan subscribers in 32 remote sites in eight Angolan provinces.provinces.By 2007: operator plans to expand both By 2007: operator plans to expand both subscriber capacity and network coverage area subscriber capacity and network coverage area resulting in more than 1 million subscribers.resulting in more than 1 million subscribers.



EMTEL Mauritius EMTEL Mauritius -- WCDMAWCDMA

Launched: November 2004 Launched: November 2004 –– the first African the first African commercial 3G network commercial 3G network Coverage is islandCoverage is island--wide wide Highest level of 3G service: including video Highest level of 3G service: including video phone, video conference, multimedia short phone, video conference, multimedia short message,streamingmessage,streaming download.download.Aside from the countryAside from the country’’s population, demand for s population, demand for improved mobile services stems from the more improved mobile services stems from the more than 700,000 international tourists that visit the than 700,000 international tourists that visit the island each year. island each year.



VodacomVodacom South Africa South Africa -- WCDMAWCDMALaunched: December 2004Launched: December 2004VodacomVodacom is Africais Africa’’s biggest mobile operator with 12.4 s biggest mobile operator with 12.4 million customers in five countries.million customers in five countries.In South Africa, they have 95% network coverage.In South Africa, they have 95% network coverage.Initial WCDMA network rollInitial WCDMA network roll--out to include major out to include major metropolitan (Johannesburg, Pretoria, Cape Town and metropolitan (Johannesburg, Pretoria, Cape Town and Durban) and selected vacation areas.Durban) and selected vacation areas.VodacomVodacom is required to take mobile technology into is required to take mobile technology into poverty stricken areas.poverty stricken areas.Initially offered with PC data cards Initially offered with PC data cards Vodafone live! Vodafone live! for for handsets; tariffs the same for voice and video calls as handsets; tariffs the same for voice and video calls as 2G. 2G. Operator is predicting that 3G services will account for Operator is predicting that 3G services will account for 10% of revenues by 2007, and considering expansion of 10% of revenues by 2007, and considering expansion of 3G services to Tanzania and the Democratic Republic of 3G services to Tanzania and the Democratic Republic of Congo. Congo.



CERT Tunisia CERT Tunisia -- WCDMAWCDMA

Experimental networkExperimental networkLaunch planned for WSISLaunch planned for WSISCoverage includes Tunis and Coverage includes Tunis and HammametHammamet

Vendors are Alcatel and Vendors are Alcatel and HuaweiHuawei



EVEV--DODO

Uganda Telecom (450 MHz) under Uganda Telecom (450 MHz) under deploymentdeploymentSouth Africa trial testing applications such South Africa trial testing applications such as realas real--time monitoring for security, traffic time monitoring for security, traffic cameras, telemedicine and distance cameras, telemedicine and distance learninglearning



INTRODUCTION INTRODUCTION TO CDMA450TO CDMA450



CDMA 450 MHzCDMA 450 MHz

“Broadly speaking, there are two types of business models to which CDMA450 is particularly well suited. First, it is the most cost effective way of delivering ubiquitous voice services and 3G mobile broadband to markets with large rural areas.”—Lucent

Sub-Saharan Africa: > 60% rural



Introduction to CDMA450Introduction to CDMA450

CDMA450 is the common name for CDMA450 is the common name for CDMA2000 deployments in the 400 MHz CDMA2000 deployments in the 400 MHz bandbandCDMA450 is a member of the IMTCDMA450 is a member of the IMT--2000 2000 family of standards (3G) as part of the family of standards (3G) as part of the ITUITU--R Recommendation M.1457R Recommendation M.1457Band class 5 of the IMTBand class 5 of the IMT--2000 standard 2000 standard includes 411includes 411--493 MHz band 493 MHz band Can be used for both mobile and WLL Can be used for both mobile and WLL applicationsapplications



Development of CDMA450 in the WorldDevelopment of CDMA450 in the World

Key driver for CDMA450 was that NMT Key driver for CDMA450 was that NMT operators were faced with no digital operators were faced with no digital technology options for migration technology options for migration

CDMA450 was developed in response to CDMA450 was developed in response to meet the need of NMT450 operatorsmeet the need of NMT450 operators

CDMA2000 is one of the few IMTCDMA2000 is one of the few IMT--2000 (or 2000 (or 3G technologies) that fits into less than 5 3G technologies) that fits into less than 5 MHz of spectrum so it aligns well with NMT MHz of spectrum so it aligns well with NMT spectrum allocationspectrum allocation



Development of CDMA450 in the WorldDevelopment of CDMA450 in the World

Over 70 NMT operators in Europe and 63 Over 70 NMT operators in Europe and 63 NMT operators in Russia, the CIS, and NMT operators in Russia, the CIS, and Asia were interested in the business case Asia were interested in the business case for advanced wireless services with for advanced wireless services with CDMA450, thus creating economies of CDMA450, thus creating economies of scalescaleNMT operators have overwhelmingly NMT operators have overwhelmingly chosen CDMA450 as their choice of inchosen CDMA450 as their choice of in--band migration to IMTband migration to IMT--20002000Russia has recognized CDMA450 as a Russia has recognized CDMA450 as a national standardnational standard



CDMA450 TECHNOLOGYCDMA450 TECHNOLOGY-- ADVANTAGESADVANTAGES



CDMA450 CDMA450 –– AdvantagesAdvantagesBrings Brings advanced wireless serviceadvanced wireless service to to areas previously underserved or areas previously underserved or unservedunserved

A A costcost--effective effective solution for countries solution for countries working to achieve working to achieve universal serviceuniversal servicegoalsgoals

Multiple applicationsMultiple applications, including: , including: defense, public safety, security, education, defense, public safety, security, education, health, small and mediumhealth, small and medium--sized sized companies companies

Provides a Provides a clear migration pathclear migration path for for NMT450 operators currently orphaned at NMT450 operators currently orphaned at 1G1G



CDMA450 CASE STUDIES:CDMA450 CASE STUDIES:Brazil and the Czech Republic Brazil and the Czech Republic



Providing Extended Coverage Using Providing Extended Coverage Using CDMA450CDMA450

CDMA2000 in countries such as Australia, Russia, CDMA2000 in countries such as Australia, Russia, Brazil, China and India has proven to be an Brazil, China and India has proven to be an effective technology to provide vast coverage effective technology to provide vast coverage benefits to rural areas.benefits to rural areas.Lower bands (such as 800 MHz and 450 MHz) are Lower bands (such as 800 MHz and 450 MHz) are ideal for covering vast areas because:ideal for covering vast areas because:•• Large areas are otherwise difficult to reach Large areas are otherwise difficult to reach

using fiber and copper.using fiber and copper.•• Favorable propagation characteristics of lower Favorable propagation characteristics of lower

frequencies grant significant cost advantages. frequencies grant significant cost advantages. Because lower bands propagate further, they Because lower bands propagate further, they require less infrastructure equipment and cover require less infrastructure equipment and cover a greater distance. a greater distance. 1. http://www.telstra.com.au/mobile/business/products/mobilebroadband.htm?tR=3m



Partnership between Lucent and Anatel (Brazilian telecom regulatPartnership between Lucent and Anatel (Brazilian telecom regulator) to or) to demonstrate CDMA2000 1xEVdemonstrate CDMA2000 1xEV--DO broadband data capabilities and DO broadband data capabilities and coverage at lower frequencies for universal broadband access.coverage at lower frequencies for universal broadband access.

Bus visited government agencies and rural public schools to Bus visited government agencies and rural public schools to provide broadband access. Such a model is expected to be provide broadband access. Such a model is expected to be replicated widely and provide high speed Internet access cost replicated widely and provide high speed Internet access cost effectively over great distances.effectively over great distances.

Broadband data coverage, distance from the base station:Broadband data coverage, distance from the base station:••45 Km Outdoor 45 Km Outdoor –– 800 Kbps Peak Speed (with External Antenna)800 Kbps Peak Speed (with External Antenna)••17 Km Indoor 17 Km Indoor –– 800 Kbps Peak Speed (with no External Antenna)800 Kbps Peak Speed (with no External Antenna)

Providing Extended Coverage Using CDMA450CDMA2000 1xEV-DO at 450 MHz: Brazil



CDMA2000 1xEV-DO at 450 MHz: Brazil



**See online video in English, Spanish, and Portuguese : http://projetoscd.isat.com.br

CDMA2000 1xEV-DO at 450 MHz: Brazil



High Speed Data ServicesHigh Speed Data ServicesUsing CDMA450 EVUsing CDMA450 EV--DO service: Czech RepublicDO service: Czech RepublicWorldWorld’’s first 450 MHz CDMA EVs first 450 MHz CDMA EV--DO service launched in DO service launched in 2004 by 2004 by EurotelEurotel, Czech Republic mobile operator, Czech Republic mobile operatorEurotelEurotel, fully owned by Czech Telecom, fully owned by Czech TelecomServices provided include:Services provided include:•• NMT 450MHz mobileNMT 450MHz mobile•• GSM mobileGSM mobile•• WiFiWiFi•• GPRS/EDGEGPRS/EDGE•• CDMA 2000 EVCDMA 2000 EV--DODO

UMTS (WCDMA) license; to launch before January 2006UMTS (WCDMA) license; to launch before January 2006ADSL (Provided by Czech Telecom)ADSL (Provided by Czech Telecom)

Full suite of wired and wireless Internet access services!Full suite of wired and wireless Internet access services!CDMA EVCDMA EV--DO provided by GSM operator!DO provided by GSM operator!



High Speed Data ServicesHigh Speed Data ServicesUsing CDMA450 EVUsing CDMA450 EV--DO service: Czech RepublicDO service: Czech Republic

The original 450 MHz operating license was The original 450 MHz operating license was granted for a period of twenty years from the granted for a period of twenty years from the signing of the agreement for the 450 MHz license signing of the agreement for the 450 MHz license in 1991. in 1991. In 2002, In 2002, EurotelEurotel renewed its 450 MHz renewed its 450 MHz license; the current license enables license; the current license enables EurotelEurotelto offer any internationally recognized to offer any internationally recognized public mobile telecommunication services public mobile telecommunication services on a frequency of 450 MHz. The license is on a frequency of 450 MHz. The license is currently valid for the remaining period of currently valid for the remaining period of eight years.eight years.



High Speed Data ServicesHigh Speed Data ServicesUsing CDMA450 EVUsing CDMA450 EV--DO service: Czech RepublicDO service: Czech Republic



Wireless Technologies and Wireless Technologies and the Digital Divide in Africathe Digital Divide in Africa



AccessibilityAccessibilityMobile wireless subscribers grew by over 1,000% Mobile wireless subscribers grew by over 1,000% during the 1998 during the 1998 –– 2003 period.2003 period.Mobile infrastructure has extended beyond that Mobile infrastructure has extended beyond that of fixedof fixed--line into rural and line into rural and ““universal accessuniversal access””markets. markets. •• Still, only an estimated 50% of SubStill, only an estimated 50% of Sub--Saharan Africa is Saharan Africa is

covered by a mobile signalcovered by a mobile signal•• And mobile penetration varies greatly from one country And mobile penetration varies greatly from one country

to another to another –– ranging from 1% in Ethiopia to almost 75% ranging from 1% in Ethiopia to almost 75% in in RRééunionunion (end of 2003).(end of 2003).

Source: The Economist, 2005



AffordabilityAffordabilityPrepaid servicesPrepaid services have become key in a region that has have become key in a region that has low per capita income and where payment in cash is the low per capita income and where payment in cash is the preferred option. preferred option. It is estimated that It is estimated that four out of every fivefour out of every five African African subscribers subscribers –– almost twice the global average almost twice the global average –– use preuse pre--paid services. paid services. More and more African networks are preferring to operate More and more African networks are preferring to operate only as preonly as pre--paid. paid. Easy payment options have allowed mobile services to Easy payment options have allowed mobile services to extend to segments, of both urban and rural populations, extend to segments, of both urban and rural populations, that could not afford them that could not afford them –– and where demand is high.and where demand is high.



Entrepreneurship and Job OpportunitiesEntrepreneurship and Job Opportunities

Vendors selling air Vendors selling air time on rental phones, time on rental phones, vendors selling vendors selling prepaid cards, prepaid cards, relayersrelayers/receivers of /receivers of text messages, and/or text messages, and/or vendors of phone vendors of phone accessories are but a accessories are but a few examples of how few examples of how wireless technologies wireless technologies are encouraging are encouraging entrepreneurship and entrepreneurship and the creation of jobs in the creation of jobs in many African many African countries.countries.

Nigeria’s Umbrella People

Source: Nigerian Communications Commission, 2004



•• Mobile Phones and Small BusinessesMobile Phones and Small BusinessesAlmost 85% of businesses surveyed in Egypt and 89% of Almost 85% of businesses surveyed in Egypt and 89% of businesses surveyed in South Africa indicated usage of a businesses surveyed in South Africa indicated usage of a mobile phone.mobile phone.

•• Mobile phones had overtaken fixed line ones as the Mobile phones had overtaken fixed line ones as the most important communication tool for businesses that most important communication tool for businesses that were surveyed.were surveyed.

More than 85% of small businesses (run by black people) More than 85% of small businesses (run by black people) surveyed in South Africa depend solely on mobile phones surveyed in South Africa depend solely on mobile phones for telecommunicationsfor telecommunicationsApproximately 62% of businesses in South Africa, and 59% Approximately 62% of businesses in South Africa, and 59% in Egypt, indicated mobile use was linked to an increase in in Egypt, indicated mobile use was linked to an increase in profits profits –– in spite of the higher cost of calls.in spite of the higher cost of calls.In addition, businesses surveyed indicated an increase in In addition, businesses surveyed indicated an increase in profits, reduced travel and increase in efficiency.profits, reduced travel and increase in efficiency.

source: Africa: The Impact of Mobile source: Africa: The Impact of Mobile PhonesPhones””ackedacked by Vodafone and the Center for Economic Policy by Vodafone and the Center for Economic Policy

ResearchResearch




•• Mobile Phones and CommunitiesMobile Phones and CommunitiesIn Tanzania, of those people surveyed, 97% said they In Tanzania, of those people surveyed, 97% said they could access a mobile phone, while just 28% said they could access a mobile phone, while just 28% said they could access a land line phone.could access a land line phone.The higher proportion of users as opposed to owners in The higher proportion of users as opposed to owners in Tanzania suggested a greater degree of Tanzania suggested a greater degree of ‘‘sharingsharing’’ of of mobiles than in South Africa.mobiles than in South Africa.50% of the respondents 50% of the respondents -- who were mobile users who were mobile users -- were were within the lowest monthly income bracket (approximately within the lowest monthly income bracket (approximately $85$85--$170 per month). $170 per month). In South Africa, communities with and without electricity In South Africa, communities with and without electricity owned and used mobile phones equally.owned and used mobile phones equally.In Tanzania, 57% of respondents, considered that mobile In Tanzania, 57% of respondents, considered that mobile phones were key in facilitating faster and improved phones were key in facilitating faster and improved communication. In South Africa, respondents considered communication. In South Africa, respondents considered mobile phones an important tool for job searching. mobile phones an important tool for job searching.

source: Africa: The Impact of Mobile source: Africa: The Impact of Mobile PhonesPhones””ackedacked by Vodafone and the Center for Economic Policy Researchby Vodafone and the Center for Economic Policy Research




Appropriate Regulatory FrameworkAppropriate Regulatory Framework

Aside from liberalization and competition, one Aside from liberalization and competition, one regulatory measure which can particularly regulatory measure which can particularly contribute to improving communication and contribute to improving communication and reducing the digital divide is rollreducing the digital divide is roll--out out requirements in mobile licenses.requirements in mobile licenses.

•• South Africa: in 1996, incumbent operator South Africa: in 1996, incumbent operator TelkomTelkom had had specific rollspecific roll--out targets, including 2.7 million new lines out targets, including 2.7 million new lines (1.7 million in under(1.7 million in under--served areas) and 120,000 served areas) and 120,000 community pay phones. Now, all operators must deploy community pay phones. Now, all operators must deploy community pay phones.community pay phones.

•• Uganda: Major operators are required to attend to rural Uganda: Major operators are required to attend to rural communication development which, aside from communication development which, aside from providing voice telephony in those subproviding voice telephony in those sub--counties they counties they service, includes providing one public access phone per service, includes providing one public access phone per 5,000 inhabitants by 2005. 5,000 inhabitants by 2005.



In ConclusionIn Conclusion……

With a population of over 800 With a population of over 800 million people and more than 50 million people and more than 50 million mobile phone users at million mobile phone users at present, room for growth and present, room for growth and opportunity is vast. opportunity is vast. Further liberalization and more Further liberalization and more competition should continue to be competition should continue to be encouraged, as should the encouraged, as should the establishment of regulatory establishment of regulatory frameworks that foster accessibility frameworks that foster accessibility for all.for all.




Innovativeness should be Innovativeness should be encouraged and supported.encouraged and supported.Also, despite the higher cost of calls Also, despite the higher cost of calls on mobile phones (in comparison to on mobile phones (in comparison to cost of calls of fixed phones), mobile cost of calls of fixed phones), mobile phone usage has continued to phone usage has continued to growgrow……imagine what the growth in imagine what the growth in the usage rate would be if prices the usage rate would be if prices were closer to cost. were closer to cost.




In sum, wireless technologies In sum, wireless technologies –– such as such as CDMA450 CDMA450 –– can provide a way to offer affordable can provide a way to offer affordable communications to a greater number of people communications to a greater number of people thus helping to foster the decrease of the digital thus helping to foster the decrease of the digital divide.divide.



““Rather than trying to close the divide for the sake Rather than trying to close the divide for the sake of it, the more sensible goal is to determine how of it, the more sensible goal is to determine how

best to use technology to promote bottombest to use technology to promote bottom--up up development. And the answer to that question development. And the answer to that question turns out to be remarkably clear: by promoting turns out to be remarkably clear: by promoting the spread not of PCs and the internet, but of the spread not of PCs and the internet, but of mobile phones.mobile phones.”” –– The Economist, March 2005The Economist, March 2005



THANK YOU!THANK YOU!

Sofie MaddensSofie MaddensSenior Regulatory and Policy AdviserSenior Regulatory and Policy Adviser

Telecommunications Management Group, Inc.Telecommunications Management Group, Inc.1600 Wilson Blvd., Suite 7101600 Wilson Blvd., Suite 710

Arlington, Virginia 22209Arlington, Virginia 22209Tel: +1Tel: +1--703703--224224--15011501Fax: +1Fax: +1--703703--224224--15111511www.tmgtelecom.comwww.tmgtelecom.com

Documents

BRIDGING THE DIGITAL DIVIDE IN AFRICA AND AROUND THE … · Algeria Algerie Telecom 1900 MHz July 2004 ZTE 43 provinces in Algeria Spectrum Status Vendor Coverage ... • Orascom