InternationalTelecommunicationUnion

HIPSSA ProjectHIPSSA Project

Support for Harmonization of the ICT Policies Support for Harmonization of the ICT Policies in Sub-Sahara Africa in Sub-Sahara Africa

An overview of the international bandwidth

market: An African perspective

Isabelle Gross – Balancing Act

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Table of contentsTable 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

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Introduction:

► Bandwidth is the petrol of the new global economy (rich content; e-commerce; e-government, etc… )

► Affordable international bandwidth is an essential component for any African country to remain competitive in an more and more interconnected world.

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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

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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

West coast    

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

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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

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- 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

Several African countries will have for the first time a direct connection to international fibre capacity

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The SAT3 experience

► Learning from the past is essential… …

- mismanagement

- artificial scarcity of bandwidth

- high prices

- major access issues

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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

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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…)

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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?

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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)

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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

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International bandwidth: the way forward for Africa

► The goals are:

- improve access to international capacity

- make prices more affordable

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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

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Thanks a lot for your Thanks a lot for your attentionattention

Union Internationale des Télécommunications International Telecommunication Union