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IMPORTANCE OF FIBEROPTIC LINKS

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African Internet Service Providers Association incorporated in Mauritius in 2001 ... and Reunion, and later Mozambique, Tanzania, Madagascar, Mayotte, and Mauritius' ... – PowerPoint PPT presentation

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Title: IMPORTANCE OF FIBEROPTIC LINKS


1
IMPORTANCE OF FIBER-OPTIC LINKS
  • Eric Osiakwan
  • Executive Secretary
  • African ISP Association
  • http//www.afrispa.org

2
AfrISPA?
  • African Internet Service Providers Association
    incorporated in Mauritius in 2001 with focus of
    building African Internet Infrastructure
  • Executive Management William Stucke Chairman,
    Eric Osiakwan - Executive Secretary, Brian Longwe
    - GM, Viv Padayatchy Treasurer, Didier Kasole
    Francophone Rep. and Kamal Patel - Director
  • Current members are
  • ISPA South Africa
  • TESPOK Kenya
  • UISPA Uganda
  • GISPA Ghana
  • ISPAN Nigeria
  • FAIR Mauritius
  • TISPA Tanzania
  • BISPA Botswana
  • AFIM Mali
  • MISPA Malawi
  • AFAIB Benin
  • ISPA-DRC Democratic Republic of
    the Congo

3
Bandwidth cost in Africa is prohibitive
  • Bandwidth demand rose by 19 in the 2001, 28 in
    2002 and 37 in 2003
  • In the case of one of the poorest countries in
    Africa, its incumbent telco spends US3.2 million
    on satellite transmission, of which US2.4
    million is spent on routing calls within the
    country and the balance is spent on international
    calls.
  • Global bandwidth average is between 10 and 12
    but a recent report by Balancing Act Africa
    predicts a 24 growth for the next 3 years to
    2008
  • Against the backdrop of routing local traffic
    internationally costing the continent about 400
    million a year - this represents capital flight
    out of Africa
  • Sources Balancing Act Africa -
    www.balancingact-africa.com, ITU - www.itu.int
    and Fibre for Africa - www.fibreforafrica.net

Source ATICS, 2004, World Bank, www.atics.info
4
Closed Access SAT3
  • After 6 years of deployment, SAT 3 has less than
    5 usage because
  • closed club deal approach to building -
    incumbent PPTs on Monopoly
  • in Cameroon an e1 cost USD32,000 whiles same
    cost 3500 in Ghana and Nigeria
  • political ownership and protectionism - no
    volume business

http//www.balancingact-africa.com/news/back/balan
cing-act_317.html
5
GLO-1 for West Africa
  • Project by Globalcom, Second National Operator in
    Nigeria, connecting to the United Kingdom
  • Globalcom is leading Mobile Operator with
    15million subscribers and 2billion international
    voice minutes annually
  • GLO-1 scaled down due to lack of political
    co-operation for landing rights
  • Alcatel Lucent cable ship left Nigeria for
    Senegal in January to complete cable
  • Would be priced below SAT3
  • Start with Nigeria and expand

6
The MaIN OnE Fiber
  • Main Street Technologies is the sponsor of the
    MaIN OnE cable system serving the West Coast of
    Africa. MaIN OnE will interconnect countries on
    the Atlantic Coast Coast from Morocco through to
    Angola with each other, and through Portugal to
    the rest of the world, pricing independent of
    distance.
  • MaIN OnE is an open access system to provide
    international and internet communications
    capacity via direct subscription to all operators
    who have wholesale capacity requirements.The
    system is currently under development and is
    targeted for commissioning in 2009.
  • The submerged cable will have a capacity of 1.28
    terrabits and will connect the following 10
    countries Portugal.Morocco, Senegal, Cote
    d?Ivoire, Ghana, Nigeria (Lagos and Port
    Harcourt), Gabon, the DRC, Angola and South
    Africa.

7
Infinity Telecoms still in the game
  • Unveiled at NEPAD E-Africa conference, 2005
  • Infinity Worldwide Telecommunications Group of
    Companies (IWTGC) led by Nigerian Adedoyin
    Ademilola and American Robert Woog
  • Branched network connecting Portugal, Cameroon,
    Nigeria, Benin, Liberia, Senegal, Cote d'lvoire
    and Ghana
  • Cost 865mil - 750mil
  • MOU with VSNL in May, 2007

8
TEAMS LTD for East Africa
  • Point-to-point system connecting Mombasa, Kenya
    and Fujairah, UAE
  • Proposed by Government of Kenya (GoK) in 2006,
    now through existing vehicle called TEAMS
  • Ownership Govt. of Kenya (20) and UAE
    incumbent Etisalat (15), The remaining 65 is
    distributed among other private investors.
  • Supply contract awarded to Alcatel-Lucent in
    October, 2007 82 million
  • Cable capacity increased to 1.28Tbps
  • Manufacturing of the cable has started because
    GOK issued both guarantee and first payment to
    Alcatel and cable expected in Mombasa in the
    first quarter of 2009.

9
SEACOM for E.A and S.A
  • Investors Herakles (backed by Blackstone) Aga
    Khan Fund for Economic Development (founded by
    Prince Karim Aga Khan IV of Pakistan) through
    IPS Venfin (led by South African Johann Rupert)
    Convergence Partners (led by former South African
    DoC DG Andile Ngcaba) Shanduka (led by South
    African Cyril Ramaphosa) Neotel has pledged ZAR
    20 million for cable station
  • Cost650 million
  • RFS 2009
  • Financing arranged by Nedbank and Investec
  • Supply contract signed with Tyco and cable
    expected in 2009

10
UNEASY for EASSy so FAR
  • Consortium of regional incumbent telecom
    operators
  • Cost265 million
  • RFS 2009
  • Financing from Development Financial Institutions
    (DFIs) including World Bank/IFC, EIB, ADB, AFD,
    KfW
  • Supply contract signed with Alcatel-Lucent
  • Buildout started by Alcatel-Lucent who said it
    would be ready in first quarter 2010

11
BAHARICOM and 5P Holdings
  • Massive network connecting most of Africa to
    Europe, South America, and Asia
  • Target RFS 2009 or 2010
  • Confirmed and rumored investors
  • 5P Holdings (US company led by Mool Singhi)
  • International Development Office of the
    government of Ras Al Khaimah (an emirate in the
    UAE)
  • Pan-African Infrastructure Development Fund
    (PAIDF)
  • Phelps Stokes Fund, an American 501 (c)(3)
    nonprofit
  • Sheikh Saoud of Qatar (rumored)
  • Initial NEPAD involvement in EASSy, then NBIN,
    then BAHARICOM
  • NEPAD has promoted Kigali Protocol ideals for all
    network infrastructure now has seven
    ratifications so comes into force

12
WHERE IS THE FLAG?
  • Reliance Group (India) purchased
    FLAG Telecom for 207 million in 2004
  • In December of 2006 FLAG announced a 1.6-billion
    global buildout known as the Next Generation
    Network
  • System-2 would connect India and Kenya, with a
    potential extension to South Africa and Reunion,
    and later Mozambique, Tanzania, Madagascar,
    Mayotte, and Mauritius
  • RFS 2009 or 2010

13
THERE COMES INFRACO
  • Broadband Infraco Pty 100-owned by SA govt.
  • Proposed two-cable system Phase I South
    Africa-Brazil (RFS August 2009) and Phase II
    South Africa-UK (RFS May 2010)
  • Cost 650 million
  • August, 2007 VSNL (26 shareholder in Neotel)
    pledged 200 million to project
  • Supply tender issued June 30, 2007
  • At issue Infracos five-year exclusivity with
    Neotel ( 2012)
  • Infraco and Baharicom are consolidating

14
The African Loop - Fiber links
15
WHO WOULD HAPPEN FIRST
  • Glo-1 would be up this year so West Africa would
    have two cable which should make bandwidth cost
    lowest in the region. Infinity Telecom may come
    through faster??
  • TEAMS and SEACOM have awarded supply contracts so
    should come on stream in 2009 and 2009
  • Almost a dozen credible systems have been
    announced for a total proposed investment of 6.4
    billion
  • Demand is robust in South Africa, Nigeria, Ghana
    and Kenya
  • However, there is likely to be consolidation
    among proposed systems, and some projects will
    not succeed
  • Near-term demand justifies two full-length
    systems on each coast

16
AT WHAT PRICE?
  • FLAG first announce 1M for 500 in 2006
  • TEAMS announce same in 2007
  • TEAMS announced in 2008 that 1M would be 80 for
    year 1
  • SEACOM announce 1M for 1500 in 2007

17
WHAT WOULD HAPPEN THEN?
  • We would have true broadband in Africa at
    affordable prices which would drive the growth of
    content
  • Banks would have more reliable fiber optics links
    within and without Africa
  • Online banking and applications would grow
    exponentially in correlation with affordability
    of broadband
  • Virtually banking would emerge and sophistication
    of banking technology would be eminent
  • Mobile banking would grow exponentially with
    backend broadband

18
  • Thank You!
  • eric_at_afrispa.org
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