challenges of broadband...
TRANSCRIPT
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CHALLENGES OF BROADBAND INFRASTRUCTURE DEVELOPMENT IN AFRICA
Presentation to GovTech 2010Durban, South Africa, September 5-8, 2010
Dr. Edmund KatitiPolicy & Regulatory Advisor, and
Acting Head of the NEPAD e-Africa Programme
Challenges of Africa’s ICT Broadband Infrastructure
• Inadequate investment in ICT Broadband Infrastructure.
• Broadband capacity is a scarce resource that priced exorbitantly.
• Many African countries rely on satellite communication for regional and international connectivity.
• Most of the satellites serving Africa are foreign owned, leading to capital flight in transit fees
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Elaboration of Disparity in Broadband costs
Monthly Cost of E1 (2 mbps);–Developed Countries $10-20,–India $100 -250–African average $4,000
There is a need to bring down the cost of communication to level where Africa can compete with the rest of the world.
NEPAD e-Africa Commission
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The NEPAD e-Africa Commission is the ICT Task Team of the NEPAD Planning and Coordinating Agency (NPCA).
The Commission has a mandate to develop a broad ICT strategy and comprehensive action plan with the objective of, among others:
• Accelerating the development of African inter-country and global connectivity
• Promoting conditions for Africa to be an equal and active participant in the Global Information society
ICT Programmes of the NPCA
Pillar 1: ICT Infrastructure • NEPAD ICT Broadband Infrastructure Programme –
Uhurunet submarine cable and Umojanet Terrestrial cross-border network
Pillar 2: ICT Skills• NEPAD e-Schools Initiative - with objective of harnessing
ICT technology to improve the quality of teaching and learning in African primary and secondary schools
Pillar 3: ICT Applications:• The African Payment Gateway.
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NEPAD ICT Infrastructure Programme: tacking Challenges of African ICT Infrastructure
• Bridge the digital divide:– Between Africa and the rest of the world,– Amongst African countries
• Ensure increased African investment in broadband Infrastructure across the continent
• Bring down the cost of communication / bandwidth to a level where Africa can compete in the global knowledge economy
• Ensure that the African ICT Infrastructure is reliable and secure
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THE NEPAD ICT BROADBAND INFRASTRUCTURE OBJECTIVE
To ensure that all African countries are connected to one another by a broadband fibre-optic cable network that is, in turn, linked to the rest of the world.
This needs to be done in a way that addresses the challenges already identified.
The NEPAD Heads of State and Government Implementation Committee (HSGIC) decided to prioritise the establishment of such a broadband network
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WHAT WILL THE NEPAD ICT BROADBAND INFRASTRUCTURE OBJECTIVE ACHIEVE
FOR AFRICAIt will bring down the cost of communications by:• reducing Africa’s reliance of foreign-owned satellite
systems. A terrestrial cross-border network will remove the need to pay exorbitant satellite transit fees.
• Ensuring that the continent has abundant bandwidth• Ensuring that a substantial portion of this bandwidth
is available to Authorised Service Providers on a Non-Discriminatory Open Access basis.
An enabling policy and regulatory environment, is key for the establishment of network(s) that will achieve the objective of the NEPAD ICT Broadband Infrastructure Programme.
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Development of NEPAD’s ICT Infrastructure Flagship Projects
Initially the development of the ICT infrastructure programme was in 2 parts;
1. NEPAD ICT Broadband Infrastructure Network covering 23 countries in Eastern and Southern Africa
2. NEPAD ICT Broadband Infrastructure Network for West, Central and North Africa.
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WHERE WE STARTED
o
New Terrestrial cablesNew Submarine cablesExisting fibre links
submarine cable system
EASTERN & SOUTHERN AFRICA NETWORK
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o
Planned / Funded
Existing
LINKS:
Required
Proposed Submarine cables
Southern & Eastern Links
West, Central & West, Central & North Africa.North Africa.
WHERE WE STARTED…
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• The development of a transparent policy and regulatory environment was needed:• To remove regulatory barriers to the establishment of the
cross-border network.• To encourage private sector investment in the network.• To achieve developmental objectives.• Address Stakeholder concerns.
• NEPAD e-Africa Commission requested African Governments to nominate expertswho deliberated and proposed 5 policy principles
DEVELOPMENT OF THE POLICY AND REGULATORY FRAMEWORK
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The policy principles were:1. The application of open, non-discriminatory and
affordable access to these networks. 2. Equitable joint ownership of the backbone infrastructure
across the region3. Acceptance that cross-border terrestrial and submarine
segments can be developed, owned, and maintained by Special Purpose Vehicles (SPVs): Legal entities
4. Basic Broadband Infrastructure viewed as “public good”5. Application of the principle of public private
partnerships (PPP) to these networks.
DEVELOPMENT OF THE POLICY AND REGULATORY FRAMEWORK
These principles were to apply to the submarine as well as the terrestrial segments of the network, and it was proposed that a protocol be signed by African countries to underpin their collaboration in developing the network.
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Framework signed into Protocol in Kigali, on 29 August 2006, under AU auspices.By November 30, 2006, 12 countries had signed the protocol. Most of these countries have since ratified it.Botswana Lesotho South Africa MauritiusRwanda Malawi Zambia MadagascarUganda Tanzania Zimbabwe DRC
Kigali Protocol took effect in February 2008, after it had been ratified by more than half of the countries which sign it. Countries that did not sign the protocol may now accede to it since it is now in force.
Policy & Regulatory Framework for Development of the NEPAD Network
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KIGALI PROTOCOL: Key provisions on Policy, Legal & Regulatory Aspects
• The principle of Open Access should be applied on terms that are transparent and affordable.
• The principle of non-discrimination should be applied in relation to Authorised Service Providers getting access to the NEPAD Network.
• Urges Governments to facilitate the licensing of the SPV(s) that will own, operate and maintain the regional network.
• Urges Governments to amend, where necessary, their existing legal, policy and regulatory frameworks to be consistent with the Protocol, thereby enabling the SPV(s) to provide open access connectivity to all ASPs.
• Urges Governments to consider license fees for the SPVs that will cover only the administration costs incurred by regulators
• The charges for wholesale bandwidth should be independent of distance
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Plan to development NEPAD Network presented to Ministerial IGA Meeting
• Ministers welcomed NEPAD-led collaboration on high capacity submarine cable with potential to connect every coastal and island country in Africa, and to Europe, Middle East and India.
• Named the submarine cable system Uhurunet• Named the NEPAD Terrestrial Network Umojanet• Recommended name for submarine company to be Baharicom• Request AU Commission to develop modalities to enable any
African country to accede to the Kigali Protocol
NOTE 1: Legal Counsel of AUC confirmed that any African country can accede to the Kigali Protocol.
NOTE 2: Kigali Protocol is being reviewed by stakeholders across the African continent.
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Uhurunet Submarine Cable System
5-5-
To Brazil
To UK
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BAHARICOM SHAREHOLDING STRUCTURE
INTERNATIONALINVESTORS25%
NEPAD SPV 30%
AFRICAN TELCO AND NON TELCO INVESTORS 45%
BAHARICOM (Developer of Uhurunet)
Co-Building of ACE Submarine CableIn Oct 2009, Baharicom signed MoU with ACE Consortium to co-build the Africa Coast to Europe (ACE) submarine cable.
As co-builder of the ACE/Uhurunet system, Baharicom will reduce the cost of market entry on the West African cost.
The ACE/Uhurunet submarine cable system, is led by France Telecom, one of the most experienced submarine cable developers.
It will stretch 14,000 km from France to South Africa, providing opportunity for connectivity to every country along the West coast of Africa.
Supply contract for ACE/Uhurunet was signed in Paris on June 5, 2010. ACE/Uhurunet will be operational in mid 2012.
ACE/UHURUNET SUBMARINE CABLE SYSTEM
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• Discussions are on-going with cable developers (Seacom, TEAMS, EASSy, and LION) for Uhurunet collaboration on the Eastern and Northern Coast of Africa.
• Biz Plan for Uhurunet East is available and is being shared with interested Parties
• Investment in Uhurunet being aggressively sought, and several MoUs have been signed with interested Parties
• Uhurunet will be achieved in segments
• Segments will be completed at different times
• Segments may have different specifications and capacities but will operate seamlessly
The Way Forward for Uhurunet in East and North Africa
The study focussed on the following:Identifying all broadband optical fibre infrastructure in region.Identifying gaps in existing fibre optic infrastructure along the routes of the proposed NEPAD network. Identifying plans to close such gaps.Determining cost of leasing fibre optic cable capacity from existing operators / cable owners and building of new fibre optic cable infrastructure where necessary.Estimating the cost of operating a Regional Operations Centre and data centre from which the entire network would be monitored, managed, and controlled.Estimating the costs of establishing and equipping nodal points in each country.Undertaking a detailed study of traffic flow in the network.Proposing an optimum network in terms of network economics, configuration and costs.
UMOJANET: Terrestrial Cross-Border NetworkDetailed Feasibility Study for Eastern & Southern Africa.
1. An entirely new network to be built in the 21 countries in the region.
2. A network for the 21 countries using a maximum of capacity leased from optical fibre infrastructure owners and a minimum of newly built infrastructure.
Network Design Options and Associated Costs
NETWORK OPTION TOTAL CAPEX(NPV over 15years)
TOTAL OPEX(NPV over 15years)
Build an entirely new network $1.3 bn $2.1 bnMaximise lease / Minimise new build $0.7 bn $1.9 bn
Status Km %
Operational 17,400 60%
Under Construction 2,300 8%
Planned 6,600 23%
Required new build 2,900 9%
Total Km required 29,200
Above figures are thought to be typical of what pertains in other regions of Africa.
Available and Required Segments of the Proposed NEPAD Network in Eastern & Southern Africa
Country Node
Country IP Router
Landing Station
Connectivity (STM-1s) leased
from operators in the ratified countries
RNOC
The map below illustrates a possible network configuration for initiating the establishment of the NEPAD ICT Broadband Infrastructure Network for Eastern and Southern Africa:
Start of Umojanet in Southern Africa
The table below shows the estimated costs of establishing this preliminary Umojanet Network in Southern Africa:
Cost item Unit / Facility Total cost US$Regional Network Operations Centre $8 000 000Country Nodes $25 000 000Add-Drop Mux (Country nodes) $560 000
Total CAPEX: $33 560 000STM-1 ports at all country nodes
Total Annual Lease Costs: $12 000 000Regional Network Operations Centre $935 000Country Nodes $2 800 000
Total Annual OPEX: $3 735 000
but leases STM-1s from national operators.The NEPAD SPV owns and operates its country nodes and RNOC
Maximum Lease/Minimum Build scenario:
CAPEX:
Leased capacity:
OPEX (Annual O & M costs):
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Development of Umojanet cross-border terrestrial network
The Special Purpose Vehicle (SPV) that will develop Umojanet was incorporated in March 2010 as Umojanet Corporaion.
Umojanet Corporation has developed a business plan for rolling out the network in 10 countries in Eastern and Southern Africa, and now is looking for co-investors for the development of the cross-border network
Umojanet Corporation is to start the roll-out of Umojanet in countries that have signed & ratified the Kigali Protocol, and welcomes investors from across the continent.
Extension of the Policy and Regulatory Framework• In order to get as many countries as possible to accede to the Kigali
Protocol, the NEPAD e-Africa Commission in 2010 embarked on a campaign to present and explain the protocol to stakeholders in all regions of the continent.
• The campaign will involve a review of the protocol with stakeholders in all regions free to propose amendments to the protocol.
• Stakeholder workshops have taken place or are planned as follows:• ECOWAS region – March 15-16, Abuja, Nigeria• ECCAS region – April 20-22, N’Djamena, Chad• North Africa region – September 21-22, Cairo, Egypt
• Regional stakeholder workshops are followed by in-country workshops to obtain country positions regarding review of protocol.
• Regional Inter-Governmental Working Committee (IGWC) meetings will be held to obtain regional consensus positions on the review of the protocol before the protocol is amended.
Thank You
Contacts:Dr. Edmund Katiti
Tel: +27.12.841.4661Fax: +27.12.841.4094
Email: [email protected]