Africa Telecoms 5

AFRICA TELECOMS

ISSUE 5

CONTENTS April 2010

04 Guest Editorial

30 Calendar

06 News

48 Statistics

Hon. Samuel L. Poghisio Minister of Information and Communications, Kenya.

The latest local and global telecoms news.

16 Gadgets

Want the next big thing in portable devices? Our gadget review is here to help you choose.

Upcoming events, shows and conferences which you can’t afford to miss.

Africa Telecoms presents statistics and data relating to internet penetration in Africa.

p.24

Flavien Bachabi Thought Leadership In an exclusive interview with Africa Telecoms, Flavien Bachabi, Intelsat's Regional Vice President for Africa, shares some of the company's insights into the satellite market.

p.34 The Big Switch Advancing quality and performance in the telecoms network – showcasing SS7/IP SIGTRAN signalling technology

2 AFRICA TELECOMS April 2010

p.42

44 Laying Africa's Lifeline

Special Report: Satellite vs Fibre

How SEACOM is connecting Africa to the rest of the world and offering the continent a competitive advantage.

Fibre rules the roost, but satellite newcomer, O3b could change the game in 2011...

71 Jobs 60 CDMA A listing of current jobs Makes Mobile Internet a Reality from Career Junction.

54 Africa Telecoms attended 72 Last Word Unravelling the recent Inaugural The launch of 4Mbps High Data Qualcomm CDMA Summit in Nairobi, Kenya. uncapped DSL services for Costs under ZAR500 a month South Africa's 68 Q&A seemed too good to be internet industry livens up.

With Chris Wood CEO of WIOCC.

true, as Brett Haggard discovered.

AFRICA TELECOMS Executive Editor Mohammed Khan mkhan@3ipublishing.co.za

Designer: Alexander Flemming xflemming@3ipublishing.co.za

Africa Telecoms and Africa Telecoms Online are published monthly by 3i Publishing.

Web Development: Wilbur Taute

Managing Editor Bradley Shaw bshaw@3ipublishing.co.za

Sub-Editor: Niki Sampson

Unit 9 & 10, Planet Art 2, 32 Jamieson Street, Cape Town 8001

Sales Director Sarah Theron stheron@3ipublishing.co.za Printing Tandym Press

Research Assistant: Ann Blackburn Publishing Consultants Schreiber Media Contributors: Lesley Stones, Brett Haggard, Johann Barnard, Bradley Shaw, Mohammed Khan

T: +27 21 426 5590 E: info@3ipublishing.co.za www.3ipublishing.co.za www.africatelecomsonline.com BPA Worldwide Business Publication Audit Membership Applied for – October 2009.

April 2010 AFRICA TELECOMS 3

Guest Editorial

Hon. Samuel L. Poghisio Minister of Information and Communications, Kenya

Until recently, Africa had some of the highest international bandwidth costs anywhere in the world. Although it varied from country to country, the international element of the cost to the consumer was a significant proportion of the overall cost he or she paid. The same was true for institutional users like governments, or for those in the private sector. This cost affected both voice (fixed and mobile) and data users alike.

With International trade and the exchange of ideas essential to Africa’s success, this high cost of international bandwidth posed a significant barrier to African countries’ ability to participate in world trade and to increase its capacity and skills. Without cheaper international bandwidth African countries ran the danger of being left behind in the global race.

In the past year, many African countries have gained access to fibre-optic international submarine cables for the first time: some directly and some, like landlocked countries, via terrestrial fibreoptic links with neighbouring countries. Other countries are gaining access to a second or even third international cable.

The arrival of fibre-optic technology has not only improved Internet connectivity, but prices have come down and service levels have increased – especially in the East African region, which in the past year has seen two submarine cables arrive on its shores. The arrival is a culmination of the long-awaited undersea fibre-optic connection to the region – which was the only part of the world missing such a link, thus leaving satellite technology as the only means of connecting to the rest of the globe.

These multimillion-dollar undersea fibre-optic cables are expected to create jobs; as well as provide reliable Internet and telecommunication services to industry stakeholders by minimizing the difficulties of switching traffic between African countries and eliminating the inconveniences and added cost of first routing traffic to Europe – as was the case before.

With affordable and efficient ICT infrastructure, African countries will also be able to venture into the field of business process outsourcing, a rapidly growing global industry.

Improved connectivity has made broadband Internet access affordable to a much wider range of the population. The Internet has brought access to education, unbiased information, and improved competitiveness in the global marketplace: factors that are expected to empower and revolutionize African economies and societies.

However, for the full benefit of the new international fibre-optic connectivity to unfold, all the other elements along the supply chain to the end user need to be developed. These include:

4 AFRICA TELECOMS April 2010

• National fibre backbone networks to take the new cheap bandwidth to population centres around the country. For example, in Kenya the National Optic Fibre Broadband Infrastructure (NOFBI) connects major towns and border points, while connections to district headquarters will provide links to other small arteries that connect the end users to the main cables; • Policy, legal and regulatory regimes for fair and open access to the international fibre-optic cables and the national backbone; and • Wireless mobile broadband infrastructure (and competition) on the access level.

The connection to the submarine cables does not necessarily spell the demise of satellite connectivity. With fibre-optic technology alone, only the users in urban areas will benefit from this Internet revolution. The last mile connectivity is still a challenge and this is where satellite broadband services will be invaluable in empowering thousands of Africans with high-speed Internet. AT

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News

MTN Business serious about African expansion MTN Business, a wholly owned division of MTN SA, has appointed Johnny Aucamp as general manager for Strategic Relations and Business Development in Africa.

“This appointment reiterates my commitment to offer corporations all over the African continent and other emerging markets our ‘360 degree’ service offering – an approach that is designed to offer client’s peace of mind in their communication needs, pinned on reliability and availability,” said Angela Gahagan, executive at MTN Business.

MTN Business’s African strategy is to enable a standardised approach to services and solutions delivery, enabling customers to reach their true business potential and maximise growth opportunities across all relevant borders.

“This is achieved by providing universal Service Level Agreements across the continent and providing a common interface to a support infrastructure via one company – MTN Business,” said Aucamp. “With a footprint in 21 counties including 16 in Africa, through our parent company, we are able to deliver services across a number of countries within realistic timeframes, considering the local market conditions are understood and the building blocks of doing business have successfully been undertaken.”

ICT crucial to achieving sustainable development Broadband will be key to solving global challenges such as poverty, climate change and the economic crisis, said Hans Vestberg, CEO of Ericsson, who was speaking at the Earth Institute’s State of the Planet conference in New York.

Telecommunications, in particular, had the ability to have a positive impact on all of the Millennium Development Goals, he added.

“Mobile communications access is critical in breaking the cycle of poverty in developing countries.

The right tools can help people to escape from poverty and achieve the MDGs,” he said. “It is making a very meaningful difference in people’s lives. Today, there are 4.6 billion mobile subscriptions and in five years we are set to reach seven billion,” said Vestberg.

He also pointed out that to successfully achieve the potential, “scale up is needed” and that this will require commitments from many different sectors and international organisations.

Vestberg also said that telecommunications’ contribution to accelerating economic recovery would be realised as governments globally are recognising the importance of infrastructure spending as a way to support their economies. Mobile operators, as traditionally large infrastructure investors, he said, could play a significant role in supporting these government efforts.

>> African internet usage has grown 1,392.4% between 2000-2009, equating to 67,371,700 users . >>

6 AFRICA TELECOMS April 2010

He concluded that “economic growth and environmental protection do not need to be in conflict. On the contrary, investments in broadband can help to stimulate both and bring a new era in green economy. Broadband will be a prerequisite for a 21st Century low carbon economy, and will enable services such as smart grids, intelligent transports, e-health, all of which have significant contributions to reduce CO2”.

News Ericsson, MTN Ghana successfully trial UMTS 900 MHz Ericsson has successfully trialled UMTS 900 MHz for the first time on the African continent with MTN Ghana. “By leveraging off their existing installed Ericsson 3G Radio Access Network and enabling UMTS in 900 MHz, not only can voice, video and high speed data calls be carried over the network, but operators benefit from having one network delivering all services with the lowest total cost of ownership,” said Lars Lindén, president, Ericsson sub-Saharan Africa.

According to a GSMA report, UMTS 900 MHz provides between 44% (in urban areas) and 119% (rural areas) increased coverage per Node-B compared with UMTS 2100 MHz. This is primarily due to the propagation characteristics of the lower frequency band and leads directly to lower CAPEX and increased mobility benefits, providing a new option, with greater service capability, for operators who may wish to replace their GSM networks.

GSM in 900 and 1800 MHz have proven immensely successful in Africa in providing basic telephony and data services. Under the terms of the agreement, Ericsson will be responsible for the access, transport and transmission of 3G UMTS 900 MHz, where rollout will begin in Q2 2010.

Broadband speeding ahead in South Africa Cisco and World Wide Worx say that the number of South Africans accessing the Internet via broadband connections has grown by more than 50% in the past year – a direct consequence of the growing need for round-the-clock connectivity.

This is the key finding of the Internet Access in South Africa 2010 study conducted

by World Wide Worx in collaboration with Cisco. The headline data in the final report from the study reveals that wireless broadband has been growing almost three times as fast as fixed line broadband in South Africa.

“Wireless broadband is neither cheaper nor better quality, but it is more convenient and flexible, and it changes the way we think about where and how we use the Internet,” said Arthur Goldstuck, MD of Word Wide Worx. “The combination of new undersea cables and terrestrial fibreoptic networks means we are seeing the emergence of the next generation of

connectivity technology, both in fixed line and wireless services. The missing ingredients now are the next generation of customer access equipment for those who are connected, and affordable availability of access for those who are not.”

The study shows that most of the growth in fixed line broadband comes from small and medium enterprises (SMEs) upgrading to ADSL. This in turn has extended Internet access to more than half a million South Africans working in small offices who did not previously have access. Wireless broadband, on the other hand, is mainly a result of large companies giving 3G cards to employees who need to be connected whilst out of the office.

This is further confirmed by separate research conducted recently by World Wide Worx into mobile technology usage. Wireless broadband subscriptions have grown by 88% in the past year, against 21% for ADSL. Corporate users have been the major driver of this growth, through the deployment of 3G cards.

>> The top three languages used on the internet are English 478 million users, Chinese 384 million users and Spanish 137 million users. >>

April 2010 AFRICA TELECOMS 7

News Mobile data surpasses voice

SEACOM in Ethiopia SEACOM has been awarded an agreement to supply Ethiopian Telecommunications Corporation (ETC) with international broadband fibre connectivity via a backhaul link through Djibouti. Plentiful and readily available bandwidth will result in lower telecommunications costs and new opportunities across many sectors of the Ethiopian economy including ICT industries, but also educational, clinical and scientific applications that rely on the real-time sharing of data around the world at lightning fast speed.

“SEACOM is ideally suited to provide international connectivity that will complement ETC’s extensive national initiative to link the country’s businesses and end-users with fibre broadband connectivity,” said Amare Amsalu, ETC CEO. “The availability of high quality broadband at lower prices will accelerate economic development and educational initiatives that will enhance lives and will also establish Ethiopia as an important commercial centre for Africa and as a regional transit point for other service providers.”

Ethiopia’s government is actively rolling out a US$1.5 billion national initiative to improve the country’s telecommunications infrastructure. Amongst other projects relating to landline and mobile telecommunications services, the national fibre optic network is set to be expanded significantly to allow the implementation of its ambitious ICT vision. “As we have seen in other countries that gained access to SEACOM, it is only a matter of time before the direct socio-economic benefits created by cheap and readily available bandwidth begin to manifest in Ethiopia and the region,” said Brian Herlihy, SEACOM CEO.

Mobile data surpassed voice on a global basis in December last year, according to a study conducted by Ericsson and announced at the CTIA Wireless 2010 convention in Las Vegas.

These findings show that data traffic globally grew 280% during each of the past two years, and is forecast to double annually over the next five years. The crossover occurred at approximately 140,000 terabytes per month in both voice and data traffic. The data traffic increase is contributing to revenue growth for operators when more and more consumers use data traffic-generating devices such as Smartphones and PCs. During the same period, Ericsson measurements show that traffic in 3G networks surpassed that of 2G networks.

“This is a significant milestone, with some 400 million mobile broadband subscriptions now generating more data traffic than the voice traffic from the total 4.6 billion mobile subscriptions around the world,” said Hans Vestberg, Ericsson president and CEO. “Our view that the appeal of anywhere, anytime connectivity would drive mobile broadband growth is confirmed by the real world measurements undertaken

by Ericsson.”

Social networking sites on mobile devices and mobile broadband-based PCs now account for a large percentage of mobile data traffic, Ericsson said. For example, more than 200 mobile operators in 60 countries are deploying and promoting Facebook mobile products, with over 100 million active users accessing Facebook through their mobile devices.

Supporting this view is a recent Ericsson consumer insights study showing that as much as 80% of mobile broadband users demand anytime, anywhere access. The study was based on 4,580 consumers in six mature markets. It also finds that as mobile data traffic increases, the mobile broadband connection is becoming as personal as the mobile phone. 80% of respondents said they would not share their laptop with anyone and 65% would not share their mobile broadband connection.

>> PayPal is still by far the most popular online payment system worldwide, with around 45% of its customers based outside of the US. >>

8 AFRICA TELECOMS April 2010

News

Novadrive detaches the desktop Novatel Wireless has launched NovaDrive powered

by Nomadesk technology, a MiFi Trusted Partner that gives Novatel Wireless MiFi Intelligent Mobile Hotspot customers and other mobile broadband users the ability to share, synchronise, encrypt, back up and store files to access from any laptop or web-based, hand-held mobile device.

The MiFi platform represents the industry’s first Intelligent Mobile Hotspot, a new product category for mobile broadband that lets users put their world of content, services and connectivity in their pocket.

Unlike existing router solutions that require an external broadband USB modem and serve only to provide connectivity, the MiFi platform creates a personal cloud of high-speed Internet connectivity that can be easily shared between multiple users and up to five Wi-Fi devices such as laptops, tablets, cameras, gaming devices and multimedia players.

NovaDrive gives mobile users increased access to their data from any location, while providing an extra layer of security and unlimited storage.

With this launch, Novatel Wireless will offer existing MiFi customers and other broadband users a free downloadable NovaDrive account. Customers can sign up to receive a personal file server with unlimited capacity, and all the other NovaDrive features, for approximately $50 per year, or a business file server, which provides unlimited storage and collaboration with an unlimited number of team members.

Tata expands its public Telepresence footprint Tata Communications has launched two new public Telepresence rooms in Chicago, USA and Sydney, Australia, with the Starwood Hotels & Resorts group. To date, Tata Communications has had 12 public rooms globally, including its first public Telepresence room in Africa, at Neotel headquarters in Midrand.

These rooms provide a cost-effective and innovative way to conduct business by offering advanced audio, high-definition video interactive elements to deliver a virtual meeting experience that feels real.

“By working closely with Tata Communications, Neotel is able to tap into their global network and provide its customers with true global connectivity. Our customers can come to our public room at Neovate Park, Midrand and have their meetings with partners across the globe,” says Wandile Zote, executive head of corporate communication at Neotel.

Other Telepresence rooms are currently operational in the US, England, India and the Philippines. Tata Communications is also planning to establish Telepresence public rooms in Brussels, Frankfurt, Munich, Hong Kong, Kuala Lumpur, New York, Los Angeles, Toronto, San Francisco and Dallas, as well as Washington DC.

>> In most global markets, online travel has been one of the most successful e-commerce categories. >>

April 2010 AFRICA TELECOMS 9

News Starhome awarded EU patent for mobile Home Short Code Ten years after the original patent was filed with the European Patent Office, Starhome has been awarded a patent for the core technologies of the Home Short Code solution.

The Home Short Code is a seamless, feature-rich solution that converts unrecognised home short codes into valid international formatted numbers and provides the mobile operator with a basis to increase its revenue potential from both the inbound and outbound roaming markets.

“It has taken 10 years for Starhome to receive a patent for the Home Short Code solution.

The prolonged process involved extensive examination before the patent could be granted,” said

Shai Ophir, Starhome’s Intellectual Property manager.

The Home Short Code is a complete service that supports postpaid and prepaid market segments for both CAMEL and Non CAMEL. The solution can also be used for one roaming segment only.

< Vodafone Global Enterprise signs a Deutsche Post DHL deal Vodafone Global Enterprise has won the contract to provide Deutsche Post DHL with a fully managed MPLS network in 67 countries, connecting more than 400 sites across Eastern Europe, Middle East and Africa. Specifically, Vodafone will provide an international Wide Area Network across the three regions and a domestic WAN in sub-Saharan Africa.

The solution enables DPDHL to provide improved tracking capabilities, allowing employees quicker and easier access to vital bespoke applications, as well as providing critical connectivity to DPDHL’s data centres in the Czech Republic and Malaysia.

The fully managed MPLS network has been designed to provide DPDHL’s key business units with a resilient, agile and flexible telecoms service to support its growth and deliver greater cost efficiencies, while enhancing the user experience. As well as providing enhanced security and improved performance levels for business-critical applications, the solution demonstrates Vodafone’s ability to utilise its global capabilities to deliver to specific customer requirements. It also provides DPDHL with a platform on which to build further cost-effective, converged services.

>> As at June 2009 the top three internet user countries in Africa were Egypt with 12.6 million users, Nigeria with 11 million users and Morocco with 10.3 million users. >>

10 AFRICA TELECOMS April 2010

News

Etisalat, Comviva sign long-term global partnership deal Etisalat and Comviva have entered into a partnership agreement to bring state-of-the art Value Added Services to Etisalat’s more than 100 million subscribers worldwide.

The vision of this partnership is to introduce new mobile VAS products that enhance Etisalat’s customers’ lifestyles and enrich their lives. Comviva will support Etisalat with innovative offerings in the areas of content and community to further strengthen the mobile operator’s position as one of the world’s leading telecom operator groups and reinforce its reputation as a pioneer and innovator in the VAS space.

As Etisalat expands its operations, Comviva will deploy solutions to meet the varied end-customers’ needs, including mobile voice and video applications and music and messaging solutions.

“We are happy to welcome Comviva as our partner in this important

field,” said Essa al Hadda, group CMO, Etisalat. “With its extensive experience of deploying solutions globally and delivering a broad range of innovative offerings, we are confident of bringing highly engaging services to our rapidly growing customer base and further driving our VAS revenues. We were very successful last year and more than doubled our revenues from content, data and VAS across the Etisalat Group. With the help of Comviva, we are confident that we will attract and retain customers and grow this important segment of our strategy even further.”

“Our strong presence in the Middle East, Africa and Asia markets gives us a deep understanding of the needs of Etisalat’s customers and we are excited to be partnering very closely with Etisalat as it expands its global reach,” commented Sabri Amireh, VP Middle East and North Africa, Comviva

>> Guiding of light by refraction, the principle that makes fiber optics possible, was first demonstrated by Daniel Colladon in Paris in the early 1840s. >>

April 2010 AFRICA TELECOMS 11

News Mobile Monday launched in Kenya infoDev and the volunteer networking organisation Mobile Monday have launched new social networking hubs in Uganda and Kenya as part of a new programme that harnesses social networking for innovation in mobile applications. The Mobile Monday chapters in Kampala, Uganda and Nairobi, Kenya are a place where mobile industry visionaries and developers meet and drive the surging African mobile market.

The chapters are run by volunteers in the mobile sector to encourage innovation, investment, information-sharing and partnership-building.

They are also a channel for African innovation and mobile market knowhow to flow to other parts of the world.

The new Mobile Monday chapter in Kampala, Uganda was launched on 8 March, 2010 at a festive event that included volunteers, speakers and lively discussion. Igeme Nabeta, the chairman of the Ugandan Parliament's ICT Committee was one of 130 participants including mobile operators, content providers, application developers, universities, civil society organizations and government. Jari Tammisto, President and CEO of Mobile Monday (left), was delighted that the African mobile community so fully embraced the MoMo idea. Tammisto described the Kampala launch event as “the best MoMo launch ever. It was engaging, fun, personal and built trust among the community.” MoMo Kampala will meet again in April 2010 and continue to connect mobile start-up companies to local and international partners and investors.

Synchronica acquires Colibria’s IMPS Instant Messaging Business Synchronica plc, the international provider of nextgeneration mobile messaging services, has signed an agreement to acquire Colibria’s IMPS Instant Messaging business, reseller agreements and existing worldwide mobile operator customer base. The acquisition will accelerate Synchronica’s entry into the fast-growing mobile IM sector and help to achieve its goal of becoming the leader in next-generation mobile messaging for emerging markets.

Synchronica will continue to develop, market and support Colibria’s open standards-based IM technology as a stand-alone product. The software will also be integrated into Synchronica’s Mobile Gateway messaging suite and will be pre-installed on the recently launched

MessagePhone, a low-cost messaging-centric handset powered by Mobile Gateway. Colibria’s proven, carrier-grade, mobile IM technology and emerging markets-oriented customer base complement Synchronica’s own focus on open standards-based messaging solutions for developing economies. Synchronica will use the acquisition as a springboard for cross-selling and up-selling opportunities as it seeks to further expand its market share in the rapidly expanding emerging markets. The acquisition will enlarge Synchronica’s fast-growing footprint in emerging markets by adding key customer contracts in Latin America, Africa, the Middle East and Russia/CIS as well as global reseller agreements.

>> Voice transmitted through copper wiring requires signal repeaters every few kilometres for proper performance, compared to 100 kilometres on optical systems. >>

12 AFRICA TELECOMS April 2010

News

Touchscreen mobile device sales to grow 97% The worldwide market for touchscreen mobile devices will surpass 362.7 million units in 2010, a 96.8% increase from 2009 sales of 184.3 million units, reports Gartner. By 2013, touchscreen mobile devices will account for 58% of all mobile device sales worldwide and more than 80% in developed markets such as North America and Western Europe.

“Touchscreens are no longer the preserve of high-end devices and are now being included in many midrange phones as more companies have been driving the consumer market for affordable touchscreen phones,” said Roberta Cozza, principal research analyst at Gartner. “As phone capabilities increase, consumers are becoming much more aware of the benefits of touch interfaces, and vendors are responding.”

With mobile phone vendors now focused on integrating touch technologies,

many are now going a step further and beginning to deliver user interfaces (UIs) that are truly optimised for touch input.

They are also increasing their software skills to deliver deeper integration of touch UIs with the underlying platform, rather than software overlays.

“As we saw at Mobile World Congress 2010, touch interface technology will continue to be one of the key areas of innovation during 2010,” Cozza said.

“Vendor and industry focus on touch UI will bring increasing sophistication and spur adoption of touch UI in other consumer electronics devices.”

However, vendors need to concentrate on delivering an experience rather than just a product. “Consumers won't buy a mobile device purely for the touch UI,” said CK Lu, senior research analyst at Gartner. “Touch technology is just an enabler, and ultimately it is a compelling

user experience – which includes good UI design, applications and services – that will make or break a product.”

From a sales volume perspective, Asia/Pacific is the leading region for touchscreen mobile devices.

In 2010, touchscreen mobile device sales in Asia/Pacific are projected to surpass 129.1 million units, accounting for 35.6% of the global market. By comparison, Western Europe and North America are expected to account for 26.8% and 24.4% of global touchscreen mobile device sales. Looking at penetration of touch devices as part of overall sales in their regions, however, Western Europe leads the way with 49%, followed by North America at 46.65%.

Due to the much larger size of the overall market, touchscreen sales will account for just 23.4% of total mobile device sales in Asia/Pacific.

>> The echo heard on long distance calls is caused by the signal bouncing off satellites, fibre-optic cables will give you a direct connection with no echo . >>

April 2010 AFRICA TELECOMS 13

News 10 mobile technologies to watch in 2010 and 2011 Gartner has identified 10 mobile technologies that will evolve significantly through 2011 in ways that will impact short-term mobile strategies and policies. Investments in mobile applications and technologies will increase through 2011 as organisations emerge from the recession and ramp up both businessto-employee and business-toconsumer mobile spending.

The 10 mobile technologies to watch this year and next are:

1 / Bluetooth (3 and 4)

Two new Bluetooth versions will emerge by 2011: Bluetooth 3 will introduce 802.11 as a bearer for faster data transmission, and Bluetooth 4 will introduce a new low-energy (LE) mode that will enable communication with external peripherals and sensors. Gartner believes Bluetooth 3 will facilitate corporate and consumer functions demanding large bandwidth, while Bluetooth LE will enable a range of new sensor-based business models in industries such as fitness, healthcare and environmental control and will be used by handset and PC peripherals to enable new functions.

the demand for an application on a specific platform before undertaking expensive native development.

2 / The mobile web

By 2011, more than 85% of handsets shipped globally will include some form of browser. In mature markets, such as Western Europe and Japan, approximately 60% of handsets shipped will be smartphones with sophisticated browsing capability and the ability to render conventional HTML sites in some manner.

In mature markets, the mobile web, along with associated web adaptation tools, will be a leading technology for B2C mobile applications through 2012, and should be part of every organisation’s B2C technology portfolio.

3 / Mobile widgets

Many handsets support widgets running on their home screens, where they are easily visible and accessible. Because widgets exploit well-understood tools and technologies, they have lower entry barriers than complex native applications, and thus can be a good first step to assess

to sell applications and content, and they will provide new options for application sourcing. Many applications will exploit ecosystem cloud services.

4 / Platform-independent

mobile development tools Mobile platforms will become more diverse through 2012 although consolidation will not have started, and, in some markets, five or more platforms may have a significant presence. Therefore tools that can reduce the burden of delivering installable applications to several platforms will be very attractive. Platformindependent application development tools cannot deliver a “write once, run anywhere” equivalent to native code; however, they can significantly reduce the cost of delivering and supporting multiplatform applications that provide a more sophisticated experience than the mobile web and operate outside signal coverage.

6 / Enhanced location

awareness By the end of 2011, more than 75% of devices shipped in mature markets will include a GPS, which will be the primary but not the only means of establishing handset location. Wi-Fi and cell ID systems will remain important in situations where GPS is unavailable or unreliable. The popularity of location-aware handsets will enable a wide range of B2E and B2C location-aware applications, and will serve as a foundation for more sophisticated contextual applications in the future.

5 / App stores

App stores will be the primary (and, in some cases, the only) way to distribute applications to smartphones and other mobile devices. Gartner believes that app stores will play many roles in an organisation’s B2C and B2E strategies. They will be a distribution channel for mobile applications and a commercial channel

7 / Cellular broadband

During 2010 and 2011, the availability of multimegabit wireless broadband performance will continue to grow as mobile networks enhance their broadband performance. Continuous improvements in wireless broadband performance will

>> A patent for the first wireless phone, as we know it today, was issued in US Patent Number 3,449,750 to George Sweigert of Euclid, Ohio on June 10, 1969. >>

14 AFRICA TELECOMS April 2010

News increase the range of applications that no longer require fixed networking, and make cellular broadband a more effective fallback when fixed connections fail. Embedded cellular networking will become a standard feature of many corporate laptops, and will enable new types of network-connected devices and business models, such as e-books and media players.

8 / Touchscreens

Touchscreens are emerging as the dominant user interface for large-screen handsets, and will be included in more than 60% of mobile devices shipped in Western Europe and North America in 2011. Touch-enabled devices will also make increasing use of techniques such as haptics to enhance user experience. Organisations developing native handset applications may need to exploit single and multitouch interfaces and haptics to give their applications a compelling and competitive user experience.

9 / M2M

Many network service providers increased their commitment to machine to machine (M2M) in 2009, so a good range of both national and multinational M2M service options will be available in mature markets during 2010 and 2011. Although the M2M market is very fragmented, it is growing at more than 30% per year. Key applications include smart grid, meter reading, security and surveillance, automotive systems, vending and point of sale, remote monitoring, and track and trace.

10 /

Device-independent security This isn’t strictly a single technology, but refers to a collection of security technologies, application technologies and sourcing options that enable the provisioning of applications that are secure, but less tightly tied to specific devices and platforms, and that, in many cases, do not require security tools to be installed on the client. It includes thin-client architectures, applications as a service, platform-independent forms of Network Access Control (NAC), portable personality, virtualisation, and hosted security services, such as “in the cloud” virus scanning.

Research In Motion Limited (RIM), a world leader in the mobile communications market, recently reported results for the three months and fiscal year ended February 27, 2010 Revenue for the fiscal year ended February 27, 2010 was $14.95 billion, up 35% from $11.07 billion last year. Revenue for the fourth quarter of fiscal 2010 was $4.08 billion, up 18% from $3.46 billion in the same quarter of last year and up 4% from $3.92 billion in the previous quarter. The revenue breakdown for the quarter was approximately 80% for devices, 16% for service, 2% for software and 2% for other revenue. Gross margin for the fourth quarter was 45.7% compared to 42.7% in the prior quarter. RIM shipped approximately 37 million devices during fiscal 2010 and approximately 10.5 million devices in the fourth quarter.

Approximately 4.9 million net new BlackBerry subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was over 41 million.

“RIM has completed another outstanding fiscal year with record revenue, earnings and subscriber results. Our company and partnerships continued to thrive within one of the most dynamic industries in the world. We managed to significantly expand our international market share while also maintaining our longstanding leadership in North America where BlackBerry continues to be the top selling smartphone brand,” said Jim Balsillie, Co-CEO at Research In Motion. “We are off to a great start in fiscal 2011 and expect strong shipments, revenue, subscriber and earnings growth in Q1. We are also very excited about our portfolio of products and services for the coming year and we continue to see exceptional opportunity for sustained growth.”

Net income for fiscal 2010 was $2.46 billion, or $4.31 per share diluted, up 29.8% over fiscal 2009. Net income for the quarter was $710.1 million, or $1.27 per share diluted, compared with net income of $628.4 million, or $1.10 per share diluted, in the prior quarter and net income of $518.3 million, or $0.90 per share diluted, in the same quarter last year.

Revenue for the first quarter of fiscal 2011 ending May 29, 2010 is expected to be in the range of $4.25-4.45 billion. Gross margin for Q1 is expected to be approximately 44.5%. Net subscriber account additions in the first quarter are expected to be between 4.9-5.2 million. Earnings per share for the first quarter are expected to be in the range of $1.31 – $1.38 per share diluted.

The total of cash, cash equivalents, short-term investments and long-term investments was $2.87 billion as at February 27, 2010, compared to $2.41 billion at the end of the previous quarter, an increase of $461 million over the prior quarter.

Uses of cash in the quarter included capital expenditures of $258 million and the acquisition of intangible assets of $36 million.

>> Martin Cooper made the first call on a hand-held mobile phone on April 3, 1973 to his rival, Dr Joel Engel of Bell Labs. >>

April 2010 AFRICA TELECOMS 15

Gadgets

Africa Telecoms looks at some of the latest gadgets and devices designed to integrate your work and home life, bringing convergence to a device near you.

H Uncool HH Poor HHH Average HHHH Excellent

Motorola

HHHHH Died and gone to heaven

BACKFLIP*

Hewlett Packard Mini 210-1000 Notebook

NEED TO KNOW 5MP camera with LED flash, autofocus, geotagging and video /

NEED TO KNOW

Google Android operating system / Powerful social networking

10.1” diagonal 16:9 LED scratch-resistant display / Intel Atom

capabilities

processor with 160 GB 7200 RPM hard drive / Comes with Windows 7 32-bit

Cost: TBC Rating: HHHH

Cost: Approximately R5,500 Rating: HHHH

This aptly named smartphone is an engineering marvel that comes with a full QWERTY keyboard, a stunning screen, yet is only 15.3

This slim and attractive device marks the introduction by HP of what

millimeters thick. How was this achieved? Well, like the name suggests

they call their “third-generation” netbook. The Mini is available in

it was as simple as putting the keyboard on the back of the reverse flip.

six different colours, which offers you a fair amount of choice. The

It opens like a book with the keyboard on the back being exposed at

10.1” display has a 16:9 widescreen ratio, and even though it’s small,

all times, instead of having it on the front, like we’ve seen with other

it’s easy on the eyes and the display resolution of 1024 x 600 pixels

smartphones. The camera is a 5-megapixel model with an LED flash,

is more than adequate for surfing the Internet, browsing through

autofocus, geotagging and the capacity to record video at 25 frames

photos and watching movies. It comes with a built-in webcam with

per second in MP4 format. The Google Android operating system

an integrated microphone, perfect for use with Skype and video

works like a dream on the BACKFLIP and is given a makeover with

calling when you’re away from the office. The standard operating

the “MotoBlur” user interface. It can handle any social networking

system is the 32-bit Windows 7 starter pack and an integrated

task thrown it at. It gives a host of apps to track friends and stay up to

Ethernet LAN port and wireless connectivity supports any 802.11

speed with what’s happening in the surrounding virtual social world.

b/g network. The netbook contains a 5-in-1 integrated digital media

* Africa Telecoms apologises for any confusion in last month's issue. Due to wrongly labelling the BACKFLIP, we are running this corrected review again.

16 AFRICA TELECOMS April 2010

reader for secure digital cards, can read multimedia cards, memory sticks and xD picture cards. Three USB 2.0 ports as well as a port that lets you plug in an external monitor, if the need arises.

GADGETS

Samsung Wave Smartphone

Microsoft Wireless Notebook Presenter Mouse 8000

NEED TO KNOW

NEED TO KNOW

Host of connectivity options including 2.5G and 3G / 5.0MP camera

Works up to 10m away from PC / 2.4GHz Bluetooth connectivity /

with LED flash / Social hub for integrated messaging

Requires 2 AAA batteries / 4-way scrolling

Cost: Approximately R 4,500

COST: Approximately R1,000

Rating: HHHH

Rating: HHHH

The Samsung Wave is the first mobile handset to be released on

Combine the functions of a presentation controller with a wireless

Samsung’s new, open mobile OS, Samsung bada, which allows

mouse, so you can have everything in one nifty little piece of

developers to create applications across multiple platforms that

equipment. If you’re a travelling professional, this mouse should

can be used on a variety of different handsets. Social Hub has been

definitely be on your list of priority purchases. This little hand-held

designed to holistically integrate all email from all major portals,

package has everything: small form factor, Bluetooth connectivity

as well as IM and social networking services, and they flow directly

(with an optional Bluetooth dongle), a carrying case, an on/off switch

into the Samsung Wave. Add to this the TouchWiz 3.0 user interface

(for saving battery life), laser tracking technology, presentation

and it translates to an easy flowing, hassle free way to manage

controls, customisable extra buttons, a laser pointer and all in an

messaging, contacts and calendar events. Social Hub is powered by

ergonomically designed framework. Two of the device’s three

push technology and delivers email messages, calendar events and

buttons on the top can be assigned to any one of a number of

SNS updates in real-time. The Wave features the world’s first Super

functions, including zoom, magnify region, and Flip 3D, while the

AMOLED display that delivers an unrivalled screen experience with

button beneath the four-way scroll wheel switches the device

a high resolution WVGA (800x480 pixels) screen and mDNIe (mobile

between Presentation and Mouse modes. If you’re the type who

Digital Natural Image engine) technology – the same technology

likes a laser pointer, you’ll be pleased to know it can be used in either

used in Samsung’s LCD TV and LED TV lineups.

mode and is projected out the front of the mouse.

April 2010 AFRICA TELECOMS 17

GADGETS

Logitech Comfort Lapdesk NEED TO KNOW

Motorola Milestone Smartphone

A padded stand for your laptop / Designed to protect legs from heat / Angles your notebook for comfort

NEED TO KNOW The world’s thinnest QWERTY slider phone (13.7mm) / 5MP camera

Cost: Approximately R700

with dual-LED flash / 8GB memory card

Rating: HHH Cost: Approximately R5,400 It is becoming commonplace for notebook computers to be used

Rating: HHHH

for far more than just work as people are watching movies and playing games on their notebooks for entertainment. This usually

The Motorola Milestone makes no compromises and sets new

means resting the notebook on your lap on a couch, recliner chair

standards for how fast, smart and efficient at multi-tasking a modern

or bed. This comes with its own share of problems, mainly neck

smartphone should be. It comes loaded with a suite of Google

discomfort caused by the awkward angle of the notebook on your

mobile applications like Google Search, Google Maps, Gmail and

lap and the heat that inevitably builds up on your legs, caused by the

YouTube; and users also have access to thousands of apps and

exhaust fans of the notebook and the heat of the battery. Logitech’s

widgets from the Android Market. The first Android smartphone that

engineers have designed an angled notebook stand with a padded

truly delivers on its promises: a full screen web browsing experience,

underside that consists of a large white plastic surface big enough

ability to juggle between multiple apps, and a suite of Google

to accommodate laptops of up to 17”, and a padded underside

applications deliver an enhanced user experience. The touchscreen

that provides the comfort and ventilation to keep your legs cool.

experience has also been taken to a new level – no longer is it mere

The tilted and raised surface angles your notebook sufficiently that

touch, but it’s touch and pinch too, with pinch zoom as well, giving

looking at your screen will not hurt your neck. This device definitely

the user more tactile control than was previously possible. It also

adds to the mobile entertainment experience both from a sitting

boasts a hi-resolution display with twice the pixels of the leading

and reclining position and as a bonus, it also works well as a regular

competitor. Make use of the Motorola Media Link and Motorola

laptop stand for a work desk, as the raised angle helps make typing

Phone Portal to manage and share media content across desktop,

more comfortable than when it is placed flat on the desk.

phone and Web 2.0 platforms, better facilitating your digital lifestyle.

18 AFRICA TELECOMS April 2010

GADGETS

Logitech Pure-Fi Express Plus iPod Docking Station

Sony Ericsson Vivaz Pro NEED TO KNOW PQWERTY keyboard / 5.1MP camera with 4x digital zoom, autofocus

NEED TO KNOW

and geotagging / Symbian S60 5th edition OS

Portable speakers compatible with all iPods and iPhones / 10 hours of playback time / Built-in clock, charging dock and alarm

Cost: TBC Rating: HHHH

COST: Approximately R2,000 Rating: HHHH

The Sony Ericsson Vivaz Pro is the modified version of the original Vivaz and it comes with a slide-out QWERTY keypad. Although the

You might be tempted to think that if you’ve seen one iPod docking

camera in the Pro has been downsized from 8MP to 5.1MP, it still

station, you’ve seen them all – you’d be wrong. If you’re looking

retains its 720MP HD video shooting capacity. It has the usual range

for a portable sound solution, but aren’t willing to compromise on

of connectivity options: 3G, EDGE, GPRS, GSM, HSDPA (3G) as well

sound quality, then this product is what you’ve been looking for.

as Wi-Fi. It has a 360x640 pixel 3.2” touchscreen with a 16:9 HVGA

This particular model has been equipped with omnidirectional

display. In terms of digital lifestyle, this device has inbuilt unified

acoustic technology, which allows you to enjoy the same level of

email, Twitter, Facebook, blogging and chat – allowing the user to do

audio quality wherever you might be in the room. Also, in terms of

everything, without needing a PC. In terms of messaging there’s the

portability versus mobility, the Pure-Fi Express Plus is better than

usual email, IM, MMS and SMS. Along with this comes handwriting

most we’ve come across: the device can either be plugged into the

recognition and Microsoft Exchange ActiveSync. An alarm clock,

wall or it can run on 6 AA batteries. Not only for iPods and iPhones,

calculator, calendar and document readers should keep the user on

this docking station supports most brands of mp3 digital music

schedule. On the entertainment side, this device features 3D games,

players as well – using a simple 3.5mm auxiliary output cable. It also

FM radio and Java, Facebook and Twitter applications and video

comes with something most docking stations don’t – a wireless

streaming which allows the user to upload videos directly to YouTube

remote control that works up to 10 metres away. It looks good,

and browse the web with the WebKits browser and manage RSS

sounds great, works spectacularly well and offers convenience that

feeds directly from the handset.

will soon become a necessity in your life.

April 2010 AFRICA TELECOMS 19

GADGETS

The First ELSE Intuition Mobile Phone

Sagem Puma Phone NEED TO KNOW Uses solar cells to recharge / Touchscreen phone / Puma-branded

NEED TO KNOW Designed for single-handed operation / 256MB RAM, ACCESS Linux

Cost: TBC

Platform and amazing user experience / 5MP camera with auto-focus

Rating: HHHH

Cost: TBC

Sports apparel maker Puma is getting in on the cell phone market by

Rating: HHHHH

offering a Puma-branded smartphone, and positioning it as a “sports lifestyle device”. It differentiates itself from most other smartphone

The First ELSE was not designed to be a phone, it was originally

offerings by focusing on sports-centric functionality, in addition to

envisaged to be a mobile platform and coincidentally, it also just

the more traditional smartphone features like a camera with flash,

happens to be a phone. The phone isn’t the centre of everything;

hi-speed Internet access, mail and social networking integration and

it’s just another application. Access the various other functions –

a touchscreen interface etc. In addition to all the Puma branding

digital camera, music player, GPS etc – and experience functionality

that’s all over the phone, there’s also a stopwatch, workout-related

that is able to match standalone dedicated devices, without any

applications like a pedometer, and GPS-tracking capabilities that

compromise. The advanced Intuition user interface, coupled

help users track their bike ride or morning run. Puma is aiming

with a killer Access Linux platform delivers high performance

at people with very physically active lifestyles. Perhaps most

graphics rendering and a customisable look and feel. Stay on top of

interestingly, the Puma phone has a solar panel on the back that can

everything with a complete messaging suite (Mail, MMS, SMS), and

be used to recharge the phone. For every hour that it’s charged in the

back up and synchronise all your sensitive information and other

sun, it gives up to 2 hours of MP3 playback, 15 minutes of talk time

data to a server. Utilise the photo upload service and stay abreast

as well as battery life to receive up to 35 text messages. The Puma

of newsworthy events with the Digital Newspaper service. Stay in

phone, manufactured by Sagem, will be available in time for the FIFA

tune with the Music Store & Concierge. Browse the Internet using the

Soccer World Cup in June 2010.

NetFront Browser and edit photos and videos on the device.

20 AFRICA TELECOMS April 2010

GADGETS

Altec Orbit USB Speaker NEED TO KNOW

Plantronics .Audio Line of PC Headsets

Ultra-portable speaker / Creates a 360-degree sound field / Convenience of plug-and-play USB connectivity

NEED TO KNOW Digital signal processing technology / Cuts out background noise /

Cost: Approximately R764

Perfect for calls, gaming and listening to music

Rating: HHHHH Cost: From R350 This USB-powered speaker takes portability and convenience to

Rating: HHHH

new levels. It’s just what the mobile professional has been waiting for. It means the user no longer has to search for a power point, or

The line of .Audio PC headsets has recently been extended to include

worry about running out of batteries. It utilises the convenience

four new wideband models that feature digital signal processing

of plug-and-play USB connectivity and is perfect for use with

(DSP) technology for unmatched audio quality when listening to

netbooks and laptops – it’s guaranteed to enhance any presentation

music, gaming and for PC-based communications. The new lineup

with music and video content. This little beauty boasts Audio

includes the Plantronics .Audio™ 476 DSP, the .Audio 646 DSP, the

Alignment technology to precisely align the key audio with a

.Audio 626 DSP as well as the upgraded .Audio 655 DSP. Perfect for

resulting audio output that is astounding in its volume, clarity and

podcasts and PC-based conversations on services including Skype

depth. The circular shape provides a 360-degree sound bubble and

4.0 Super Wideband, each headset combines a noise-cancelling

the retractable stand can be used to directionally aim the audio

microphone with sophisticated DSP technology that works to

wherever it will make the most impact. Built for rugged travel and

effectively remove background noise, while still maintaining voice

rough-handling, the Orbit USB guarantees a tangle-free connection

clarity. The .Audio(TM) 476 DSP is perfect for frequent travellers and

with its USB cord storage. Aimed at both the professional and

features an over-the-head wearing style that folds almost completely

youth market – this device is the perfect companion for the mobile

flat for easy packing The .Audio 655’s soft, swivel-mounted ear

individual and is perfectly suited for entertainment and business

cushions and lightweight design provide all-day wearing comfort

purposes.

and stunning digital audio through 40 mm speakers.

April 2010 AFRICA TELECOMS 21

GADGETS

Novatel Wireless MiFi 2352 Cost: Approximately R2,200 Rating: HHHHH (6 stars if we could) Whenever a truly innovative product is released, it has the opportunity to redefine the entire marketplace. This is certainly the case with the Novatel Wireless’s MiFi 2352 platform which represents the industry’s first Intelligent Mobile Hotspot. When the moniker of Mobile Hot Spot is bandied around, the idea has always been open to broad product size and specifications. For the MiFi 2352, the MOBILE is no exaggeration. Weighing in at a modest 81 grams and no larger than an Apple iPhone or RIM BlackBerry (Dimensions: 62mm x 98mm x 15.3mm), this is genuinely an attractive device, unlike many of its USB/dongle predecessors. Slide open the door at the bottom of the device, and insert a SIM card much akin to any mobile phone. Replace the Li-Ion battery which gives up to 4 hours use time, press the only button on the device, and within 60 seconds up to 5 Wi-Fi enabled devices can have access to a broadband internet connection.

The 2352 will tell you whether you are on GPRS/EDGE (Green), UMTS (Blue) or HSPA (Violet) by different lights on the LED display. The process is really that simple and without fuss. Unlike existing router solutions that require an external broadband USB modem or dongle and serve only to provide connectivity, this is a new paradigm shift and new product category for mobile connectivity. The device will let users put their world of content, services and connectivity in their pocket, and available at the touch of a button. There is little the MiFi 2352 will not deliver. This is connectivity on tap, on time and with all the bells and whistles.

"The microSD card slot supports up to 16GB microSD cards is a great feature that allows the user to store and share content between devices over Wi-Fi. Add to this package the MiFi platform and the user has a personal cloud of high-speed Internet connectivity that can be easily shared between 5 users or Wi-Fi enabled devices such as laptops, tablets, cameras, gaming devices and multimedia players. As if anything else was required, the MiFi is GPS enabled.

In the words of one of the Africa Telecoms Team (you know who you are), “it really does work great,” and for all of us, it does and without hesitation, this is a genuinely great product.

22

AFRICA TELECOMS April 2010

Technology/Bands • Tri-band HSUPA/HSDPA • 900/1900/2100 MHz • Quad-band GPRS/EDGE • 850/900/1800/1900 MHz • A-GPS and gpsOneXTRA™ support • Receiver equalisation • Receiver diversity Data Speeds • HSDPA – Up to 7.2 Mbps downlink • HSUPA – Up to 5.76 Mbps uplink Dimensions • 62mm x 98mm x 15.3mm Weight • 81grams

WLAN • 802.11b/g 2.4 GHz • Pre-configurable security (WEP/WPA/WPA2) • DHCP server • NAT/NAPT • DNS support • VPN pass-through Battery • Removable Li-ion battery Interface • microUSB port • microSDHC slot (to 16GB) • SIM socket 1.8V and 3.0V standard USIM Antennas • Integrated diversity antenna • Integrated WiFi antenna • Integrated GPS antenna

LED Indicators (2) • Multi-colour status indicator • Wi-Fi indicator Operating Systems • Windows® 2000, XP, Vista, • Mac OS® X 10.4 or later • Linux® System Requirements • Type A USB port • Internet browser software

THOUGHT LEADERSHIP

by JOHANN BARNARD

Flavien

With the recent and impending arrival on the continent of undersea broadband cables equivalent to many terabytes of bandwidth, the question turns to the relevance and demand for satellite communications. In an exclusive interview with Africa Telecoms, Flavien Bachabi, Intelsat's Regional Vice President for Africa, shares some of the company's insights into this market.

bachabi

I

ntelsat is recognised a leader in the field of satellite communications and has been providing satellite-enabled services to Africa since 1965, with its focus still firmly fixed on the continent. This is evident in the fact that 24 of it's fleet of 55 communications satellites service more than 200 customers in the region.

The relevance of this carrier technology is underpinned by the more than 40 mobile operators that rely on Intelsat to provide backhaul services to outlying areas.

“Africa has been one of the fastest growing regions for fixed satellite services in recent years, fueled by demand for critical infrastructure from communications providers and television programmers,” says Bachabi.

He adds that the significant demand for Internet access over the past five years has reshaped the communications landscape, particularly in Africa where years of neglect have resulted in pent-up demand finally being alleviated by the arrival of the myriad submarine data cables.

“Until recently, only a handful of the 53 African countries were connected to fibre,” he states.

24 AFRICA TELECOMS April 2010

LEAD STORY

Q. What are the different kinds of satellite orbits?

An orbit is the path that a satellite follows as it revolves around Earth. In terms of commercial satellites, there are three main categories of orbits: Geosynchronous Orbit (GEO): 35,786 km above the earth Orbiting at the height of 22,282 miles above the equator (35,786 km), the satellite travels in the same direction and at the same speed as the Earth's rotation on its axis, taking 24 hours to complete a full trip around the globe. Thus, as long as a satellite is positioned over the equator in an assigned orbital location, it will appear to be "stationary" with respect to a specific location on the Earth. A single geostationary satellite can view approximately one third of the Earth's surface. If three satellites are placed at the proper longitude, the height of this orbit allows almost all of the Earth's surface to be covered by the satellites.

Medium Earth Orbit (MEO): 8,00020,000 km above the earth These orbits are primarily reserved for communications satellites that cover the North and South Pole. Unlike the circular orbit of the geostationary satellites, MEO's are placed in an elliptical (oval-shaped) orbit Low Earth Orbit (LEO): 500-2,000 km above the earth These orbits are much closer to the Earth, requiring satellites to travel at a very high speed in order to avoid being pulled out of orbit by Earth's gravity. At LEO, a satellite can circle the Earth in approximately one and a half hours.

April 2010 AFRICA TELECOMS 25

“Even after the arrival of the new undersea fibre systems, only about 15 countries will be connected in some way or another to coastal landing points via fibre.”

Working hand-in-hand Despite these fibre connections, however, Intelsat still has a pivotal role to play in this arena. “Even after the arrival of the new undersea fibre systems, only about 15 countries will be connected in some way or another to coastal landing points via fibre. This alone demonstrates the necessity to have a blend of satellite, fibre and wireless to adequately address Africa’s specific challenges and requirements.

“Intelsat has been at the forefront of providing solutions to make Internet and broadband more accessible across the continent, the benefits of which are already noticeable, in that the development of the telecoms sector has already created new business opportunities and jobs,” he says.

There has naturally been a knock-on effect in improved service delivery in the provision of social, educational and medical services, with Intelsat playing a role in developing international satellite-based telemedicine networks, for example.

The unique African environment characterised by dislocated communities with little or no modern infrastructure has actually played to Intelsat's advantage as it and its customers are able to deliver world-class solutions that other technologies cannot replicate as effectively or efficiently.

“Intelsat’s long-standing leadership has provided a communications infrastructure that has extended voice, data and media services to the most remote regions of the continent,” explains Bachabi.

“Satellite networks are extremely predictable, allowing constant and uniform quality of service to thousands of locations, regardless of geography. Unlike most terrestrial alternatives, satellite networks can be rolled out quickly to multiple locations, connecting cities with remote villages across a large landmass, where terrestrial fibre is insufficient or non-existent. Since satellite-enabled communication networks can be quickly deployed, customers can establish and deliver new services faster.

“Satellite can reach everywhere, linking the remotest parts of the inner continent’s countries to major coastal urban centers where fibre is available, offering an ideal and necessary redundancy solution to fibre.”

It is on the back of these needs that the company has been growing its satellite-based services for the past 45 years to the point today that it not only provides backhaul services to a

26 AFRICA TELECOMS April 2010

growing number of mobile operators, but has also invested in its own terrestrial network that spans 20,000 km.

Bachabi says that eight out of the top 10 mobile operators in Africa, representing 64% of the region's subscribers, currently make use of Intelsat's communications satellite system.

“From a financial perspective, 17% of total company revenue in 2009 was generated from Africa and the Middle East. We are committed to the continent and will continue to provide new service offers to meet customer demand as demonstrated

intelsat new dawn

through our investments in IS-25 and Intelsat New Dawn.”

The company's own terrestrial network, branded IntelsatONE, is powered by Cisco and consists of a global, terrestrial architecture, based on an IP/MPLS network, teleports and points of presence. It is fully integrated with its satellite fleet, providing a single source for converged voice, video and data solutions.

This does not mean the company is taking its eye off the satellite ball, with it rolling out additional infrastructure to service the continent.

“We are currently in the midst of our company’s largest fleet investment programme and have eight satellites in various stages of construction. We launched Intelsat 16 in February and are on track to launch Intelsat New Dawn, which will serve Africa, later this year,” explains Bachabi.

Special needs The power and convenience of communications satellites was demonstrated most notably earlier this year in the aftermath of the Haiti earthquake.

Intelsat was able to dedicate two communications networks to provide critical communication links.

“The two networks, established via Intelsat’s satellite and terrestrial network infrastructure, supported governments,

This ground-braking initiative, announced at the end of 2008, is a joint-venture that will result in the launch of a new satellite into the 33º East orbital location, which is ideally positioned to serve Africa. The satellite will feature a payload optimised for wireless backhaul, broadband and television programming and is expected to be operational next year.

“Nearly 75% of the satellite’s C- and Ku-band transponder units are under contract, with pre-launch commitments received from leading wireless, network and video service providers,” says Bachabi. “Gateway Communications, Vodacom International, Zain Nigeria and Gilat Satcom have all purchased capacity, which clearly shows the underlying demand for additional capacity in Africa.”

“The New Dawn joint venture, with its optimised satellite and African-led financing, represents a solution for Africa

by Africa,” noted Andile Ngcaba, chairman of Convergence Partners, one of the South African-based JV partners, at the announcement. “Over the course of this satellite’s life, it will provide world-class connectivity, allowing businesses to grow and rural communities to connect.

Convergence Partners believes that investments in African projects of this nature can offer superior returns while also accelerating the socio-economic development of the continent.”

“Intelsat has provided satellite communications to Africa for more than 40 years. We have witnessed the economic growth realized by our customers when they have access to reliable communications,” said David McGlade, CEO of Intelsat. “The New Dawn joint venture is a great example of the type of creative investments Intelsat will use to further develop our fleet in regions where we believe there is unmet demand. Once in service, Intelsat New Dawn will be an integral part of our global, resilient satellite network, providing growth capacity and allowing us to further expand our services to our long-time customers in Africa.”

April 2010 AFRICA TELECOMS 27

Africa to a global audience,” says Bachabi.

“In addition, Intelsat will combine this space segment with its global infrastructure of teleports and fibre, and points of presence, offering end-to-end managed solutions.”

Services will include tape play-out, live shot and transmission services from event locations in Johannesburg, Cape Town and Durban; live shot locations for non-rights holders at Ellis Park and Soccer City; incountry satellite newsgathering services; and managed platforms for encoding, multiplexing and compression equipment in high and standard definition. AT

Ploughing back

non-governmental organizations, network service providers, media, telecommunication operators and humanitarian efforts countrywide,” says Bachabi.

“Intelsat rapidly deployed broadband connectivity via capacity on its Intelsat 907 and Horizons 2 satellites. For our media customers, Intelsat was one of the first satellite operators with a dedicated team and a fly-away system in place at Toussaint Louverture International Airport in Portau-Prince, providing on-site co-ordination and transmission services.”

He adds that in eleven days following the event, Intelsat enabled the uplinking of more than 500 hours of broadcasts from the disaster zone.

While not carrying the same emergency ramifications, the FIFA 2010 World Cup in South Africa is further demonstration of Intelsat's capabilities and the crucial role that satellite communications plays. For this month-long event, the company will be providing more than 700 MHz of satellite capacity on as many as seven satellites in its global fleet for transmission services.

“Rights-holding and non-rights-holding broadcasters will utilise Intelsat capacity to distribute the matches from South

28 AFRICA TELECOMS April 2010

Giving effect to its philosophy that education is critical to African growth, Intelsat has been intimately involved in supporting a South African non-profit organisation, Mindset Network, which uses satellite technology to develop and distribute educational resources in the education, health and vocational sectors.

“Free educational material is delivered on television and on the Internet,” explains Bachabi. “Because of satellite technology, Mindset has been able to give educational and healthcare professionals the opportunity to become more knowledgeable and in turn educate the next generation, which is ultimately creating social change.

“Since its inception in 2002, Mindset has

transmitted content directly to more than 1.5 million households in sub-Saharan Africa and to 1,250 schools and 307 health clinics and hospitals using local examples with local relevance.”

He adds that Africa will also benefit from the Intelsat Interference Management Initiative, which aims to establish an interference-free environment by training installers within the user community.

“We will be offering training, free of charge, to customers through a three-year online training programme and offer all our customers access to a negotiated group rate for operator certification courses. Intelsat’s goal is to have 1,200 global technicians and engineers trained within the next few years.”

company milestones

1965

Launched the world's first commercial communications satellite

1969

First live global television broadcast of the Apollo XI lunar landing

1974

Created the first international digital satellite voice communications service

1987

Linked 50,000 people in 70 cities for world's largest teleconference

1998

Established high-speed Internet backbone links around the world

2000

Compressed 40,000 hours of programming into two weeks for Sydney Olympics

2001

Intelsat becomes a private company after 37 years as an intergovernmental organization

2004

Intelsat acquires from Loral five satellites and the rights to operate from six orbital locations over North America

2005

Intelsat announces the successful closing of the acquisition of Intelsat by Intelsat Holdings, Ltd., an entity formed at the direction of funds advised by or associated with Apax Partners Worldwide LLP, Apax Partners, Inc., Apollo Management V, L.P., MDP Global Investors Limited and Permira Advisors, LLC.

2006

Intelsat announces the successful closing of the acquisition of PanAmSat Holding Corporation. Merger creates worldâ&#x20AC;&#x2122;s largest commercial fixed satellite services provider, bringing the new Intelsat closer, by far, to meeting customer needs with unrivaled satellite and terrestrial resources and expanded delivery of value-added services.

Total Revenue $2.5 billion in 2009 Employees Staff of 1,100 Offices Intelsat has offices in Brazil, China (Hong Kong), France, Germany, India, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States.

April 2010 AFRICA TELECOMS 29

the big switch

34 AFRICA TELECOMS

ADVANCING QUALITY AND PERFORMANCE IN THE TELECOMS NETWORK – SHOWCASING SS7/IP SIGTRAN SIGNALLING TECHNOLOGY

April 2010 AFRICA TELECOMS 35

B

ehind the critical and integral processes of any telecommunications network, whether fixed or mobile, there exists signalling technology that enables networks to communicate, exchange and control critical information, from network to network, user to network and network to user.

This signalling technology, and subsequent information exchange underpins the majority of every telephone call made anywhere, and at any time, particularly in the evolution from the legacy TDM networks to the IP SIGTRAN networks and then beyond that to SIP based VOIP networks.

With increasing connectivity across the African continent through fibre and satellite technologies, all telecoms networks will see strong growth including existing and new wireless deployments using GSM and CDMA technology, particularly within feature rich, enhanced NGN services.

From an African perspective, just as telecommunications has become much more advanced around the world, so have the wireless carriers in this region. In fact, the African continent

boasts some of the fastest growing telecoms networks in the world according to the International Telecommunications Union that says the continent has seen compound annual growth of 47% between 2003 and 2008, far surpassing the global rate of 23%.

Despite this growth, wireless carriers continue to suffer from declining ARPUs, poor quality of service, inefficient deployments and significant churn from operator to operator. This coupled with a skills shortage across Africa, has meant that networks, and network operators in particular are not operating with the greatest efficiency and maximum profitability.

Basic SS7 Network Architecture A telecommunications network consists of a number of switches and application processors interconnected by transmission circuits. The SS7 network exists within the telecommunications network and controls it. SS7 achieves this control by creating and transferring call processing, network management, and maintenance messages to the networkâ&#x20AC;&#x2122;s various components. IP backbones.

With increasing connectivity across the African continent through fibre and satellite technologies, all telecoms networks will see strong growth SS7 is used to allow interconnection of VOIP networks to Legacy type networks.

Within this framework, SS7 and the associated signalling architecture is the global protocol for performing signalling in support of call-establishment, billing, routing, subscriber location management and information-exchange functions of the wireless networks and Public Switched Telephone Network (PSTN). SS7 is a separate signalling network that is used in both wireless and wireline switched networks.

Common Channel Signalling Common Channel Signalling (CCS) does not take place over the same path as the conversation, or voice part of a call. CCS establishes a separate digital channel for the exchange of signalling information. This channel is called a signalling link. Signalling links are used to carry all the necessary signalling messages between nodes. Thus, when a call is placed, the dialled digits, trunk selected, and other pertinent information are sent between switches using their signalling links, rather than the trunks which will ultimately carry the conversation.

It is interesting to note that SS7 is used not only for signalling between network elements but also for the transport of digital

36 AFRICA TELECOMS April 2010

Common Channel Signalling System No. 7 (i.e. SS7 or C7) is a global standard for telecommunications defined by the International Telecommunication Union (ITU) Telecommunication Standardization Sector (ITU-T). The standard defines the procedures and protocol by which network elements in the public switched telephone network (PSTN) exchange information over a digital signalling network to effect wireless (cellular) and wireline call setup, routing and control. The ITU definition of SS7 allows for national variants such as the American National Standards Institute (ANSI) and Bell Communications Research (Telcordia Technologies) standards used in North America and the European Telecommunications Standards Institute (ETSI) standard used in Europe and most countries outside of North America.

In this way, SS7 is a protocol for performing Common Channel Signalling in support of the call-establishment, billing, routing, subscriber location, text messaging and information-exchange functions. It identifies functions to be performed by a separate signalling-system network and a protocol to enable their operation. Typically SS7 is deployed through the use of a separate signalling network.

The architecture of this network also incorporates the use of specialized signalling network elements such as Signal Transfer points (STPs) Signalling Gateways (SGWs) and Signalling Edge devices. These elements handle such functions as Signalling message routing, Advanced message accounting, Global Title Translation, Gateway Screening and security and interconnect to other wireless and wireline operators, and International signalling networks. This Information is conveyed in the form of messages and is characterized by high-speed packet data and Common Channel signalling

information between user stations or handsets. The best known example of this is the use of Text or Short messaging. SS7 is the protocol used to support text messaging in near real-time between users. Text messaging is also used for many other applications such as subscriber voting and content download applications.

SS7 Controls the Network through three Core Components A SS7 network has three distinct components: Service Switching Points , Signal Transfer Points , and Service Control Points.

These components may be generically referred to as “nodes” or “signalling points.”

The voice switches that carry the telephone conversations are known as "service switching points" (SSPs). The SSPs query "service control point" (SCP) databases using packet switches called "signal transfer points" (STPs).

Each signalling point in the SS7 network is uniquely identified by a numeric point code. Point codes are carried in signalling messages exchanged between signalling points to identify the network element source and destination of each message. Each signalling point uses a routing table to select the appropriate

signalling path for each message.

In the case of wireless networks, in addition to the use of a signalling point code to identify the Network Element source and destination of each message, there is also the use of a global addressing scheme known as Global title Translation. The Global Title address allows the specific application within a network element to be addressed. There could be many applications within a single SCP that are identified through the Global Title Address.

Network traffic between signalling points may be routed via a packet switch or the Signal Transfer Point STP. An STP allows for the efficient routing of each incoming message to an outgoing signalling link based on routing information contained in the SS7 message. Because it acts as a network hub, an STP provides improved utilisation of the SS7 network by eliminating the need for direct links between signalling points. An STP may perform global title translation, a procedure by which the destination signalling point is determined from digits present in the signalling message. An STP can also act as a "firewall" to screen SS7 messages exchanged with other networks.

Because the SS7 network is critical to call processing, STPs are usually deployed in mated pair configurations in separate

April 2010 AFRICA TELECOMS 37

physical locations to ensure network-wide service in the event of an isolated failure. Links between signalling points are also provisioned in pairs.

In a TDM network traffic is shared across all links in the linkset. If one of the links fails, the signalling traffic is rerouted over another link in the linkset. The SS7 protocol provides both error correction and retransmission capabilities to allow continued service in the event of signalling point or link failures. In the case of IP SIGTRAN networks there is no concept of a link-set, thus effectively lessening one of the causes for congestion in a TDM signalling network.

Signalling in an IP network takes place between identified Associations. This mechanism takes advantage of the inherent benefits of IP networks.

The SS7 network, then, sets up and tears down the call, handles all the routing decisions and supports all telephony services such as toll-free numbers, call forwarding, caller ID and number portability (NP). The SCP databases provide static information such as the services a customer has signed up for and dynamic information such as ever-changing traffic conditions in the network. Because the signalling network is separate, a voice circuit is not tied up until a connection is made between both parties.

SIGTRAN – EVOLUTION TO FULL IP NETWORKS In 1998, an Internet Engineering Task Force (IETF) working group (SIGTRAN) was formed to design a mechanism for reliably transporting call control signalling over the Internet.

SIGnalling TRANsport (SIGTRAN) is an IP telephony protocol that is used to transfer SS7 signals over IP networks. SIGTRAN, therefore, refers to a protocol stack for the transport of Switched Circuit Network (SCN) signalling protocols (SS7/C7) over an IP network. SIGTRAN is the evolution of SS7, which defines adaptors and a core transport capabilities that blend SS7 and packet protocols to provide users with the best both technologies have to offer. Applications of SIGTRAN include: Internet dial-up remote access, IP telephony interworking with PSTN and other services.

According to the IETF, “Signaling transport (SIGTRAN) provides transparent transport of message-based signaling protocols over IP networks. This includes the definition of encapsulation methods, end-to-end protocol mechanisms and use of IP capabilities to support the functional and performance requirements for signaling.”

The key components in the SIGTRAN architecture are as follows: • MGC–Media Gateway Controller, responsible for mediating call control (between the SG and MG) and controlling access from the IP world to/from the PSTN. • SG–Signalling Gateway, responsible for interfacing to the SS7 network and passing signalling messages to the IP nodes.

• MG–Media Gateway, responsible for packetization of voice traffic and transmitting the traffic towards the destination.

• IP SCP – an IP-enabled Service Control Point (SCP). This exists wholly within the IP network, but is addressable from the SS7 network.

• IP Phone–generically referred to as a “terminal.”

Stream Control Transmission Protocol (SCTP), a core protocol in the SIGTRAN protocol stack, provides transport layer services over IP. Examples of such transport include: transport of signalling between a Signalling Gateway and Media Gateway or Media Gateway Controller; transport of signalling

38 AFRICA TELECOMS April 2010

Number Portability (NP) is a telecommunications network feature that enables end users to retain their telephone numbers when changing service providers, service types, and/or locations. When fully implemented nationwide by both wireline and wireless providers, portability will remove one of the most significant deterrents to changing service, providing unprecedented convenience for consumers, and encouraging unrestrained competition in the telecommunications industry. Key to the deployment of NP is the prerequisite deployment of an SS7 network.

By removing one of the most significant barriers to unrestrained competition, number portability is perhaps the most exciting opportunity in the telecommunications industry since divestiture. The challenges and opportunities created by number portability, especially NP, are enormous.

The competitive carriers that are able to carefully analyze their network and administrative infrastructures, select the best NP solution for their needs, successfully deploy number portability, and exploit the new-found freedom of customer choice that number portability enables, will position themselves for success in a truly competitive environment.

SS7 also provides information to the HLR (Home Location Register) in a wireless network and is responsible for the exchange of information related to determining where in the mobile network a subscriber is located at any point in time.

Finally, SS7 is also used to access to the SMSC (Short message Service Centre) for the handling of text messages.

A Typical Mesh Network Topology

Mesh vs. Star Configurations Network Topology A central element of improved network efficiencies pivots on an operators signalling network topology. In many networks mesh signalling configurations are deployed.

These are characterised by: 1. Highly Complex data structure in each node Each node must be associated with every other node. This is prone to Errors and time consuming to configure.

2. Inefficient network growth path Adding a new node means it has to be associated with every other node in the network. Data in every node has to be updated.

3. Unclear network performance Distributed performance data in every node is difficult to collect & correlate

4. High cost of transmission High number of signalling paths, especially in a TDM environment means high transport costs 5. Inefficient use of SSP processing power Signalling complexity puts high capacity demand on the network element processor. This results in less efficient handling of revenue generating activities.

An alternative to a mesh networks is a star configuration which has significant benefits as identified below.

1. The use of a Simplified data structure in each node Each node is associated only with a pair of STPâ&#x20AC;&#x2122;s as opposed to every node in the network.

2. Efficient network growth path Adding a new node only requires association with the STP pair as

opposed to a mesh configuration which requires association with many nodes.

Typical Star Network Topology

3. Network performance can be measured Network performance data can easily be extracted from the centralized STP pair as opposed to trying to correlate information from many network elements.

4. Reduced cost of transmission A more efficient signalling path is required only to the pair of STPâ&#x20AC;&#x2122;s.

5. Efficient use of SSP processing power The Network Element processors are freed up to handle more traffic since the handling of signalling is much simpler and requires less processor power.

6. No Single Point of Failure Fully redundant mated pair means all signalling is redundant and all single points of failure are eliminated.

April 2010 AFRICA TELECOMS 39

Many operators rely on their turnkey supplier to engineer and deliver their entire network

("backhaul") from a Media Gateway to a Media Gateway Controller; transport between a Signalling Gateway and other IP nodes.

SCTPs can allow legacy TDM network elements to be connected to newer IP enabled elements. The SCTP in this case acts as a converter between the TDM and IP worlds. This means that the legacy network elements do not have to be upgraded to support SIGTRAN and thus eliminating a major cost and allowing the prolonged life of the legacy network elements.

IP allows the more efficient use of network transport and much more efficient ‘statistical multiplexing’ methods of transport. IP further permits the elimination of traditional bottlenecks in TDM networks such as the 16 links in a linkset limitation.

The Benefits of a Specialized Signalling Supplier - PT PT (www.pt.com) is a U.S. based company headquartered in Rochester, New York, and has been providing network communications solutions for almost 30 years. Its SEGway Signalling Solutions are known for the industry’s highest transaction per second rate, resulting in vast relief of network congestion, and support a wide range of cost-saving and revenue generating applications, such as Point Code Emulation, Gateways, HSL, and IP Edge, and are transparent in the network, working with TDM, CDMA, ATM, IP, or SIGTRAN. Many operators rely on their turnkey supplier to engineer and deliver their entire network. In many cases, the turnkey supplier may not optimise the SS7 network fully.

40 AFRICA TELECOMS April 2010

When African carriers were building out their wireless networks, they generally installed end-to-end infrastructure solutions, with bundled architecture helping them to quickly get their networks up and running in the rush to compete for market share. Using a single source for all network elements was the most efficient because it accelerated ramp-up time and avoided interoperability issues The downside to this approach is that best of breed products do not always come from a single vendor, and turnkey solutions did not always include knowledge transfer that allowed staff to competently remedy the situation.

As the network operators examine new sources for equipment, they can also receive specialised instruction and training that will prepare them to properly use SS7 signalling gear. This will crucially empower engineers to be able to ask more pertinent questions and to “second guess” the designs and implementation that the turnkey solutions provided. For PT, this is as essential as the SS7 equipment and hardware. This is one of the major values that a specialist signalling supplier can bring to the operator.

While PT’s signalling transfer point resolves complex routing issues in mesh, hierarchical, or hybrid networks, it is extremely easy to use. The low-cost, high capacity solution includes full training, and can be easily installed in a network without interruption of traffic. PT’s solution needs no additional hardware when evolving from TDM to IP. As the design groups within these carriers evolve and upgrade their networks, they are essentially creating a new model, one where they assemble an entire system by gathering the best elements available. Without the initial pressure to put the entire network together and be in service immediately, they can architect scalability into the scheme, thereby planning for future growth without making the whole investment at one time.

By conducting in-depth research and trials, these engineers can ensure their new infrastructure is comprised of best-of-breed components.

With the possibility of a truly "Converged World" of Next Generation Networks (NGNs) bringing with it the promise of voice, video, and data over a single broadband network, this transition from the traditional circuit-switched networks to packet-switched networks has been underway for many years, and IP is now leading the transition. AT For more information call +44 7795556377

A crew works onboard the CS Tyco Resolute to lay cable undersea fibre-optic cable.

44 AFRICA TELECOMS April 2010

Footprint

Since SEACOMâ&#x20AC;&#x2122;s official launch on 23 July 2009, countries like Tanzania and Mozambique have seen bandwidth supply grow by more than 1000% and 850% respectively, while bandwidth supply in Kenya has grown by 700%. More recently, SEACOM announced that it had been awarded an agreement to supply Ethiopian Telecommunications Corporation (ETC) with international broadband fibre connectivity via a backhaul link through Djibouti. Ethiopia will now also benefit from plentiful and readily available bandwidth and new opportunities across many sectors of its economy. Through the provision of plentiful bandwidth at a fraction of the previous cost, the cable system has opened up unprecedented opportunities for governments, businesses and ordinary citizens to compete globally, drive economic growth and enhance the quality of life across the continent.

In South Africa, for example, SEACOM has partnered with southern African research and education networks through TENET. This partnership is an example of how the company is facilitating faster development by providing subsidised international bandwidth. In Tanzania, they have donated a 155Mbps of capacity to the University of Dar Es Salaam and hopes to provide capacity to another 60 plus research and educational institutes at a discounted rate. >>

April 2010 AFRICA TELECOMS 45

adver torial

laying africaâ&#x20AC;&#x2122;s lifeline

SEACOM is a privately funded and over three quarter African owned undersea fibre optic cable which assists communications carriers in Southern and Eastern Africa through the sale of wholesale international capacity to global networks via India and Europe. With an enormous capacity of 1.28 Tbps, SEACOM is the first cable to provide broadband to countries in East Africa which previously relied entirely on expensive satellite connections. African retail carriers can now enjoy equal and open access to inexpensive bandwidth, removing the international infrastructure bottleneck and supporting economic growth.

Within Africa, South Africa, Mozambique, Tanzania and Kenya are inter-connected via a protected ring structure whilst additional express fibre pairs complete the network by linking into Marseille, France and Mumbai in India.

SEACOM has also procured fibre capacity from Marseilles to London as part of the network.

From left: A plough onboard the CS Tyco Resolute and a student in Rwanda who will benefit from the increased bandwidth.

SEACOM’s achievements show that, with an enabling environment, the private sector can mobilise the resources required to deliver complex and expansive projects for the benefit of the African people. The cable will change the lives of every man, woman and child in the countries connected by making previously unavailable technology accessible to everyone.

Inland countries, regions and cities are also benefiting from the increased bandwidth capacity. The cable system is using its subsidiaries and local partners in each country, who are licensed and established to carry communication infrastructure, to establish backhaul solutions/Last Mile land-based fibre infrastructure, into landlocked countries. By way of example, Altech, a South African based telecommunications company operating in East Africa and SEACOM have taken a giant step towards unlocking this enormous potential in East Africa. This success would not be possible without infrastructure which links our beach landing stations to metropolitan PoPs (Point of Presence). KDN’s extensive inland infrastructure in East Africa will link our landing station in Mombasa to Nairobi, and onward to Kampala and Kigali. Connecting Ethiopia is based on the same principle, and we will continue to connect additional landlocked countries.

Pricing

The impacts of SEACOM’s affordable broadband pricing are already beginning to be felt across the continent. In September 2009, MTN announced a 50% increase in capacity for certain corporate clients in South Africa while Telkom also announced similar increases. More recently, on March 18 2010, MWeb a South African ‘Internet Services Provider’ (ISP) launched a new uncapped ADSL offering for businesses and consumers which is 40% cheaper than anything previously available, providing South Africans with unlimited internet access. In Kenya, Safaricom and other Kenyan mobile operators have

46 AFRICA TELECOMS April 2010

seen a dramatic increase in 3G demand. In Tanzania, TTCL announced in October 2009 that its internet prices were going down by as much as 65%.

These price reductions at the end user level will greatly assist the economic growth and social upliftment in the country.

In addition to the pricing impacts of SEACOM, national carriers have realised that they have to upgrade their networks to move large amounts of bandwidth. For example, Kenya is building three different national networks, South Africa is developing four national networks, and the government of Rwanda is rolling out huge fibre networks throughout the country. Ethiopia is now also following the same path.

2010 Soccer World Cup

SEACOM will also be playing a major part in the first ever Soccer World Cup hosted on African soil in South Africa.

World class fibre optic cable will be providing over a terabit of capacity into South Africa. The country’s stadiums will transfer up to 40 Gbps of redundant capacity to the International Broadcast Centre (IBC) for each game. Licensed FIFA broadcasters will be able to purchase a fully diverse and configured route running through the cable system along the east coast of Africa.

With an increase in the number of mobile and internet users as well as more data intensive applications such as High Definition TV, Facebook and YouTube, the 2010 Soccer World Cup will see a marked increase from the 2006 World Cup which already moved a record 21 terabytes of voice and data traffic for the teams, FIFA officials, local organisers, media and other event partners. SEACOM is providing the highest degree of backup to meet the stringent service levels of FIFA and to ensure that South Africa is able to deliver world class quality and meet the heavy data requirements expected during an event of this magnitude. AT

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Source: Telegeography

fibre rules the roost

.... but satellite newcomer, O3b could change the game in 2011... by brett haggard

44 50 AFRICA AFRICA TELECOMS TELECOMS December April 201009 / January 2010

W

ith the number of undersea fibre-optic cables it has lit-up over the past year and a number of new connectivity projects due for completion in the next 18 months, Africa is swiftly leaving its â&#x20AC;&#x2DC;dark continentâ&#x20AC;&#x2122; nickname behind and becoming one of the emerging markets with the greatest potential worldwide. And this change has only come about because the buyers of infrastructure (primarily governments) are growing to understand the intrinsic differences between voice, video and data traffic and more importantly, which technologies are better suited to each of these different traffic types.

Using the right technologies

Before the huge influx of fibre infrastructure hit the continent, satellite was tipped as the technology Africa would use to satisfy its growing hunger for broadband Internet connectivity.

Serving as reinforcement of this, the continent was already making extensive use of satellite for the delivery of television content. The only problem was (and to this day remains) that satellite was (and is) well suited

April 2010 AFRICA TELECOMS 51

For distributing a television signal, there’s a wealth of users to amortise this over – and traffic tends to be one-way in nature, so the capacity a broadcaster requires on a satellite is minimal.

for delivering a television signal, but particularly inefficient for delivering the kind of connectivity required to enable world-class broadband Internet infrastructure.

Part of the reason is latency.

Because this technology requires that data be transmitted to a satellite orbiting the earth and then relayed to another point on the earth’s surface, and for the reverse route to be followed when data is transmitted back to the source, it’s much slower than fibre connectivity. Then, there’s the effect environmental factors such as rain can have on the quality or usability of the service to consider.

Another other part of the reason is cost.

Will Hahn, Principal Research Analyst in the Communications Service Provider Business Research at Gartner says the current costs for a satellite link are considered exorbitant versus one based on fibre connectivity.

Satellites are expensive to build and launch, and expensive to maintain.

For distributing a television signal, there’s a wealth of users to amortise this over – and traffic tends to be one-way in nature, so the capacity a broadcaster requires on a satellite is minimal.

Hahn says that current satellite-based solutions are only really an option that should be considered for Internet backhaul when

52 AFRICA TELECOMS April 2010

terrain is too harsh for physical infrastructure to be laid, where political instability is a barrier to investment protection, or there’s an urgent need for backhaul capability and a shortage of time to lay technology such as fibre.

And although Africa has had its challenges, it’s a little sensationalist to cite untenable terrain, political instability or the inability for a country to wait for its connectivity as a viable reason to use satellite over fibre.

Changing the model

Hahn says the only conceivable reason one would want to use any of the current satellitebased offerings, as part of a broadband strategy is redundancy.

“And as I understand it, FIFA will be doing exactly that during the Soccer World Cup which South Africa will be hosting in a couple of months’ time,” he says.

While Hahn says the need for a redundant, backup solution could well see the way satellite services are marketed changing over the coming years, unless there’s dramatic change in the value proposition of satellite, it’s unlikely it will ever truly compete with fibre as an Internet backhaul technology.

For this reason, Hahn believes the satellite value proposition is due for some change over the coming months and years.

“The recent popularity of fibre-based connectivity is sure to elicit a competitive response from purveyors of satellite-based technology,” he says.

“The first example of such a response is evident in what being touted by O3b Networks’ who has an ambitious plan to deliver a fibre-like Internet backhaul service using a constellation of medium-orbit satellites,” he adds.

Too good to be true?

O3b’s value proposition is ambitious and almost too good to be true, since it’s hard to believe it’s taken this long for someone to discover that a technology that’s been around for this long, such as satellite, could be used in a more cost-effective, results yielding way.

O3b’s value proposition is hard to believe since Hahn says it believes its constellation of satellites will not only deliver the performance level, but also a lower cost level than fibre.

It says that’s because its satellites will be in medium-orbit, which it says means data transfers have less distance to cover and as such will be conducted with lower latency levels.

O3b says this also means that a lower number of satellites can be used to cater for a much larger coverage area.

Seeing is believing

Right now, O3b is in the process of approaching global carriers and ISPs with the prospect of providing them with backhaul services out of landlocked parts of Africa and South America.

And with backers such as SES, Google Inc., Liberty Global, Inc., HSBC Principal Investments and Northbridge Venture Partners, the company is getting a great deal of interest from the market.

O3b’s services are due to commence in the first quarter of 2011 and it reports that the company is still on track to deliver.

“If even half of O3b’s claims come through, it will change forever how satellite is marketed and viewed in the market,” Gartner’s Hahn concludes.

If O3b doesn’t succeed however it will almost certainly point to the end of the road for satellite – at least as an Internet backhaul provision technology – in the near future. AT

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unravelling high data costs

cable in the hull of a seacom cable-laying ship is unwound as it is placed on the seabed.

54 AFRICA TELECOMS April 2010

What a difference a year makes. That’s such a cliché, but so appropriate for South Africa’s internet industry, which is finally livening up after years of stagnation.

By lesley stones

April 2010 AFRICA TELECOMS 55

I

n the last few weeks, South Africa’s moribund broadband internet industry has been enlivened by a flurry of announcements as companies finally launched packages with no frustrating caps on the volume of data you can consume. That means no more frustrating error messages when your laptop tells you a website cannot be accessed. Not because the site is down, but because you’ve exceeded your bandwidth quota. The uncapped packages will also eliminate the crippling premiums incurred for buying extra bandwidth when you’ve hit the sealing.

It isn’t difficult to exceed your quota – a package costing a few hundred rand a month can still cut you off after a relatively modest amount of international surfing.

Now a handful of companies have removed the caps, or cut their prices, and the boldest have done both.

The reason why is simple: Seacom.

When the massive US$600 million undersea cable landed along Africa’s east coast last year it was difficult

to grasp what actual impact it would have. CEO Brian Herlihy talked of faster speeds and cheaper prices, but that was for its wholesale customers, not end users. Naturally there was a niggling suspicion that the Internet Service Providers (ISPs) who were buying its bandwidth may not pass those savings on to consumers.

Seacom’s international bandwidth eventually ended the industry’s enforced reliance on the west coast Sat3 cable for international bandwidth. Sat3 was expensive as the fixed line operator Telkom is a major shareholder and capitalised on its ability to charge what it liked. The only alternative before Seacom was even dearer satellite connectivity. finally broke that Seacom monopoly, and its arrival forced Telkom to reduce its fees on Sat3 to remain competitive. So instead of one over-priced cable, operators now have access to two cheaper cable systems.

It has taken time for the benefits to reach end users. But MWeb led the way in March with the abolition of bandwidth caps. Once that barrier was lifted, other players were forced to follow. The floodgates opened, and thankfully there is no going back.

“We signed up with Seacom in March for a long-term agreement, and we are purchasing significant bandwidth as Seacom provides a very attractive solution for international network capacity, at the best price currently available to the South African market,” says MWeb CEO Rudi Jansen.

It was a smart move for MWeb, allowing a company that was becoming something of an also-ran to suddenly leap to prominence.

Jansen expected its actions to provoke a response from the rest of the industry, but he may not have expected it

"Seacom’s delivery of cheaper and unlimited broadband was crucial." – Arthur Goldstuck, World Wide Worx 56 AFRICA TELECOMS April 2010

to happen quite so quickly. Within a day Afrihost, Vox Datapro and its sister company @tlantic declared they were following suit.

While this is obviously good news for consumers and business users, it does prompt the question that if they could cut their rates so drastically and so quickly, why didn’t they do it earlier?

MWeb had been unable to move any earlier, in fairness, as it first had to invest heavily in infrastructure upgrades to handle the extra business it expects to win. One ISP says companies have been reluctant to remove the caps on bandwidth consumption because usage then becomes difficult to manage. Some customers hog the capacity that has to be shared with multiple other users by downloading videos or playing interactive games all day. That can leave other users who are logged on at the same time struggling for capacity. It also skews the calculations that the ISP has made on how much it must charge and how much bandwidth it needs to buy from the wholesale suppliers.

Worse, he says, bad publicity and ill will can be heaped upon the ISP if it tries to clamp down on those bandwidth

hogs. That has occurred a few times in the past, with a very vocal minority of intensive bandwidth users protesting when an ISP tried to curb their usage.

MWeb is highly aware of the risk, and Jansen says a fair usage policy will be invoked if certain customers chew up far more than their fair share of capacity.

MWeb’s uncapped offerings start at ZAR219 a month and rise to ZAR2,259 for a high-end business package, making some of its products 40% cheaper than rival offerings.

“South Africans are a step closer to being able to use the internet like the rest of the world does, as MWeb launches a full range of uncapped ADSL packages for consumers and businesses at an affordable, highly competitive price,” Jansen said. “MWeb is the first major player in South Africa to offer uncapped ADSL on a significant scale, available 24 hours a day, with all the value-added products, technical back-up and a world-class network at an affordable price.

Internet penetration in South Africa remains below par – in fact, South Africa has fallen behind a number of other African countries. The lack of well-priced, generously provisioned bandwidth has been holding us all back, and

April 2010 AFRICA TELECOMS 57

as a result we are missing out on an immense economic opportunity.

Now, businesses can run more effectively without having to worry about their internet costs. This offer will enable South Africans to access and download content on a scale never seen before.”

Analyst Arthur Goldstuck of World Wide Worx says Seacom’s delivery of cheaper and unlimited broadband was crucial. “It has been proven that accessible technology builds the economy. This is the kind of catalyst we’ve all waited for; we hope it’s the gambit all other providers will have to match. If it delivers what it promises, the consumer and business user and ultimately the country will be the beneficiaries.”

There are still constraints however, and the most obvious and most stubborn one is Telkom. Telkom still retains the monopoly over the local loop, the last mile of copper cable that reaches into residential and business premises.

Despite years of promises from industry regulator ICASA , the local loop is not yet open for all operators to use. So ISPs still pay heavily for the right to use a facility that was funded by taxpayers in the first place. Since access to the local loop can account for up to 90% of the fees ISPs charge their customers, further significant price cuts can only be unleashed when the regulator finally frees up the local loop, says Doug Reed, MD of Vox Telecom.

Uncapped internet access is what consumers want and expect, and what they get in Asia, Europe and the US, Reed says. But it’s ridiculous that ISPs are providing these price reductions while Telkom, which owns the infrastructure and is in the best position to drive down prices, is doing little.

Jansen agrees that ISPs need to retain a decent working relationship with Telkom because of its dominance over the local loop. In spite of the stranglehold that Telkom still has on the internet market, MWeb cut its prices so South Africa could join the rest of the world and enjoy the social and economic benefits of broadband internet, he says.

Consumer-oriented @lantic has undercut MWeb by launching three uncapped products starting from ZAR339 a month, which includes rental for the Telkom ADSL line. Marketing director Dederick Venter says the cost of broadband is still too high, however, but cannot fall much more until Telkom co-operates.

Afrihost is selling uncapped ADSL bandwidth, excluding the line rental, from ZAR197 a month. CEO Gian Visser says those packages have a higher contention ratio than its capped versions, meaning that more users share the bandwidth. If numerous users are logged on simultaneously, the uncapped option will be slightly slower. People who value speed and performance over economy may prefer a capped package, he says. Like MWeb, Afrihost will take action against extremely heavy users who slow down the service for everybody.

Cost cuts are also coming from the mobile internet suppliers such as MTN. That is vital for people in rural areas who rely on wireless access, since ADSL barely extends beyond dense urban areas. Yet despite these long-awaited breakthroughs in affordability triggered by Seacom, South Africa will probably not see further price cuts until legislation finally opens up the local loop and frees ISPs from their financial burden to Telkom. AT

58 AFRICA TELECOMS April 2010

April 2010 AFRICA TELECOMS 59

An image from Qualcomm’s Plaza Mobile Internet™ product, which promises to ‘Mobilise your Online World’.

60 AFRICA TELECOMS April 2010

How CDMA will make mobile internet a reality

by BRADLEY SHAW

A

GPRS (General Packet Radio Service), usually offers a slower data bandwidth for wireless data connection than CDMAâ&#x20AC;&#x2122;s high-speed technology (1xRTT, short for single carrier radio transmission technology), which has the capability of providing ISDN (Integrated Services Digital Network)-like speeds of as much as 144Kbps (kilobits per second). However, 1xRTT requires a dedicated connection to the network for use, whereas GPRS sends in packets.

frica Telecoms attended the recent Inaugural Qualcomm CDMA Summit in Nairobi, Kenya, to find out more about the future of the technology. The goal of the Summit was to bring together the entire CDMA ecosystem in Africa for discussion, debate and information sharing. Each African market has its own unique challenges, and hence requires different solutions, and through collaboration with partners and peers, real innovation can occur within this ecosystem across the continent.

For many years, the wireless world has been divided between the Code-Division Multiple Access (CDMA) standard and Global System for Mobile communications (GSM) technology. The need to provide essential ICT wireless services to the African continent through the use of high-speed mobile broadband can only be fulfilled by CDMA technology. James Munn, VP Sub-Sahara Africa, Qualcomm, states that CDMA is a minority player

April 2010 AFRICA TELECOMS 61

CDMA’s WORLD WAR II FOUNDATIONS A Glamorous Past Once described as the most beautiful woman in the world, actress Hedy Lamarr was one of Hollywood’s most glamorous silver screen goddesses of the 1930s and 40s. But Ms Lamarr had another talent: she was brilliant. Working together with avante-garde music composer George Antheil, Lamarr came up with the notion that multiple frequencies could be used to send a single radio transmission – a concept that’s now known as frequency hopping. The concept would eventually provide the basis for the CDMA airlink, which Qualcomm first commercialized in 1995. The idea remained dormant until 1957 when engineers at the Sylvania Electronic Systems Division in Buffalo, New York took up the idea, and after the LamarrAntheil patent expired, used it to secure communications for the US during the 1962 Cuban Missile Crisis.

After becoming an integral part of government security technology, the US military, in the mid-80s, declassified what has now become CDMA technology, a technique based on spread-spectrum technology.

The technology soon caught the attention of the nascent wireless industry. CDMA, incorporating spread-spectrum, works by digitizing multiple conversations, attaching a code known only to the sender and receiver, and then dicing the signals into bits and reassembling them. This meant that CDMA resulted in extremely secure transmissions. Qualcomm, which patented CDMA, was attracted to the technology because it enabled many simultaneous conversations, rather than the limited stop-and-go transmissions of analogue and previous digital options. In the prescient words of Hedy Lamarr : “Films have a certain place in a certain time period, but technology is forever.”

but has a pivotal role to play, through innovations such as EVDO Rev. B (EV-DO Rev. B is the next generation of CDMA mobile broadband technology) and has the potential to be the next movement in the Mobile Broadband space for Africa.

In this regard, CDMA1x is a superior technology over its rival. GPRS/EDGE (General Packet Radio Service), usually offers a slower data bandwidth for wireless data connection than CDMA’s high-speed technology (1xRTT, short for single carrier radio transmission technology), which has the capability of providing ISDN (Integrated Services Digital Network)-like speeds of as much as 144Kbps (kilobits per second). However, 1xRTT requires a dedicated connection to the network for use, whereas GPRS sends in packets. This is the starting point where CDMA mobile broadband currently stands on networks that are EV-DO enabled. These networks are seeing download speeds of 3.1Mbps and with EV-DO Rev. A as the next evolution, download speeds will reach between 9.3Mbps and 14.7Mbps with Rev. B and DO advanced again increasing those rates to 32Mbps.

Dr Bitange Ndemo, who has been a major advocate of CDMA technology, opened the summit, describing CDMA technologies as more robust than others currently used in Kenya, with CDMA being a great solution for the provision of Last Mile services in the country. He also reiterated that rural areas continue to be a priority area for the Kenyan Government through the formation of “Digital Villages and E-Learning Facilities” being very high on the government’s spending agenda.

According to Dr Ndemo, 60% of the Kenyan population are covered by CDMA. He closed his address explaining that adoption rates for data usage had far exceeded the government’s expectations and that this is expected to continue.

For Sachin Bhatmuley, Senior Director Business Development at Qualcomm Inc, there are some key drivers for development

62 AFRICA TELECOMS April 2010

of the sector: “Qualcomm’s focus for Africa can be split into 3 areas; firstly, on the adoption of 3G services in Africa, secondly, the success of current 3G operators in Africa and increasing their market penetrations and finally, the conversion of 2G networks to 3G networks.”

Three main trends were highlighted to improve rates of adoption for CDMA technology:

TREND ONE } Reduced price of Handsets

CDMA device costs are declining and have been for a number of years. In 2004, CDMA2000 devices were around the US$80 mark. By 2008, they had reduced in price to under US$17.

There is strong evidence to suggest that as demand grows for CDMA handsets, these prices will continue to fall. There are 3 predominant reasons for this drastic reduction in price over the past few years; firstly, increased demand for CDMA devices is increasing the scale of production reducing the cost. Secondly, the Global CDMA Certification Forum (CCF) is reducing the time and development costs of taking new devices to market.

Thirdly, the Open Market Handset Group (OMH) is assisting in the unification of standards across the CDMA ecosystem which is allowing for the handsets to be used across multiple networks.

OMH is an industry initiative led by the CDMA Development Group to enhance the CDMA ecosystem by offering a greater selection of devices through multiple distribution channels.

Similar to what is seen today with GSM phones and SIM cards, CDMA industry partners are working together to introduce devices where the complete set of configuration data to support operator and subscriber identification is stored onto Removable User Identity Modules (R-UIMs), or SIM cards for CDMA devices.

OMH results in lower ASPs (Average Selling Price) due

www.terrapinn.com/2010/submarineza

Source: The CDMA Development Group (CDG), 2010

A CASE STUDY Mickael Ghossein, CEO Orange Kenya to volume aggregation, thus increasing device variety and affordability.

The initiative is gaining momentum. Currently, Visafone and Starcomms in Nigeria, PT Bakrie and PT Smart in Indonesia, and Citycell in Bangladesh are all providing OMH-compliant CDMA networks. In August 2009, Samsung announced the worldâ&#x20AC;&#x2122;s first OMH handset in India. Since then, several additional OMH handsets have been introduced and a number of Tier-1 and Tier-2 device OEMs are designing and producing OMH-compliant devices.

TREND TWO } Smartphone Proliferation

This is the fastest growing segment in the mobile phone market: Smartphones are expected to total 40% of total handsets shipped by 2014. Smartphone growth hit 34% in 2009 and 36% in 2010.

According to Gartner, over the coming 12 months the number of smartphones on the market is expected to outnumber the number of PCs globally. This presents huge opportunities for African operators to bring the internet into the hands and mobile devices of communities across the continent. This is allowing operators the ability to increase subscriber ARPU by offering data services that would not previously have been accessible.

TREND THREE } Devices becoming more diverse & data oriented

Voice revenues are continuing to decline and operators are investing in capacity where they are seeing returns, and these returns are deriving from Data. Services such as mobile 64 AFRICA TELECOMS April 2010

Kenya is about 580,000 km2, of which only about 10% is covered by a power grid. This has a huge effect on opex costs for mobile operators, as power generation is then needed for their base stations. Telecoms in Kenya â&#x20AC;&#x201C; 250,000 fixed lines and addressable market of 20 million wireless subscribers across CDMA and GSM networks, with two landed submarine cables (Seacom and TEAMS), with EASSY expected within the first half of 2010 (before going to print this was imminent in the last week of March). Telkom Kenya offers fixed line services for Voice and Data, a GSM mobile network and a CDMA mobile network for voice and fixed data. This makes it the only fully integrated telecoms network in Kenya.

CDMA was the natural answer for Telkom Kenya as vandalism of copper cable into rural areas was becoming a problem and wireless was the route to take. The technology needed was to cover large areas and this is why CDMA was initially chosen. It works at a lower frequency than GSM (less than half), giving it a larger coverage area. An additional benefit is that capex and opex are reduced due to fewer base stations needed. In 2008 Telkom Kenya started to roll out green CDMA base stations to help manage capex and opex costs, as well as for environmental and conservation reasons. This has meant Telkom Kenya has seen cost savings of up to 60% of the opex for those sites.

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entertainment, e-readers, education, social networking, locationbased services, mobile commerce, mobile healthcare, mobile machine to machine are all potential lucrative revenue streams for operators.

What does all this mean? According to Bhatmuley, it is time to “Prepare your networks!” Think innovative VAS, as this will be crucial for increasing ARPUs on operator networks, and providing consumer-driven content. For Bhatmuley: “Think beyond phone: New devices, new services, new revenue streams.”

The emphasis on data was repeated throughout. For Russell Southwood, Chief Executive, Balancing Act, we are now looking at a very different Africa from a few years back. Some key trends that are being seen in the African space include the shift from satellite to fibre, services such as mobile banking, mobile internet, and triple play.

Handsets have historically been a serious issue for CDMA operators and potential subscribers as they have been more expensive than GSM devices with less choice. This is changing substantially with a wider range of handset options and reduced prices on the handsets. According to Said Said, CEO Tanzania Telecommunications Company Limited, the future is going to see fibre cables reducing broadband costs and then the true benefits of CDMA will become apparent as a superior data technology.

It was hypothesized that LTE could in the future allow for

WORD FROM THE GROUND Dr Bitange Ndemo, Kenya

“I am delighted to be here as we (Kenya) have had exposure to CDMA and believe it has a great future within Kenya and the rest of Africa. This Summit will hopefully become a launch pad to spread CDMA usage across the African continent.”

Dr Ndemo is the Permanent Secretary of the Ministry of Communications, Kenya.

the convergence of GSM and CDMA technologies. Until this happens, it is imperative to fairly represent CDMA technology as a practical and effective technology for the African continent. AT

the evolution of CDMA The path to success

Peak rate for 3 EV-DO carriers supported by initial implementation.

Peak rate for 3 EV-DO carriers with 64QAM in the DL. Rev. B standard supports up to 15 aggregated Rev. A carriers.

3 DO Advanced peak rate for 4 EV-DO carriers, assumes 2x2 MIMO and 64QAM in the DL and 16 QAM in the UL. 4 Capacity increase possible with new codec (EVRC-B) and handset interference cancellation (QLIC).

5 4x increase with receive diversity 1 2

66 AFRICA TELECOMS April 2010

Chris Wood, CEO of international carrier’s carrier WIOCC, discusses challenges the east, central and southern African countries have faced in the past and the opportunities that the East African Submarine System (EASSy) brings with the landing of the system

“The availability of affordable and reliable high speed internet access as well as voice and data services is inextricably linked to the future development of African economies. In many cases these services are now seen as a pre-requisite for foreign direct investment into the continent. For far too long countries in east central and southern Africa lagged behind “connecting to the information super highway” as they were only served by high latency, expensive satellite solutions. The landing of the EASSy submarine fibre optic system in mid 2010 will connect east, central and southern Africa on a direct route to Europe, Asia and the US for the first time”.

2009 saw the partial alleviation of the intercontinental capacity bottleneck (which has kept prices high and restricted growth and innovation in the sector) with the introduction of links to the Middle East (TEAMS) and India (SEACOM) off the east coast of Africa.

However, the key is a direct route to Europe – to access the internet. This route remains unserved. WIOCC through its investment in EASSy will change this and uniquely will deliver direct, affordable, reliable internet connectivity to the region.

WIOCC meets these requirements and is offering the widest range of services with the lowest latency of any cable system. End-to-End capacity is available in increments from 2Mbps to 10Gbps (Wavelengths) on flexible terms with short term contracts (1 month) to long term IRU commitment for the life of the system. This provides a level playing field for small, medium and large service providers to compete headto-head leading to the development of costeffective, high-performance business solutions and services for the end user.

EASSy is a 10,000km submarine cable system currently being laid along the east coast of Africa. It’s a 1.4Tbps, 2 fibre-pair system (68 wavelengths per fibre) that will interconnect with multiple international networks for direct, seamless onward connectivity to Europe, the Americas, the Middle East and Asia.

Khartoum

Mogadishu Kampala

•

Nairobi

Kigali

Mombasa Dodoma

Dar es Salaam Moroni Pemba

•

Lilongwe

Lusaka Manica Harare

Antananarivo

Windhoek Gaborone Pretoria Johannesburg

Port Elizabeth

experience

•

Toliary Maputo

Mtunzini Cape Town

WIOCC the largest investor in EASSy is offering reliable, low-cost, high-speed telecommunications services between 20 countries across south, central and eastern Africa and the rest of the world. Capacity is delivered throughout the region via its shareholders’ extensive national networks. These services will enable African and international telecommunications providers to deliver ICT services that will spur development growth, and the creation of wealth across the region.

When will this happen? The EASSy cable is being installed right now with 9,000km out of a total of 10,000km already laid. Testing will start at the end of April 2010 and will be completed by mid-year. Only then will African businesses experience the benefits of a truly competitive market for international connectivity…

Why WIOCC and EASSy?

Djibouti

Bujumbura

EASSy landing in Mombasa, Kenya

WIOCC is a telecommunications carriers’ carrier, providing affordable, high-capacity connectivity between locations in 20 African countries and the rest of the world. Our customers are Telco’s, GSM operators, network operators, Governments, ISPs and corporate organisations requiring seamless, low-cost, high-capacity connectivity.

Port Sudan

Addis Ababa

It is estimated that a staggering 95% of all traffic is internet related and with new bandwidth intensive services rapidly being rolled out the trend is likely to continue. Providing low latency services to meet the demands of these applications will become critical for ISPs and other services providers aiming to differentiate themselves from their competition.

•

WIOCC is owned by 12 major African Telco’s with operations in east, central and southern Africa.

WIOCC is the largest investor in the EASSy submarine cable system (29%).

Scalable bandwidth provisioning from E1 (2Mbps) up to full Wavelengths (10Gbps).

Flexible contract terms from 1 month up to 10 years for leases, and 25 years for IRUs.

•

•

WIOCC shareholders’ extensive backhaul networks, interconnecting 20 African countries to major business and commercial centres around the world.

EASSy is the only cable in the region based on a “collapsed ring” design that minimises the impact of cable cuts and equipment failure.

• • •

Affordable, high-capacity connectivity available with volume and term discounts.

“One-stop-shop” for services offered to customers across the WIOCC network.

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WIOCC sees a future where Africa will be united through innovative telecommunications that is accessible to all.

with CHRIS WOOD CEO of wiocc As this issue of Africa Telecoms is focusing on satellite and fibre in Africa, do you feel that these communications technologies will work together concurrently in the future or will one or the other dominate within an African context?

We are already seeing the migration of international connectivity from satellite onto submarine fibre, with many carriers having announced plans to terminate satellite circuits at the end of existing contracts. As the availability of diversely-routed international submarine connectivity continues to expand, we would expect to see this trend continuing into the foreseeable future.

Satellite will still have a part to play in extremely remote areas, but we expect to see fibre dominate in the future as we have seen in the rest of the world.

What do you see as the key differentiators between satellite and fibre connectivity?

Mainly, delay: for international connections satellites introduce long delays because of the often long communication path between the two locations. Fibre-optics tend to be deployed to minimise route distance, and submarine cables typically follow the most direct coastal route between major coastal locations, resulting in much lower delays.

68 AFRICA TELECOMS April 2010

Secondly, scalability: fibre-optic systems are extremely scalable - once installed, fibre-optic connectivity is relatively cheap to upgrade. Capacity upgrades continue to be possible, even on old submarine systems. Once deployed, satellites cannot be physically upgraded.

Lastly, cost: satellite costs are not distance dependent, making them particularly suited to delivering service between remote locations and where demand is low. The build cost of fibre is directly related to distance, so it is most costeffective when demand is high or growing fast and for meeting long-term, rather than low-demand, short-term requirements.

Both are susceptible to service interruption, although weather features are much more common than earthquakes! In both cases, an alternative route is required for back-up.

telecom operators and a number of Development Finance Institutions (DFIs) in June 2006 around a hybrid project structure involving both direct consortium members and an SPV that met the Governments’ developmental objectives of ensuring low-cost open access to international connectivity, while providing for financing flexibility and maintaining the commercial appeal of the EASSy Project.

The SPV was established to create a vehicle to leverage debt financing from the DFIs and to reduce the upfront equity requirements of certain operators who wished to avail themselves of financing.

Thus, in this “hybrid” structure, the larger telecom companies invested directly in their own right, while a number of smaller ones invested through an SPV, named WIOCC.

Could you give us a synopsis of the rather complex ownership structure put in place for the construction of the EASSy cable and how WIOCC fits into this as an special purpose vehicle (SPV)? Was the creation of the SPV a regulatory requirement and/or why was it instituted?

How active, as a shareholder, has WIOCC been in the construction phase of the EASSy cable?

Following extensive dialogue amongst all of the stakeholders, a mutual understanding was reached by governments concerned,

WIOCC has been extremely active, particularly in its chairmanship of the EASSy Technical Working Group and co-chairing of the Procurement Group.

This involves directing the progress of engineering, provisioning, installation, bringing into service and the continued operation of EASSy. Specifically,

degree of resilience built in, but we are also considering options to further improve the physical diversity of our routing. Clearly, other cables along the east and west coasts present us with a variety of options that we are exploring.

WIOCC has driven negotiations on construction in Somalia, marine contracts, testing, landing station construction, Data Communications Network management and Operations & Maintenance budgets.

WIOCC also chairs the Investment & Assignment sub-committee and co-chairs the Operations & Maintenance sub-committee.

With the EASSY cable having landed in Kenya, is WIOCC able to currently offer capacity to clients in East Africa?

If so, how much capacity has already been sold? What percentage of WIOCC capacity has been taken up by your shareholders and how much is available to the open market?

The relationship between WIOCC and EASSy is quite an interesting one, particularly as WIOCC is still reselling capacity in the EASSy cable. Does this offer any benefits to WIOCC clients?

Considering this, why would an operator work with WIOCC as opposed to directly with EASSy? There are two key reasons for an operator to work directly with WIOCC: Firstly, as an SPV, WIOCC is able to offer connectivity into all nine landing countries (and onward to a further 11 countries), whereas other EASSy shareholders are only able to serve their own markets. For an operator this means simplification they can buy connectivity into many locations through a single relationship (with WIOCC), and avoid having to maintain relationships with a number of different organisations.

Additionally, WIOCC is the largest shareholder in EASSy, owning nearly a third of the capacity on the system.

Whilst many other shareholder have invested for their own use (and this will take preference), WIOCC's capacity allocation is more than sufficient to service shareholders and other operators wanting EASSy capacity.

When is the cable expected to go live?

We are completing the construction phase right now. This will be followed by two months of comprehensive end-to-end testing of the system. The System Ready for Service Date is 30th June 2010.

“There was never any doubt that East Africa would become a competitive market for submarine connectivity.”

With the Seacom cable having landed and a number of other cables being planned, does this change any of the initial business objectives set out by WIOCC? And will WIOCC be looking to invest in additional capacity on any of the other cables?

The short answer to the first question is “no”. There was never any doubt that East Africa would become a competitive market for submarine connectivity; the only question was when and how long would it take. WIOCC is backed by some of the key carriers in the region, and we believe that we offer customers a clear and compelling business proposition compared with competing systems.

EASSy is being constructed with a high

As you would expect, WIOCC is working closely with its shareholders to quantify their needs, as well as meeting with other prospective customers to further discuss their requirements. WIOCC shareholders have all signed up to significant amounts of capacity, but as WIOCC has the largest shareholding in the EASSy system there is plenty of capacity to satisfy the demand from the open market.

WIOCC seems to have a number of key differentiators to its competitors. Could you please talk us through how you feel these aspects will benefit WIOCC customers as we move into the future?

There are a number of ways in which customers will benefit: a) WIOCC will be the first to offer direct connectivity to Europe from East Africa.

Unlike our competitors (who route via the Middle East or India), EASSy will connect directly between East Africa and the key internet exchanges in Europe and the US. This will offer WIOCC customers the opportunity to differentiate their services by offering the fastest possible route to many of the most popular sites on the Internet. b) WIOCC customers will be able to take advantage of high-speed international connectivity from a

April 2010 AFRICA TELECOMS 69

wider variety of locations. Our 12 shareholders' extensive terrestrial, fibreoptic networks are being interconnected to create the most comprehensive access network in the region. c) WIOCC offers customers truly affordable international connectivity, with a very different pricing model to our competitors. Our flexible contract terms enable carriers to start small and increase their connectivity in line with demand.

This provides a level playing field for small, medium and large service providers to compete head-to-head, encouraging them to develop cost-effective, highperformance business solutions and services for the end user. We offer contracts as short as one month, and for as little as 2Mbps of capacity. d) WIOCC will deliver very high levels of resilience and reliability. The way in which EASSy has been designed minimises outages. The cable itself is based on a 'collapsed ring' structure, meaning that we can route traffic the opposite way around the ring in the case of a cable break. Whilst this may increase delays a little, it means that

a single break in the cable will not result in a complete loss of service. Interconnection of our shareholders' terrestrial networks will also offer alternative routes between many of the landing stations should there be a more extensive break in the cable. Finally, WIOCC is negotiating interconnection agreements with a variety of international cable operators, which will enable us to take advantage of a variety of international routing options. The key benefit to our customers is reduced risk of complete service outage, without having to purchase capacity on multiple cable or satellite systems.

Are there any plans in the future for the EASSy cable to be extended to continue up the West coast of Africa? If not do you feel there would be merit in evaluating the viability of a continuous fibre ring around Africa?

We have no plans to physically extend the EASSy cable up the West coast. However, there are clear benefits to our shareholders and customers in being able to extend their reach to other parts of Africa; and in having

access to a diverse route for resilience.

We are therefore exploring options for meeting these requirements with a variety of organisations.

With WIOCCâ&#x20AC;&#x2122;s Onward Connectivity seemingly having direct backhaul access to Europe, Asia, North America and notably in the Eastern and Southern regions of Africa, are there plans to link into the Central African Backbone (CAB) project once completed? Then, are there any plans to extend this connectivity through to Western and Northern Africa?

WIOCC has already announced that it will offer connectivity between 20 countries in Africa, including landlocked countries such as Uganda, Rwanda, Burundi, Zambia, Zimbabwe and Botswana. One of the countries to which we will connect is Sudan, which is eligible to participate in the CAB project. Whilst there are no formal plans in place right now to interconnect with CAB, we are exploring many avenues to broaden coverage including connectivity to other regions of Africa. AT

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AFRICA TELECOMS

ISSUE 5