ISSUE 28 ZAR 29.95 US$ 3.50 UK£ 2.25 EU€ 2.95 Rest of Africa US$ 2.95
www.africatelecomsonline.com
Thought Leadership with Neotel’s Angus Hay
Q&A with Arif Hussain of FibreCo Telecommunications
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NEOTEL
When you think of Neotel, you think of that Orange company with a R99 Home phone that is wireless and is delivered in 48 hours. However, this is less than 10% of what Neotel actually has to offer. So what is the other 90%?
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TECHNOLOGY FOR TECHNICIANS
32 2013TRENDS
THE INSIDER
We chat to the experts in Backhaul and the IP Revolution.
2 AFRICA TELECOMS Issue 28
It is a great time to be a technician using technology. Work done in the field is getting easier, more efficient and more accurate as the tools we use get smaller, faster and more precise. And we can perform new functions in ways we might not have imagined five years ago.
CONTENTS
44
FOCUS ON AFRICAN FIBRE
Concentrating resources on crossborder and in-country connectivity is setting the scene for a golden age of African telecoms, says Andreas Hipp, CEO at Epsilon Telecommunications.
52 PTMP AN
UPLIFTING & INNOVATIVE URBAN SOLUTION FOR EMERGING MARKETS
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3G OFFLOAD ONTO WI-FI– A VIABLE SOLUTION TO DATA OVERLOAD ON MOBILE NETWORKS
Regulars [04] guest editorial
Shayan Sanyal Chief Commercial Officer for Bluwan.
[06] news
The latest local and global telecoms news.
for the mag [30] statistics
Africa Telecoms presents statistics and data relating to the African telecoms market.
[60] q&a
With Arif Hussain, Chief Executive Officer for FibreCo Telecommunications.
[16] calendar
[62] jobs
[18] gadgets
[62] last word
Upcoming events, shows and conferences you can’t afford to miss. Want the next big thing in portable devices? Our gadget review is here to help you.
A list of the latest telecoms vacancies from across Africa. Geometric Unity, 3D “food printers”, Google Glass and a new Dan Brown novel.
[ Publisher ] Mohammed Khan
mkhan@3ipublishing.co.za
[ Sales Director ] Sarah Theron
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[ Sub-Editor ] Yazeed Fakier [ Printing ] Tandym Press [ Contributors ] Steven Ambrose, Elias Aravantinos, Eugene Gouws, Andreas Hipp, Miles Keylock, Dale Kyle, Anne Nurock, Shayan Sanyal, Bradley Shaw, Mark van Vuuren Africa Telecoms and Africa Telecoms Online are published by:
3i Publishing Unit 6, Planet Art, 32 Jamieson Street, Cape Town 8001 T: +27 21 426 5590 | E: info@3ipublishing.co.za www.3ipublishing.co.za | www.africatelecomsonline.com
Issue 28 AFRICA TELECOMS 3
GUEST EDITORIAL Shayan Sanyal, Chief Commercial Officer, Bluwan
BREAKING THE CAPACITY ROADBLOCK
– THE IMPORTANCE OF BACKHAUL IN
DEPLOYING 4G NETWORKS IN AFRICA
A decade ago, African operators began deploying their first 2G networks, spurring the widespread adoption of mobile services. 3G services quickly followed. These early network deployments proved a success, driving subscriptions, service demand and revenue. But thanks to that success, operators in Africa are now facing a “hockey stick curve” of consumer demand for data and mobile broadband services. Recent research by Ovum predicts an annual increase in traffic for MNOs in Africa of 77% between 2012 and 2017. To support this demand, operators will soon face the challenges of deploying 4G networks with the added headache of introducing small cells to provide additional 3G or 4G reach, coverage and capacity. This demand pressure means the necessary pace of deployment is frightening. As such, time-to-market is a critical imperative for all operators, where the ability to specify and rapidly deploy new 4G networks allows them to accelerate return on investment. However, while radio access deployment plays a major role, backhaul between cell sites is a vital building block. Backhaul is now viewed as a critical path rather than an afterthought. To put this into perspective: a recent study by Strategy Analytics suggested that backhaul investment and capacity shortfall in the Middle East and Africa would reach US$1 billion and 1.8 Petabytes by 2017. While that forecast includes the Middle East, Africa makes up a significant proportion of these numbers. One form of backhaul that has been deployed quickly and costeffectively in Africa is first-generation Point-to-Multipoint (PMP) microwave radio, delivering sufficient bandwidth for the early adoption of 2G and 3G services and driving down operational expenditure. For example, MTN instigated a PMP microwave backhaul rollout starting in 2006 to support relatively low bandwidth loads (typically 5-10Mbps on a sector) for 3G networks, but with very aggressive time-to-market requirements. Such deployment speed and cost-efficiency is achieved in PMP because spectrum license fees associated with the technology are greatly reduced, compared to traditional Point-to-Point (PTP) microwave. PMP also limits the amount of RAN planning required (multipoint configuration means antennas can be placed where they’re most needed, not just where they best fit). Effectively, traditional 4 AFRICA TELECOMS Issue 28
PMP backhaul allowed operators to very quickly scale coverage to meet the rapid deployment of initial 3G networks. With the advent of 4G/LTE and small cells, leading African mobile network operators are now assessing how to boost their backhaul infrastructure, as current capacity provided by first-generation PMP backhaul solutions are deemed insufficient for future demand. Second-generation point-to-multipoint solutions operating in millimetre-wave spectrum could provide a much-needed capacity boost while helping Africa’s leading MNOs maximise their 4G and 3G small-cell network investment value. Another challenge faced by operators rolling out new 4G networks is the “build it and they will come” effect, where available capacity will rapidly be consumed by users. A typical LTE macro cell will require as much as 200Mbps of backhaul capacity; the backhaul must therefore be able to handle this peak demand, or risk becoming the narrowest part of the pipe. First-generation PMP is able to provide 150Mbps of capacity, which, although adequate for 2G/3G networks, is insufficient when peak bandwidth requirements dramatically increase for new 4G networks. This means traditional PMP is unable to provide the required bandwidth and coverage density to meet demand. Operators are now faced with the daunting task of “trenching” fibre to new cell sites – which is cost-prohibitive – or moving to point-to-point microwave, which will have a dramatic effect on the year-on-year operating costs due to site rental and exploding maintenance costs. Fortunately, a second generation of PMP solutions, leveraging widely available spectrum in millimetre-wave frequencies, can provide multi-gigabit capacity on a single sector. This capacity can support the peak bandwidth requirements for five to 10 4G macro cells as well as strategically deployed 3G/4G small cells, making this a sustainable and viable option for heterogeneous network backhaul. Faced with increasing urbanisation and affluence in emerging as well as emerged markets, Africa is driving the demand for denser and more sophisticated mobile networks. Backhaul will play an increasingly important role in ensuring mobile services live up to customer expectations, but operators must be sure that backhaul does not become the deployment roadblock. AT
AMOS-5 IS NOW IN AFRICA
SATCOM 2013 The AMOS-5 satellite, successfully launched to the 17°E orbital location, provides a full range of satcom services with high-power Pan-African C-band and Ku-band beams. With AMOS-2 and AMOS-3 serving Europe and the Middle East, AMOS-4 scheduled to commence operations in 2013 and AMOS-6 in 2015, Spacecom offers its vast experience to DTH operators, TV broadcasters, ISPs, VSAT broadband providers and telcos throughout Africa. Premium capacity over Africa is now available, contact us to find out more.
27-30 May
Johannesburg, South Africa Booth #C3
E-mail: amos-info@amos-spacecom.com • Website: www.amos-spacecom.com
NEWS
SAMSUNG GALAXY S4 HITS 10 MILLION MILESTONE IN FIRST MONTH Four GALAXY S4 smartphones sold every second
Global channel sales of the GALAXY S4, have surpassed 10 million units sold in less than one month after its commercial debut. Launched globally on 27 April, the phone is estimated to be selling at a rate of four units per second. The GALAXY S4 sets a new record for Samsung, generating sales quicker than any of its predecessors. Sales of the GALAXY S III reached the 10-million mark 50 days after its launch in 2012, while the GALAXY S II took five months and the GALAXY S seven months to reach the same milestone. “On behalf of Samsung, I would like to thank the millions of customers around the world who have chosen the Samsung GALAXY S4. At Samsung, we’ll continue to pursue innovation inspired by and for people,” said JK Shin, CEO and President of the IT & Mobile Communications Division at Samsung Electronics. According to Samsung, the GALAXY S4 was developed “to enhance the meaningful moments in our lives through its 6 AFRICA TELECOMS Issue 28
innovative features and superior hardware. It has the world’s first Full HD Super AMOLED display that showcases images at their very best on a 5-inch screen with 441ppi. Equipped with a powerful rear 13MP camera, the GALAXY S4 also boasts a Dual Camera function that allows simultaneous use of both front and rear cameras. The GALAXY S4’s new and innovative software features include Air View and Air Gesture for effortless tasks, while it also keeps users up-to-date with information about their health and wellbeing using S Health.” Samsung’s GALAXY S4 is available in more than 110 countries and will gradually be rolled out to a total of 155 countries in cooperation with 327 partners. Samsung is planning to introduce more colour variations to meet various consumer tastes and preferences. In addition to the currently available White Mist and Black Forest, new colour iterations will be added this summer, including Blue Arctic and Red Aurora, followed by Purple Mirage and Brown Autumn. AT
IMIMOBILE AND CONTENT CONNECT AFRICA SIGN PANAFRICAN STRATEGIC CONTENT PARTNERSHIP AGREEMENT Multiple-year partnership for premium music and video content • Multi-channel music content delivery to mobile subscribers across Africa
VODACOM DISCOUNTS INTERNATIONAL CALLING RATES BY UP TO 88% Vodacom has launched a new product called International Calling Plus, which allows customers to call 118 countries from as little as 89 cents per minute on per-second billing, giving customers a saving of up to 88% on international calls. Speaking about the launch, the head of Vodacom’s Consumer Business Unit, Phil Patel said: “We tested the waters late last year with our 89c calling promotion to 52 countries. It proved so popular that we’ve added 3 new zones with additional countries priced at R1,19, R1,79 and R2,89 respectively, and made it a permanent product available to all customers, whether Prepaid, Top-Up or Contract. “We picked 118 of the most popular calling destinations and reduced the prices where our costs allow us to drop the rates to our customers. “The idea is that you should be able to talk to family and friends pretty much everywhere for longer at affordable rates.” International Calling Plus costs just R5 per month and can be set up by dialing *111#, and selecting “International Calling Plus” from the “Buy bundles and services” menu. Calls are billed per second from the first second and the discounted rates apply to both landlines and mobile phones in any of the 118 countries, at any time of the day. All customers who signed up for the previous international calling promotion have been informed of the new International Calling Plus offer. Some of the popular destinations customers can call at the rate of 89c per minute include Australia, Brazil, China, France, Germany, Italy, Nigeria, New Zealand, Portugal, Spain, United Kingdom and the United States. In addition, customers can now also call neighbouring countries such as Botswana, Lesotho, Mozambique, Namibia and Swaziland for only R1,79 per minute. AT
IMImobile, a leading global specialist provider of mobile data platform and services to telecom operators, enterprises and media companies, has entered into a strategic partnership with Content Connect Africa (CCA) to provide premium local independent music and video content across Africa. CCA has a substantial catalogue of African music content in Uganda, Nigeria, Cameroon, Ghana, South Africa, Ivory Coast and Kenya. It also holds the rights to exclusive video content featuring a host of popular African artists, including DJ Cleo and Will of Steel (South Africa), Flavour (Nigeria) and Cabo Snoop (Angola). The partnership with CCA will allow IMImobile to offer a wide selection of exclusive content such as full tracks, ringback tones, real tones, animation, images and videos to its mobile operator clients. The content will be integrated into IMImobile’s award-winning DaVinci Evolved Service Platform (ESP) to guarantee multi-channel delivery and superior customer experience across Africa. Antos Stella, Managing Director of CCA, commented: “Connect Africa has always been very passionate about music from Africa. Our longstanding partnerships with the major networks in South Africa and Africa (MTN Group) continue to go from strength to strength and now the partnership with IMImobile is another important step in our strategy to provide local labels a platform to make their music accessible to a wider audience”. “Africa is now the second fastest growing mobile phone market in the world and with it we see a growing demand for music services. We recognise the importance of local independent music and video content, and are delighted to have signed the strategic partnership agreement with CCA,”said Jay Patel, CEO of IMImobile. “Our track record in delivering and managing large-scale content storefront solutions to Mobile Group Operators, combined with relevant and engaging music content, creates a unique proposition to help mobile operators stimulate revenue growth through music content services,” he added. AT
Issue 28 AFRICA TELECOMS 7
NEWS
ECONET SOLAR LAUNCHES THE HOME POWER STATION Millions of Africans to benefit from the first affordable solar power system for the home Econet Solar, a company which designs and sells a range of solar-powered electronic and lighting products, has unveiled the Home Power Station, a revolutionary, standalone electricity solution designed for those in areas where there is no access to the grid or a source of sustainable, reliable power – around 70% of Africa. The first generation of Econet Solar’s new product will provide lighting, and power to charge cellphones, on a pre-paid basis, using the same systems and in the same way airtime is purchased for mobile phones. This mechanism removes the requirement for high upfront costs which have, until now, prevented hundreds of millions of people across Africa benefitting from solar-powered lighting systems in their home. 96% of mobile subscriptions in Africa are on a pre-paid/pay-as-you-go basis, a payment method with which African people are familiar. The Home Power Station uses a solar panel to charge a battery which provides power for four lights and a cellphone charger. It is Econet’s intention that future generations of the product will serve homes of all sizes as the business model is fully scalable. It is the first solar power system that is paid for via pre-paid cellphones using Econet Solar’s unique and fully-patented power control module linking the Home Power Station to the cellphone network. The product will begin trials in several countries in the coming weeks and is expected to be commercially available in the first half of 2013, before subsequently being rolled out in other African countries. Setting it apart from alternatives currently available on the market, the Home Power Station will be available at a small upfront cost, with customers paying for the electricity generated as they use it. Econet Solar will be working closely with its parent company, Econet Wireless, to make the Home Power Station available to its millions of cellphone customers in Africa. In time, Econet Solar will seek to establish licensing agreements with other mobile network operators in developing countries to make the product available to their respective customer bases. 8 AFRICA TELECOMS Issue 28
Commenting on the launch of the Home Power Station, Strive Masiyiwa, founder and executive chairman of Econet Wireless said: “More than 500 million people in Africa are living in areas where there is no access to a reliable source of power. If we are to improve the lives and prospects of Africans living beyond the reach of the grid, it is imperative that we find practical and sustainable solutions to meet their needs. “Whilst there are already well-intentioned solar-powered lighting systems on the market, the reality is that they are just too expensive for people to afford. We are launching the Home Power Station to change all that. “The Home Power Station uses proven technology in a revolutionary way in order to make power available on a prepaid basis, just like airtime on a cellphone. Forecasters expect that Africa will have 735 million cellphone users by the end of next year and we’ll be looking to leverage the proven ability of telecoms companies like Econet Wireless to roll out this product quickly. People who are today living without access to reliable and sustainable power for lighting will have it on a pre-paid basis from next year.” The Econet Solar Home Power Station includes four LED lights, the Home Power Station controller, a battery, a solar panel, cabling and a cellphone charger. It has been designed to light up to four rooms of 3x3 metres each for a period of up to five hours a day, using only the power of the sun. The system is easy to install and comes with a comprehensive instruction manual. The photovoltaic solar panel replenishes one day’s usage in half a day’s sunshine. Masiyiwa added: “We believe the Home Power Station can have a transformational social impact. It will reduce the need for people to use kerosene indoors and ensure that homes and small business can be lit after dark. That means children can continue reading into the evening and businesses can stay open longer. The Home Power Station can play a significant part in improving the standard of living for millions of people.” AT
KENYA: MOBILE OPERATORS SEEK REVENUE SHARE WITH GOOGLE Orange Kenya has asked Google to share revenues acquired from traffic which runs on providers’ networks in order to enhance partnerships. By Kennedy Kangethe Revenue share between Google and mobile network operators is necessary because Google’s services and traffic utilise those networks, according to Mickael Ghossein, speaking in Nairobi during a panel discussion on digital ecosystem evolution. “All operators are talking about the issue globally and this is not just an Orange issue with Google in Kenya. Network operators can’t be expected to have first-class infrastructure when others riding on their networks are utilising them for free,” said the Orange Kenya CEO. Ghossein stated that the network operators’ call for revenue share with Google are based on the fact that most of Google’s services are reliant on their networks and infrastructure, which cost huge amounts of cash to deploy and maintain. “Google has to pay us as you can’t use the Orange network – which is like a highway for Google – without paying a fee to us to maintain the network,” said Ghossein. Ghossein said that in mid-2010, several EU operators – including Telefonica, Deutsche Telekom and France Telecom – called on Google to start paying them for carrying content such as YouTube videos on their networks.
“The network operators said that the search giant should share some of its online advertising revenue with carriers to compensate them for the billions of euros they are investing in fixed-line and mobile infrastructure to increase download speeds and network capacity,” he observed. They further called on industry regulators to step in to supervise a settlement if no revenue-sharing deal is possible between the parties. Ghossein was part of the panel which focused on key players’ strategies for 2013 and beyond in East Africa; building on improved networks to deliver more advanced services as well as new business models, and partnerships to seize the opportunities in the region. The two-day East Africa meeting – held on the theme “Seizing the Digital Growth Opportunities in a Better Connected East Africa” – brought together delegates and industry leaders deliberating and sharing latest business knowledge on various topics including digital transformation; customer experience management; digital services as well as mobile marketing in East Africa among other industry issues. AT
Issue 28 AFRICA TELECOMS 9
NEWS
KDN EXTENDS ITS FIBRE NETWORK INTO TANZANIA Kenya Data Networks (KDN) has extended its fibre network into Tanzania and will be the first operator to connect the East African capitals of Nairobi, Dar es Salaam, Kampala and Kigali on a single fibre network. The new 120km fibre link from Nairobi to Namanga on the border of Kenya and Tanzania is one of a number of improvements that will increase capacity and reduce latency for KDN’s customers including ISPs, carriers, homes, government organisations and businesses of all sizes. KDN was recently acquired by Liquid Telecom which has built Africa’s largest fibre network spanning over 13 000km from the north of Uganda to Cape Town on a single thread. This new section of the network carries the capacity of multiple STM 64s and will be operational and available to KDN and Liquid Telecom customers in August this year. Last month, Liquid Telecom commissioned a gigabit circuit between Kenya and South Africa from SEACOM and increased the advertisements of many East African IP address prefixes at the Johannesburg Internet Exchange (JINX). The key benefit of these investments and the integration of the KDN and Liquid Telecom fibre networks is that traffic between South Africa and East Africa no longer needs to be routed via Europe. As a result, KDN and Liquid provide the lowest latency rates on the continent (down from over 400ms to nearer 50ms) by keeping African traffic in Africa. KDN is also using this additional capacity to provide a fibre route between Dar es Salam and Mombasa to ensure that terrestrial connectivity can be maintained in the event of any future damage to the submarine cables serving East Africa. Said Nic Rudnick, CEO of Liquid Telecom: “We believe that technology should be for everyone and completion of the Namanga fibre will be another major milestone in consolidating Liquid’s fibre coverage as the widest in Africa and confirming our position as the leading pan-African communications connectivity provider.” He added: “With the completion of KDN’s Namanga fibre we will provide even more secure and reliable solutions to businesses in Kenya, Tanzania, Uganda, Rwanda and Burundi. “This fibre will improve business opportunities providing more capacity, more routes and higher speeds to fixed and mobile operators, as well as Africa’s leading companies.” AT 10 AFRICA TELECOMS Issue 28
NEWSAT’S NEW SATELLITE OPERATOR NewSat’s recent realization of USD$611M in funding commitments, sees NewSat on a path to become a new satellite operator. The funding will ensure the build and launch of NewSat’s first satellite, Jabiru 1, that will provide new bandwidth in Asia, the Middle East and East Africa. The Ka-band East African service on Jabiru-1 confirms NewSat’s commitment to the African region and together with its award winning Australian teleport services, will allow African operators to provide innovative new services to meet African demands both domestically and internationally. AT
JABiru-1
“New” capacity to high demand regions 7.6 gHz Ka-band capacity 3 Regional, 24 Multi-spot and 2 steeRable beaMs “Raw” capacity and flexible payloads
Regional beaMs
Scan for Ka-band white papers or visit newsat.com/ka-bandwhitepaper
Multi-spot beaMs
steeRable beaMs
All images are for illustration purposes only. Satellite coverage zones and technical specifications are subject to change and are for general guidance only. Terms and conditions apply. For more information go to newsat.com or call +61 3 9674 4688. ©2013 NewSat Ltd ABN 12 003 237 303.
NEWS
NIGERIA COMMUNICATIONS COMMISSION FINES GSM OPERATORS N53.8M FOR PRE-REGISTERED SIM CARDS The Nigerian Communications Commission (NCC) has imposed a total fine of N53.8 million on MTN, Globacom, Airtel and Etisalat for contravening its provision on the preregistration of SIM cards. The sanction, which attracted separate fines, was in furtherance of the ongoing enforcement of the provisions of the Telephone Subscribers Registration Regulations 2011. The sanction imposed on the firms were based on the number of fully-activated new SIM cards that were either reported to the commission or purchased in compliance monitoring and enforcement exercises conducted by the commission, and validated by the offending network. The Head, Media and Public Relations, at NCC, Reuben Muoka, who confirmed the imposed sanction, said “each of such preregistered SIMs found attracts a penalty of N200000”. AT
GOOGLE CHOOSES BANJO APP TO UNVEIL GOOGLE+ INTEGRATION New features showcase app's commitment to cross network discovery Banjo, the most versatile cross platform content discovery app introduces the latest addition to its real time roster. Google has partnered with Banjo to rollout and showcase them as one of their first mobile integrations of Google+ Sign-in. "Integrating Google+ Sign-in with Banjo was seamless," said Damien Patton, Banjo Founder and CEO. "We worked with Google to push the envelope for what our Banjo audience can now do with the Google+ integration. We are also thrilled with Google's direct app install feature from the web. One of the hardest things for any mobile company is app discovery and this is a developer's dream." By integrating Google+ and their ecosystem, Banjo creates a more interactive and real time social experience for millions of users around the world. Can't make the Super Bowl, World Cup, The Oscars, or Mardi Gras in person this Year? Experience it all on Banjo, the simplest, fastest, and most fun way to discover and share places & experiences around the world as they happen. New Google+ Sign-In Features Include • The same level of security and privacy protection users have come to expect from Google • Interactive postings that deep link directly back into the application. Users can share real time content from an actual place or event. • Over the Air Install function allows Android users to download Banjo directly onto their device without having to access an app store. • Google+ Sign-in integration gives Banjo users additional login and functionality across Banjo's Android, iOS and web products. AT
12 AFRICA TELECOMS Issue 28
VISA AND EQUITY BANK LAUNCH NEW MONEY-TRANSFER SERVICE: VISA PERSONAL PAYMENTS VPP heralds an innovative, fast and affordable money-transfer service in Africa Visa in Kenya has just launched Visa Personal Payments (VPP) in collaboration with Equity Bank, East Africa’s largest commercial bank by customer base. Visa Personal Payments is a convenient, cost-effective and secure way for consumers to send funds directly to recipients with Visa cards, both domestically and internationally. Equity Bank is the first bank in Africa to offer the Visa Personal Payments sending capability. Senders can use Visa Personal Payments to make person-to-person payments, send funds to friends or family members, or make account transfers. Dougie Henderson, Head of Emerging Products and Innovation for Visa in Africa said: “Visa’s operations in Africa are firmly based on bringing about innovative products that promote safe and convenient transactions. As an African first, the launch of Visa Personal Payments, in collaboration with Equity Bank, will open up a new person-to-person money-transfer channel to Visa cardholders. Consumers can use the service to send funds to any participating Visa debit, prepaid or credit card domestically or across Africa.” The service in Kenya will also give Equity Bank Visa cardholders the ability to receive funds at no cost, almost instantaneously, from any participating financial institution originating Visa Personal Payments without the need to visit a branch or agent location. Equity Bank customers will be able to send money domestically, and within Africa, to any eligible Visa card via Equity Bank’s ATMs.The service will also be available at Equity Bank’s Mobile and Internet banking channels in the near future. To make a transfer, consumers need only the recipient’s 16-digit Visa card number. Transfers are securely processed over the Visa network to the eligible Visa card, and the funds can be used at more than 29 million merchants and 1.6 million Visa branded ATMs around the world. “We are especially excited about partnering with Visa, because the company has a global footprint, is well established in Kenya and understands the Kenyan banking sector,” said Julius Kipng’etich, Equity Bank Chief Operating Officer
“With Visa Personal Payments, our customers will be able to receive funds at no cost. The cost of sending money through the service domestically and regionally is tailored to broaden financial access and deepen financial inclusion. For example, sending a Ksh50 000 domestic transfer will only cost Ksh50, while sending a regional transfer for the same amount will cost Ksh300. This service will make money transfer a more affordable and secure service for our customers,” he added. Equity Bank’s investment in a robust IT platform has been beneficial to the bank as it innovates with a view to becoming a one-stop shop for financial services in the region. The bank runs on a Global Robust State of the Art Information Technology Computer System supported by Infosys, HP, Oracle and Microsoft. The multi-currency, multi-company, multi-country system has a capacity of 35 million accounts and a processing speed of 300 000 transactions per minute. This system is supported by Way4, an online Card Management System that has multi-institution and multi-currency transaction processing capability and has the ability to handle over 60 million cards with speed performance of 180 000 transactions per minute. The bank operates its ATM, branch and point of sale (POS) platforms according to the EMV (Europay-MasterCard-Visa) global standard. The robust system is backed by a comprehensive Business Continuity and Disaster Recovery System. “We believe in this collaboration with Visa, because it gives our customers more value and is aligned to our vision of championing the social economic prosperity of the people of Africa. We shall continue to strengthen our business model through the enhanced use of technology and automation for a better customer experience,” said Kipng’etich. Henderson concluded: “There are 6.2 million Visa cards in circulation in Kenya and we are confident the launch of Visa Personal Payments will improve Visa cardholders banking experience. This kind of innovation demonstrates Visa’s commitment to projects across the continent that are aimed at improving the banking lives of Africa’s populace.” AT
Issue 28 AFRICA TELECOMS 13
NEWS
GHANA’S NATIONAL COMMUNICATIONS AUTHORITY REPORTS CELLULAR/MOBILE VOICE MARKET SHARE The National Communications Authority has released the market statistics mobile subscribers for March 2013. In the period under review the total number of mobile subscriptions was recorded as 26,464,964 from 26,324,702 posted in the previous month, representing an increase of 0.5 percent during the period and 1.3 percent when compared to the same period of the previous year. During the period under review, three mobile operators recorded positive gains in subscriptions. MTN recorded the highest subscriptions of 12,024,068, representing a growth of 0.7 percent compared to the previous month. Vodafone’s subscription also increased to 5,609,122 from 5,551,139, indicating a 1.04 percent growth. Similarly, Airtel’s subscription increased by 1.3 percentage points to stand at 3,384,749 at the end of the March. However, Tigo’s market share by subscription dropped marginally from 3,712,082 to 3,676,457, indicating 0.10 percent decline in growth during the period under review. Likewise, GLO’s subscription decreased by 0.4 percentage points to stand at 1,607,907 at the end of the period under review. Expresso’s subscription also decreased by 0.7 percent, to stand at 163,661.
TELECOM VOICE SUBSCRIPTION TRENDS 2013 January
February
March
MOBILE VOICE OPERATORS EXPRESSO MILLICOM (TIGO) SCANCOM (MTN) VODAFONE MOBILE AIRTEL GLO MOBILE
212,804 3,669,472 11,857,772 5,423,932 3,273,048 1,649,767
163,762 3,712,082 11,941,887 5,551,139 3,341,715 1,614,117
162,661 3,676,457 12,024,068 5,609,122 3,384,749 1,607,907
TOTAL MOBILE
26,086,795
26,324,702
26,464,964
FIXED VOICE OPERATORS VODAFONE AIRTEL TOTAL FIXED
TOTAL MARKET VOICE MOBILE FIXED TOTAL ACCESS LINES MONTH OVER MONTH GROWTH
14 AFRICA TELECOMS Issue 28
276,285 10,210 286,495
26,086,795 286,495 26,373,290
278,292.00 10,275.00 288,567
26,324,702 288,567 26,613,269 0.9%
277,830 10,079.00 287,909
26,464,964 287,909 26,752,873 0.5%
PENETRATION MOBILE VOICE FIXED VOICE TOTAL
January 102.0% 1.1% 103.1%
February 102.9% 1.1% 104.1%
March 103.5% 1.1% 104.6%
MARKET SHARE MOBILE VOICE OPERATORS EXPRESSO MILLICOM (TIGO) SCANCOM (MTN) GT/VODAFONE MOBILE AIRTEL MOBILE GLO MOBILE TOTAL
0.82% 14.07% 45.46% 20.79% 12.55% 6.32% 100%
0.62% 14.10% 45.36% 21.09% 12.69% 6.13% 100%
0.61% 13.89% 45.43% 21.19% 12.79% 6.08% 100%
January
February
March
MOBILE DATA OPERATORS EXPRESSO MILLICOM (TIGO) SCANCOM (MTN) VODAFONE MOBILE AIRTEL GLO MOBILE
49,270 1,220,557 5,614,411 511,298 484,374 449,010
49,270 1,251,190 5,759,418 523,938 811,866 420,479
49,270 1,288,496 5,819,634 590,567 867,386 280,077
TOTAL MOBILE
8,328,920
8,816,161
8,895,430
MONTH OVER MONTH GROWTH POPULATION GROWTH RATE
PENETRATION MOBILE DATA MARKET SHARE MOBILE DATA OPERATORS EXPRESSO MILLICOM (TIGO) SCANCOM (MTN) GT/VODAFONE MOBILE AIRTEL MOBILE GLO MOBILE TOTAL
25,576,634
5.8% 25,576,634
0.9% 25,576,635
January 32.6%
February 34.5%
March 34.8%
0.59% 14.65% 67.41% 6.14% 5.82% 5.39% 100%
0.56% 14.19% 65.33% 5.94% 9.21% 4.77% 100%
0.55% 14.48% 65.42% 6.64% 9.75% 3.15% 100%
Issue 28 AFRICA TELECOMS 15
2013 june 11-12 WEST & CENTRAL AFRICA COM Dakar, SENEGAL
Denise Duffy: +44 20 3377 3136
informa
Denise Duffy: +44 20 3377 3136
informa
25-26 DIGITAL SERVICES AFRICA Johannesburg, SOUTH AFRICA
26-28 MOBILE ASIA EXPO Shanghai, CHINA
GSMA
september 11-12 AITEC BANKING & MOBILE MONEY COMESA 2013 Nairobi, KENYA
Helen Moroney: +44 148 088 0774
www.aitecafrica.com
Denise Duffy: +44 20 3377 3136
informa
17-18 NIGERIA COM Lagos, NIGERIA
16 AFRICA TELECOMS Issue 28
CALENDAR
october 01-02 MNVO AFRICA Cape Town, SOUTH AFRICA
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
29-30 ENTERPRISE TECHNOLOGY SHOW AFRICA Johannesburg, SOUTH AFRICA
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
29-30 INTERNET SHOW AFRICA Johannesburg, SOUTH AFRICA
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
29-30 MOBILE SHOW AFRICA Johannesburg, SOUTH AFRICA
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
29-30 MARKETING TECHNOLOGY SHOW AFRICA Johannesburg, SOUTH AFRICA
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
Issue 28 AFRICA TELECOMS 17
Sony Xperia Z RATING: HHH PRICE: From R7 999
Ever considered pimping your Citi Golf with a Ferrari engine under the hood and a commercial truck interior? Welcome to the bundle of contradictions that is the Xperia Z. While the sleek 7.9mm thick rectangular design is initially easy on the eye, the aluminum-edged, glass front and rear panels means you’re going to have to surrender to constantly wiping down your greasy fingerprint smears. Actually, that 5 inch screen size doesn’t make it all that comfy in your hand. C’mon, does size really matter? Well, the 5-inch, 1080p full high-definition display means you’re good to go for watching movies, gaming and browsing desktop web pages without zooming in. The hardware performance is also pretty slick, boasting all the specifications you’d expect from a high-end smartphone, including a quad-core 1.5GHz processor and a camera with a 13.1 megapixel sensor. Power comes at a price though – the device does burn through battery life. The intuitive Sony Walkman app’s ClearAudio+ option also rocks hard with headphones plugged in. The real deal-maker though is the water resistant sealing, which finally gives text addicts their fix in the shower.
Samsung Galaxy S4 RATING: HHHH PRICE: From R7 999
Take a Samsung Galaxy S3, put it on steroids, tailor the rounded corners to shape it squarer and boom! You have the Galaxy S4. The device is packed with features. Sure, these take up hard drive space - 8Gb of software halves the 16GB capacity - but media storage space is not an issue with Micro SD card expansion up to 64Gb. You get AirView support (preview files while hovering your finger above the screen) without the need for a stylus, Smart Scroll, Smart Pause and new Touch Free Gestures. Translated? Well, you can answer the phone by waving your hand over the screen without actually picking it up. Add a rocking 5-inch Super AMOLED display with Full HD resolution to a superfast processor, a cool 13MP camera and nifty WatchON remote control functionality you’ve got a true Android superphone that is worthy of its “bestof-breed” tag. A quality device, the S4 walks away with the best-in-category award against competitors in this class.
18 AFRICA TELECOMS Issue 28
GADGETS
HTC One RATING: HHHH PRICE: From R7 999
Machined from a single block of aluminum, HTC’s flagship smartphone is a super-sleek, durable, aesthetically pleasing gem that makes its nemesis, the plastic-housed Samsung Galaxy S4, look and feel cheap by comparison. Mainline a full HD 468ppi resolution screen crammed into 4.7 inches and a Quadcore 1.7GHz processor into the mix and you begin to appreciate just how much bang you’re getting for your premium phone buck. The slick new Sense v5 user interface makes navigation lean ’n mean and messy widget-free thanks to “Blinkfeed”, a Flipboard-style homepage that allows for your apps to update automatically. Other hardware attractions? A 4MP sensor powered camera is perfect for point-and-shoot social media snaps, but not print. A pair of BoomSound stereo speakers, positioned above and below the display screen really pumps up the volume and pretty much makes recording loud sounds distortion-free. Any cons? HTC Zoe photo and video gallery filing eats up storage space and battery life.
Jelly Bean SuperPhone Shootout SAMSUNG GALAXY S4
SONY XPERIA Z
HTC ONE
Price
R 7 999
R 7 999
R 7 999
CPU
Quad-core 1.6 GHz Cortex-A15
Quad-core 1.5 GHz Krait
Quad-core 1.7 GHz Krait 300
Internal Memory
32Gb
16Gb
32Gb
Screen Size
5 inches
5 inches
4,7 inches
Display
Super AMOLED capacitive touchscreen
TFT capacitive touchscreen
Super LCD3 capacitive touchscreen
Pixel Density (pixels per inch)
441
441
469
RAM
2Gb
2Gb
2Gb
Rear Facing Camera
13MP
13.1MP
4MP (explained in review)
User Interface
TouchWiz
Sony Mobile BRAVIA Engine 2
HTC Sense v5
Battery Size & 3G Talk Time
Li-Ion 2600 mAh 17 Hours
Non-Removable Lipo 2300 mAh 11 hours
Non-Removable Lipo 2300 mAh Unknown
Micro SD
Up to 64Gb
Up to 64Gb
none
Issue 28 AFRICA TELECOMS 19
Motörheadphönes Motorizer RATING: HHHH PRICE: R1 675 NEED TO KNOW: • 40 mm neodymium Driver • Velvet Earpad • 3,5mm and 6,3mm connectors and mic So the loudest band ever to have played rock’n’roll – Motörhead - has brought out a pair of headbanging over-ears have they? Can they give Dre’s Beats a run for their money? They don’t need to. These automatically-adjusting headbanded, velvet ear cushioned noisecancelling cans deliver a treble-tweaked, beefy bass toned ear-bleeding rocker’s delight. They come at a pocket-friendly price too.
ZAGGKeys Profolio RATING: HHHH PRICE: R1 312 NEED TO KNOW: • Backlit keys • Magnet closure activates your tablet’s sleep/wake function • Built-in stand holds your iPad® at an ideal angle You have an iPad. Great. Now get rid of that archaic laptop because with the ZAGGKeys Profolio your iPad is transformed into a fully-functional netbook. Essentially, it’s a Bluetooth keyboard. Not more can be said about that, other than that letters appear on your screen while you’re bashing away at the local coffee shop. The Profolio comes packed with features that make you realise it’s much more than just a Bluetooth keyboard. Backlit keys, durable build, magnetic cover and an incredibly impressive battery life are the clinchers for this little unit.
20 AFRICA TELECOMS Issue 28
GADGETS
Golla Street Laptop Bag RATING: HHH PRICE: R 899 NEED TO KNOW: • • • •
Sling-bag shape/structure Adjustable velcro closing flap Zip pocket on the outside for quick access to accessories Cushioned, soft material pocket on the front for tablets up to 10” under the flap
Work meets play in this quality messenger-style laptop bag. Perfectly situated interior oganising compartments are designed to ensure that all your protable tech needs – from your laptop and your tablet to your smartphone – stay cushioned safely in place. The exterior zip pocket makes for easy on-the-go access to your accessories. The water-and-dirt resistant tarpaulin flap and bottom panels means you needn’t stress about spillage either.
Yahclick from Vox Telecom RATING: HHHH PRICE: TBD NEED TO KNOW:
• Satellite dish ( 74cm, 98cm or 120cm dishes) and bracket • LNB (transmitter/receiver unit, T x R x 1 or 2 watt) • Hughes HN9260 or HN9460 indoor routers Sick ’n tired of your ADSL being kiboshed when your landline goes down? Well, imagine tuning into SoundCloud or YouTube beamed straight from a satellite. This is now possible with the Yahclick from Vox Telecom. Simply select your speed, choose your data cap (sorry, no uncapped data product available just yet), get your satellite installed and off you go. Yahclick uses the Yahsat satellite Y1B sitting at 47.5 degrees east, in orbit somewhere over the Horn of Africa, which means that the data streams over most of southern Africa, no matter where you are. It’s the perfect data connectivity solution if you’re a New Age traveller tuning in and dropping out at Afrika Burn in the Karoo or rocking out at Oppikoppi where coverage is crap. The Yahclick service can also be linked to a Vox Telecom Voice over IP (VoIP) so you can literally drop your reliance on copper lines. There are currently a variety of consumer packages available offering speeds running from 512kb for R197 per month with 4.5GB of data, to 10Mbps for R1 837 per month with 40GB of data. On the enterprise side, the speeds run up to 15Mbps for R15 999 with 360GB of data. Granted, this is expensive, but with those kinds of speeds it might be worthwhile. Caveats? Satellite internet is not great for online gaming as the latency speeds (speed of the response) is slower than cabled internet. So playing Call of Duty: Black Ops 2 is not going to be great as you will probably get shot down quickly.
Issue 28 AFRICA TELECOMS 21
LG Optimus G Pro Another of the “phablets” to be released at MWC2013, this version from LG builds on the Optimus range of devices and certainly looks like a quality device. The 5.5-inch 1080p display provides soft visual enjoyment for you to watch movies. It also includes a 1.7-GHz quad-core Qualcomm Snapdragon 600 Processor, which is paired with 2GB of RAM. Other impressive smartphone features include a 13-megapixel camera, 32GB of storage, microSD support and a huge 3 140 mAh battery.
Jabra Revo Wireless RATING: HHH PRICE: R2 299 NEED TO KNOW: • Mic with Noise Blackout™ for noise cancellation • Dolby Digital Plus and Exclusive Jabra Sound App Solid build quality boasting a sturdy aluminium frame and shatter-proof headband. A compact, sleek design and folding ear-cups maximise portability. Turntable Touch Control touch-sensitive pads makes play-skip-pause seamless. A Dolby Digital Plus enhancement app boosts hi-fidelity for bass lovers. 12-hour battery life. An onboard mic allows you to pause playback and take calls … shit, sounds like wireless Bluetooth headphones have finally come of age? Sure, but you always pay for power. If you’ve got the cash, then the R2 000 price tag is a worthwhile investment.
22 AFRICA TELECOMS Issue 28
GADGETS
Golla iPad Mini Snap Folder RATING: HHH.5 PRICE: R 450 NEED TO KNOW: • Built-in Smart Stand function supports iPad • Auto sleep function • Soft lining to prevent scratching This lightweight cover is a great addition for your iPad Mini device boasting auto-sleep functionality and a built-in smart stand that supports two different positions for media viewing and typing. Most importantly, the custom-moulded shell adds protection from life’s bumps and scratches without hindering functionality.
Acer 13.3” Aspire S7 RATING: HHHH PRICE: R24 999 NEED TO KNOW: • • • • •
Intel Core i7 1.9GHz 4GB RAM 256GB SSD Active Matrix TFT Colour LCD with Corning Gorilla Glass 2 Running Windows 8
Substance meets style on Acer’s first power-packed touchscreen Ultrabook. Forget the plastic trimmings of budget laptops – with its smooth Gorilla glass lid, matte silver keyboard and white bezzle around the screen this is a seriously good-looking unit. Design cues straight from the Macbook Air? Maybe, but Windows 8 proves the perfect companion for this device, and reacts quickly and sharply to all instructions. At first, the touchscreen is a mystery. Why does anyone need a touchscreen on a laptop? Well, it really does make a difference: after using this device for less than 24 hours and moving back to a non-touch unit, you’ll find yourself touching the screen and wanting to flip between pages, or just move something. It’s the way all devices should operate. We’ve seen it with mobile phones and now it’s time for the PC market. Cool, so how much bang am I getting for my buck? Well, boot speeds are great: thanks to the i7 processor and 256GB solid state drive (SSD) the device sings; albeit noisily. Yep, while Acer’s clever TwinAir technology keeps things cool on your lap, amping up during gaming or high-intensity graphics tasks can get irritatingly loud. Plus, the five-hour battery life is a bit of a bummer. Still, if you want a great-looking, light, portable, powerful and sexy device, then the Aspire S7 might well be worth it.
Issue 28 AFRICA TELECOMS 23
Knomo Kyoto Black 11” Asus Vivo Tab 10” Smart RATING: HHH PRICE: R6 999 NEED TO KNOW: • Intel Atom Dual-core CPU @ 1.8Ghz • 10.1” IPS display with 1366 x 768 resolution • 9.5 hours battery life Another in an ever-increasing number of Windows 8 tablets to have hit the market in the last few months. Weighing in at only 580g and only 9.7mm thin, it certainly is portable and light. The screen display does come in at the bare minimum resolution though – but hey, it’s OK considering its price point. So what’s the major difference between this tablet and the numerous others running Windows? Well, the Asus Vivo runs the full Windows 8 and not the “dumbed down” Windows RT you see on similar tablets. It also runs a full Intel Atom processor and not the mobile equivalent. Again, considering the price point, the Vivo is pretty impressive. Pity then that build quality is just OK – that plastic case does seem rather “cheap” compared to the stylish finishes of some of its competitors in the market. Still, if you’re looking for a mid-level Windows tablet, this one is worth considering.
24 AFRICA TELECOMS Issue 28
RATING: HHH PRICE: R 999 NEED TO KNOW:
• Holds iPad or similar-sized tablet devices in padded area • Zip-fastening leather pocket with fabric organiser compartments within • Adjustable shoulder strap This stylish over-the-shoulder bag is ideal for the digital native, holding your tablet, smartphone and accessories safe in one place. The soft, full-grain leather and lightweight fabric finish is superb. Another nice touch is a unique ID number on each bag that can be registered online so that, if the bag is lost, it can be located through this registry.
Africa’s leading satellite, Africa’s leading satellite, broadcast and telco show broadcast and telco show 2014 2014 Co-located with
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26 AFRICA TELECOMS Issue 28
THOUGHT LEADERSHIP
ANGUS HAY NEOTEL
‘WE ARE THE INTERNET’ When you think of Neotel, you think of that Orange company with a R99 home phone that’s wireless and is delivered within 48 hours. But this is less than 10% of what Neotel actually has to offer. So, what is the other 90%? I met with Angus Hay, Neotel’s Chief Technology Officer, to find out. By Steven Ambrose
First a bit of background: Neotel is no longer a start-up. It’s a six-year-old, well-established company that makes over R3 billion per year in revenue and has been growing their national and metro networks at a steady pace, positioning itself as a leader in the IP space. Neotel has the ability to provide their customers with an end-to-end IP network that starts at the customer office in the city, travels along the national backbone and out to another country, all without breaking out of Neotel’s own network. Not many companies can say that.
Issue 28 AFRICA TELECOMS 27
THE INTERNATIONAL CONNECTION Neotel is part of Tata Communications, which is a Tier 1 ISP globally. This means that Neotel doesn’t need to “buy internet” from anyone around the world. It IS the internet. This is possible as Tata owns 350 000 route km of submarine cables connecting between 100 and 150 nodes globally with its own 42 data centres around the world. Neotel is the Southern African node in this global puzzle. For South African customers, it means that – when you want to connect your business to your office in another country – by plugging into the Neotel backbone, you are dealing with one network able to provide direct connectivity to that country with very little latency, versus other networks where you jump in and out of various networks until your IP packets reach their destination. Neotel’s network gives you direct country-to-country connection without travelling via another country, and this is a key ingredient to reducing latency and improving network performance. To outline the extent of the network, Angus confirms that any business requiring to connect its offices is able to get an IPv6 IP address globally.
THE LOCAL NATIONAL AND METRO BACKHAUL Over the last six years, Neotel has focused on building its own national fibre backbone, which currently comprises around 12 000 national km, with a further 7 000km of fibre extended into metro areas, servicing over 40 cities in South Africa. Says Hay: “We don’t have any copper. In the time we waited for local loop unbundling we have built 7 000 km of
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28 AFRICA TELECOMS Issue 28
fibre.” In addition to fibre, Neotel has built a strong IP centric core that has access to all five submarnine cables. The entire network is IP-based, which allows Neotel to offer true convergence of services, as everything is run on top of the one IP-based national network. Confirms Hay: “Our networks is not many networks but really is one. The core network is single network where Voice, Data, Internet Services, Data Centres, Hosting are all running on top of the same core network” and being serviced and managed by just under 1 000 staff who are able to work across all disciplines. “We don’t have Data people and Voice people. Our staff are specialists in all areas – true convergence of services and skills,” Hay adds. Neotel’s design of its IP network naturally lends itself to the deployment of additional services beyond just connectivity. Neotel has built two Data Centres, one based in Johannesburg and the other in Cape Town, which are anchored directly to the backbone, allowing customers a 10GB infinite pipe to the internet – “simply pay for traffic used and be charged per byte with no restrictions, no constraints and no farming off to other networks”, according to Hay. When it comes to connecting your business, Neotel has its flagship product, Neo 1, which provides business high-bandwidth fibre directly into the building. Once installed, business can choose which service they would like to run on top of it. Always the challenge is physically getting to the customer premises, an exercise referred to as the “trenching distance”, or the distance between the Metro Fibre and the physical location of customers’ offices. Hay says that, as their network has grown bit by bit, the trenching distance is now below 400m. Clearly, major progress is being made for true end-to-end connectivity.
REDUNDANCY Adds Hays: “We never really used (Telkom) but started by using the Infraco network. We are now in a position where we have built ourselves a high-availability national network.” Neotel uses dwm for their
THOUGHT LEADERSHIP
high-availability, high-bandwidth capability nationally, which typically is a multiple 10GB/sec backbone guaranteeing up-time not only due to their Multi-Homed Architecture but also their connection to the five cables. Even though fibre is their flagship connectivity method, they also provide WiMax to small business at 800MHz CDMA. “Our International Internet services have never gone down in six years because we are so well interconnected and have such low latency to most places in the world,” Hay noted.
VOIP When it comes to VOIP, we’ve been through it all in South Africa, where companies promise thousands in savings just as soon as we invest hundreds of thousands into new infrastructure. I also questioned Hay about Neotel’s Voip services; when you use Neotel’s connectivity, Voip is simply an add-on service that Neotel can add on top of connectivity. Neotel has also verified that all available switchboards currently in S.A. are able to work with Neotel’s systems; therefore, as soon as a business is ready to switch from PRI ISDN to SIP, it’s a simple switchover of the voice, using the same system. “More importantly,” said Angus, “if we do it over fibre, we will even give you voice with an SLA.” What is worth noting is that Neotel’s voice pricing has decreased over the years, just as the interconnect fee decreases. These savings are passed directly onto the customer, to the point that even the “R99 home customer” has been known to call customer-support to query their bill as its seem that a mistake has been made. When customers switch to Neotel, they are looking to save money on their monthly rentals, but what they don’t realise is that they land up saving on cost of the calls themselves, and this can be by as much as 35%.
BROADBAND Everyone offers DSL and 3G on wireless, but in my experience using Neotel’s system I have noticed that there is a massive difference in their offering. Angus explains that it is all to do with contentions and who owns the pipe. “We have broadband over fibre. We have by far the flagship broadband product up to 15mb symmetrical, but this is over fibre with very little contention. It is true broadband pitched to mid-market.” Angus even confirms that Neotel does not shape or cap its lines as “we ARE the internet and we own the network ourselves so there is no reason to shape it as we are not buying it from someone else”. When it comes to companies’ broadband, Neotel too has changed the standard model and has deployed the 95th Percentile model. Typically, a company’s broadband usage spikes and dips during the month and the company would pay for it all. With Neotel, the top
5% of spikes is removed and the balance charged. Neotel also has a “Boost on Demand” facility. So when companies need extra bandwidth, for example, at end of the month, they are able to tap into that just for the period they require and not pay for the entire month.
VIDEO PORTFOLIO When we think of video conferencing, we think about using Skype to talk to our family overseas. However, Neotel has its own version of video services which offer so much more. These range from Broadcast Video Services, which is the ability to have point-to-point and on-demand video services over fibre globally. This replaces those large satellite-feed broadcasting trucks that are such a common sight at major events. When it comes to the boardroom, there is the standard Video Conferencing with a twist. Neotel will provide concierge services and set up the time of the session, book the room, ensure that the systems are tested and working before a video session – “we do everything except serve the tea”, says Hay. What is most impressive is the TelePresence System or, as Hay describes it: “Video conferencing on steroids, where you can feel the person is standing next to you in the room.” This is all due to the High-Definition Surround Sound System that has been installed in 40 public rooms that are available to the public for hire. These rooms are set up in Cape Town, Johannesburg and Pretoria, with a new facility being built in Durban. With this kind of clarity, it means that business can save money on flying their teams around the world just to have a meeting.
SO, IN SUMMARY When I analyse networks, I break them down into their various components and minimise the amount of partners and suppliers that have their hands in the system. Numerous services providers mean that there is much “it’s not us, it’s them” bantered about, wasting time and money troubleshooting issues. However, Neotel’s network focus is on the provider, an IP-based network that is a one-stop-shop for every company’s connectivity requirements. From connectivity, to hosting, to international routing, to internet connectivity and even voice and video, all are dealt with by one provider with enough redundancy that even the IT manager can finally get some sleep at night. AT Issue 28 AFRICA TELECOMS 29
THE SIX OPPORTUNITIES
ECONOMICALLY ACTIVE POPULATION
ECONOMICALLY ACTIVE POPULATION 2012
Data extracts copyright International Labour Organisation 2012 YOUTH UNEMPLOYMENT % unemployment and % youth unemployment 2010 (estimated)* % of total economically active population
Source: estimates based on WDI data
30 AFRICA TELECOMS Issue 28
Source: ILO Laborsta EMPLOYMENT BY SECTOR 2010 estimates* % of total
Source: estimates based on WDI data
STATISTICS GDP PER CAPITA 2005 AND 2010
According to Vodafone, mobile technologies will be able to improve the working lives of millions across emerging economies and particularly in Africa. The 2013 “CONNECTED WORKER” report outlines the potential for mobile technologies to solve the challenges facing workers and employers alike.
EVERYTHING WE DO IN EMERGING MARKETS IS DRIVEN BY TWO OVERRIDING AIMS: TO EMPOWER PEOPLE WHO WANT TO BETTER THEMSELVES AND TO CREATE PROFITABLE NEW INCOME STREAMS…
Source: World Bank
VITTORIO COLAO, CHIEF EXECUTIVE, VODAFONE GROUP PLC
Connected W
How mobile technology working life in emerging by Vodafone Group Plc
CONNECTED WORKER: HOW MOBILE TECHNOLOGY CAN IMPROVE WORKING LIFE IN EMERGING ECONOMIES. by Vodafone Group Plc Issue 28 AFRICA TELECOMS 31
THE 32 AFRICA TELECOMS Issue 28
INSIDER BACKHAUL AND THE IP REVOLUTION
Issue 28 AFRICA TELECOMS 33
RYAN BRUTON AVIAT NETWORKS INTERNATIONAL MARKETING MANAGER
SHAYAN SANYAL BLUWAN CHIEF COMMERCIAL OFFICER (CCO)
PETER TUOMEY ALTOBRIDGE COMMERCIAL DIRECTOR
AIDAN BAIGRIE TMT SPECIALIST
34 AFRICA TELECOMS Issue 28
1. BACKHAUL IS A CRITICAL BUSINESS SERVICE FOR MOST SECTORS OF THE TELECOMS INDUSTRY. WHAT DO YOU THINK THE MOST CRITICAL CHALLENGE IS GOING TO BE FOR THIS SECTOR DURING 2013? RB - When it comes to the network, the critical challenge for operators will be meeting the capacity demands while keeping costs under control. SS - The network coverage and capacity challenges, fuelled by the unpredictable nature of mobile data growth, new 4G devices and services are well documented – as are the raft of new innovations being introduced to meet these challenges. LTE will continue to be deployed, WiFi offload will be embraced, small cells will be deployed in their thousands – on-going network densification is inevitable, but operators’ largest challenge will be whether they are prepared to handle it. Throughout 2013, operators will realise that they have to change their approach. The viability of 4G and supporting HetNets depends on having adequate backhaul supply that can stretch to meet rising demand. PT - In the mobile sector, over the past three years alone, backhaul constraint and congestion has become a major issue and an increasing headache for network operators. In essence, mobile data networks are struggling to stay ahead of the surging consumer demand for dataon-the-move, due almost entirely to the unprecedented and ongoing growth in smartphones and tablets. The critical challenge which operators now face is their ability to manage this mobile data demand, such that end-user Quality of Experience is not impinged upon to the point where consumer churn rises significantly, as users move from one network provider to another in search of greater reliabilty and data speeds. AB - There are continually more services coming online in 2013 in terms of metro fibre throughout cities and longer haul connectivity between cities, yet in this increasingly competitive environment, pervasive affordable fibre connectivity – even looking only at a business level – remains poor. This paradox stems from the fact that ISPs may not be as excited about delivering fibre services to their existing customers as one may think. Providing fibre to the business service requires construction (bringing fibre into the premises), wholesale fibre procurement (purchasing of dark fibre or lit services) only to drop per-Mbit pricing on their existing fully-funded and profitable offerings. The long and the short of it is that customers are expecting higher speeds, lower latency and more reliability… at lower pricing. While the response of ISPs is logical, I think this is a short-term mindset largely as it encourages the entry of new competitors and, if implemented, would open up an array of equipment and service cross-selling possibilities that could drive new revenues. Issue 28 AFRICA TELECOMS 35
2. LTE IS GOING TO BE A MAJOR FOCUS OF DISCUSSION THIS YEAR. THE BACKHAUL OF THIS AMOUNT OF DATA THAT LTE WILL REQUIRE IS GOING TO BE A CHALLENGE. HOW DO YOU SEE THIS PROBLEM BEING SOLVED? RB - With the latest advances in packet microwave technology, microwave more than meets the capacity needs of LTE – we’ve seen proof of this through our extensive LTE deployments with eight large LTE networks, including the world’s largest LTE network in the United States. One of the biggest challenges for LTE backhaul is the network-wide upgrades that will be required to support the increased backhaul capacity – which need to be done cost effectively and in a timely fashion. Operators will need flexible IP-based solutions and services and support from their vendors to make LTE a reality. SS - Operators must boost backhaul supply. In recent years, mobile operators have satisfied mobile data demands by throttling demand rather than boosting supply. The problem will further intensify as new-use cases for 4G mobile broadband continue to emerge. But dealing with, and intelligently re-allocating, a finite resource such as existing network backhaul capacity, is far too limiting a business model that will only lead to substantial lost opportunity, poor QoS and more and more disgruntled customers. This is especially true when considering the bandwidth requirements needed to realistically and adequately support LTE. Operators need to change their current thinking, stop focusing on throttling demand and instead focus on radically enhancing backhaul supply. This will entail delivering backhaul elasticity to an increasing number of small cells, as well as WiFi radios required for LTE offload. PT -LTE will not be a panacea for network congestion or backhaul alleviation, particularly so across Africa, where LTE coverage will be confined and very limited for the foreseeable future. However, where LTE is deployed, it will have a very positive impact on overloaded 3G networks, as data-heavy, early adoptors upgrade from a 3G to LTE networks. To put this in context, the Cisco published view is that in 2016, 4G will account for only 6% of connections but 36% of total traffic and 4G users will generate nine times more traffic on average than a non-4G connection. So, while 4G will not be within every consumer’s geographical or affordability reach, its advent should be good news for 3G consumers and network planners alike. AB - I don’t see this as a major problem. The mobile operators all embarked on initiatives several years ago to get fibre to the base stations. This challenge started when HSPA started driving the mobile broadband consumption trend. All the operators are running their own internal projects and addressing this as a matter of urgency currently. I would imagine the greater bottleneck lies on the spectrum allocation for LTE/4G or the wireless access component. 36 AFRICA TELECOMS Issue 28
3. CAN YOU SEE ANY WIRELESS TECHNOLOGIES OTHER THAN MICROWAVE BEING REGARDED AS PREFERRED DURING THE COURSE OF 2013? RB - In terms of backhaul, point-to-point microwave architectures will still dominate. As links get shorter, higher-frequency millimetre wave products will likely grow in demand in the region. On the access (non-backhaul) side then, we’re likely to see a mix of various technologies, licensed and unlicensed and including wi-fi, to meet the exploding demand.
SS - Current technologies such as microwave point-to-point (P2P) backhaul technology provide an adequate solution to meet existing 2G and 3G demand. After all, microwave can reasonably extend the reach of fibre infrastructure, and deliver reasonable levels of capacity – up to 1GBps. Deploying multiple dishes, however, can make it cost-prohibitive from an OPEX perspective, not to mention the political issues in terms of erecting multiple dishes across a given city. These OPEX and CAPEX challenges can be resolved by adopting a microwave point-to-multipoint (PMP) architecture, which requires less equipment to reach a wider coverage area, reducing cost and appeasing city councils in terms of visual pollution. But PMP also has its limitations. With finite spectrum available, current deployments can only deliver 2MB to 5MB of capacity per site – nowhere near what is needed for LTE (which needs a minimum of 100MB per site). To fully maximise the significant 4G opportunity, operators must overcome spectrum limitations, deliver the peak performance of P2P technology while harnessing the cost efficiencies of PMP. A band of largely unused, 3GHz contiguous spectrum in the 42GHz “Q” band provides the solution to achieving these aims. Through the deployment of 1GHz-wide radios, this “millimetre wave” spectrum band can deliver up to 10GB per hub. It is therefore capable of backhauling 20 sites at 100 MB or say, 10 sites at 200MB from a single hub. Further advances in this field could even provide up to 400MB to a single site. “IN RURAL AFRICA, WHERE NETWORKS Range can be extended, and line-of-sight challenges overcome by using dedicated OPERATORS SEEK TO DEPLOY relays delivering significant cost savings compared to existing PMP deployments, COVERAGE BEYOND URBAN CONURBATIONS, coverage and capacity. while delivering significantly improved OPTIMISED SATELLITE BACKHAUL PT - Microwave will remain a backhaul IS THE ONLY COMMERCIALLY VIABLE SOLUTION However, we will see satellite backhaul BECAUSE FIBRE AND MICROWAVE beyond. Satellite backhaul is often OPTIONS ARE PROHIBITIVELY EXPENSIVE and not sufficiently reliable. However, In rural Africa in particular, where TO DEPLOY OVER LONG DISTANCES AND coverage beyond urban conurbations, CHALLENGING TERRAIN.“
stalwart for the foreseeable future. having a greater impact in 2013 and unfairly dismissed as being too costly our evidence suggests otherwise. networks operators seek to deploy optimised satellite backhaul is the only commercially viable solution because fibre and microwave options are prohibitively expensive to deploy over long distances and challenging terrain. Wi-fi offloading is another tool which many network operators have now factored into their network planning process as a means of easing cell-site congestion. Whilst off-loading helps to overcome some of the technical problems of base-station congestion, it does have commercial downsides in terms of customer billing and control. However, Wi-fi offloading is likely to continue to grow and remain a necessary feature for transmission management throughout 2013 and beyond. We believe that data “on-loading” will become the next key breakthrough in backhaul optimisation, where data is preloaded and cached at the base station, thereby removing the need to repeatedly transmit the same content requested by multiple users. We refer to this as Data-at-the-Edge™ (DatE™) where increased intelligence is added at the radio base station level. In doing so, the cost of data delivery between an operator’s core network and the radio base station are dramatically reduced by making data delivery smarter and more efficient. In addition, because content is served locally, the Quality of Experience for the end-user is greatly enhanced.
AB - Other than the current Wi-fi hotspots moving into the 5Ghz, uncongested band, there has been consistent buzz around Wi-fi mesh or community networks (as seen in Stellenbosch) being especially effective in addressing unmet rural needs. I hope this gets traction and the necessary government and community support as rural areas, due to density and spend-per-user constraints, do not traditionally offer the required investment returns that many private players require. Issue 28 AFRICA TELECOMS 37
4. HOW IMPORTANT WILL FIBRE BE FOR BACKHAUL IN AFRICA DURING 2013? RB - Microwave comprises from 50 to 55 percent of the backhaul market for all cellsites in Africa, according to ABI research. Practicality and cost of install, as well as reliability, have traditionally been reasons for lack of fibre usage in backhaul applications. For the most part, we don’t see a whole lot of changes in this regard. That being said, fibre has its place and will be a continuing option for extremely high capacity links and where deployment conditions permit. SS - While the industry acknowledges that fibre is the ultimate solution, its capabilities need to be stretched to deliver enough network coverage and capacity at the right cost. Existing fibre infrastructure only supports between 20 and 30 percent of network sites and the cost of trenching to additional sites can cost up to US$1 000 per metre. Microwave technologies can extend fibre’s reach, delivering up to 1GBps of capacity. PT - Fibre is the ultimate and optimum backhaul medium. However, it’s truck-roll costs are a limiting factor in the business case for its widespread deployment beyond densely populated urban centres. AB - Backhaul is on the critical path of affordable and effective bandwidth availability in South Africa. More than that though, it is an essential tool to aid Africa as a whole so we can compete on the global stage in a unified manner. Maybe I’m an idealist, but as soon as we think beyond our borders in terms of connectivity, we will step up a gear globally as more than just the sum of Africa’s parts. 38 AFRICA TELECOMS Issue 28
5. THE IP REVOLUTION IS WELL AND TRULY HERE AND MOST NETWORKS ARE RUNNING IP-BASED SYSTEMS. IN REALITY, HOW MUCH WORK DO MOBILE OPERATORS NEED TO DO TO ENSURE FUTURE-PROOFING OF IP SYSTEMS ON THEIR NETWORKS? RB - Most networks are almost certainly not running full-IP systems. Only the very largest operators in a handful of countries in Africa are running predominantly IP with a good portion of TDM still in place. Most operators are looking to transform to full-IP using a gradual path of TDM decommissioning. Very few of the operators are running a full-IP system with IP synchronisation, IP Quality of Service (to allow for priority services) and IP NMS systems for effective Operations & Monitoring. This will be a large challenge – not bringing IP onto the network, that’s easy, but rather bringing IP onto the network while maintaining the quality and reliability of the network and being able to effectively troubleshoot when things do go wrong… PT - As we speak to our existing and target customers in Africa and globally, we repeatedly hear the word “refresh” being used to describe the network strategy of these operators. By “refresh” they are generally referring to the upgrades necessary to support the next generation of mobile radio infrastructure at the base-station site so that it can support 3G and 4G LTE. A key component of this is the upgrade to support an all-IP backhaul in the access network so that protocols and network transmission are simplified and where network capacity can grow in line with demand. This refresh will implement IP but it will not always resolve the problems of the capacity congestion which can exist on the physical links, whether due to the cost of optical transmission or the capabilities of the microwave radio or the copper DSL. This is where part of the value proposition of Data-at-the-Edge™ comes in to play, as it will alow the deployment of the new mobile radio technologies, at the base-station site without the exponential costs of upgrading the physical backhaul layer. AB - I am no expert here, but there is a massive amount of investment in IP across all facets of Africa’s internet value chain. Locally, we are deploying the latest technologies and being advised by global industry leaders. In this game “The Future” generally represents about 12 months ahead… My guess would be that we are as well positioned as, if not better, than any other part of the world for the IP future. AT Issue 28 AFRICA TELECOMS 39
R FO
TECHNOLOGY TECHNICIANS:
2013
TRENDS
DALE KYLE, PRESIDENT, HANDHELD US It is a great time to be a technician using technology. Work done in the field is getting easier, more efficient and more accurate as the tools we use get smaller, faster and more precise. And we can perform new functions in ways we might not have imagined five years ago. Asset tracking, inventory and cloud computing are three of the strongest application trends in 2013. When it comes to technology, predicting very far into the future is a dicey proposition. But in the shortterm, it is possible to look into 2013 and see what is coming – and it is exciting stuff. Here is what I think will be some of the leading technological developments this year.
THE NEXT LEVEL OF APPLYING TECHNOLOGY While there are holdouts in the working world still using pen and paper to work in the field, more and more organisations are already using mobile technology – and many of them are in their second or even third phase of deploying advanced levels. Initially, they focused on the obvious gains technology provides – like field techs not having to do data-entry back in the office at the end of a shift – but now that they are comfortable with the tools and the technology, they are looking around for what else they can accomplish with it. I think the biggest opportunity is the multi-functional capability of newer mobile devices. People started with simple handheld computers that let them jot notes or enter basic data; that is like learning to use a screwdriver. But now a single device offers an entire toolbox full of capability. In 2013, users will explore what more they can do with that toolbox. Today you can easily find a handheld device that offers WiFi, GPS, barcode scanning, RFID and a really good camera. When people understand those functions and take some time thinking about how they can be used for their tasks, the horizon is going to get very wide. Here are some examples that many leading companies have deployed and others will add soon: • Asset tracking – Techs take pictures of the condition of any asset, write up a maintenance or repair report and transmit the photos and report back to the main office instantly, using WiFi. Or a field tech can use RFID or a barcode scanner to identify the asset and then send an associated report. 42 AFRICA TELECOMS Issue 28
•
Inventory – Real-time tracking is a huge advantage; when someone in the field consumes a part or other asset, a real-time report and inventory update can go back to the central office, which can react automatically by ordering a replacement. • GPS – Advanced GPS functionality can be used for exact location information of workers or equipment, or for efficiency improvements such as route optimisation. • Wireless networks – Most devices are already solid in offering 3G-level wireless speed and access; when 4G modems are released, they will quickly be integrated into the mobile form factors. That will allow for faster transmission of bigger files in both directions. 4G is coming, and the leading products will have it. • Other developments to watch – Cloud computing (software as a service) lets users deploy new functions quickly and at a low initial cost, because there is no upfront expense of buying software. Machine-to-machine communication, where remote sensors on field assets can communicate with a field tech’s handheld device, will let a tech know what to expect in advance, offering all sorts of efficiency improvements. And for retail operations and other functions that involve payment processes, several mobile payment companies are making it easier to take credit card payments on the fly. These are just a few of the advanced capabilities that are available now and will be adopted more in the year ahead.
SMARTPHONES ARE THE NEW COMPUTERS Another interesting development is that more people are doing their jobs with their cellphones. There is a generation of workers coming up who think nothing of running their lives on a little phone; their logic is, why not use it for their jobs, too? I see more and more demand for devices like small rugged handheld devices or rugged smartphones. So, besides seeing a move toward the larger tablet form, we may also see a surge at the opposite end – to devices even smaller than traditional handheld computers. In the world of wireless, the capabilities that 4G networks make possible are going to change the way field techs work. The speed will let you do everything wireless faster, and the quantity of information you can send will be so much larger. Things that would have taken too long to send before – database files, schematic, maps, photos – now will not slow you down. You can even extend this scenario to streaming video and other rich media – there is a wide variety of ways you can communicate to troubleshoot or solve a problem no matter how far it is between the problem and the answer.
THE ROLE OF COLLABORATION IN WORKFLOW Applications called enterprise-collaboration tools – essentially, social media within an organisation – offer the ability to connect employees across all levels of an organisation. These tools will be used much more widely in 2013. Field technicians could discuss problems with colleagues not only with words but also with photos, internet links,
videos, chat functions, etc. In essence, these types of collaborative tools will capture the collective knowledge of every single person in your organisation and make it available to everyone, virtually anytime. And their capabilities can extend beyond inter-organisation communication. Smart outfits will find ways to use these applications to engage directly with customers – how do you think customers would react to real-time updates on appointment times?
BRINGING IT ALL TOGETHER One of the biggest challenges of all these new technological functions and capabilities will be to get all the pieces to work together effectively. What you will need is a combination of devices, networks, application and overall integration. The burden here will fall on your organisation’s IT department to connect it all effectively. From my point of view, the key here will be to choose your technology products wisely, keeping in mind this need to integrate everything effectively. With the complexity of today’s technology configurations, the cost of deployment and downtime is so high if something breaks down on you – that makes it all the more important that your upfront planning and product choices are forward-thinking. You want devices and applications that are rugged and reliable; buy good, tough products the first time. It is impossible to see too far into the future of technology. But I hope that I have been able to at least give you a glimpse of what to expect in 2013. Happy field work! AT Issue 28 AFRICA TELECOMS 43
ON AFRICAN FIBRE Concentrating resources on cross-border and in-country connectivity is setting the scene for a golden age of African telecoms, says Andreas Hipp, CEO at Epsilon Telecommunications
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The African telecoms market has felt the impact of new undersea cables and its next wave of development is going to come from new fibre builds on the ground and across countries. The African continent is hungry for new bandwidth and growth in subscribers and usage shows that from the bottom to the top of Africa, each individual market needs more fibre. In Africa and abroad, terrestrial networks are the foundation for further economic as well as telecoms development. New undersea cable capacity was the start but it’s the depth of infrastructure that reaches inland and connects closest to enterprises and individuals that will drive the African telecoms market and the economy forward as a whole. From market-to-market across Africa, the common need is better infrastructure, not just from a telecoms perspective, but overall. Connecting people and businesses across the continent will help Africa to develop as a uniquely-positioned market that sits between Europe, the Middle East and Latin America. Density of fibre penetration means better connected economic centres that don’t have to send traffic out of region to connect to neighbours in adjacent markets. With local infrastructure in place, telecoms networks can connect Africa with Africa from operator to operator or enterprise to enterprise. It is a fundamental step forward for the market that will mean new economic growth, as well as a way to sustain growth in the long term. The African telecoms market needs better infrastructure and has the enterprise and end-user demand to support it. As long ago as 2010, Africa had as many cities with over a million citizens as Europe. It was nearly as urbanised as China. This development just needs to be pushed forward with more infrastructure builds used that can then be used as a transformative force in the economy. The African telecoms market has felt the impact of new undersea cables and its next wave of development is going to come from new fibre builds on the ground and across countries. The African continent is hungry for new bandwidth and growth in subscribers and usage shows that from the bottom to the top of Africa, each individual market needs more fibre. “…While it is about changing the structure of power, it is also about providing infrastructure as a basis for diversification and transformation. Think of how information technology penetration is changing lives,” said Donald Kaberuka, President of the African Development Bank in a speech entitled “Is Africa’s Growth Reaching the People?”. “From energy, transport and broadband, investment in infrastructure is a necessary condition to build economic growth for economic transformation. Inclusive growth is not only possible; it is now a real necessity for Africa to go to the next level.” From a telecoms perspective, infrastructure builds mean stronger local and regional operators that have a base to innovate from. Already the telecoms sector contributes $56 billion to African GDP and this is on a continent that had 2% telephone penetration little over 10 years ago.
BUILDING BETTER INFRASTRUCTURE The exciting thing is that fibre builds are happening and they aren’t just happening in one region or are focused on single hub. The demand for fibre cuts across local differences as both private and public sector organisations seek to serve the African telecoms market with better connectivity. The Angolan government has allocated $500 million to build out a national fibre backbone while projects like the East Africa Backhaul Systems (EABS) on the opposite coast is connecting Kenya, Uganda, Rwanda, Burundi and Tanzania to the Eastern Africa Submarine Cable System (EASSy), running through Mombasa, Nairobi, Malaba, Kampala, Mbarara, Katuna, Kigali, Bujumbura and Dar es Salaam port. This is alongside companies like Liquid Telecom that already has fibre stretching from the main cities in Zimbabwe, to Midrand and Isando in Johannesburg, as well as Gaborone and Francistown in Botswana, and Lusaka and the Copper Belt in Zambia. The World Bank is also working with African governments to improve access to global telecoms infrastructure through its Central African Backbone project. Using fibre already deployed along the Chad-Cameroon pipeline, the Central African Backbone will focus on providing a better connectivity for Chad, Cameroon and the Central African Republic. The project’s aim is to decrease prohibitive telecoms costs in landlocked countries, improve quality, route diversification and coverage of telecom services, and enable regional integration through public-private partnerships. Across these regions, there is a real awareness that the available submarine capacity has to penetrate deeper into the cities of Africa and be used for further telecoms development. Fibre offers the quality and latency that operators need to deliver more services with greater reliability. Already in sub-Saharan Africa, 40% of the population lives within 25 kilometres of an operational terrestrial fibre node, according to Hamilton Research. With planned or proposed fibre builds coming online, that number could increase to 50.9% or 483.8 million people. The aims are clear for both the private and public sectors: more fibre needs to be deployed. What local and regional operators have been struggling with is making the economics work. Africa has shown tremendous growth in terms of subscribers and bandwidth usage but fibre has a cost that needs to be managed. How operators approach and prioritise within their businesses may hold the answer.
OUTSOURCING FOR EFFICIENCY For operators to remain focused on fibre, they should evaluate opportunities to outsource the aspects of their businesses that may not add value or help them to differentiate. Amongst regional or local network operators there’s a tendency to want to both build deeper fibre networks locally while also ensuring international connectivity is robust and reliable. An operator can’t have one without the other, but how these aspects of the business are prioritised is important. Cross-border and incountry connectivity is how an operator will get more people
Issue 28 AFRICA TELECOMS 45
online and using higher bandwidth services, but the operator will also want to connect globally with robust agreements abroad. The challenge is to do both with limited time and resource. That is why network operators across Africa need to evaluate where they add value in the telecoms ecosystem – connecting points of presence around the world or delivering fibre closer to African businesses and end users? Local and regional players know their markets and know the impact they can have on the local economy and so should focus resource and developing fibre infrastructure in-country and across borders. They can be much more strategic and differentiate their service offering when they have the fibre in the ground. African operators can outsource the operation of international points of presence as well as transmission, switching, routing, international network and local access services. It can reduce costs, reduce time-to-market and allow for scalability as African markets grow and more people come online.
AFRICAN OPERATORS NEED TO ASK THEMSELVES: • Lead-times and Class A support become major differentiators in service delivery – can my infrastructure and processes support that to meet bandwidth demands and realise revenues as early as possible? • How can I satisfy my global network needs effectively and competitively without building a global infrastructure and without buying from my competitors? • Increasing technical complexity requires technology layers to merge providing flexibility and choice of interconnect options – do we have the skills to know how all this works? • Do I have the scalability to afford my own infrastructure and interconnect base at the required cost-points to remain competitive and flexible? • Is the business willing to sacrifice resources and expertise on non-core activities like building out international connectivity, or should it focus on fibre? In terms of building out international networks – that is a necessity, but one that shouldn’t become a burden to the operator as they have to go out and sign agreements with international operators around the world. If a local operator opts to create an international procurement team then they have to allocate resource that could be better used at home, developing better networks for local African people. International connectivity can be outsourced to a partner that takes that pain point away from the local operator and allows them to focus their resources on the local market where a fibre-build can really change the dynamic of a market. As most operators know, delivering a telecoms service is about working well with partners and ensuring that the organisation is creating value where it can. The more operators approach their businesses in this way, the more depth of fibre infrastructure can be built out and put to work reshaping the African telecoms landscape.
MORE FIBRE, MORE INNOVATION The most challenging question to answer is what the market will look like when Africa is a fibre-rich continent. Essentially, that is 46 AFRICA TELECOMS Issue 28
AFRICAN GROWTH BY THE NUMBERS Africa’s international bandwidth usage had a CAGR of 77% between 2008-2012, second in the world only to the Middle East, according to market research firm Telegeography. Africa is ahead of both Latin America (58%) and Asia (55%) in terms of international bandwidth growth. Broadband subscribers have tripled in Africa during the same time frame. The market research firm notes that, as available capacity increases with new undersea-cable connectivity coming online or being added to existing systems, the greater the incentive to build terrestrial networks, and this will spur further growth in bandwidth usage.
asking what all of these fibre-builds will add up to. Cross-border and in-country connectivity will mean a thriving African telecoms sector able to launch and deliver new services quickly, with flexibility to offer something that meets local needs. The more people online and benefitting from robust network infrastructure means a greater opportunity to define Africa as a uniquelypositioned market with an opportunity to see local ICT innovation take off. It would be surprising if cross-border connectivity didn’t unlock an African market that sees traffic flow more directly from country-to-country without routing via Europe. That would mean more efficient and cost-effective voice and data transmission. Even today, a voice minute from one African country to another can be more expensive than calling Europe or the U.S. Greater cross-border connectivity will allow technology and economic hubs across the continent direct affordable access and hopefully lead to more Africa-centric information-sharing and development. Operators with fibre deployed will be able to use the infrastructure to deliver more services tailored to local needs and expand the already fascinating innovations in banking and health. Terrestrial fibre will be the backbone for these mobile innovations. The more robust the terrestrial infrastructure, the more innovations can be delivered that reach even further than what the industry has already seen with initial mHealth and mobile banking. Having the foundation in place is what is critical. This is why recent and planned fibre builds across Africa are so crucial as a next step. They are setting up the next wave of innovation and offering Africa the opportunity to create unique local innovations at the operator level, as well as amongst consumers. Focus on African fibre development and both operators and these economies will see the rewards pay out over the next decade. AT
BY MARK VAN VUUREN, MANAGING DIRECTOR OF JASCO ICT SOLUTIONS 48 AFRICA TELECOMS Issue 28
3G OFFLOAD
ONTO WI-FI
– a viable solution to data overload on mobile networks
Issue 28 AFRICA TELECOMS 49
Cellular phone usage has grown exponentially, and with the increased popularity of smartphones that can access the internet and social media, which requires connectivity, mobile operators are finding themselves increasingly unable to cope with the sheer volumes of data traffic. Compounding this issue is the added burden of data from a variety of 3G modems, which also use up capacity. This not only affects the speed of data, but the quality of voice calls, since voice is also run on the 3G network. And this trend is not localised, but is something that is proving to be a challenge across the globe. Long Term Evolution (LTE) has been seen as the solution to 3G data overload. However, red tape around LTE spectrum in South Africa has resulted in much of this spectrum remaining unallocated to telcos and thus unused, and the potential for this data medium is as yet untapped. This means that Telco operators need to look at alternative methods in the short- to medium-term to reduce data traffic on their networks, so that the integrity of voice calls can be preserved and customers retained. 3G offload onto Wi-Fi offers a viable solution for telcos to deal with the data overload on mobile networks, particularly in high traffic volume areas. Wi-Fi is an open spectrum technology which is designed specifically to handle data traffic, and the technology is available to offload data usage onto Wi-Fi, freeing up 3G and 2G networks for voice traffic and improving customer service quality. LTE is in the process of being deployed, and there are some trials being run in South Africa currently. However, this robust 4G technology can not yet fully be utilised until the regulatory debate surrounding spectrum 50 AFRICA TELECOMS Issue 28
allocation can be resolved. In the interim, telcos need to look at alternatives to improve both data and voice quality on their networks, and one viable way of doing this is to offload a portion of data traffic onto an open spectrum technology such as Wi-Fi. One of the challenges around maintaining supply of data in line with ever-increasing demand is that market pressures around data costs are driving pricing down, which means that revenue streams are practically flat, but that capacity needs to continually grow. Operators are therefore faced with the conundrum of keeping up with demand in a market that is not profitable, given current models. Wi-Fi access points provide a solution to this challenge as well, as the cost of deployment is far lower than the cost of creating additional 3G capacity, with the added benefit that WiFi uses unlicensed bands so there is more spectrum available and operators can more easily acquire additional frequency. Evolution in Wi-Fi technology too has made it more applicable to large areas, and even for outdoor coverage, and the upcoming 802.11ac standard is set to increase the speed, range and coverage of Wi-Fienabled devices. Wi-Fi began with very small capacity of 50 kilobits, and we are now up to 600 megabit speeds. The new 802.11ac standard will increase this to 1.5 gigabits, with devices already being tested and commercial roll-out of this standard set for 2013. This makes WiFi even more applicable, taking it from a hotspot technology to a solution that can deliver full mesh networks to encompass wider indoor and outdoor areas. Layer 3 routing on the new standard improves networking capability and network protection. The upshot of this is an improved customer experience and the ability to deploy coverage over wider areas. Cloud technology also adds to the viability of Wi-Fi networks in a commercial sense, as a large proportion of the controlling and network management tools can now be delivered as a cloud service, meaning that multiple access points can be delivered
With intelligent hardware and software that provide open standards technology ... and centralised cloud management, carriers and operators can easily leverage the potential of 3G offload.
using a centralised controller. This means that a controller is not needed for every site, further driving down the cost of deployment. Controller-less technology also allows for instant access points to be created, reducing the cost of rollout. In terms of management solutions, this also means that a single management platform can be used for multiple access points. This, in turn, enables remote management, further driving down costs. However, it is important to bear in mind that this requires an open standards management tool that provides costeffective access for multiple-vendor solutions with different Wi-Fi protocols. In this way, existing investment into Wi-Fi technology is protected, and a migration to newer protocol devices can be conducted without the need for a rip-and-replace approach, which raises costs. New protocols and technology make Wi-Fi an increasingly viable option for wide-area data coverage. Wi-Fi data services also present an opportunity for fixed-line operators to compete against mobile operators, by deploying WiFi hotspots to pull traffic onto their network. This technology is particularly effective in congregated areas such as shopping malls, business parks, central business districts and even sports stadiums. Public access Wi-Fi technology is gaining traction internationally, for example, in Sweden, where fixed-line carrier TeliaSonera has more than 25 000 Wi-Fi access points and up to 15% of data traffic is carried via Wi-Fi. While this is not necessarily related to 3G offload, this example proves the viability of Wi-Fi as an option for data access. The exponential growth of data usage is something that is only set to continue, which means that there is no single medium that can handle the sheer volumes of traffic that will be required in years to come. Wi-Fi networks are just one way of offloading data from congested networks to ensure service can be delivered all around. There are opportunities aplenty for new players to get involved in providing data capacity for increasing demand, without taking
away from the core business of existing operators. 3G offload onto WiFi is a technology that can viably be integrated as part of network rollouts to deal with rapacious demand for data. However, as with any new solution, there are challenges involved in incorporating multiple technologies onto a single network. The customer requires continuous quality of service, a seamless handover, and single billing for data, no matter what technology is utilised. Carriers looking to implement 3G offload need to ensure that their solutions will seamlessly hand the user off between 3G and Wi-Fi, and that operators can easily incorporate this into billing. Integration and backend should be seamless, otherwise adoption rates will be low and investment will be wasted. A sound business model for charging of Wi-Fi data roaming also needs to be built to ensure profitability for operators as well as high levels of customer services. With intelligent hardware and software that provide open standards technology to integrate with existing servers and billing, and centralised cloud management that ensures a Wi-Fi network becomes a part of the existing service, carriers and operators can easily leverage the potential of 3G offload. Working with a partner that can deliver a fully integrated solution, from planning and installation to deployment, backend integration, support and maintenance, further simplifies this process. Using 3G offload onto Wi-Fi to deliver a portion of data requirements can result in cost reductions of up to 60% on traditional 3G deployments, leaving room for profitability as well as improved customer service. AT Issue 28 AFRICA TELECOMS 51
TODAY, BUSINESS IS ALL ABOUT BY ANN NUROCK CEO OF GREY CANADA
52 AFRICA TELECOMS Issue 28
What and who do you trust these days? Government? Business The new world order leaders? All those sportsmen we used to hold in such high regard? Now that the world has opened up to provide information about The world over, it has been proven that trust has now fallen to absolutely anything and to anyone, people are realising that what alarmingly low levels. they used to trust and their reasons for doing so have changed. The While people may well trust the institution of government, they goalposts have moved. They don’t have to trust the same source, the don’t trust government leaders. The main reason for this is corruption same opinion formers, the same leaders. They can form their own – and in South Africa, we are not alone in this regard. opinions based on the shared experiences of like-minded people; they In the world of business in 26 countries around the world – can relate to that. Therefore, they can trust what that person says excluding South Africa – people just don’t trust CEOs at all. In fact, because it’s relevant to them. In fact, it has been established that CEOs ranked second-lowest after government leaders (Edelman 93% of people trust others just like themselves more Trust Barometer 2013). Again, excluding South Africa (where than anyone else and, even the evidence is quite different), the business sector that scores more staggering, that the lowest for trust is a sector in which we should have the 70% of people now trust most trust – that of financial services. It seems that people the word of strangers all over the world do not trust the very institutions in more than anyone else which they place their money. That’s chronic. In (Nielsen Report 2012). contrast, we’re lucky that regulations have Just look at how people almost forced a trust culture in financial around the world get services in South Africa. their information today What I found so enlightening – they take their news from all the research I have from people they don’t know conducted, together with off Twitter. They accept advice working on some of the about where to go on holiday world’s leading brands, from strangers on TripAdvisor, and Today, we are living in a world is what I share in my use LinkedIn for recommendations that is social, sharing and presentations and from strangers when looking to recruit transparent; one that requires workshops. someone. trust more than ever to function And this is that trust What this now means for effectively. is not some elusive, business is that leaders have to intangible concept. Trust is be more respectful and caring not a basic instinct that can be only to their employees but also to taught, established, built their customers. As I share in my and restored. Trust is the talks and workshops, today it is one thing that holds every more than just about the bottom relationship together, whether line; it is also about how you it is business achieve it in terms of your leadership or personal. Without trust, there skills and ethics. is nothing! Today, we are living in a world that is social, So, why is trust such an important issue in business sharing and transparent; one that requires trust today? more than ever to function effectively. When it Because when you have trust, you have a whole load of proven comes to brands, consumers are smart and with benefits. The first one is speed. According to Stephen Covey in his social media they have been given a voice and power. They can tell book, The Speed of Trust, and my own personal experiences working instantly if a brand is not authentic. If it does not have the right intent, with top corporate teams in both South Africa and internationally, they won’t trust that brand. Simple. Nowadays, a brand is vulnerable when there is trust in an organisation or in any business relationship, because it can be exposed by just one tweet. And through careless there is collaboration, transparency and loyalty. People recommend messaging, a familiar brand can lose the trust it has built up over you more; they place more orders and employees want to work years, the ramifications of which can be severe, if not fatal. Trust is for you. Relationships with trust behind them are then based on no longer a “nice to have”. It’s an absolute imperative. commitment and everything speeds up, which results in reduced Results are not only the reason why we are in business, but also costs. A great example of this is Amazon.com. serve as one of the greatest motivators of trust. People want to work But the reverse applies when there is no trust: People are apathetic for and with people who have the competence and who can deliver. and frustrated; there is friction and politics, and everything slows But these days, it’s also about how we get to those results that down, resulting in increasing costs. Just take a look at some of our matter. It’s about your intent, your integrity and how you treat your own parastatals as evidence of this. employees and customers. Today, it’s all about trust. AT Issue 28 AFRICA TELECOMS 53
PtMP AN UPLIFTING
AND INNOVATIVE URBAN SOLUTION FOR EMERGING MARKETS By Elias Aravantinos, Leading Wireless Analyst, ExelixisNet.com
Issue 28 AFRICA TELECOMS 55
Mobile Network Operators (MNO) around the world are already experiencing exponential mobile data growth across different applications on their networks. This surge in demand is focusing MNOs on right-planning and solution choices to add capacity onto their existing mobile infrastructure. Mobile Broadband is also an efficient alternative fixed broadband – especially in markets where access to ADSL or other forms of fixed broadband are either prohibitively expensive or not available. From the MNO perspective, providing Mobile Broadband to both mobile and fixed customers seems like two bites at the cherry, but it doesn’t come without its challenges. Faced with the time-consuming installation of fibre and its higher cost within urban environments or where, in some cases, it could be proved economically impractical, MNOs have to open their perspective to a wider variety of network design solutions. Predicted for many years to be on its way out, microwave solutions present an even more compelling and cost-effective alternative for delivering backhaul and internet access solutions to operators than ever before. This is noticeably evident in the developed mobile broadband markets of Europe and Asia-Pacific, where carrier competition and ever-increasing customer demand for bandwidth are making fast expansion of network capacity a key strategic driver. What is the current situation in the emerging markets, and especially in Africa? The MNOs there have followed a similar path transitioning from 2G to 3G infrastructure and are anticipating a transition to LTE deployment shortly or have already made the transition. Deployment of LTE in Africa has already begun in Angola, Namibia, Mauritius, South Africa, Ethiopia and Tanzania, but spectrum licensing delays – similar to those seen in Europe and
56 AFRICA TELECOMS Issue 28
other parts of the world – are holding back full-scale deployment across the continent and are delaying first commercial deployments in important markets like Nigeria. Several operators such as Vodacom, MTN and 8ta have already launched commercial LTE. However, lack of spectrum ownership forces operators in future to partner with companies holding spectrum, i.e iBurst (1,800MHz), Neotel (800MHz and 1,800MHz) and Sentech (2,600MHz). These all have LTE spectrum which is not used, which means they may hold the LTE-critical cards in South Africa. The potential partnerships might prove very crucial, allowing MNO to access to the needed spectrum instead of waiting for the official licensing process. Due to the lack of fixed-line infrastructure across the African continent, what little access to broadband there is comes at a high usage cost. In many cases, Africans accessing the internet via a mobile device have no alternative access to the web; MNOs in Africa are capitalising on the demand for mobile internet on the continent, as well as the socio-economic, business and revenue opportunities. Increasing smartphone ownership in Africa is driving demand for high-bandwidth mobile data services such as video calling, and online gaming as well. To satisfy this demand and meet continued expansion, African mobile broadband data transport and mobile backhaul networks need to be upgraded and capacity expanded even at a backbone level, as recently demonstrated by Africa Airtel. Airtel’s new backbone network will support all mobile broadband services to Airtel’s 17 affiliates across Africa, serving 60 million customers. African MNOs have a few advantages over many of their western
counterparts when it comes to mobile network design. In many cases, they are building greenfield networks and are not having to deal with years of legacy analogue and first-generation digital infrastructure. This lack of legacy “baggage” means that they can take more innovative approaches to building their networks while still addressing their key objective: building capacity and coverage as quickly as possible. One of the innovations that African MNOs discovered early in their 3G network deployments was the advantage of PtMP technology. PtMP microwave networks are useful to African network designers because they cover a large geographical area with high-bandwidth backhaul capacity very quickly. Given that the microwave spectrum and capacity are shared among all cell sites in the coverage area, network designers are able to quickly build out networks without having to undertake detailed traffic analysis. Capacity-sharing is dictated by demand; therefore, if an increased amount of data activity occurs within one area, capacity can be reallocated to cope with this increase, and reduced once the heightened activity has subsided. It also allows a very quick scale coverage to meet the rapid deployment of initial 3G networks and could easily support LTE upgrades later. During March 2013, ExelixisNet.com sized the wireless PtMP equipment revenues market (http://exelixisnet.com/2013/02/ ptmp-report-2013/) in collaboration with operators and vendors, concluding that it will surpass US$500m, or half a billion US$, by 2017, up from an estimated $120 million in 2011. ExelixisNet believes that the overall PtMP wireless backhaul market growth will experience some substantial growth along with the small cells evolution expected during 2014. However, the continuous demand
and growth will mainly derive from the emerging markets – Africa and the Middle East, and specifically South Africa and Nigeria. The two leading vendors, Cambridge Broadband Networks and Intracom Telecom, have a discreet, large project in progress to cover the demand of access and backhaul in the chaotic African continent. Bluwan is also a brand-new attractive vendor developing aggressively, mainly in the 12 and 42GHz band areas, adding a tremendous amount of capacity beyond the 200Mbps, which is what a typical LTE macro cell will require for the backhaul to be able to handle peak demand. However, the leading competitors have plans to add more capacity that is needed not only for cellular coverage but also when allocated to enterprise access projects that seems to be
“PTMP MICROWAVE NETWORKS ARE USEFUL TO AFRICAN NETWORK DESIGNERS BECAUSE THEY COVER A LARGE GEOGRAPHICAL AREA WITH HIGH-BANDWIDTH BACKHAUL CAPACITY VERY QUICKLY.” an attractive new market. PtMP microwave solutions seem to gain traction but high capacity and performance could remain the barriers to entry. Today, PtMP microwave solutions operate in the traditional 10.5GHz, 26GHz and 28GHz regions, where 32GHz and 42GHz are also emerging, but without becoming mainstream yet. However, all the major PtMP players have already developed solutions for those bands, as some modest growth is expected in the near future. That depends mainly on national regulatory authorities and their decisions to make those bands available for PtMP deployment as in some cases, such as in the 42GHz band, a PtP priority might already have dominated the spectrum’s usage. 32GHz is also a good
Issue 28 AFRICA TELECOMS 57
alternative as a harmonised block of spectrum can be used, allowing several services to be developed more easily. ExelixisNet’s study concluded that the licensed 26GHz frequency band will see greater demand in the next five years as it will continue to be used mainly to backhaul 3G high-speed packet access (HSPA) networks in the developing regions. The PtMP wireless market has already embedded and, in most cases, harmonised a high volatility factor that is flattened out in a year-by-year. That is explained by the number of links that could be ordered and deployed during a quarter, when at the same time,
“PTMP IS EXPECTED TO CONTINUE ITS HEALTHY GROWTH, EVEN STEALING MARKET-SHARE IN SOME CASES FROM PTP.” new areas and deals are identified and might take a whole quarter to close. Overall, CBNL, which, based on ExelixisNet estimates, already has a 50% global (mainly African) market-share, manages to maintain substantial growth, which is critical as it specialises only in one technology, whereas Intracom Telecom, or even RADWIN, could offer both PtP and PtMP, adding a greater advantage to their products portfolio. In Africa, most of the network backhaul systems deployed across the continent will still be in active usage long after the legacy 2G – and probably even 3G – cell sites are decommissioned. Network backhaul links must, therefore, be designed for deployment on a multi-decade basis, including also the equipment that should at least average 20-25 years, MTBF time. There is special focus on the PtMP pros excluding capacity; the spectrum license fees can make significant savings, depending on
58 AFRICA TELECOMS Issue 28
the country considered, but traffic-type can also affect aggregation efficiency (E1, Ethernet, Wi-Fi backhaul, etc). Furthermore, they highlighted ease to add new sites and the potential savings from reduced maintenance costs (less equipment and lower power consumption). Among the challenges facing operators is that All Outdoor/Zero footprint PtMP equipment on a “Plug and Play” feature needs to be proved. In addition, the quick outdoor deployment of the 15-20 installation scale per street site also needs to be addressed and proved during 2013 trials. This year, PtMP vendors will continue improving products at a features level, testing demos to prove the essence for more PtMP links. In order to accomplish this, more investment is expected to flow especially from emerging markets, and mainly from Africa, but also from private investors (VCs), and new movers and shakers may emerge, driving strategic acquisitions with existing players. Competition is expected to lead to higher microwave radio capacity in an effort to out-innovate competitors, especially among the two leading vendors, though some outsiders can do that today and grow faster, gaining momentum where capacity is needed. Special attention should be given not only to the PtMP NLOS vendors, but also to the upcoming new player, Cambridge Communication Systems. It has recently raised a multi-million investment to accelerate commercial deployment of its innovative microwave small-cell backhaul system. New regions and attraction for PtMP has started during 2012 in Latin America and even new markets such as Australia. Although PtMP is not currently the dominant backhaul technology, it is expected to continue its healthy growth, in some cases even stealing market share from PtP as technologies are converging – and there is no clear winner. AT
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In South Africa we believe investment in fibre is still lagging medium-term demand and therefore the saturation point is still far off.
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Africa Telecoms chats with Arif Hussain, CEO of FibreCo Telecommunications FibreCo is a partnership between CellC, Internet Solutions and Convergence Partners. What was the purpose of this partnership? And who spearheaded the formation of this partnership? Each FibreCo shareholder shares a common strategic interest in the development of broadband infrastructure in South Africa to harness the full economic potential of fibre-optic network technology. Each shareholder also brings a unique set of skills and resources to FibreCo and a solid track record of financing, implementing and operating large-scale telecommunications projects of this nature. The company’s objective is to facilitate affordable and reliable high-speed internet access for all South African citizens and enterprises. Andile Ngcaba, Chairman of FibreCo, spearheaded the formation of the company but the three partners have been working together since inception. This issue of Africa Telecoms is looking at Backhaul in Africa. What, in your opinion, is the greatest strength and weakness in backhaul in South Africa? Although Telkom and Broadband Infraco have extensive longdistance networks, we believe that rate of investment into longhaul infrastructure has not kept pace with the growth in demand, especially given the rate at which other parts of the infrastructure value chain are expanding, notably wireless broadband (LTE), submarine cables and metro fibre networks. We believe one of the key weaknesses in terms of backhaul in South Africa is the lack of sufficient long-haul fibre capacity which is available in such a way as to unlock the economic efficiencies inherent in fibre-optic infrastructure for the benefit of the end user. Unfortunately, Africa – and in our case, South Africa – is a huge territory compared to many other markets and as such, many thousands of kilometres of fibre need to be invested in to connect even the urban towns. The plan was for FibreCo to build a long-haul terrestrial fibre network across South Africa. Considering the company has been operational since 2009, what progress has been made and what is the current extent of the network? FibreCo was conceptualised in 2009 with the objective to fully fund, deploy and manage a cost-effective high-speed long60 AFRICA TELECOMS Issue 28
haul fibre network which will support the explosive growth in bandwidth requirements of the country in the coming years. Following two years of extensive planning, the project reached financial close in late 2011, at which point geotechnical and environmental studies for the first routes had also been completed, and a contract was awarded to our technology partner to build the network. Since then, FibreCo has made excellent progress with the deployment of its long-haul terrestrial fibre-optic network. The start of construction of the first 1 000km link between Johannesburg and East London via Bloemfontein was commemorated with a groundbreaking ceremony in the Free State on 2 May 2012 and, to date, FibreCo has completed over 900km of trenching and anticipates offering services on this route imminently. Why did FibreCo decide to use ZTE as the construction partner for the network, and how was this decided? In September 2011, at the end of a rigorous tender process, ZTE Corporation, a public-listed global provider of telecommunications equipment and network solutions operating in more than 140 countries, was awarded the contract for the construction of FibreCo’s network. ZTE brings a wealth of technical expertise through their investment in R&D in the field of optical transmission and photonics, coupled with vast experience in the deployment of fibre optic worldwide. Under the terms of the agreement with ZTE, local civil contractors are being used for the implementation of the FibreCo network. With the launch of LTE in South Africa by some of the mobile operators, fibre backhaul is becoming critical. Has FibreCo seen an increase in demand for terrestrial fibre backhaul across South Africa that can be attributed to the LTE networks? Certainly, with the significant data load that LTE places on the mobile operators’ existing infrastructure, we have seen increased interest by the mobile operators for fibre to connect their base stations as well as to enhance their core networks. We are fortunate to have CellC, which is building a national state-of-the-art wireless broadband network as a key anchor tenant and naturally the fibre links we deploy will play a central role in meeting their long-haul transmission requirements.
Q&A With CellC as an anchor tenant and co-owner of the network, do you exclusively provide solutions for CellC or do you also work with the other mobile operators? FibreCo’s anchor tenants are CellC, Internet Solutions and BT. FibreCo’s network will be operated on a carrier-neutral, openaccess basis, enabling all other operators, service providers and enterprises direct access to our fibre-optic network at the same service levels as our existing customers. Who are the FibreCo competitors in South Africa? What is FibreCo’s differentiator for a company looking at long-haul terrestrial fibre connectivity? FibreCo’s target market are all national and international telecommunications service providers, government entities and large enterprises requiring significant bandwidth across South Africa who are interested in the long-term benefits of infrastructure ownership. Some of these players could also be competitors of FibreCo. FibreCo’s key differentiator is that we allow our customers direct access to own their own bespoke fibre and let them light up with their own equipment. FibreCo provides a managed fibre service that will monitor the operation and maintenance of their fibre and equipment in accordance with best-industry service levels. In November, 2013 FibreCo announced that it was making good progress on the link between Johannesburg and East London, via Bloemfontein. 800km was completed at that stage and the company was expecting to have Managed Services available from Q1 2013. How difficult was this build? And has the fibre been lit? We are proud to announce that the construction of the first link is on schedule and within budget. This success can be attributed to the initial extensive planning process that was undertaken and completed before we broke ground in the Free State. For example, for this first link, FibreCo had to engage with over 124 authorities including municipalities, SANRAL and other service authorities for approval to construct the route. We also had to obtain WULAs and general authorisations from the Department of Water Affairs for over 2 100 crossings along the route. We are planning to light up the fibre within the next few months.. In the current legislative environment, how difficult is it to undertake a build that stretches across so many municipal areas? Is there any coordination for the permits needed from national or provincial government? If you could give advice to government to improve the process, what would it be? Yes, these builds involve an extremely broad permitting exercise spanning various levels of national, provincial and municipal authorities. We have been able to secure the relevant permits through an approach of in-depth analysis of each authority’s requirements and processes but we are also grateful for the cooperation we received from the various respective stakeholders. When developing new linear infrastructure, planning is usually done to follow existing linear infrastructure wherever possible to minimise the environmental impact and maximise the ease of maintenance. Have the environmental requirements that government have imposed been a hindrance in the construction process? And what has FibreCo done to ensure that these requirements have been met? The environmental permitting requirements are clearly stipulated in the relevant legislation, and FibreCo secured all
necessary approvals before embarking on the construction process. We did not regard these as a hindrance as their primary intention is to protect our environment. In November 2012, FibreCo and the Department of Economic Development gave its first training programme, to train 30 school-leavers, giving them an intensive course in fibre-optic maintenance. How many of these students are now working for FibreCo? And do they have the necessary skills to be competent technicians? FibreCo’s objective for the training programme was not simply to train technicians for internal purpose, but to contribute towards capacity-building and skills development in this important sector of the economy. These training programmes will help uplift the level of skills for the maintenance of fibre-optic infrastructure in communities close to where FibreCo’s network is located. The training programme is accredited by the Fibre Optic Association (FOA), whose certification is recognised in the fibre networking industry worldwide. This certification will ensure that trainee candidates are better qualified to apply for the new job opportunities which will arise in the operation and maintenance of the FibreCo’s network and of other fibre networks expanding into the Free State Province. FibreCo aims to integrate some of the successful candidates into the operations and maintenance of its network. This is an ongoing process that will be aligned to the light up of our first link and future operation of our network. Will the FibreCo network be a truly open access network? FibreCo’s network will be operated on a carrier-neutral, openaccess basis, enabling key anchor tenants and all other operators, service providers and enterprise direct access to the economic efficiencies inherent in fibre-optic networks. Through FibreCo’s open-access clients will be able to directly access and light up their own dedicated fibre-optic infrastructure, allowing them to scale up their bandwidth use by a factor of many orders of magnitude, with only a fractional increase in the costs of transmission. Considering the number of fibre construction projects currently being built in South Africa, do you think there will be a point of saturation in future? Globally, there have been some instances of oversupply in the fibre market, especially in the U.S. and European markets. However, in South Africa we believe investment in fibre is still lagging medium-term demand and therefore the saturation point is still far off. Do you see FibreCo expanding its network beyond South African borders and potentially constructing links into other Southern African countries? The subsequent phases of our 12 000km project will see additional routes created, facilitating a national ring linking South Africa’s major cities and towns, as well as connectivity to undersea landing stations, secondary towns and the SADC countries. What do you see as the biggest obstacle for terrestrial fibre construction in South Africa for 2013 and in future? In our view, the biggest obstacle is securing the best commercial model to ensure such networks are built on time, in budget, but made available in such a way that they facilitate innovation, improved affordability and differentiation in the delivery of services to end broadband users. We believe FibreCo is ideally placed to meet and overcome this challenge. AT Issue 28 AFRICA TELECOMS 61
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LAST WORD
BEAM US UP A PIZZA SCOTTY! Geometric Unity, 3D Food Printers, Google Glass and a new Dan Brown Novel – What next for this MAD, MAD, MAD, MAD WORLD?
May 2013 may be remembered as a turning point for the human race as we transmogrify from carbon-based beings into proto-robo-cyborgs racing through a unified universe, munching on powdered pizzas, recording it all on our digital third eye, whilst reading the latest adventures of Dr Robert Langdon to keep the boredom at bay. All this I know about from my “Life Companion” communicator. Our brave new world might have arrived as we all slept quietly, but are we ready to embrace an evolutionary leap as great as when we once crawled out of the primordial ooze onto dry land? We have come a long way indeed. With the announcement of Geometric Unity, we find ourselves in a 14-dimensionsal “observerse” with nowhere to hide behind in any of the 14 dimensions’ nooks and crannies. We are hurtling through space on dying and decaying galactic rock that we have all but managed to choke of all life in the space of just one generation. It’s a fantastic thing then that technology is here to save the day. Enter NASA, who have provided a grant of US$125 000 to an Austin-based company, Systems & Materials Research Corporation, to develop the World’s first 3D food printer. Its mission? To print a pizza. Yes, print a pizza. Talk about boldly going where no printer has gone before. Through a mixture of inks or powders, water and oil, the machine will print the first pizza before the end of 2013, and our journey into interstellar space travel can begin in earnest, or so Nasa hopes. Nasa’s intention is to have people on Mars by 2025, and – at the click of a print button – having foods with a shelf-life of 30 to 50 years. The trip to Mars and back is no longer the stuff of science fiction. That might mean that, for the next 12 years at least, the planet might benefit with a new food source derived from algae, insects and seeds that will transform into a pizza base, tomato sauce and delicious proteins. But, forget Mars – this could have immense implications for our own planet. By the time the printable pizza is available, our new third eye, 64 AFRICA TELECOMS Issue 28
Google Glass, should be at every high-street SpecSavers. First reports are already trickling in and Glass is gaining acolytes with every blink. I’ll have mine rimless, please! What next – the Google Contact Lens, or the Google Eye? Utopia or Dystopia? Not sure. Let me Google it. Now, just a quick stop at any good book or app store to pick up a copy of Dan Brown’s Inferno, and it’s all aboard the Interplanetary Galaxy Express. Pizza at the restaurant at the end of the universe, anyone? Next Stop? To find us some Martians. After all, the Rover has already found signs of water and life. And if they have some olive oil, we’ll be able to open the first Martian Domino’s before the end of the year. Then we can look for another Earth-like planet to turn into a landfill; there’ll be a whole lot of pizza boxes to dump. AT
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