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Communications Commission of Kenya releases National Broadband Strategy for public hearing

This past January the Communications Commission of Kenya (CCK) presented the draft of their National Broadband Strategy for public review. The strategy outlines a comprehensive plan for bringing communications services and ICT business development to all of Kenya. Expected to cost US$ 2.4 billion, 70% is budgeted for national infrastructure while the remainder will be used for capacity building and content development. Funding will be a combination of public and private sources and will include accessing Kenya’s capital markets. Read more …

April 19, 2013/by actualize

Areas of Expertise, Information and Communication Technology for Development

9 Things to Consider when Planning a National Broadband Strategy (NBS)

Photo Credit: Danny Morgan

National Broadband Strategies (NBSs) are becoming a necessity for each nation nowadays considering the immerse benefit of such policies or strategies or plans to unlock the full potential of the broadband network and maintain an open Internet. As a result, a NBS should be seen as a social contract to develop the industry base within any country. It should aim at bringing about a stronger foundation for effective governance, private investment and more active citizenship, leading to a desirable social and economic future.

Below are the 9 points distilled from the World Bank’s Broadband Strategies Handbook and another Conference Paper by Prabir K. Neogi and Rekha Jain that reviews some national broadband strategies.

1) A National Broadband Strategy (NBS) should take an Ecosystem Approach by considering both the demand and supply of broadband: This must include a) Networks – by creating the environment to reduce barriers for international connectivity, domestic backbones, metropolitan connectivity, and local connectivity; b) Services – by providing broadband services to schools, government agencies, etc.; c) Applications – by making available e-applications and content (local) creation; d) Users – by considering Customer Premise Equipments (CPEs) and Personal Computers (PCs), and digital literacy.

2) In order for the ordinary citizen to benefit from broadband investments, a NBS of any country should aim at having the greatest economic impact on the country: This could be achieved by creating and making available broadband-enabled services and applications; and then building the capacity of users to use the broadband-enabled services and applications in a productive and efficient way.

3) NBS should describe the broadband supply chain from a topological perspective: Such a topology should take into consideration a) The international, regional, national, and local connectivity and access deployment solutions; b) The technologies for each of these segments – fiber optics, satellite, microwave, mobile wireless, and traditional copper wire; and c) The implementation issues associated with these technologies – open access, quality of service, and spectrum constraints.

4) NBS should describe demand in order to make broadband services available to the users: By clearly defining the private and public sector roles to facilitate adoption after the networks are created; go beyond the market demand to reach where demand is stifled because consumers are not aware of the benefits of broadband; where broadband is not affordable; and where broadband is not attractive or relevant to potential users.

5) NBS should aim at building the capacity of users: The presence of broadband services without the capacity of the citizens to use them may be a waste of investment. Hence capacity for citizens, businesses, and government should be build to understand, learn, and apply broadband benefits and capabilities across the economy and society: Absorptive capacity in the areas of the economy’s macroeconomic environment; the business environment; the quality of human capital; and the governance structure are key for consideration.

6) Stages of NBS: NBS should be design to include three stages: a) Promotion stage when the market is incipient and the aim will be to promote the build-out of broadband networks, encourage the use of broadband services and applications, explore options for funding the development of the strategy and address issues associated with measuring the effectiveness of policies designed b) Oversight stage will key as competition begins to drive growth. The traditional legal and regulatory frameworks need reforms in order to address supply and demand issues with convergence of the technologies. Government’s role in creating the environment for oversight through competition policy, guard against monopolistic, oligopolistic, and unfair practices and regulate essential facilities. c) Universalization stage comes as the market matures. The role of governments is needed when market mechanisms do not meet goals for broadband access and use. This can be done through universal service and access programs. Government should also narrow or eliminate gaps between markets and the country’s development needs to allow for private-led competitive markets.

7) Scale and scope of the strategy: NBS should be seen as a component of a larger, long-term phased national economic plan for the adoption and use of ICTs to improve competitiveness and productivity. Countries such as Australia has taken a comprehensive national strategy approach that is rather supported by all levels of government. Others also have a standalone or ad hoc programs at various levels of government, to improve broadband connectivity in rural and remote areas.

8) Duration of the broadband strategy: A NBS should be developed in such as way that it is not too long that technology solutions might have radically changed, but covers a longer time frame than electoral cycles in most countries. Example of short/medium term initiatives, such as 2-3 year programs of the U.S. DOC/NTIA $4.2 billion Broadband Technology Opportunities Program/BTOP), funded under the American Recovery and Reinvestment Act of 2009. On the other hand, the Australian National Broadband Network (NBN) initiative and the Federal Communications Commission’s proposed National Broadband Plan are long term strategies extending over 5-10 years.

9) Funding and implementation model: NBS should consider the degree and nature of public sector funding and support such as direct funding, loan guarantees, targeted tax incentives. In most cases, governments are provide one-time, up front capital grants to fund the deployment of the broadband infrastructure. But the main challenge is with the provision of continuing subsidies for the ongoing operation of the network facilities which mostly may be the function of the private sector. The model of greatest interest is the Public-Private Partnership (PPP), with joint ownership of the deployed infrastructure as seen in Singapore, Australian NBN, and New Zealand.

In conclusion, there is no ‘one size fit all’ for National Broadband Strategies but a good NBS should have the following key characteristics:

a) Be forward looking to keep up with the pace at which technology is being developed

b) Become a permanent fixture of economic development and the embodiment of a shared vision

c) Be resilient to the checks and balances brought about by politics

d) Be endorsed by all policy-makers at the time of conception

e) Demarcate respective roles of public and private sector participation, and the potential for partnerships

f) Should contribute to demand through e-services, expertise centers, government services online, and capacity building.

Note: Key points in this post were distilled from the: The World Bank’s Broadband Strategies Handbook, edited by Tim Kelly and Carlos Maria Rossotto (2012) in preparation for the release of Broadband Strategy Toolkit as done for Telecom Regulation and National Broadband Strategies: and A Comparative Review and Possible Lessons for Developing Countries by Prabir K. Neogi and Rekha Jain (2011/12), presented in a conference in India, February 2012.

July 9, 2012/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

Fiber Connections Between Kenya and its Neighbors

Last week I had the privilege of interviewing Dr. Bitange Ndemo, the permanent secretary of the Ministry of ICT in Kenya. He explained how Kenya is very close to being linked to all of its neighbors, and how the national backhaul system is fully operational. In a country with such massive economic and social disparity, I am hopeful that Ndemo’s efforts to bring ICT services to all of Kenya will serve as a catalyst for stability and equality of opportunity.

To where are Kenya’s cables extending?

Kenya has the most extensive backhaul terrestrial system, and they are reaching out to adjacent countries. According to Ndemo, Kenya has three cables into Tanzania, as well as three cables into Uganda. Some of these cables make up part of the East African Backbone system, which also includes Rwanda and Burundi, and cables from Kenya to those nations are still under construction. Laying the connecting cables has been more difficult for Burundi, since this is a new experience for them and they have lower capacity in this space.

Photo: BBC News

Ndemo also confirmed that there are current discussions and plans to bring fiber to South Sudan, though no construction is currently underway. There is only 60 kilometers between Kenyan cables already laid and the South Sudan border.

The possibility of connecting Somalia, however, is contingent on the political situation. Though Kenya has a microwave only 2 kilometers from the border of Somalia in the state of Mandera, they will not bring the connection across without complete assurance that there will not be privacy infringements. Both of these nations are quite close to being a part of the East African Backbone system.

August 17, 2011/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

How to Stop the Next Famine in Somalia? Internet Infrastructure

I wrote a blog post a few weeks ago about a series of ways that Somalia could get broadband Internet connectivity. The article was reposted in several British, Somali and Kenyan online newspapers and was even criticized by a group of IT professionals in Somaliland. Given the hunger crisis outbreak in the Horn of Africa since then, I want to revisit the issue of connectivity in Somalia. It appears that mobile and Internet access is being recognized as a crucial need for humanitarian agencies.

Photo: AP

Information and communication technology (ICT) services during humanitarian crisis are much improved from a few years ago. Ushahidi and Frontline SMS have demonstrated the power of text services. Mobile money by MercyCorps in Haiti provided some organized method of food distribution and sustained economic activity. The government of Luxembourg recently partnered with the World Food Programme to test a connectivity kit to restore voice and text communications when power systems are wiped out during natural disasters. The list could go on.

A famine is different than other disasters, however. It does not affect ICT infrastructure directly as a hurricane or tsunami would. ICTs, then, can play a key role in organizing humanitarian relief efforts during a famine or crisis of any sort. In addition, ICTs can prevent famines because of the increased communication they can provide.

Remember economist Amartya Sen’s claim that a famine has never occurred in a working democracy? Famines are not so much a result of a lack of food, but rather a lack of effective distribution and communication. Democracies, with all their checks and balances of power, give enough voice to the people so that food is delivered when needed.

I argue that the amount of communication inherent in a democracy is the real key to the distribution and production of food that stops a famine. Public communication, not necessarily democracy, stops famines. In fact, what Sen defines as a “working” democracy, is simply a democracy where people of all social classes have a voice. A “working” democracy, then, is itself founded on the principles of the equality of communication.

It isn’t social media that will end the famine, but it is a process and steady cycle of communication between social groups. The more communication, the less social injustice—famine included. This type of communication can better occur with significant ICT infrastructure, which allows people in different locations to still communicate and share ideas.

One of the better ways to increase communication in a nation is mobile and Internet services along with IT infrastructure. I spoke with Bitange Ndemo, the Permanent Secretary of the Ministry of ICTs and a Director of the Communications Commission of Kenya (CCK), this week about possible broadband cable connections with Somalia. He was optimistic and outlined some possibilities, contingent on the Somali political environment. Ndemo explained that Kenya has broadband cables and a microwave just 2 km from the border with Somalia in Mandera. Both Kenyan and Somali telecoms have approached CCK, hoping to make a connection into Somalia. However, Kenya has declined as of now, for security risks. If they route the cable into Somalia then they risk privacy concerns and people cutting the cables. Given the political instability in Somalia right now, Kenya has yet to route the cable. Somalia remains unconnected to the rest of the East African Backhaul System, and still remains without any lighted fiber-optic cables, greatly limiting Internet usage and global communication.

It may seem strange for a government to invest in expensive broadband cables when its citizens are struggling to find enough food, but perhaps such an investment would end up ending its struggles with famine. Or, instead of the Somali government investing in IT infrastructure, they could grant easier regulations to private telecoms, and let them route and light cables throughout the nation. This would leave the government with less control over the telecommunications industry, but would save any financial costs.

Ultimately, though, the manner in which Somalia increases public communication is not as important as making sure that something is done to increase IT infrastructure throughout the nation. At the end of the day, food security concerns are tied to communication capabilities, and mobile and Internet infrastructure can play a significant role in decreasing the probability of famine.

August 9, 2011/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

Mozambique Socially Invests in ICTs for Rural Development

While recent studies in the developed world show that the Internet actual reinforces economic disparity and even social classes, Mozambique is taking a unique approach to utilize information and communication technologies (ICTs) to break down economic and social disparity.

The government signed a memorandum of understanding with a domestic service provider, MCEL, to roll out Internet and mobile services specifically in rural areas. The two allocated $255 to this effort.

Current Internet penetration in Mozambique is only at 2.7% (2010 data), and mobile penetration is at 26% (2009 data), slightly lower than its neighbors. As can be seen on the following map, coverage is limited in Mozambique.

It is surprising, then, that the government is taking specific action to bring Internet and mobile access to rural populations, since penetration in urban areas is still quite low. People in urban areas arguably have greater need for the Internet and mobile services for their jobs, while rural people tend to communicate less with others and focus on agricultural production.

Photo: Mark.W.E

The expansion of ICT services to rural Mozambique can stimulate human development in rural areas, however, when used correctly. There are plenty of applications that apply particularly to rural peoples, like mHealth and mAgriculture such as Esoko and Medic Mobile. The Mozambique government is hoping that an increase in ICT access in rural areas will stimulate human development there, which will in turn raise the economy and eliminate disparity.

In other words, Mozambique’s ICT policy displays the fact that it has different development priorities than many other developing countries. If they were totally focused on economic growth, they would use their funds to increase connectivity and ICT services in urban areas, which would increase the use of ICTs by those who are most likely to use ICTs for business endeavors. However, Mozambique is instead utilizing their ICT funds for social goals, like helping the poorest of the poor. Many countries talk about bringing access to the poor through their Universal Access Funds, but Mozambique is actually funding socially-justifiable ICT programs over economically-justifiable ones. They deserve a round of applause.

August 3, 2011/by actualize

Connectivity, Originally posted on the GBI Portal

How Broadband Will Get To Somalia Before You Know It

Child participates in USAID's Interactive Radio Instruction education program, the only possible ICT project currently in Somalia.

Last week, I interviewed Mohamed Ahmed Jama, CEO of Dalkom Somalia and board member of Frontier Optical Networks Ltd (FON) in Kenya. Mr. Jama described four potential Broadband cables that could be a part of a terrestrial backbone throughout East Africa, including in Somalia. A fifth was announced yesterday in Somaliland.

Though all three of these proposed links are just that—proposals—they are indicative of the rapid growth of Broadband connectivity in the region. Most East African governments are actively engaged in rolling out backbone terrestrial networks, while four years ago the World Bank called East African connectivity the world’s only “missing link.” South Sudan is working with the CTO to develop an ICT strategic plan, Burundi recently received funding from the World Bank, and Uganda has also invested as well. And private companies are facilitating the expansion of Broadband cables as well; they are working with the national governments to lay the cables and to fund the projects. The East African Backhaul System, recently announced as a combined $400 million partnership between Burundi, Rwanda, Uganda, Tanzania, South Sudan, Kenya, and the Democratic Republic of the Congo governments and a variety of private telecoms. The unique partnerships between the public and private sector make the ICT space in East Africa distinct from other regions.

Potential backbone networks in Somalia, Ethiopia, and South Sudan are listed here and can be seen on the following map (forgive the rough estimations, I did not draw this exact):

1. Somalia’s Connection to EASSy Cables (blue line)

According to Mr. Jama, Dalkom Somalia has built two cable landing sites in Somalia from the EASSy submarine cable, one in Somaliland and the other in Mogadisho, Somalia. Unfortunately, the government of Somaliland revoked Dalkom’s license last year before the cable was completed (scheduled to be finished in October, 2010). The Somaliland government claimed that they had already signed an agreement with a local company, SomCable. However, no additional work has been carried out since last year, leaving construction at a stand still and the region unconnected. In Mogadisho, on the other hand, the landing cable lays ready to be used, but remains unconnected due to security issues at the site. To make matters more frustrating, Dalkom has funding, contracts awarded and the regulatory approval to extend the cables from the landing site inward, creating a national terrestrial backbone. Security issues in the area are the only contingency.

2. Mombasa—Nairobi—Moyale, Ethiopia Cable (green line)

The EASSy submarine cable has been extended inland previously from Mombasa to Nairobi. For the past year, discussions have been underway been the Kenyan and Ethiopian government on possibly constructing a terrestrial cable from Nairobi to Moyale, on the Ethiopian border. However, with FON’s assistance, the cable has been built, but is yet to be lighted. The only remaining holdup is to sign an agreement of understanding with the Ethiopia government, which has historically been reluctant to work with private sector ICT companies.

3. Somalia—Kenya Connection (black line)

According to Mr. Jama, there is 560 km remaining between fiber optic terrestrial backbone cables in Somalia and the state of Mandera in Northeastern Kenya. Mr. Jama proposes that the Kenyan government bring the fiber to the border, and then Dalkom Somalia would complete the Somali side. This connection would connect Somalia to the African backbone network. However, there has been intermittent violence on the Kenya-Somalia border in Mandera, with the most recent issue being a land mine blast that killed eleven Kenyan officers. The volatility of the border could potentially lead to another security standstill before lighting the fiber, like in Mogadisho. Dalkom and the governments, then, need to concern themselves not only with the technical issues and construction of the remaining fiber, but also on the political instability of the region.

4. Juba—Lokichogio Link (red line)

Southern Sudan and Kenya plan to construct a fiber optic cable link between the two nations as part of a larger project entitled “four-in-one.” The project includes the construction of a railway line from Lodwar-Lokichogio to Juba, road rehabilitation, an oil pipeline, and fiber optic cables. Currently, the governments need to conduct a feasibility test given the mountainous nature of the route, especially the Great Rift Valley. In all likelihood, the project will not be finished before 2015.

5. Djibouti—Somaliland SomCable (orange line)

SomCable, supported by the interim government in the territory of Somaliland, reportedly signed an agreement to buy the necessary buildings and licensing in Djibouti to route the EASSy cable into Berbera and throughout Somaliland. The President of SomCable, Mr. Mohammed Gueti, announced his recent acquisitions just yesterday. Mr. Gueti has strong ties with the president of Djibouti’s family, arguably giving his company an advantage over Dalkom Somalia at winning the contract. However, as Mr. Jama points out, construction has yet to begin on this cable line, possibly suggesting that the announcement is merely a political move by the government of Somaliland as Mr. Gueti does has any rights to extend the EASSY Cable. Neither purchases any capacity from the members of the Consortium.

July 14, 2011/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

Kenya and South Sudan Sign Fiber Agreement

The Deputy Director of Kenya Southern Sudan Liaison Office (KESSULO), Albert Origa explained: “We have developed a paper which has been presented to the Cabinet for approval. If approved, we will embark on the reconstruction of the railway and roads network, roll out a fiber optic cable and oil pipeline to connect the two countries.”

If connected, the cable will provide a stable information link for South Sudan to connect with the rest of Africa’s terrestrial fiber networks. And, of course, the railway line and oil pipes are promising economic developments for both nations.

Railroad station in North Sudan, similar to the places where the railway and adjacent fiber will be placed. Photo: Tim McKulka/UN Photo

Mr. Jama Mohammed, board member on Kenya’s Frontier Optical Networks (FON), also confirmed the plans. In a personal interview last week, before the Kenyan and South Sudan governments reached an agreement, Mr. Mohammed told me that the Kenyan government had built fiber to Lokichogio already, and was looking for a private telecom to manage the system and light the fiber. FON, however, was originally hesitant to sign until receiving a license in South Sudan, who announced recently a suspension of all telecommunications licenses until further notice. With the agreement reached this week, however, it appears that the Government of South Sudan will be willing to work with a private business to manage the system.

July 8, 2011/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

Who’s Who in South Sudan’s New ICT Industry?

The interim Government of South Sudan (GoSS) has requested that telecoms companies operating in the region suspend work until the administration publishes new regulations for the sector, with no specific target date for the regulations to be published. Some early regulation methodologies were discussed in February of this year, when leaders in the ICT industry affiliated with South Sudan met with the Commonwealth Telecommunications Organisation (CTO) and discussed a possible three-year strategic plan for the new nation.

Photo: CIO East Africa

In October 2010, CTO helped GoSS organize a conference, entitled ICT4D: Southern Sudan. From the conference and a previous ICT strategy report created by Pricewatershouse Coopers LLC in 2008, GoSS and CTO drafted an inception report during the consultation visit in February 2011, but they did not create any official policies. The strategic plan includes involving ICTs in all sectors of Sudan’s infrastructure and economy. CEO Dr. Ekwow Spio-Garbrah of the CTO exclaimed his excitement: “This new nation will have the opportunity to not merely leap-frog, but to cheetah pole-vault over other nations, if it is methodical about its approach in the ICT and other sectors.”

Currently, though, telecommunication companies in South Sudan are in limbo. CEO of Zain telecoms, Hisham Mustafa Allam, said he could not be ‘100 per cent’ sure that the company’s mobile license would be valid in South Sudan after July. ‘There’s potential for South Sudan, but there are big challenges,’ he said, adding: ‘One of the problems we have right now is it costs lots of money to build sites and do a rollout (of fiber) in the south.’ South Sudan will have to rely on fiber from Kenya and Uganda, making the costs potentially quite high. Zain has reportedly invested 20% of its total expenditures in the south of Sudan, including around 150 base stations.

South Sudan carried out a national survey in 2009, but did not include questions regarding Internet access. However, only 15% of households own a phone, including 8% in rural areas and 59% in urban areas (primarily in the capital city, Juba). The lack of households with phones indicates a lack of electricity and connectivity possibilities in general.

Despite these difficulties, broadband connectivity is within reach. There are three current submarine cables that run to Port Sudan, in the north. From Port Sudan, there is a terrestrial backbone network that extends to major urban areas in the north of Sudan. However, no cables have been laid in South Sudan and there are no plans to connect the backhaul cables in the north with the south, as seen in the map pictured. These cables are:

EASSy – (an East Africa Submarine Cable System with endpoints in South Africa and the Sudan)
FLAG FALCON – (FLAG Alcatel-Lucent Optical Network) – (Egypt, Sudan, Yemen, Saudi Arabia, Bahrain, Qatar, UAE, Kuwait, Oman, India, Maldives)
SAS-1 – (Saudi Arabia-Sudan)

Map: Mohamed El Bashir Hiraika

However, there are a series of cable networks near South Sudan that could potentially be expanded into the country:

KDN – Terrestrial cables have been laid and are under-construction in Kenya, Uganda, and Tanzania. Discussions are underway to route the cables north to Juba.
Seacom – Involved in the undersea EASSy cables along the coast of East Africa. They announced in June 2011 that they were going to move inland, working with governments of Burundi, Southern Sudan, and Somalia to make a terrestrial cable link in the Somali Cluster (also known as the East African Community – EAC). Most likely, Seacom will partner with KDN and Altech, among other partners.
WIOCC – The largest investor at 29% in the EASSy cable system, the West Indian Ocean Cable Company is comprised of the main telecommunications firms in twelve African countries (listed below). They are constructing East African terrestrial backhaul cables, including a cable line from Kampala, Uganda to Khartoum, Northern Sudan. This line appears to run directly through Southern Sudan, with no plans to land the cable until Khartoum.
- Botswana Telecommunications Corporation
- DALKOM Somalia
- Djibouti Telecom
- Gilat Satcom Nigeria
- Government of Seychelles
- Lesotho Telecommunications Authority
- Onatel Burundi
- TDM Mozambique
- Telkom Kenya
- UCOM Burundi
- Uganda Telecom Limited
- Zantel Tanzania.
INTELSAT – Their satellite New Dawn has alleged potential to cover most of Africa, with the highest bandwidth in West Africa. No private companies in Sudan, nor the Sudanese government, has partnered with them to construct a point of contact.
Umojanet – The African Union program “Nepad” wants to create a terrestrial cable system throughout the African continent, which they call Umojanet. Nepad first expressed this dream in 2000.

In addition to private sector investments in broadband infrastructure, national governments near in East Africa are also investing in fiber optic cables. Their willingness to politically and financially support national broadband networks makes the possible of public-private partnerships more possible. As reported by Seacom in June 2011:

The governments of the East African Community (EAC) are investing over US$400 million in their respective national backbone infrastructure. The cables cover more than 20,600 km.
Rwanda completed a 2300km cable costing more than $60 million.
Tanzania continues to lay its $170 million, 10,000km plus cable.
Burundi is also laying out the cable of 1300 km with the help of $10.5 million grant from the World Bank.
Uganda, acquired a Chinese loan of about $102 million to implement the 2,000km plus cable.
Kenya is also investing $60 million in the National Optic Fiber Backbone Infrastructure (NOFBI). Some 5,000km of the cable had been laid down by June 2010.

Given these investments, South Sudan will feel pressure to compete with its neighbors in the ICT industry, potentially leading the government to support their own national networks and backhaul system. Yet, given the tremendous financial burdens that the government will have in all of its sectors of development, much of the success regarding the ICT and telecommunications industries will depend on public-private partnerships.

July 8, 2011/by actualize

Connectivity, Originally posted on the GBI Portal

What if your Internet bill was more than your mortgage?

Photo: ITU

A recent report by the ITU states that the price of high-speed Internet connections dropped by over 50% globally last year, with entry-level ICTs dropping 18%. The drop was less extreme in developed countries at 35%, but very pronounced in developing nations at 52%, and particularly in Africa at 55%.

The positive headlines of the ITU’s report quickly fade away, however, as the reality of Broadband prices in developing countries sinks in. “In 32 countries, the monthly price of an entry-level fixed broadband subscription corresponds to more than half average monthly income. …And in a handful of developing countries the monthly price of a fast Internet connection is still more than ten times monthly average income.”

Though this report from the ITU demonstrates that the digital divide is narrowing, the stark differences in Broadband prices between the developed and less developed world appear still widely extreme. The ITU’s report on the price drop ultimately highlights the expansive measure of the digital divide.

If governments are lining up to invest millions in constructing fiber optic cables, should they also set aside some money to subsidize bandwidth usage? Are governments’ efforts to make broadband accessible futile without subsidies to reduce prices? Arguably, a small investment in bandwidth subsidies is necessary in order to make the investments in Broadband infrastructure ultimately meaningful.

Kenya is the first African nation to provide bandwidth subsidies to business processing operators (BPO), allowing a 20 cent saving on all operational costs. ICT board leader, Paul Kukubo, explained, “Increasing Kenya’s competitiveness in the global BPO sphere is vital for our country’s economic growth…and to put Kenya on the global outsourcing map.” Though the effectiveness of the subsidies have been called into question, this is a step in the right direction. Maximizing the benefits of Broadband connectivity may often require bandwidth subsidies as African nations struggle to breech the digital divide.

June 21, 2011/by actualize

Connectivity, Originally posted on the GBI Portal

Fiber Optic Cables To Extend to 3 More East African Nations

In today’s headlines, African Telecoms giant Seacom announced that it will be laying fiber optic broadband cables in the coming year in three African nations: Burundi, Somalia, and Southern Sudan. Fiber cables will first be laid in Burundi with the assistance of a $10.1 million dollar grant from the World Bank, and later in Southern Sudan and Somalia.

Attempting to connect all of East Africa together, Seacom has successfully completed fiber construction in Uganda, Djibouti, Rwanda, Tanzania, Ethiopia, and Kenya, which is the headquarters of the region. East African governments have been key partners with Seacom and other private telecommunications companies, including Korea Telecom in Rwanda. In fact, the East African Community (EAC), a group of five nations, will invest a combined total of $400 million in laying broadband cables in the coming years. With the undersea and terrestrial fiber cables laid, the groundwork will be in place for all of East Africa to be connected directly.

African Undersea Cables — A History

View more presentations from Steve Song

In Burundi, the reported plans include laying 1,300 kilometers of fiber optic cable, partially funded by the World Bank. The funding for Southern Sudan and Somalia, however, is less concrete at this point, as governments and private sector players are only at the formation stage, with Seacom leading the way.

Seacom’s announcement came despite the spread of land fighting on the border of North and South Sudan this past week, where reportedly more than 53,000 Southern Sudanese citizens fled their homes. Despite the fighting, Seacom spokesman Julius Opio remained optimistic.

However, Mr. Opio has expressed other concerns, including the low portion of the Internet community that is owned and produced by Africans. Establishing broadband infrastructure in Africa, Mr. Opio argues, will increase African ownership and power in the Internet sphere.

“Today, the majority of internet content consumed in Africa is non-African, flowing from Europe and North America into Africa. …We believe that the growth of the African ICT market, including mobile penetration and the eager adoption of social networking, coupled with the development of cloud services will result in a rapid increase in content on African soil.”

Slideshow from Steve Song, and video from Seacom and CreamerMedia.

June 14, 2011/by actualize