Uhurunet: Delivering high capacity bandwidth to Africa`s businesses

Report
Solution for Africa’s Global Communications
Professor Victor Lawrence
Chairman
Baharicom Development Company
Baharicom Properietory and Confidential
Global Telecom Infrastructure 2009
Africa: Missing from the Global Telecom Infrastructure
The African Market is currently served by expensive, inconvenient, low quality
telecommunication infrastructure consisting primarily of the SAT-3/WASC/SAFE fiber
network and satellite service.
“Imagine a major research university with tens of thousands of
students trying to access the Internet though a single US household.”
“The challenges the continent [of Africa] faces – meeting human
needs, participating in the global economy, managing the
environment, and improving governance – require engineers, doctors,
scientists, and businessmen, all products of Africa’s universities. For
years, strategies to address these challenges centered on providing
direct assistance for combating disease and poverty and for providing
food and water. But living conditions in Africa cannot be improved
without sustained long-term economic growth. That goal in turn
requires connecting Africa to the rest of the world.”
Calestous Juma
Professor of the Practice of International Development, Harvard Kennedy School
Cambridge, MA.
Elisabeth Moyer
Assistant professor in the Department of Geophysical Sciences,
University of Chicago, Chicago, IL and former lecturer at the African Institute for Mathematical Sciences.
Africa in 2012
Sustainable Social and Economic
Development
• Requires
– Education—Broadband to 600,000 schools and
universities
– Healthcare—ICT healthcare systems to remote regions
and cities
– Agriculture—state of the art methods and information
– Infrastructure—Government and community ICT
access
– Civil society—modern knowledge transfer systems
• Uhurunet’s Broadband Capacity Grants will meet these
needs!
The Need
Africa is the last frontier of the global fiber optic network infrastructure. Uhurunet has been
launched in order to meet the need for Internet, data, and voice services in Africa that local service
providers have been unable to provide adequately or economically through existing cable networks and
satellite facilities.
Underpinning Uhurunet’s business rationale is the concomitant recognition that Information
Communication Technologies (ICT) are essential to Africa’s economic development and that Africa,
although one of the fastest growing telecommunications markets in the world, lags far behind the rest of
the world, because of the scarcity of broadband capacity which is generally supplied by submarine fiber
optic systems. The statistics are alarming:
•Africa's bandwidth per capita is only 1% of the world average
•Only 4% of Africans have access to the Internet
•Africa has the highest connectivity costs in the world
•African universities pay some 50 times more for bandwidth then do similar institutions in the United
States
•Connectivity costs per GDP is almost 200 times higher than in the United States
Uhurunet’s business is therefore also its social mission—to deliver capacity to Africa’s businesses,
schools, communities, civil society and governments.
Victor
ICT Penetration in Africa is Still the Lowest in the World

Sub-Saharan Africa is an under-served market across
telecom services
ICT Penetration Rates: Africa vs. Rest of World
60


Despite the high rate of growth of mobile telephony in
Africa, penetration rates still lag both developing and
developed markets
Internet usage remains at extremely low levels given the
high cost and limited availability of services
Future broadband penetration growth is expected to be
mainly driven by mobile broadband

As African countries continue to transition from 2G to
3G technology, the use of mobile broadband will
continue to rise
50
49.0
40
Per 100 inhabitant

59.0
32.0
30
23.0
19.0
20
15.0
13.0
10


Falling connectivity prices from new submarine cable
capacity in East and West Africa will promote a rapid
increase in telecom services
Estimated capex of key African operators Bharti, MTN,
Vodacom and Millicom to be invested in African
networks from 2010 to 2012 amounts to $12 billion
[ 7 ] ITU, 2008; Broker research
Source:
4.0
6.0
6.0
3.0
1.0
0.1
2.0
0.9
0
Mobile
Cellular
Subscriptions
Fixed
Telephone
Lines
World
Internet
Users
Fixed
Broadband
Subscribers
Developing Countries
Africa
Mobile
Broadband
Subscriptions
Victor
Internet Usage in Africa


In 2008, Africa had 32.1million internet users

Nearly 8 times as many as in 2000

Only 0.6 million fixed broadband internet subscribers
Penetration still lies far below world averages


According to ITU, African consumers pay the highest
broadband costs in the world


ICT costs amount to 41% of average monthly income
while internet penetration is only 4%1
Lower broadband cost seen as key political and
economic factor by governments and international
agencies

Source:
Notes:
1.
2.
One per thousand in Africa vs. two hundred per
thousand in Europe
[8]
Numerous initiatives in the region to boost broadband
penetration
International Telecommunication Union (ITU) World Telecommunication/ICT Indicators database
Online Penetration in Africa2
Africa Average
Cape Verde
S. Tomé & Principe
South Africa
Senegal
Uganda
Nigeria
Gabon
Gambia
Botswana
Zambia
Namibia
Togo
Ghana
Lesotho
Côte d'Ivoire
Angola
Cameroon
Rwanda
Eritrea
Equatorial Guinea
Malawi
Guinea-Bissau
Benin
Mozambique
Madagascar
Tanzania
Chad
Mali
Guinea
Burkina Faso
Burundi
Niger
Liberia
Congo (Dem. Rep.)
Central African Rep.
Ethiopia
Sierra Leone
8.6
8.0
7.8
7.3
6.7
6.5
6.2
5.8
5.4
5.2
4.2
3.6
3.4
3.1
3.0
3.0
3.0
2.3
2.2
2.1
1.7
1.6
1.6
1.3
1.2
1.0
0.9
0.9
0.7
0.5
0.5
0.4
0.4
0.4
0.2
0
ACE Landing Points
5
10
15
Per 100 Inhabitants
15.5
World Average
19.0
20
The ITU’s ICT Price Basket shows how much countries are paying for telecommunication services, relative to income levels. It is composed of three sub-baskets: fixed telephone, mobile cellular and fixed broadband Internet tariffs. The ICT Price
Basket is computed as the sum of these three tariffs, as a percentage of monthly Gross National Income per capita
Internet users per 100 inhabitants in Africa, 2008
25
Victor
Internet and Broadband Growth in Western Africa
Africa Mobile Broadband Subscriber Growth


African governments recognise broadband as key enabler
of socio-economic development and GDP growth and
therefore have begun to prioritise accessibility and
affordability of broadband services
As African markets have historically been sensitive to price
reductions, competition should bring about a growth in
internet and broadband

Increased access to end-users and all operators

Increased penetration rates in the region
In 2009, Tanzania experienced rapid growth in broadband
penetration as customers and operators benefitted from
connectivity to the new undersea cables
20
19
18
16
Mobile Broadband
Subscribers (mm)

14
12
11
10
8
6
6

According to industry research, the number of broadband
subscribers in Africa is expected to grow by 18% CAGR
over the next 5 years
4
2
2
1
0
2009E
[ 9Source:
]
2010E
International Telecommunication Union (ITU), African Alliance, Pyramid Research, Pioneer Research, Morgan Stanley Research (The Mobile Internet Report, 15-Dec-2009)
2011E
2012E
2013E
Broadband Capacity for Africa
The ongoing liberalization of Africa’s telecommunications regulatory
regimes as well as accelerating economic development in Africa have
led to explosive growth in the telecommunications sector.
Consistent with global trends, approximately 95% of international traffic
is forecasted to be driven by Internet data access.
With historically low internet penetration rates in Africa in comparison
to levels elsewhere, demand for data access in these regions is
expected to continue to grow at a rapid pace.
Broadband internet access and heavier, content-rich traffic are
expected to fuel strong demand for international connectivity via
submarine fiber optic systems over the next 15 years.
Africa – tomorrow capacity
Today, lack of international connectivity, diversity,
and the corresponding use of scarce and
expensive satellite resources are limiting Africa
telecommunications development.
To achieve the forecasted growth, Africa needs a
new international highway with a complete
connectivity
Uhurunet will support the growth of the traffic between Africa and the rest of the
world, thus reducing the digital divide and driving the economic and social development
of Africa
Uhurunet Objectives
Provide international connectivity to Countries (including landlocked Countries) who don’t have access to any submarine cable
Improve connectivity, provide diversity and traffic securization to
Countries
• Reduce the cost of international traffic
• Speed up the development of broadband services
• Favor economic development and education
Uhurunet, a high
connectivity
1
• A 17,000 km long Submarine
Cable designed to provide 5.12
Tbps
• 22 Countries to be connected,
including 9 Countries not
served today by a cable system
2
3
4
5
6
 The best connectivity ever
offered by a submarine cable
along the West Coast of Africa
7
8
9
12
10 11
13
14
15
16
18
17
19
20
21
22
Uhurunet members
Baharicom
• Benin Telecoms
• Camtel
• Côte d’Ivoire Telecom
• CST (Sao Tomé)
• Expresso Telecom
• France Telecom
• Gamtel
• Getesa
• International Mauritania
Telecom
• Libtelco
•
•
•
•
•
•
•
•
•
•
•
•
Maroc Telecom
Mauritius Telecom
OCPT (DRC)
Orange Cameroun
Orange Guinée
Orange Mali
Orange Niger
Republic of Gabon
Sierra Leone Cable Ltd.
Sonatel
Sotelgui
Uhurunet—An Innovative System
• Consortium members can aggregate their investment
to finance the same landing point
•  Increased competition for international traffic in
all Countries, for the benefit of the end user
• Operators in Landlocked Countries are members of
the Consortium.
• Uhurunet is a state of the art and upgradeable
system, ready for 40G implementation.
Philanthropic Strategy
The Uhurunet
Capacity
Endowment is a
philanthropic
initiative of
Baharicom and
Phelps Stokes to
distribute
broadband
capacity grants to
schools,
universities,
healthcare
initiatives, NGO’s,
and public service
programs across
Africa.
 Philanthropic services to promote social and
economic development throughout Africa.
 The Phelps Stokes Fund will raise at least $60
million from philanthropic donors and other
sources to fund the purchase of broadband
capacity from Baharicom that will make up the
corpus of the Uhurunet Capacity Endowment
(the Endowment).
 The Endowment will be formed as a pool of
capacity units on the Uhurunet system through
purchase or a presale of capacity on an right of
use (ROU) basis made in advance of the
system’s construction.
Page 16
Baharicom Laboratories
Technology Solutions for
Baharicom Properietory and Confidential
Facilitating the Dissemination of ICT Knowledge Capital in
the Service of African Development
Why Baharicom Labs
• Research and study unique attributes of the African Information
and Telecom market to
– communicate, interact and/or partner with global players through
focused conference, trade shows , and literatures.
– identify niche opportunities and provide solutions internally, through
partnerships or outsourcing (to academia and/or industry).
• Provide leapfrog solutions to help Africa’s Development
competitively and to attract
– global institutions such as Google, Yahoo, Facebook, YouTube, IBM, etc.
– African service providers to facilitate new or unique services
• Transfer technology across product or service life cycle
• Development of human capital for the African technical industry
Baharicom Properietory and Confidential
Vision Statement
• Vision – Develop a state of the art research
center to provide the most appropriate
information and communication technologies
and processes to enrich African people’s
quality of life.
Baharicom Properietory and Confidential
Baharicom Labs Mission
An Independent Industrial Research Laboratory
To assemble and create technological capabilities for African
communities to thrive their standard of living
To develop and deploy an array of ICT utilities, applications
and practices optimized for and broadly supportive of African
development
Coordinate & facilitate projects, stakeholders and technology
development to accelerate the effective transmission of
appropriate methods
To act as a hub and center of excellence at the core of ICTcentric activities
Sample Programs
• Information and Communication Technologies(ICT)
–
–
–
–
Traffic monitoring and data mining of Uhurunet and Umojanet
Security services; e.g., encryption, authentication
Develop appropriate User Interface solutions
Mobile social computing for the next billon users
• Rapid deployment of ad hoc technologies to provide ICT
infrastructure for health or emergency applications
• Distance learning and research capabilities (a 21st century
digital arts and sciences academy for Africa)
• Integrate Africa into international eCommerce Network
• Engage with international philanthropic organizations to
design, prototype and/or deploy life-enhancing solutions
Baharicom Properietory and Confidential
Operations
Baharicom Labs will achieve its goals through the following
activities:
• Intellectual Property: Developing and managing a portfolio
of intellectual properties
• Industry/Academia Bridging (Ventures): Actively search
the industry and academia for niche technologies that are
aligned with the goals of BDC and help advance ideas,
prototypes and IPs into products through direct funding
and/or partnerships.
• Market Research: Continual market and technical research
culminating in literature provided to affiliates.
Baharicom Properietory and Confidential
Baharicom Labs
• Baharicom Labs will develop:
–
–
–
–
–
–
A state-of-the art research center
New ICT services for ISP’s and telecom carriers
ICT health and education applications
A network operating center
A 21st century digital arts and sciences academy
Provide training in ICT skills
Page 25
Technology
for
Baharicom Properietory and Confidential
Undersea Fiber Optic Network
Components
Terminal
Traffic
Branching
Unit
Line
Terminating
Equipment
Repeater
Cable
Undersea
Network
Management
Equipment
High
Power Feed
Performance Equipment
Optical
Equipment
Undersea Fiber-Optic Cable
ARMORED PROTECTION
LAYER
STRENGTH
WIRES
UNIT
FIBER STRUCTURE
OPTICAL
FIBER
COPPER
SHEATH
INSULATION
JACKET
2.
Brief Overview
of Undersea Cables and Fiber-Optic
Technologies

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