Jimson Olufuye, fncs, ficma, PhD
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1 Broadband, Convergence and Africa s New Connectivity Infrastructures: ITAN/WITSA AFRICA's Perspectives Jimson Olufuye, fncs, ficma, PhD ITAN President, Vice Chair WITSA (sub-saharan Africa) Member International Chamber of Commerce (ICC) CEO Kontemporary Group Friday, November 26,
2 Agenda Introduction Definitions Africa Connectivity Infrastructure ITAN/WITSA Perspectives Conclusion 2
3 Introduction About me Jimson Olufuye 3
4 Introduction About ITAN - Established in 1991 by IT Companies - Membership now about Runs 2 flagship events: Information Technology Public-Private Forum ITPPF (April) & IT CEO Summit (Sept) - Engendered Nigeria s admission into WITSA in Represents Nigeria in WITSA since Focus: - IT Advocacy for market expansion for members - IT industry Intelligence & research - Industry capacity building/ Certifications - Vision: - To fulfill the promise of the Digital Age for Nigeria 4
5 Introduction About WITSA - Established in 1978 in USA - Membership now about 75 countries - Controls 90% of global ICT market - Runs biennially, 2 flagship events: World Congress on IT (even year) & Global Public Policy Summit (odd year) - Partnership: UN, ICANN, ITU, ICC, OECD - Focus: - IT Public Policy Advocacy - Global Trade - IT industry Intelligence & research - Publishes the Digital Planet of global ICT Market Data - Vision: - To fulfill the promise of the Digital Age for Everyone - Chairman: Dato Dan Khoo Malaysia - Secretary-General: Dr James Poisant - USA 5
6 Introduction About WITSA Africa Regional Secretariat (sub-saharan Africa) - Established in 2010 and its being hosted by Nigeria - Membership now about 10 countries of the 45 sub-saharan Countries - Controls 70% of African ICT market - Runs biennially, 2 flagship events: World Congress on IT (even year) & Global Public Policy Summit (odd year) - Partnership: ECOWAS, AU, UN, ICANN, ITU, ICC, OECD - Focus: - IT Public Policy Advocacy - African Trade - IT industry Intelligence & research - Publishes the Digital Planet of global ICT Market Data - Vision: - To fulfill the promise of the Digital Age for Africa - V. Chairman WITSA & Chairman WITSA Africa: Dr Jimson Olufuye 6
7 Definitions Broadband Simply refers to a high data rate connection to the internet with 1meg upstream and 4meg down stream according to the US FCC. The data rate is often adjusted as the market roles out faster services. In this regard, broadband used to be 128kbps/256kbps when narrow band was 56kbps of telephone modem. The term itself is technology neutral; broadband can be delivered by a range of technologies including DSL, WiMAX or next generation access. 7
8 Definition Convergence Convergence in this context is a technology enabled digital state in which voice, texts, video, pictures, broadcasts, presentation, streaming media, global connectivity and personalized services; are provided through common platform Internet Protocol. 8
9 Africa Connectivity Infrastructure 9
10 Africa Connectivity Infrastructure Cost (millions of USD) Length (km) Capacity tbps Completio n Ownership Seacom EASSy TEAMs WACS MainOne GLO1 ACE ,700 10,000 4,500 14,000 7,000 9,500 14, Jul-09 Jul-10 Sep-09 Q Q Q Q USA 25% African TEAMs (Kenya) 85% SA 50% Telecom Etisalaat (UAE) 15% Kenya 25% Operator s 90% Telkom Vodaco m MTN Tata (Neotel) Infraco US Nigeria, AFDB France Telecom et al 3,385 72,
11 Current Internet Scenario in Africa AFRICA INTERNET USAGE STATISTICS FOR AFRICA Internet Internet Population Users Users Penetration User Growth % Users (2010 Est.) Dec-00 Latest Data (% Population) ( ) in Africa Nigeria 152,217, ,000 43,982, % % 39.60% Egypt 80,471, ,000 17,060, % % 15.40% Morocco 31,627, ,000 10,442, % % 9.40% South Africa 49,109,107 2,400,000 5,300, % % 4.80% Algeria 34,586,184 50,000 4,700, % % 4.30% Sudan 41,980,182 30,000 4,200, % % 3.80% Kenya 40,046, ,000 3,995, % % 3.60% Tunisia 10,589, ,000 3,600, % % 3.20% Uganda 33,398,682 40,000 3,200, % % 2.90% Zimbabwe 11,651,858 50,000 1,422, % % 1.30% Source: 11
12 Broadband Scenario Developing However, I predict wild-fire growth of 30% in the next 2 years given Successful political transition & Maintenance of the Vision 12
13 General The journey towards a digitized world is gaining good speed in the last frontier of the digital age - Africa. Africa lost out in the agricultural and industrial revolutions. Would it lose out again in the digital revolution? 13
14 General Today, Africa is enveloped in a ring of fibre infrastructure with capacity in excess of 6 tera bps. By the first half of 2011, it would be over 20 tbps. Nigeria alone now has access to >4tbps bandwidth. It is therefore valid to declare that the promise of the digital age might after all not elude Nigeria ditto Africa; but more capacities are still required! 14
15 General Convergence through innovation and technology is already with us but to what extent are we able to empower our people in Africa to benefit from it? How do we ensure that the last mile is served? What strategies have we put in place to engender an innovative content industry to use the available capacities and thus create jobs? 15
16 I would begin to answer these questions by advocating a Shift in Paradigm from just Government as it is to General Public Government (PG1) & Private Government (PG2) committed to working together. 16
17 General Hitherto, Government is solely referred to as the apparatchik of governance at all levels ie local, state & national eg Federal Government of Nigeria. If the government does not move, nothing moves. For example, until NCC got it right nothing was right in the telecom sector. So, in my candid opinion, until NITDA moves don t expect much in the IT sector. 17
18 General The notion that government must do it all has stunted Africa s economic growth a la Nigeria for 50years. The pace of government proactivity has not kept pace with population growth and pressure on economic infrastructure. Governance generally has been lopsided. 18
19 Paradigm Shift My advocacy is for a paradigm shift, a new thinking on the premise of collective governance and responsibility ie the public government (PG1) on the one hand and the private government (PG2) (consisting of Private stakeholders) on the other; with both in seamless collaboration for the common good. 19
20 Paradigm Shift This is to say that PG1 leadership, in concert with the PG2 leadership (business and community leadership), is essential to accelerate broadband deployment and use across Africa. 20
21 Specifics on Boosting Broadband Penetration 1. Regulators need to be proactive There is need for Regulators in Africa to be more proactive in responding to convergence benefit realization. - They should focus on Policies and regulations affecting network market structures ie encourage competition and technology diversity in access to and provision of telecommunications services - They should focus on Policies and regulations affecting content development and applications ie encourage open access to networks; and encourage multiple voice, data, and video content and service providers. There should be no one single monopoly like Galaxy Backbone Plc for public government internet services. We should learn from NITEL experience. 21
22 Specifics on Boosting Broadband Penetration 2. Use Public Government (PG1) Spending Power PG1 operations and services, including spending power should be used to engage broadband to support effective and efficient delivery of programs and services, including quality healthcare and education. PG1 need to aggregate its requirements to create demand pull for broadband 22
23 Specifics on Boosting Broadband Penetration 3. Direct and indirect investment in infrastructure and access by PG1. PG1 can: Offer tax incentives Award grants to community groups to develop plans for broadband usage and localized content Provide computers to schools, community centres & students Provide access to rights-of-way, ductwork, towers Subsidize network providers to extend networks into low service areas ahead of market demand Invest in underlying core network in badly served areas 23
24 Specifics on Boosting Broadband Penetration Given the extent of the challenge that most African countries face, it may not be possible for PG1 or the PG2 to extend broadband networks to all communities at the same time. Two paths forward are suggested. 24
25 Specifics on Boosting Broadband Penetration The two paths forward are: If broadband is not already in place, one model is to start with the higher density areas. For example, the strategy could be to focus first on targeted development regions, likely in or near urban areas, where there is the potential to establish a cluster of broadband service providers, ICT-related businesses, businesses that are intensive users of ICT, and other users (e.g., colleges, universities, and researchers). 25
26 Specifics on Boosting Broadband Penetration Another path forward is to deliver broadband capability to regional centers and establish community access points at these centers. This simultaneously addresses the lack of broadband to every community as well as the lack of computers and general lack of readiness of many individuals and businesses, especially those in smaller centers, to receive electronic services. 26
27 Specifics on Boosting Broadband Penetration 4. Workforce Capacity & Capability Development Universities and Other Higher Institutions need to teach relevant materials to increase ICT skills and promote content development. Increase number of university graduates in engineering and IT Increase ICT technical training in colleges Train new graduates and unemployed in basic ICT skills Increase computer literacy of small-business owners, not-for-profits, teachers and community groups 27
28 Specifics on Boosting Broadband Penetration 5. Operators should collaborate Operators engendered by Regulators should share infrastructure. The current scenario is that they don t share infrastructure. Specifically, mobile operators are without any doubt the mainstream thrust for broadband penetration. They should collaborate 28
29 Specifics on Boosting Broadband Penetration 6. Use Affordable Technologies Technology, fortunately, is expanding the range of options available to countries that want to promote high-speed connectivity. In addition, the good news is that contrary to infrastructure hurdles at earlier stages in history network infrastructure has much lower costs and the solution is not one that most countries will find unaffordable. 29
30 Conclusion In Summary Broadband access has become a major determinant of economic growth. It s a multiplier of economic and human development. In the case of Nigeria, the current GDP of >US$350b can exceed the projected US$900b by 2020 with expected broadband boost of every sector of the economy given political stability and fiscal dicipline. However, the one factor that could make or mar the benefit realization of the broadband connectivity infrastructure is how the PG1 and PG2 handshake in the immediate and on the long run. 30
31 For the sake of these ones, let us make digital Nigeria & Africa happen 31
32 Thank you
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